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 World Trade Fair, Accra, Republic of Ghana on the 3rd – 4th July, 2017, 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.
The Forum is a two-day event, structured around special keynote speeches, six plenary sessions and special exhibition and presentation sessions featuring guest countries, innovative companies and institutions, chambers of commerce and industries, national investment promotion agencies from African and OIC member Countries. Its five thematic pillars – Halal Economy: A New Global Market and Economic Growth; Issues, Trends and Challenges in the Development of Halal Economy; Policy Strategies for the Halal Economy: Innovative Approaches from the GCC, Asia and Europe; Africa’s Halal Economy: The Role of Tertiary Institutions; Halal Economy: an Emerging Potential for the Global Islamic Finance; Global Halal Export Market Entry Strategies – is expected to be an inspiration for participants to find efficient solutions. Each session will be approximately between 60-120 minutes in length, and will feature 2-3 key presentations. Discussants from a carefully selected set of senior professionals, scholars and practitioners will share their comments in response. The speakers will then have a chance to reply to the discussants before a wider Q&A with the Forum audience. The purpose of this format is to engage diverse perspectives on a common set of questions and ideas and to generate a thought-provoking discussion.
CONSULTATIVE MEETING OF AU-OIC PARLIAMENTARIANS
The Forum will also feature a Consultative Meeting of the parliamentarians of African countries and member countries of the OIC, which is aimed at considering the key features of the legislative basis for mutual economic cooperation between Africa, the Middle East and Asia as well as key legislative enablers for Halal Economy.
AIEF AS AN ISLAMIC INVESTMENT PLATFORM
AIEF is a Forum to share best practices, receive introductions to potential clients and partners, to be updated on the latest investments opportunities and the key growth sectors in Africa. Endowed with vast natural resources and being an emerging investment destination with huge untapped economic potentials, Africa is strategically positioned at the crossroads of the contemporary global economy. With geographical proximity, historical and cultural affinities, Africa is not only a natural economic hinterland, but also attracting growing interest from both developed and emerging economies to establish strong trade links while exploring attractive investment opportunities. Since 2000, Africa has been the second-fastest-growing region in the world; in 2012, the continent was home to six of the world’s 10 fastest-growing economies. The continent’s real GDP, at $2 trillion in 2013, though small compared with the United States’ $14.5 trillion GDP, was larger than India’s and Russia’s, and on par with that of Brazil. As the economies of countries of Africa further globalizes and expands, so are its requirements for equipment and services for major sectors such as Agriculture, Tourism, Energy, Environment, Healthcare, High-tech, Infrastructure, Transportation. Investments in these sectors will exceed hundreds of billions of dollars in the medium term.
- To bring together key stakeholders including policy makers, investors, entrepreneurs, practitioners, donors, media and civil society to enable dialogue; strengthening partnerships to advance the Halal sector in Africa and build South-South relations;
- To foster the development of an integrated food economy based on agricultural diversification, efficient agricultural production that takes advantage of innovative technologies and practices, tailored trade and investment approaches, well-functioning domestic markets and strategic conservation of food and water in Africa.
- To share and assess research done to date on the African Halal economy in order to inform advocacy strategies and economic policies in support of the African Halal sector;
- To generate critical thinking and African-centred theory on halal economy to be disseminated into international discourse and strengthen African representation in global Halal economy meetings;
- To provide a platform for African thought-leaders; fostering African leadership and positions to ensure growth and capacity within the African Halal economy sector.
- To identify and promote bankable Halal projects in Africa for investment and development.
- To establish a continental network among scientists, researchers, academicians in developing a recognized African Reference Centre in Halal Economy Research.