A Coordinated Approach Needed to Expedite Halal Industry Growth

A panel discussion of financial sector and industry players was about the global Halal industry, encompassing various sectors like food, textiles, tourism to healthcare.

Malaysia International Islamic Financial Center estimated Halal industry business would double in value to $6.4 trillion by 2018.

During the discussion, the moderator asked speakers whether this industry consolidation, dubbed “Halal 3.0”, can really be realized, since connectivity between Halal funding and Islamic business expansion is not quite rationalized today.

Mohammad Nazeem Noordali, General Manager for Corporate & Structured Finance at the Islamic Development Bank, said Sharia banks and financial companies should coordinate their approach to educate potential customers about their products.

He considers it ironic that the Halal industry has not relied on Halal financing for their business expansion up to today.
Akmal Saleem, Chief Executive Officer of Saudi Arabia investment company Maarij Capital, said most of the problems in financing do not come down just to a lack of knowledge about Islamic financing products, as well as a lack of ability for financial companies to see the long-term prospects offered by Halal-related businesses.

Government policies also play a significant role, as Sitta Rosdaniah, the Financial and Supporting Director at real estate developer Jakarta Industrial Estate Pulogadung, pointed out.

She said Halal industry players in Indonesia are awaiting momentum in 2017, when the country’s halal food law comes into effect, by that a wide range of consumer products, ranging from foods and drugs to cosmetics must be Halal certified.