Muslims Need to Follow Unified Standards As Halal Economy Grows To $7 Trillion

The halal industry, now estimated at a monumental $7 trillion, underscores a significant economic force at the global stage, emphasizing the need for robust and unified standards across its diverse sectors. This call for standardization resonated loudly at the 7th World Halal Summit, held concurrently with the 8th Organization of Islamic Cooperation (OIC) Halal Expo, where Turkey’s Vice President, Fuat Oktay, illuminated the exponential growth and the evolving challenges within the halal market.

Dig deeper: Why Do We Need a Unified Global Halal Standard?

The summit hosted a dynamic assembly of nearly 60 speakers from over 20 countries, alongside 400 companies from 35 nations, representing a wide array of industries including food, cosmetics, pharmaceuticals, chemicals, textiles, tourism, and cutting-edge technology. This impressive turnout, despite the ongoing challenges posed by the COVID-19 pandemic, is a testament to the burgeoning interest and inherent resilience within the halal sector.

Vice President Oktay pointed out the geographical and demographic expansion of the halal market. Initially concentrated in Southeast Asian nations like Malaysia and Indonesia, the halal production landscape has now broadened to include non-Muslim majority countries such as Brazil, Australia, France, Germany, and New Zealand. These nations have become some of the largest producers of halal-certified goods, catering not only to the Islamic population but also to a global demographic that values health, safety, and ethical standards in consumption.

The Turkish leadership has been pivotal in institutionalizing the halal certification process through the creation of the Islamic Countries Standards and Metrology Institute (SMIIC) based in Istanbul. This institution plays a critical role in harmonizing standards, which is further supported by the Halal Accreditation Agency (HAK), established under Turkey’s Ministry of Commerce. HAK has processed and approved over 640 halal certificates globally, which are now recognized under the rigorous standards set by SMIIC. Additionally, HAK has become a significant educational hub, providing worldwide valid training that has enhanced the competency of nearly 300 industry professionals from more than 20 countries.

However, the sector’s growth is not without its challenges. One of the primary issues highlighted by Vice President Oktay is the absence of a standardized global protocol for halal certification. The diversity in halal standards across different countries leads to fragmentation and inefficiencies, complicating global trade and undermining consumer trust. There is a pressing need for a common framework that not only addresses the varying regulations but also encapsulates the ethical, nutritional, and logistical aspects of halal certification.

Moreover, the integration of new technologies such as blockchain and artificial intelligence in tracking and verifying halal products offers a promising avenue to enhance transparency and traceability. These technologies could revolutionize the industry by providing real-time data on the sourcing, processing, and distribution of halal goods, thereby fortifying the trust between consumers and manufacturers.

As the halal industry continues its upward trajectory, the establishment of a unified regulatory framework is imperative. Such a framework would not only streamline the certification process but also enhance economic cooperation among nations. It promises greater market access, fosters a trustworthy environment, and supports the ethical and health-conscious paradigms that are increasingly becoming the hallmark of global consumption patterns.

In conclusion, as the halal market evolves, it is crucial that all stakeholders — from policymakers to industry leaders — collaborate to forge a path towards standardized, transparent, and efficient practices that can sustain this market’s growth and ensure its relevance in the global economy.