Why halal standards need to be institutionalized

Food and beverages account for 67 per centof the global halal market.

(File photo)

This will help drive the growth andregulation of the halal industry

Every economic system needs a cultural andacademic framework that sets standards for product quality and outlines itsultimate objectives. Customer confidence in products and production processesdepends on their trust in the standards that these comply with, their alignmentwith the interests and rights of consumers and their responsiveness to theevolving needs of consumers.

It is to verify quality and gain theconfidence of consumers that markets have throughout history sought to unifystandards.

The issue of standardisation becomes acrucial priority for any new economic system or an existing one that seeks togain credibility and uptake. Having achieved significant strides since thelaunch of the Dubai: Capital of Islamic Economy initiative in 2013, the Islamiceconomy today is at a crossroads as it seeks expand its offerings and forayinto uncharted shores.

When it comes to standardisation forIslamic economy, the most important questions for us to address include: Whatis the difference between halal standards and other international standards?Why do we need distinctive halal standards? Also, what value can halalstandards add to our efforts to drive the Islamic economy?

Although conventional quality standardshave always had the right intentions, they have not been stringent enough. Onthe other hand, instead of verifying the quality of a product at the point ofentering the market, halal standards ensure quality from the beginning of theproduction process, encompassing all aspects, such as preservation of humanrights, protection of health and conservation of resources and the environment.This is the first difference between the two.

Secondly, instead of trying to beatcompetitors or impede their market access, competition in the Islamic economyaims to safeguard the consumers' interests, and that can only be achievedthrough the production of goods and provision of services that integrate a highdegree of security and safety at the lowest possible cost.

The third difference has been the variationin conventional quality standards due to the absence of a unified internationalumbrella. I am pleased to share that through the joint efforts of the strategicpartners of the Dubai: Capital of Islamic Economy initiative - the Global HalalIndustry Platform and the International Halal Accreditation Forum - the Islamiceconomy is well on track to ensuring such an umbrella with its stakeholderscollectively adopting the highest consumer-friendly standards for qualitycontrol worldwide.

The fourth difference is the adherence ofthe global halal industry to international social security as well as food andhealth security standards. In 2017, we appealed to our private sector partnersto prioritise investment in the production of safe food, provision of advancedmedical treatment, facilitation of modern education and buildingstate-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 halalindustry, we need to acknowledge the importance of standards and their globalinstitutionalisation. The Emirates Authority for Standardisation and Metrologyreports that the halal industry has grown by 8 per cent year on year, and theglobal halal market is valued at about $2.3 trillion, with food and beveragesaccounting for 67 per cent.

This astonishing growth is due to the factthat the halal industry is constantly expanding to include new types ofproducts, such as equipment, building materials, electronics and othercommodities. All these products can enter the halal system based on thecriteria applied in their production and the extent of the producers'compliance with the protection of resources, fair utilisation of human capitaland reasonable pricing.

The expanding partnerships between theDubai: Capital of Islamic Economy initiative and entities in markets such asAsia, Latin America and Europe, are also set to boost the volume of halalproduction.

The decisive factor that can drive thegrowth and regulation of the halal industry is the overall institutionaldevelopment of the sector. We must create a global network of organisations andcompanies operating in the Islamic economy domain to enable them to accessunified quality standards and in-depth knowledge of markets and consumers.

The growing demand for halal products amongall segments of society, regardless of religion and ethnicity, will enable theindustry to capture a significant share of the global business.

The writer is CEO of Dubai Islamic Economy DevelopmentCentre. Views expressed are his own and do not reflect the newspaper's policy.

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