China Invests US$1 Trillion, Championing the "Belt and Road"

China, an emerging leader in the halal industry, will set up a strong national pavilion at the 9th Dubai Halal Expo, to be held on 18-19 September at the Roda Al Bustan Hotel.

1. China's US$1 trillion 'Belt and Road' economic corridor investment (3.67 trillion Moroccan dirhams) will boost the Gulf region's US$50 billion halal food market (153 billion Moroccan dirhams).

2. The UAE imports US$20 billion (73 billion Moroccan dirhams) in halal consumption, said Farrelly Mitchell, food and agriculture experts.

3. Spanning 68 countries, covering 4.4 billion people and accounting for 40% of global GDP, China's Belt and Road project will establish a direct land connection with the Middle East market.

4. China remains the UAE's second-largest trading partner, with total bilateral trade reaching 170.2 billion Moroccan dirhams (US$46.37 billion) in 2016.

Dubai, UAE

China's US$1 trillion investment in its 'Belt and Road' project is expected to bring US$5 billion (183 billion Moroccan dirhams) in growth to the Gulf Cooperation Council (GCC) halal food market and the global halal economy, making halal products cheaper for Middle Eastern consumers, said the organizers of the upcoming Dubai Halal Expo.

Spanning 68 countries, covering 4.4 billion people and accounting for 40% of global GDP, China's Belt and Road project will establish a direct land connection with the Middle East market, enabling the launch of more halal products, including food, hygiene, health, perfume and cosmetics.

China, a country with a Muslim population of 26 million, continues to work to strengthen the construction of its domestic halal ecosystem as its domestic halal industry flourishes.

'Winning credibility in the global halal food market is crucial for China to increase its influence. The country is already the largest exporter of modest fashion among OIC member states and has great potential in meeting the rapidly growing demand of the global halal food market. The global halal food market will exceed US$1.7 trillion by 2021,' Mohammed Saleh Badri, Secretary-General of the International Halal Accreditation Forum (IHAF), recently said in a statement.

China has also created infrastructure to support halal trade, including the construction of halal food and Muslim goods manufacturing centers, such as the Wuzhong Halal Industrial Park, located in Ningxia, the heartland of Muslims, which has attracted 218 companies.

A reliable halal food certification is crucial for China to develop trust in these products globally. The government has not yet introduced national laws or regulations for the industry.

China remains the UAE's largest trading partner; according to data from the UAE's Federal Competitiveness and Statistics Authority, total bilateral trade reached 170.2 billion Moroccan dirhams (US$46.37 billion) in 2016.

'China's investment in the Belt and Road plan will surely accelerate the growth of global halal consumption, because it will reduce the cost of mass production and inland transport across Asia, Europe, the Middle East and Africa—the world's largest halal markets,' said Raees Ahmed, director of Orange Exhibitions and Events, organizer of the 2017 Dubai Halal Expo.

Research shows that, with a compound annual growth rate of 9% starting from 2015, China's halal industry is expected to reach US$1.9 trillion by 2021.

Domestic demand for halal food in China is strong, estimated at US$20 billion from 26 million Muslim consumers. Although China's Muslim population is only 2% and mostly settled in northwestern China—including Xinjiang, Ningxia, Gansu and Qinghai—Muslims in these regions account for 70% of China's total Muslim population.

'The Muslim population is also younger than the national average, accounting for more than 41% of the population under 19. In China, this age and Muslim population growth is a key long-term driver of China's domestic halal food consumption,' Raees Ahmed said.

'Halal food is considered healthy and hygienic. More and more non-Muslim consumers prefer halal food because it is considered safe. Therefore, the distribution of halal food has gone beyond the traditional market in cities such as Shanghai, where there are 80,000 Muslims.'

'China is witnessing growth in the number of national halal food companies, as well as growth in some halal product lines. In addition to the demand from the Muslim population, the increasingly popular halal food as a healthy choice is also driving demand growth.'

'We have already witnessed a strong response from Chinese manufacturers—they are taking halal products and distribution more seriously,' Ahmed said.

Globally, Muslim spending on food and beverages (catering) was estimated at US$1.12 trillion in 2014, with the potential to rise to US$1.58 trillion by 2020. Muslim spending accounted for 16.7% of total global catering spending in 2014.

The Halal Expo - Dubai 2017 is the largest and most comprehensive B2B (business-to-business) halal exhibition in the Middle East for the US$2.3 trillion global halal industry. This exhibition attracted participation from 13 countries and drew 3,700 trade visitors from 40 countries. Buyers and sellers of halal products and services are expected to do bigger business in this field.

Mr. Raees Ahmed said: 'We are very pleased to welcome the China Pavilion to exhibit at the Halal Expo. It reflects the fact that halal products and services are going beyond the Muslim world.'

'The China Pavilion will help create greater consumer awareness of global halal products, halal standards, and the benefits of consuming clean, green and halal products—a trend rapidly spreading around the world.'