SMEs Vital to Azerbaijan’s Halal Economy, Irshad Cader Asserts at AZHAB

Baku, Azerbaijan—In an address at the Azerbaijan Halal Business and Tourism Forum (AZHAB), Irshad Cader, CEO of Globothink Halal Industry Consultants, emphasized the pivotal role of small and medium-sized enterprises (SMEs) in fostering economic growth and sustainability within the global halal economy. Speaking to a diverse audience of industry leaders, government officials, and entrepreneurs, Cader outlined the opportunities and challenges facing halal SMEs in Azerbaijan and beyond.

“Azerbaijan has a unique opportunity to position itself as a key player in the global halal economy, thanks to its vibrant SME sector,” Cader remarked. He pointed out that over 99% of Azerbaijani businesses fall into the SME category, with 97.3% being micro-enterprises. This, he argued, makes SMEs critical to the country’s economic transformation under its “Azerbaijan 2030” framework.

The global halal industry, estimated to be worth USD 2.29 trillion, is one of the fastest-growing consumer sectors worldwide. While halal food remains central, pharmaceuticals, tourism, fashion, and cosmetics sectors are rapidly expanding. Azerbaijan, for instance, ranks fourth among Organization of Islamic Cooperation (OIC) countries in halal pharmaceuticals and is 20th among global halal tourism destinations, according to the Global Muslim Travel Index (GMTI) 2024.

Despite this potential, Cader stressed that halal SMEs face significant hurdles. Chief among these are access to capital and the complex, costly process of obtaining halal certification. “Many SMEs operate informally, lacking the necessary registration, which limits their ability to secure financing. This is a global issue but particularly pronounced in the halal sector,” he said.

Cader also noted that many halal SMEs are falling behind in digitalization, a key requirement in the 4th Industrial Revolution. “Without essential ICT skills and infrastructure, SMEs cannot compete effectively on the global stage,” he warned. Innovation, often overlooked due to resource constraints, is another area where SMEs must improve to thrive.

In his speech, Cader offered several recommendations for addressing these challenges. He called for stronger support from governments and Islamic financial institutions to ensure reliable access to capital for SMEs. Additionally, he advocated for capacity-building initiatives led by organizations like the Islamic Centre for Development of Trade (ICDT) and the Islamic Development Bank (IDB) to enhance workforce skills and productivity.

The halal certification process also requires urgent reform, according to Cader. He proposed that the Standards and Metrology Institute for Islamic Countries (SMIIC-OIC) work closely with halal certification bodies to simplify and standardize the process, making it more accessible and affordable for SMEs.

“Halal SMEs are the backbone of the global halal economy,” Cader concluded. “With the right support in place—financial, technological, and regulatory—these businesses can unlock immense potential for economic growth and sustainability, not only in Azerbaijan but across the entire halal industry.”

The Azerbaijan Halal Business and Tourism Forum (AZHAB) is an annual event that gathers leaders from various sectors to discuss the future of halal business in Azerbaijan and the global market. This year’s forum focused on leveraging the potential of SMEs to drive innovation, sustainability, and growth in the halal economy.