In a strategic move to expand its footprint in the global halal market and deepen trade ties with Saudi Arabia, the Philippines is set to send a comprehensive halal trade mission to the Kingdom later this month. The delegation, led by the Philippine Department of Trade and Industry (DTI), will travel to key cities including Riyadh and Jeddah from October 27 to November 5. This initiative aims to boost the Philippines’ role as an emerging player in the global halal economy, which is now valued at over $7 trillion and is rapidly expanding across sectors such as food, tourism, cosmetics, and finance.
Mission Objectives
The Philippine halal trade mission, spanning over a week, is part of a broader strategy to promote the country’s halal products and services and to strengthen economic relations with Saudi Arabia. The delegation will be composed of representatives from both government and private sectors. Key participants will include officials from the Department of Trade and Industry, the Department of Tourism, the Department of Agriculture, and members of the National Commission on Muslim Filipinos (NCMF), which oversees Muslim affairs and supports the domestic halal industry.
A significant highlight of the mission will be participation in the Saudi International Halal Expo 2024 in Riyadh, a prestigious event attracting global businesses, investors, and industry leaders. This is a crucial platform for the Philippines to showcase its diverse halal products, ranging from food and beverages to personal care and cosmetics, as well as explore new business opportunities in tourism and agriculture. According to Rommel Romato, charge d’affaires of the Philippine Embassy in Riyadh, “The Philippine halal mission to Saudi Arabia aims to effectively promote the burgeoning Philippine halal trade industry and further strengthen trade relations between the Philippines and Saudi Arabia.”
Philippine Halal IndustryThe Philippines has set ambitious goals to transform its domestic halal market and capitalize on the booming global halal economy. With around 10% of its nearly 120 million population identifying as Muslim, the country recognizes the untapped potential of the halal industry to drive economic growth and development. The halal industry in the Philippines is not limited to food production but also spans sectors such as travel, cosmetics, pharmaceuticals, and finance.
One of the main objectives of this mission is to attract investments and increase the number of halal-certified products and services. By 2028, the Philippine government aims to double its halal-certified offerings, generate around 120,000 new jobs, and attract investments of approximately 230 billion pesos ($4 billion). This economic push is aligned with the broader global trend where the demand for halal products is rising rapidly, propelled by a growing Muslim population, increasing disposable income, and heightened awareness of halal standards.
The halal economy is no longer confined to food and drink. The growth of halal tourism, modest fashion, and halal cosmetics has created diverse opportunities for Philippine businesses to expand their reach. Through international trade missions like the one to Saudi Arabia, the Philippines aims to highlight its halal-compliant sectors to a global audience, thereby establishing its role as a key supplier in this lucrative market.
Philippines-Saudi Arabia Relations
Trade relations between the Philippines and Saudi Arabia have historically been strong, and they have further deepened in recent years. Saudi Arabia is one of the Philippines’ top trade partners in the Middle East, and bilateral trade has been on the rise. In 2022 alone, the trade volume between the two countries saw a notable increase, a trend expected to continue following the trade mission.
The Philippine government recognizes Saudi Arabia as a gateway to the broader Middle East and North Africa (MENA) region. Given that Saudi Arabia has a prominent position as a global leader in halal products and services, a strong relationship with the Kingdom opens up opportunities for Philippine businesses to access a wider network of markets.
President Ferdinand Marcos Jr.’s visit to Riyadh in October 2022 marked a milestone in strengthening the economic partnership between the two nations. During his visit, a $4.26 billion investment agreement was signed with Saudi business leaders, setting the stage for increased economic cooperation and trade in the halal sector. These investments are expected to drive growth in various industries, particularly halal food and agriculture, which are among the Philippines’ core export offerings.
Earlier this year, the DTI also organized a business-matching mission to Saudi Arabia to introduce Philippine exporters of food, beverages, and personal care products to potential buyers and partners. This initiative resulted in positive business developments, and the upcoming halal trade mission aims to build on these successes by expanding the range of products and services promoted and establishing more enduring trade partnerships.
Philippines Halal Trade Mission
An important part of the Philippines’ halal strategy is to expand beyond food products to other sectors such as tourism and agriculture. Halal tourism, in particular, has been identified as a significant opportunity for economic growth. As the global Muslim population seeks destinations that align with their religious beliefs and preferences, the Philippines is developing halal-friendly tourism packages, facilities, and services to attract Muslim travelers. This includes offering halal-certified food options, prayer facilities, and accommodations tailored to Muslim needs.
Saudi Arabia, as the custodian of the two holiest cities in Islam, Mecca, and Medina, is a key partner in promoting halal tourism. By engaging with Saudi officials and stakeholders, the Philippine delegation aims to exchange ideas on how to enhance halal tourism standards and experiences, positioning the Philippines as a top Muslim-friendly travel destination in Southeast Asia.
Agriculture is another focal point of the halal trade mission. The Philippines is known for its high-quality produce, such as tropical fruits, rice, and seafood, which have significant potential in the halal market. By adopting halal standards in agriculture and food processing, the Philippines aims to tap into the global demand for halal-certified products and increase its agricultural exports to Saudi Arabia and other MENA countries.
Global Halal Market Trends
The global halal market is evolving rapidly, with consumers seeking halal-compliant products not just for religious reasons but also for their perceived quality, safety, and ethical standards. The halal food and beverage market alone is expected to grow significantly over the next few years, with a focus on organic, sustainable, and innovative products. Furthermore, the rise of halal cosmetics, pharmaceuticals, and financial products presents additional opportunities for the Philippines to diversify its halal offerings.
By participating in the Saudi International Halal Expo 2024, the Philippine delegation will have the chance to learn from international best practices, establish business connections, and explore new markets. The expo is a key networking platform, that allows Filipino businesses to connect with global buyers, investors, and industry experts. It will also provide insights into emerging trends in halal certification, product innovation, and market demand, helping the Philippines to align its products and services with international standards.
Philippines’ Halal Economy
The Philippines’ halal trade mission to Saudi Arabia is a strategic effort to strengthen trade ties, attract investments, and position the country as a significant player in the global halal market. By showcasing a diverse range of halal-certified products, engaging in discussions on tourism and agriculture, and establishing new trade connections, the Philippines is taking concrete steps to expand its halal industry both domestically and internationally.
This mission represents the Philippines’ dedication to growing its halal sector, fostering bilateral trade with Saudi Arabia, and contributing to the global halal economy’s future. With a focus on quality, compliance, and market expansion, the Philippines is poised to play a pivotal role in the booming halal trade sector, benefiting both its economy and the wider global halal market.
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