Monday, October 27, 2014

Development agencies in the UAE and Malaysia sign MoUs to galvanize formation of a global Halal network


Islamic Finance news Alert

Monday, 27th October 2014

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GLOBAL: Dubai Exports, the export promotion agency of the Dubai-based Department of Economic Development, in partnership with the Dubai Islamic Economic Development Center and the Malaysia-based Halal Development Corporation, has signed a series of MoUs and agreements with trade hubs and jurisdictions across the world.

The signings come as part of a major push by the organizations to develop cross-border trade of Halal-certified products, in order to aid the development of a global Halal trade network with common standards. The agreements hope to maximize the potential of the industry, as outlined by Jamil Bidin, the CEO of Halal Industry Development Corporation: “Halal is not merely a way of life, it is a global industry worth billions of US dollars. The Halal trade network will provide manufacturers, distributors, retailers, entrepreneurs, researchers and investors all the necessary assistance to penetrate the global Halal market.”

As Mohammed Al Gergawi, the chairman of Dubai Islamic Economy Development Center explains, the aim behind the signing of the MoUs and agreements is the formation of a global Halal network that will strengthen bilateral trade between developed and developing Muslim majority countries. The intention is to create an immediate boost in the volume of Halal products traded, resulting in an increase in foreign exchange earnings and the generation of new jobs. “The Halal industry is at the heart of Dubai’s vision for the global Islamic economy. This series of hub-to-hub agreements provides a solid foundation on which to drive the development of the Halal sector and encourage cross-border Halal trade, which, in turn, will generate significant investment opportunities for major international, regional and local businesses.”

Demand for Halal products is expected to grow by 15-20% over the next five years and a number of unconventional markets have tapped into the Halal market to be able to benefit from the industry’s growing demand. Countries including Australia, France, India and Thailand are among the top exporters of Halal products, contributing to a global Halal food industry that is estimated to worth US$667 billion, accounting for 20% of global food trade, with the total Halal market valued at US$2.3 trillion by the World Halal Forum. Al Gergawi elaborates: “The Halal sector is poised for significant growth over the next five years. This initiative will significantly strengthen economic activity, not just in Muslim majority countries but also in countries, such as New Zealand and Brazil, that have significant Halal-based industries. It also firmly positions Dubai as a leader in the development of the Islamic economy.”


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