Daily Times

All around the world, Muslims have emerged as a significant consumer market for global brands. Every day, we witness Islamic branding elements’ inculcation in various product offerings of top brands such as sports hijab for female athletes or shampoos for hijab covered hair. The rapid growth of Islamic brands has been mainly attributed to the growing size and purchasing power of the global Muslim consumers, increasing adherence to Islamic ethical values in consumption behavior by global Muslims, and an increasing number of national strategies dedicated to halal products and service development by both Muslim and Non-Muslim countries. The global halal economy is predicted to generate approx. US$2.3 trillion by the year 2024, at a cumulative annual growth rate (CAGR) of 3.1%. The global halal food industry is the fastest-growing halal industry and is predicted to generate approx. US$1.38 trillion annually by 2024 at a 5-year CAGR of 3.5%.Other sectors such as Islamic finance, Muslim friendly travel, modest fashion, halal pharmaceuticals, halal cosmetics, and Islamic themed media and recreation are also progressing rapidly.

The Islamic Republic of Pakistan is a county withapprox. 96% Muslim population, which accounts for approx. 11% of the global Muslim population. The country was created on Islam’s ideology and principles and has been blessed with numerous resources for various industrial developments. Despite the vast potential for halal economic growth, Pakistan is still in the infancy stages of development. Within the global halal meat export potential of approx. US$ 3 billion; Pakistan has been able to secure only 0.25% share. This is negligible compared to the halal meat production potential of Pakistan due to various obstacles in developing the country’s halal industries. Compared to Pakistan, Malaysia currently leads the overall Global Islamic Economy Indicator (GIEI) rankings for the eighth consecutive year.

The key to tapping the global halal market is developing a standardized and mandatory halal assurance system for all industries

Malaysia is considered the world leader in terms of the development of halal standards and halal certification systems. The Malaysian government is strongly focused on the development of Islamic branding. In 1974, the Malaysian government started developing Islamic branding of industries by issuing Halal certification to halal products and services from the Islamic Affairs Division in the Prime Minister’s office. Halal Malaysia Logo was developed by the Malaysian government in 1994 and updated in 2003. It became the first country to have a formal systematic ‘Halal Assurance System’. The government has developed various halal standards for several industries such as food and beverages, cosmetics, pharmaceuticals, toiletries, etc. Malaysia is one of the few countries in the world in which the government regulates the halal certification for all industries. Issuance of the halal certification is the responsibility of JAKIM in Malaysia.The United Nations has cited Malaysia as the world’s best example in benchmarking halal food standards. The evolution of Malaysia’s halal industries is attributed to the country’s government’s support in developing the halal certification process for products and services and proactive organizational strategies by other stakeholders. The banking industry in Malaysia has launched initiatives to help the country’s halal food, small and medium enterprises (SMEs) grow and expand their presence across various global halal food industries. Muslim consumers in Malaysia depict a high level of knowledge regarding various Islamic branding issues and play a significant role in generating the demand for halal product and service development.

Pakistan can learn from Malaysia’s Islamic branding journey and capture the share of the lucrative and growing Muslim consumer market. Muslim consumers’ religious sensitivities and knowledge are increasing globally, and Pakistan needs to develop a centralized, reliable, high quality and transparent halal certification system for halal industrial development. The key to tapping the global halal market is developing a standardized and mandatory halal assurance system for all industries. Halal exports can be the solution to Pakistan’s economic woes, but this cannot be attained unless stakeholder awareness and knowledge are established. Muslim consumers in Pakistan have low levels of awareness regarding halal standards and pay little or no attention to halal certification logos on the brands they consume. Learning from halal industry leaders can lead Pakistan towards the path of halal economic development.

Syeda Nazish Zahra Bukhari and Assoc. Prof. Dr. Salmi Mohd Isa are associated with GSB, Universiti Sains Malaysia (USM), Penang, Malaysia. Syeda Nazish Zahra Bukhari is also associated with IBIT, University of the Punjab, Lahore.