The State of the Global Islamic Economy (SGIE) report, produced by the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Reuters, notes that, with the continuous increase in various reports, the global spending of the Muslim population across various sectors was just under USD 2 trillion (USD 1.9 trillion) in 2015. That same year, of the USD 1.17 trillion in spending, most went to the Halal food and beverage industry.
As the global Muslim population continues to grow, demand for Halal food is also increasing - Halal food refers to food (especially meat) that complies with Islamic law, including its source, the cause of the animal's death, and how it is handled, all of which must also comply with Halal regulations. To be sure, the report estimates the global Halal-certified food and beverage market was worth USD 41.5 billion in 2015.
Whether in Muslim-majority countries and regions or in emerging innovative industries in the market, as the supply of Halal food becomes more mainstream, the Halal food market will grow further in the future, and innovative products are also rising - for example, the Ramadan energy bar, an innovative snack bar that can help fasting Muslims maintain their energy needs from dawn to dusk. The energy bar was developed by the UK's Fajr Foods, and the manufacturer claims it has been "clinically proven" to control blood sugar for nine hours and maintain the body's energy.
In addition, the SGIE report re-evaluated the Halal Food Indicator (HFI) to assess a country's Halal food ecosystem as a benchmark. The HFI depends not only on the strength of a country's Halal food sector itself, but also on the growth potential of Halal food within each country's existing economic and social ecosystem. In the 2016 ranking, the UAE climbed to market-leading position with a score of 75, followed by Australia (63), Pakistan (56), Brazil (56) and Malaysia (55). Half of the top 10 countries are actually GCC countries: besides the UAE, Oman ranked sixth with a score of 54, while Saudi Arabia (50), Bahrain (45) and Qatar (45) took eighth, ninth and tenth. Somalia made the top-10 list, ranking seventh with a score of 51.
As one of the first industries to be a Halal-compliant commercial sector, the Halal food market is continuously maturing and attracting more equity investment, including Janan Meat in the UK (a leading UK supplier of Halal lamb and mutton), not to mention Malaysia's Dagang Halal listing on the London Stock Exchange. Likewise, Abraaj Capital and Texas Pacific Group invested USD 400 million in the Saudi Arabian fast-food chain Kudu.
In addition, the Halal food industry has also established international accreditation bodies to oversee individual certification bodies and manage the growing and increasingly complex market. This makes the Halal food sector a true cornerstone of the Islamic economy and its main and largest pillar.
This topic will be discussed at the 2016 Global Islamic Economy Summit (GIES), to be held on October 11 and 12 at the Jumeirah hotel in Dubai. GIES is the premier forum for the Islamic economy in the Middle East, organized by the Dubai Chamber of Commerce and Industry and the Dubai Islamic Economy Development Centre, with Reuters as its strategic partner.