The growth of the Global Halal economy represents a significant market potential not only in Muslim countries but also in western markets with significant and growing Muslim populations among whom Halal observance is on the increase. Given that Halal is a vital component affecting the daily lives of 1.8 billion people, comprising 1.6 billion Muslims and 0.2 billion non-Muslims worldwide, the potential market is indeed massive. Current consumer trend shows that worldwide demand for Halal products and services are not restricted as consumers also consist of people from diverse races and religious beliefs, thus providing a huge boost to the halal industry.
The Global Halal economy has been valued at approximately USD3.2 trillion in 2012, and with an annual growth of 20%, it is forecasted to double to USD6.4 trillion by the year 2018. The Global Halal economy covers sectors and products ranging from banking and finance to prepared and processed foods. The attraction of the Halal economy is even more compelling when one considers that its present global market value is merely a conservative estimate with a tremendous upside when taking into account of the non-food consumables sector such as fashion, pharmaceuticals, toiletries, healthcare and cosmetics; the services sector especially finance and banking, real estate, hotels, travel and tourism; Spin-off and ancillary activities such as research & development, logistics, packaging & handling, audit, & certification as well as the potential increase in purchasing power of Muslims, most of whom live in emerging market countries with high growth prospects.
With more than 60 percent of the world’s arable land, and Agriculture accounting for 32% of its GDP, and over 1 billion population with considerable purchasing power, Africa possesses an enviable Halal market, and a tremendous untapped market potential in the global Halal market. In addition to the domestic market, Halal economy offers to African countries a feasible option and new opportunities to leapfrog into emerging high-growth areas of the global economy.
Recognising Halal economy as one of the most strategic and dynamic emerging sectors in world trade the Africa Islamic Economic Foundation (AFRIEF) is pleased to announce the Africa Islamic Economic Forum (AIEF) scheduled to take place in Kano, Federal Republic of Nigeria on the 12th -13th December, 2016, under the theme: Halal Economy: an Engine for Economic Growth and a Mechanism for Diversifying Economies in Africa.
The principal goal of the Forum is to open up a policy debate about the drivers of the Halal Economy and to assist African Governments in articulating a development strategy that can optimize the economic potential of the Halal business sector for job creation, trade expansion and social inclusion in Africa.In addition to reviewing current policies in these areas, the Forum will map the sectors and sub-sectors of the African Halal economy in order to understand what exists, where the value chain for each is concentrated, what possibilities exist to support and expand the varying sectors, as well as the emerging and informal, in order to develop and maximize Africa’s potential for tapping into the USD$3 trillion plus Global Halal economy.