Why halal standards need to be institutionalized
Food and beverages account for 67 per cent
of the global halal market.
(File photo)
This will help drive the growth and
regulation of the halal industry
Every economic system needs a cultural and
academic framework that sets standards for product quality and outlines its
ultimate objectives. Customer confidence in products and production processes
depends on their trust in the standards that these comply with, their alignment
with the interests and rights of consumers and their responsiveness to the
evolving needs of consumers.
It is to verify quality and gain the
confidence of consumers that markets have throughout history sought to unify
standards.
The issue of standardisation becomes a
crucial priority for any new economic system or an existing one that seeks to
gain credibility and uptake. Having achieved significant strides since the
launch of the Dubai: Capital of Islamic Economy initiative in 2013, the Islamic
economy today is at a crossroads as it seeks expand its offerings and foray
into uncharted shores.
When it comes to standardisation for
Islamic economy, the most important questions for us to address include: What
is the difference between halal standards and other international standards?
Why do we need distinctive halal standards? Also, what value can halal
standards add to our efforts to drive the Islamic economy?
Although conventional quality standards
have always had the right intentions, they have not been stringent enough. On
the other hand, instead of verifying the quality of a product at the point of
entering the market, halal standards ensure quality from the beginning of the
production process, encompassing all aspects, such as preservation of human
rights, protection of health and conservation of resources and the environment.
This is the first difference between the two.
Secondly, instead of trying to beat
competitors or impede their market access, competition in the Islamic economy
aims to safeguard the consumers' interests, and that can only be achieved
through the production of goods and provision of services that integrate a high
degree of security and safety at the lowest possible cost.
The third difference has been the variation
in conventional quality standards due to the absence of a unified international
umbrella. I am pleased to share that through the joint efforts of the strategic
partners of the Dubai: Capital of Islamic Economy initiative - the Global Halal
Industry Platform and the International Halal Accreditation Forum - the Islamic
economy is well on track to ensuring such an umbrella with its stakeholders
collectively adopting the highest consumer-friendly standards for quality
control worldwide.
The fourth difference is the adherence of
the global halal industry to international social security as well as food and
health security standards. In 2017, we appealed to our private sector partners
to prioritise investment in the production of safe food, provision of advanced
medical treatment, facilitation of modern education and building
state-of-the-art infrastructure. These sectors bring tremendous opportunities,
as basic goods and services are always in high demand.
When it comes to boosting the halal
industry, we need to acknowledge the importance of standards and their global
institutionalisation. The Emirates Authority for Standardisation and Metrology
reports that the halal industry has grown by 8 per cent year on year, and the
global halal market is valued at about $2.3 trillion, with food and beverages
accounting for 67 per cent.
This astonishing growth is due to the fact
that the halal industry is constantly expanding to include new types of
products, such as equipment, building materials, electronics and other
commodities. All these products can enter the halal system based on the
criteria applied in their production and the extent of the producers'
compliance with the protection of resources, fair utilisation of human capital
and reasonable pricing.
The expanding partnerships between the
Dubai: Capital of Islamic Economy initiative and entities in markets such as
Asia, Latin America and Europe, are also set to boost the volume of halal
production.
The decisive factor that can drive the
growth and regulation of the halal industry is the overall institutional
development of the sector. We must create a global network of organisations and
companies operating in the Islamic economy domain to enable them to access
unified quality standards and in-depth knowledge of markets and consumers.
The growing demand for halal products among
all segments of society, regardless of religion and ethnicity, will enable the
industry to capture a significant share of the global business.
The writer is CEO of Dubai Islamic Economy Development
Centre. Views expressed are his own and do not reflect the newspaper's policy.
Link->https://www.khaleejtimes.com/business/economy/why-halal-standards-need-to-be-institutionalised |