Bahrain’s efforts to establish a national halal system aimed at unifying and facilitating growth in halal goods and services while ensuring compliance to standards have been underlined by Industry and Commerce Minister Abdulla bin Adel Fakhro.
Speaking during the inauguration of Bahrain Halal Expo 2024 – Bridging the Gap Between Halal Industry and Islamic Finance at the Crowne Plaza yesterday, the minister said through the National Standardisation Organisation, the ministry has been working with partners in the public and private sectors and regional and Islamic organisations to adopt standards and technical regulations related to the halal sector in order to develop the infrastructure for the system.
This event is the first of its kind in the kingdom, and it bridges the gap between the halal industry and the Islamic finance sector through various methods, in addition to exploring investment opportunities in the sector and expanding horizons for entrepreneurs and SMEs.
For his part, Dr Abdullatif Al Mahmoud, president of the Islamic Association, delivered the opening speech on behalf of the organising committee, in which he called for the establishment of a review body for standards related to the halal industry and its services based in the kingdom, noting Bahrain’s successful experience in this field, as its capital, Manama, is home to the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
The halal market comprises ingredient-type segment which includes ingredients for food and beverages, cosmetics, and pharmaceuticals and the application segment includes food and beverages, cosmetics, and pharmaceuticals.
Mr Fakhro with other dignitaries and guests at the opening of the expo
The global halal ingredients market is anticipated to grow from $47.58 billion in 2020 to $72.81bn by 2028, at a CAGR of 5.42 per cent during the forecast period 2021-2028.
The halal ingredients for cosmetics is mainly obtained from the plant, soil, water, and animals which are slaughtered as per Islamic law.
In his speech, AAOIFI chairman Shaikh Ebrahim bin Khalifa Al Khalifa said there’s a huge scope for growth and transformation of halal products and services as data shows that most of the funding for the sector is provided by conventional banks as opposed to Islamic banks.
According to Khalid Al Amin, chairman of the Bahrain Chamber food wealth committee, the chamber has a history of partnerships and agreements to promote the halal industry globally.
“We are following up on the implementation of several ambitious proposals, the most important of which is the establishment of the Halal Centre under the Municipalities Affairs and Agriculture Ministry in line with the growing export requirements for markets, including Saudi Arabia, as there are requirements for obtaining the Halal certificate and the HACCP certificate in order to enter those markets,” he explained.
The chamber has also been actively spreading halal awareness by educating members on standards and transparency in product sources.
“We are seeking to make Bahrain a regional centre for exporting foodstuffs, cosmetics, and other halal products in its various forms and types, to add value to the national economy.”
The two-day expo will also discuss the role of deed issuance in mobilising capital for halal projects, along with the potential of Islamic microfinance in supporting SMEs in the halal industry.
Moreover, it will analyse trade financing mechanisms in the field of financial and banking services, explore how letters of credit are compatible with the principles of Islamic law, and explore the critical relationship between Islamic venture capital and halal startups, including SMEs.
Experts will also address regulatory frameworks, and risks in halal finance, to provide a global perspective for cooperation between Islamic financial institutions and industry players in general, in addition to providing a comprehensive understanding of the finance landscape, especially in the acquisition of existing companies and factories and converting them into halal products, and providing employment opportunities for Muslims, in both traditional and innovative ways.
avinash@gdnmedia.bh
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