A sleeping giant, halal industry can fetch huge forex

The halal industry is expanding at a tremendous pace globally. Market analysis suggests that the global halal economy, which includes food, pharmaceuticals, fashion, cosmetics, finance, logistics and tourism, may reach US$9.7 trillion by 2030. Of this, the halal food industry alone may account for over $2.8 trillion due to the rising Muslim population, shift in consumer behaviour and rising health awareness among consumers.

Muslim-majority nations such as Malaysia, Indonesia, Turkey, and even a few non-Muslim-majority nations like Japan and Brazil have capitalised on this by setting up a holistic halal certification system, export strategies and halal trade platforms. However, Bangladesh, a Muslim-majority nation, is falling behind in this regard though the country has the potential to emerge as a major player in this highly promising industry.

It has an extensive agricultural sector, growing manufacturing industry, and rising middle class. The country is already a major producer of major halal products such as chicken, cattle, spices, rice, and seafood. Its garment and textile manufacturers have already gained a sizeable market share worldwide and with a proper halal certification mechanism and branding, it can easily enter the halal fashion markets while the rising local pharmaceutical industry can offer a great opportunity for grabbing a portion of the halal drug market.

Despite having such potential, the halal industry in Bangladesh is in its infancy due to a lack of proper regulations, certification systems and connectivity between halal producers and the global value chain. The local halal food manufacturing industry primarily caters to the local market and their products are not yet certified as halal by international standards. Small and medium enterprises (SMEs), which form the backbone of the country's food processing industry, do not have the required knowledge, infrastructure and finance to meet the stringent halal requirements for exports.

One of the major issues is that there is no standardised and globally recognised halal certification system. The need for a credible halal certification body is essential for the country to venture into markets where there is a huge demand for halal products. Yes some efforts have been made, yet there is a need for a national-level halal body with good governance, transparency, and international standards to ensure global recognition.

The stakeholders in Bangladesh, including the government, are aware of the potential of the halal economy. According to media reports, the Ministry of Commerce and the Ministry of Industries have made some efforts to encourage halal certification, promote SMEs and integrate halal factors into export plans while the Bangladesh Investment Development Authority (BIDA) has shown interest in foreign investment in halal food parks, cold chain logistics, and halal testing labs. However, the pace has been slow.

The economic potential of halal industry for Bangladesh is enormous. By branding itself as a trustworthy halal food and product producer, Bangladesh can expand its export basket beyond the conventional apparel sector. The halal food industry alone has the potential to earn billions of dollars from exports.

The demographic advantage of the country makes this opportunity even more attractive. With its large young population increasingly receiving formal education and getting connected to the globalised world, there is the potential for innovation in the areas of halal product development, online marketing, and e-commerce.

However, these opportunities will not come to Bangladesh automatically. The country will require combined efforts of policymakers, regulators and entrepreneurs to harness the potential. There will be a need for a comprehensive and integrated approach which should include the establishment of a national halal authority, investment in certification infrastructure, development of halal trade platforms, support for SMEs for export development and enhancement of halal education and research. A halal strategy is more than a certificate; it is an opportunity to make Bangladesh a credible, competitive and trusted source of halal products and services for the international market.

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