Sheikh Abdullah bin Saleh Kamel, a key figure in the Islamic business world and chairman of both the Islamic Chamber of Commerce and Development and the Makkah Chamber of Commerce and Industry, has unveiled an ambitious plan to position Saudi Arabia as the epicenter of the global halal economy. Addressing the recent Investment Forum in Madinah, Sheikh Kamel announced that work is underway to develop a groundbreaking halal certification modeled on the globally recognized ISO standards.
This ISO-Inspired Global Halal Certification aims to bring uniformity, transparency, and trust to a market that is rapidly expanding across various sectors.
The Growing Global Halal Market
The halal market, which spans food, cosmetics, pharmaceuticals, fashion, and tourism, is valued at over $2 trillion globally. With a consumer base of 1.6 billion Muslims worldwide, it is a sector ripe with potential. According to a recent report by the State of the Global Islamic Economy, the halal economy is projected to grow at an annual rate of 6.2% through 2026, driven by increasing Muslim populations, heightened consumer awareness, and a surge in halal-friendly innovations.
Remarkably, a significant share of this market is being captured by non-Muslim-majority countries such as Brazil, Thailand, and Australia, which have become major exporters of halal-certified products. For instance, Brazil alone accounted for over $16 billion in halal meat exports in 2022, showcasing its dominant role in the industry.
Sheikh Kamel emphasized the need for Saudi Arabia to reclaim leadership in this space: “During the past period, some countries have begun to take a share of this market, many of which are non-Islamic countries. It is time for Saudi Arabia, with its unique religious and cultural standing, to assert itself as the foremost global hub for halal products and services.”
While halal is often associated with food, Sheikh Kamel highlighted its vast reach across multiple industries. “Halal is not limited to food only,” he explained, “but extends to several sectors, most notably tourism and cosmetics. We look forward through this halal initiative to capture a significant percentage of this market within Saudi Arabia, particularly in the holy cities of Makkah and Madinah.”
Halal tourism is among the fastest-growing sectors within the halal economy. In 2023, the global halal tourism market was valued at approximately $190 billion and is expected to surpass $300 billion by 2030. This growth is fueled by an increasing number of Muslim travelers seeking destinations that cater to their dietary, cultural, and religious needs.
Saudi Arabia’s unique position as the custodian of Islam’s two holiest cities makes it a prime destination for Muslim travelers. Recent initiatives such as the introduction of e-visas for Umrah pilgrims and the expansion of pilgrimage infrastructure demonstrate the kingdom’s commitment to becoming a leader in halal tourism. In addition, plans are underway to develop halal-certified resorts, hotels, and cultural experiences that align with Islamic values.
The global halal cosmetics market is another burgeoning sector, projected to reach $90 billion by 2030. As consumers become more conscious of ethical and religious compliance, halal-certified beauty products are gaining traction. Saudi Arabia, with its robust regulatory framework and commitment to high standards, is well-positioned to capitalize on this growing demand.
The halal pharmaceuticals and healthcare sectors are poised to grow significantly, addressing a long-standing demand for products free from haram ingredients. This includes medicines, supplements, and even medical devices that comply with Islamic principles. Recent advancements in halal-certified vaccines and surgical products are setting new benchmarks, and Saudi Arabia’s involvement could further elevate its global standing.
Investments in Saudi Arabia’s Holy Cities
Saudi Arabia’s unique status as the birthplace of Islam and home to the holy cities of Makkah and Madinah gives it an unparalleled advantage in the halal market. The halal certification initiative aims to leverage this religious and cultural heritage to attract global investments and partnerships. Sheikh Kamel noted that the Islamic Chamber of Commerce is collaborating with the Chambers of Makkah and Madinah to promote halal-focused investments in these sacred cities.
These investments are expected to spur economic growth, create jobs, and enhance Saudi Arabia’s global standing as a hub for halal products and services. Projects such as the expansion of the King Abdulaziz International Airport in Jeddah and the development of state-of-the-art logistics centers further underscore the kingdom’s commitment to facilitating halal trade.
Infrastructure Development
In addition to tourism and trade, real estate development in Makkah and Madinah is being aligned with the halal initiative. Luxury hotels, shopping malls, and cultural centers tailored to Muslim visitors are being constructed to provide seamless halal experiences. These projects are part of Saudi Arabia’s broader strategy to integrate religious tourism with economic growth.
Qualitative Partnerships
A cornerstone of this initiative is the formation of strategic partnerships. Sheikh Kamel announced that the Islamic Chamber is set to collaborate with the Halal Products Development Company (HPDC), a subsidiary of the Public Investment Fund (PIF). These partnerships are expected to solidify by 2025, positioning Saudi Arabia as the global destination for halal products and services.
HPDC’s role will be pivotal in developing high-quality halal products across various sectors, ensuring they meet international standards. This move aligns with Saudi Arabia’s Vision 2030, which prioritizes economic diversification and global competitiveness. By fostering partnerships with multinational corporations, research institutions, and halal certification bodies, Saudi Arabia aims to drive innovation and set new benchmarks in the halal industry.
ISO-Inspired Global Halal Certification
The introduction of an ISO-Inspired Global Halal Certification could revolutionize the halal market. By adopting a standardized approach similar to ISO, this certification will:
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Enhance Consumer Confidence: Establishing uniform standards ensures that consumers worldwide can trust the authenticity and quality of halal-certified products.
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Streamline Global Trade: A unified certification system will reduce barriers to trade, enabling Saudi products to reach international markets more efficiently.
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Encourage Innovation: Companies will be incentivized to develop innovative halal products and services, from sustainable packaging to halal-friendly fintech solutions.
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Support Sustainability: Standardized halal practices can promote ethical sourcing, eco-friendly production, and waste reduction, aligning with global sustainability goals.
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Increase Inclusivity: Non-Muslim consumers who value ethical and clean-label products will also be drawn to halal-certified items, further expanding the market’s reach.
Saudi Arabia’s Role
Sheikh Kamel’s announcement reflects Saudi Arabia’s ambition to be at the forefront of the global halal economy. The kingdom already plays a significant role as a key exporter of halal products, particularly in the food sector. With the new certification and strategic partnerships, Saudi Arabia aims to dominate other segments, including pharmaceuticals, cosmetics, and halal logistics.
In addition, the kingdom’s ongoing investments in halal tourism, such as the development of Muslim-friendly resorts and pilgrimage infrastructure, further reinforce its leadership aspirations.
Efficient logistics are critical to the halal supply chain. Saudi Arabia’s geographic location at the crossroads of Europe, Asia, and Africa makes it a natural hub for halal trade. Investments in logistics centers, cold storage facilities, and halal-certified transportation networks are set to position the kingdom as a leader in this vital sector.
Challenges
While the halal market presents enormous opportunities, it also comes with challenges. Establishing global standards requires collaboration between governments, certification bodies, and industry players. Additionally, educating consumers about the benefits of standardized halal certification will be critical to its success.
Saudi Arabia, however, is well-positioned to address these challenges. With its strong governmental support, robust infrastructure, and strategic geographic location, the kingdom has the tools to lead the global halal market into a new era.
Leveraging technology will be key to the success of the ISO-Inspired Global Halal Certification. Blockchain, for instance, can enhance traceability and transparency in halal supply chains. By integrating blockchain technology, Saudi Arabia can ensure that halal products meet stringent quality standards from farm to fork.
Artificial intelligence and machine learning can also play a role in streamlining certification processes, improving efficiency, and reducing costs for businesses seeking halal certification.
To ensure widespread adoption and understanding of the new certification, Saudi Arabia plans to launch global educational campaigns. These initiatives will target businesses, consumers, and regulators, highlighting the benefits of uniform halal standards and the kingdom’s role in promoting ethical practices.
A New Chapter for Halal Certification
Sheikh Abdullah Kamel’s vision for an ISO-Inspired Global Halal Certification marks a significant step forward for Saudi Arabia and the global halal economy. By leveraging its unique cultural and religious position, the kingdom is poised to set new benchmarks for quality, innovation, and trust in the halal market.
As the world watches, Saudi Arabia’s efforts could reshape the halal landscape, creating a unified, transparent, and thriving global economy that caters to the needs of 1.6 billion Muslims and beyond. With strategic investments, technological advancements, and strong leadership, the kingdom is well on its way to becoming the ultimate global hub for halal products and services.
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