Introduction to the Global Halal

Industry and its Services

Darhim Dali Hashim
Chief Executive Officer, International Halal Integrity
Alliance (IHIA)
Malaysia

The First Gulf Conference on Halal Industry and its Services

24-26 January, 2011
Holiday Inn Hotel, Al-Salmiyah, State of Kuwait
 ‫ﻣﻘﺪﻣﺔ ﺣﻮل ﺻﻨﺎﻋﺔ اﻟﺤﻼل وﺧﺪﻣﺎﺗﮫ اﻟﻌﺎﻟﻤﯿﺔ‬

‫دارھﯿﻢ داﻟﻲ ھﺎﺷﻢ‬

‫اﻟﺮﺋﯿﺲ اﻟﺘﻨﻔﯿﺬي‪ ،‬ﻣﺆﺳﺴﺔ اﻟﺘﺤﺎﻟﻒ اﻟﺪوﻟﻲ ﻟﺘﻜﺎﻣﻞ اﻟﺤﻼل‪ ،‬ﻣﺎﻟﯿﺰﯾﺎ‬

‫ﻣﺆﺗﻤﺮ اﻟﺨﻠﯿﺞ اﻷول ﻟﺼﻨﺎﻋﺔ اﻟﺤﻼل وﺧﺪﻣﺎﺗﮫ‬

‫‪ ٢٦-٢٤‬ﯾﻨﺎﯾﺮ ‪٢٠١١‬‬
‫ﻓﻨﺪق ھﻮﻟﯿﺪي إن – اﻟﺴﺎﻟﻤﯿﺔ – دوﻟﺔ اﻟﻜﻮﯾﺖ‬
 CONTENT

> THE GLOBAL HALAL MARKET

> ANALYSIS OF GCC MARKET
> CHALLENGES IN THE HALAL INDUSTRY
> HALAL STANDARDS AND CERTIFICATION
> ABOUT IHI ALLIANCE

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 THE GLOBAL
HALAL MARKET

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 GLOBAL HALAL MARKET-
MUSLIM CONSUMERS
• World Muslim Population
– Muslim population is increasing at the rate of 1.84% (by Carniege
Endowment for International Peace)
– The Muslim population in 2009 is estimated at 1.628 billion
World Population Muslim Muslims
Continent
2008 Population by (%)
Africa 967 462.36 47.81
Asia 4,050.6 1,103.75 27.24
Europe 735.2 51.46 7.0
North America 331.7 7.13 2.19
South America 576.85 2.41 0.42
Oceania 33.54 0.50 1.49
Total 6,694.89 M 1,627.61 M 24 %
Source: http://www.islamicpopulation.com, Pop. Data - 2009 CIA World Factbook 5
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 GLOBAL HALAL MARKET-
MUSLIM CONSUMERS
• Estimated Size of Global Halal Food Market
World Population Per Capita Food Halal Market Value
Continent
2008 Expenditure (USD)
Africa 462.36 250 115,590
Asia 1103.75 400 441,500
Europe 51.46 1,250 64,325
North America 7.13 1,750 12,478
South America 2.41 500 1,205

Oceania 0.50 1,500 750

Total 1,627.61 M USD 635,848 M

Source: http://www.islamicpopulation.com, Pop. Data - 2009 CIA World Factbook

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 GLOBAL FOOD MARKET SIZE &
GLOBAL HALAL FOOD MARKET SIZE*

Global Food Expenditure by Continent, 2009 Total Halal Food Expenditure by Continent, 2009

American
AFRICAN Oceania
Europe Countries African
EUROPEAN COUNTRIES 0.2%
Countries 2.5% Countries
COUNTRIES 7.1%
AMERICAN 10.2% 23.8%
29.7%
COUNTRIES
26.8%

OCEANIA
COUNTRIES
ASIAN 1.4%
COUNTRIES Asian Countries
35.0% 63.3%

Total Global Food Market Size: Total Halal Food Market Size:
US$ 3,992 Billion US$ 635 Billion

Muslims who make up 24% of population are only

consuming 16% of food globally
* Estimated Figure

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 GLOBAL HALAL MARKET-
POTENTIALS OF HALAL
• Halal New Potential Growth Clusters (2009)
Potential Values for Halal Market
New Clusters
( Based on 5% of Global Trade)
Logistics US$ 0.17B *

Agricultural US$ 41.5B **

Islamic Finance US$ 25.0B ***

Cosmetics/Personal Care US$ 177B φ

Pharmaceuticals US$ 30.0B φφ

Travel Industry US$ 0.13B φφφ

Total Values for Halal New Growth
US$ 274.1 Billion
Clusters

Source: * Cass Logistics Annual State Logistics Report, Piper Jaffray Research, ** FAO Stats 2007, *** Gulf Daily News 2007,
Moody’s Investors Services, φ Halal Journal 2009, φφ Frsot & Sullivan 2006, φφφ S-Smith, B., Chiozza, E., Edin. M.
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 ANALYSIS OF
GCC MARKET

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 MARKET ASSESSMENT:
GCC COUNTRIES
The GCC countries, Saudi Arabia, the United Arab
Emirates (UAE), Kuwait, Oman, Bahrain and Qatar, have
among the highest economy and gross domestic
product (GDP) per capita amongst other OIC
(Organization of the Islamic Conference) member
countries.

The total consumption or market size of Halal food products in the GCC countries
reached US$38.3 billion in 2004; continued to increase to US$43.8 billion in 2009, and
is projected to reach USD44.9 billion in 2010.

The self-sufficiency level is generally less than 10 percent, except Saudi Arabia (40
percent), which means total imported food can easily stand at US$30 to US$35 billion
annually.

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 IMPORT OF HALAL MEAT AND
MEAT-BASED PRODUCTS
BREAKDOWN OF HALAL MEAT TYPES OF HALAL
IMPORT INTO GCC (2007) MEAT IMPORTED

Note: Total Halal meat imports into GCC in Note: Total meat imported amounted to 1.37
2007 amounted to US$2.3 billion million MT

Data taken from THE HALAL JOURNAL’S GLOBAL HALAL FOOD MARKET REPORT / FIRST EDITION / MARKET INTELLIGENCE SERIIES #1 / VOLUME 3

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 SOURCES OF IMPORTED
HALAL MEAT IN GCC
SOURCES OF HALAL MEAT SOURCES OF HALAL POULTRY
IMPORTS INTO GCC COUNTRIES MEAT IMPORTS INTO GCC
(2007) COUNTRIES (2007)

Data taken from THE HALAL JOURNAL’S GLOBAL HALAL FOOD MARKET REPORT / FIRST EDITION / MARKET INTELLIGENCE SERIIES #1 / VOLUME 3

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 CHALLENGES IN
THE HALAL INDUSTRY

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 GLOBAL HALAL CERTIFICATION
ORGANISATION OF ISLAMIC
AND REGULATORY
CONFERENCE ISSUES
(OIC)
• In almost all countries, Halal is
a religious issue. Hence, the
state will not intervene;
• At most, Halal is regulated
under the labeling law;
• Halal certification, therefore, is
conducted by many agencies/
associations/councils/
federations, etc;
• No unified Halal standard and
its associated logo.

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 CHALLENGES IN THE HALAL
INDUSTRY
• The Halal market is global…
• BUT Halal is interpreted differently in
different countries
• Negative perception of
Halal/Islamaphobia
• Lack of availability of Halal certified
food in non-OIC countries
• Food science & technologies not
sensitive to Halal matters
• Most traded Halal products imported
from non-OIC countries
• The OIC is a net overall importer of
Halal food
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 CONSUMER AWARENESS
• Research conducted by the World Halal Forum indicated that the awareness
level has expanded beyond meat and meat-based products to other food
products, even to cosmetics and pharmaceutical products.
• While awareness is increasing, the understanding of ‘Halal’ or ‘what is Halal’
has become polarized which leads to different interpretations causing
confusion, misunderstanding and even fraud by certain individuals and bogus
associations “selling” Halal certificates (ASIDCOM research).
• The second and third generations of Muslims in Western countries have shown
a higher Halal awareness level than their elder generation and constantly
seeking trusted Halal logo/labels to ensure integrity.
• In the world’s most discerning markets such as in Europe, Muslim consumers
also expect issues such as animal welfare, biodiversity, eco-ethical, fair trade
and socially responsible, to be taken into account and embodied within the
whole Halal production chain.

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 HALAL HAS GONE MAINSTREAM
• Halal logo has now become a symbol of quality and
religious compliance and this makes it sound as the
new green.
• McDonald’s in Singapore has seen an influx of eight
million patrons a year after obtaining a Halal
certification.
• Since being certified Halal, KFC, Burger King and Taco
Bell have all seen an increase of 20 per cent in
customers
• Halal has also been extended to downstream products
and services such as cosmetics and pharmaceuticals,
hygiene products and nutritional supplements, travel,
art, music and books; even marriage and finance

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 HALAL STANDARDS
AND CERTIFICATION

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 MS1500:2004

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 FRAMEWORKS FOR HALAL
FOOD REGULATION
COUNTRY MODEL REGULATORY INSTRUMENTS

LEGISLATION OFFICIAL STANDARDS CERTIFICATION

(YES/NO) (YES/NO) (GOVERNMENT/SEMI-
GOVERNMENT/PRIVATE)

AUSTRALIA PUBLIC - PRIVATE YES NO GOVERNMENT & PRIVATE

AUSTRIA PRIVATE NO YES PRIVATE

BRUNEI PUBLIC YES YES GOVERNMENT

Food business Food business
PRIVATE NO NO
CANADA operator operator PRIVATE
CHINA PUBLIC NO YES GOVERNMENT

FRANCE PUBLIC - PRIVATE NO NO PRIVATE

INDONESIA PUBLIC – PRIVATE NONE NONE SEMI-GOVERNMENT

MALAYSIA PUBLIC YES YES GOVERNMENT

NEW ZEALAND PUBLIC -PRIVATE YES YES PRIVATE

PHILIPPINES PRIVATE NO YES PRIVATE

SINGAPORE PUBLIC YES YES GOVERNMENT

20
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 ISSUES OF CONTENTION IN
HARMOISING HALAL
STANDARDS

ISSUES SOLUTION

1. GELATINE ?

2. SLAUGHTER BY AHL AL-KITAB ?

3. MECHANICAL SLAUGHTER ?

4. PRE-SLAUGHTER STUNNING ?

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

HALAL CBs – CURRENT SCENARIO

Number of Halal Certification Bodies by Region

SOUTH
NORTH AMERICA Over 300
AMERICA 4%
19%
ASIAN
Halal CBs in
16%
AFRICA
4%
operation,
however
AUSTRALASIA
34% only 33% are
registered
EUROPE legal bodies
23%
Total of 34 countries surveyed : 107 Organizations

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 ROLE OF IMPORTING
AUTHORITY - MALAYSIA
Extract:
ANIMALS RULES 1962
1. An inspection must be carried out once every two years.
2. The Department of Veterinary Services, Malaysia and the
Department of Islamic Development Malaysia (JAKIM) must
inspect all meat products that are to be transported into the
country.
In conjunction with approval of exporters of animals derived
products, JAKIM also reviews and approves the relevant Halal
CBs

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 RECOGNISED HALAL CBs
IN MALAYSIA
South America
8% North America
Australia/Oceania
6%
30%
Africa
6%s

Europe
22 CBs

Asia
28% CBs Total No. of CBs recognised : 50

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 ROLE OF IMPORTING
AUTHORITY - INDONESIA
Extracts:
DECREE OF THE INDONESIAN COUNCIL OF ULAMA (ICU)
Regarding
LIST OF APPROVED FOREIGN HALAL CERTIFICATION BODY
D-410/MUI/X/2009
BOARD OF CHAIRMEN OF MAJELIS ULAMA INDONESIA
Considering:
a. That one of MUI duty is to protect Indonesian Muslims consumer from
unlawful (non-Halal) food, drinks, medicines, and cosmetics;
b. That to implement the duty of point a, technically MU1 delegates to The
Assessment Institute for Food, Drugs, and Cosmetics-ICU (LPPOM MUI) do
together with Fatwa Commission-ICU (Komisi Fatwa-MUI);
c. That to streamline and support duty of LP POM MU1 and Komisi Fatwa-MU1
for conducting of point a and b, it is necessary to stipulate the list of
approved foreign Halal certification body;
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 RECOGNISED HALAL CBs
IN INDONESIA
South America
6% North America
Australia / Oceania
24.5%
24.5%

Africa
2%

Europe Asia
18.5% 24.5%

Total No of CBs recognised: 33

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 ROLE OF IMPORTING
AUTHORITY - GCC COUNTRIES
Members of the Gulf Cooperation Council (GCC) countries are Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia and United Arab Emirates (UAE)

Extracts:
THE CUSTOMS UNION OF THE GCC MEMBER STATES
Principles of the Customs Union
2. The Custom Goods produced in any of the GCC member States shall be accorded national
treatment and shall be allowed to move freely among the member States under the
respective national invoices and the single customs declaration. Re-qualification of the
products of national factories, which was applicable prior to the establishment of the
customs union, has been abolished.

Approval of Halal CBS responsibility of municipalities; typically CBs gain approval from
UAE govt. (previously General Secretariat of Municipalities now Ministry of Environment)
to access GCC region

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 RECOGNISED HALAL CBs
IN GCC COUNTRIES
South America
Australia / Oceania
12%
17%
North America
12%
Asia
19%
Africa
12%

Europe
Total No of CBs recognised : 52
28%s

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 TOTAL RECOGNISED CBs IN
MALAYSIA AND INDONESIA

MALAYSIA INDONESIA 33
50 25

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 LACK OF MUTUAL RECOGNITION

GCC
COUNTRIES
52

23 16
25 14
MALAYSIA
25 INDONESIA
50 33

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 LIST OF CBs RECOGNISED BY
MALAYSIA, INDONESIA AND GCC

No Country HCB Logo

1 Australia Australian Halal Food Services (AHFS)

2 Australia Adelaide Mosque Islamic Society of South Australia

3 Australia Islamic Association of Katanning Inc.

4 25 Australia Islamic Co-ordinating Council of Victoria (ICCV)

5 Australia The Australian Federation of Islamic Councils (AFIC)

6 Australia The Perth Mosque of Western Australia Inc

Control Office of Halal Slaughtering & Halal Quality
7 Netherlands
Control

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 LIST OF CBs RECOGNISED BY
MALAYSIA, INDONESIA AND GCC

No Country HCB Logo

Federation of Islamic Associations of New Zealand
8 New Zealand
(FIANZ)
9 Philippines Islamic Da’wah Council of the Philippines (IDCP)

10 Singapore Islamic Religious Council of Singapore (MUIS)

11 South Africa South African National Halaal Authority (SANHA)

12 Thailand The Central Islamic Committee of Thailand (CICOT)

Islamic Food and Nutritional Council of America
13 USA/Canada
(IFANCA)
14 USA Islamic Services of America (ISA)

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 ABOUT
IHI ALLIANCE

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 INTERNATIONAL HALAL
INTEGRITY ALLIANCE

• Registered on the 30th April 2007, as an

international, non-profit, non-governmental,
private-sector business association.

• Created to serve as a platform for providing

services to its members, representing their
interests and to liaise with governments,
organizations and business communities.

• On 11 May 2008, IHI Alliance signed a

partnership agreement with the Islamic
Chamber of Commerce & Industry to
implement a Global Halal program for the OIC

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 OIC MANDATE

Organization of the Islamic Conference

Principal
Secretariat for OIC
Representative of
Standards
OIC on Halal
Development
Islamic Chamber of Commerce &
Industry

COMCEC
Appointed as Halal
Authority

International Halal Integrity Alliance

Participates in
Standardization
Experts Group

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 ABOUT
WHAT IS IHI
IHI ALLIANCE
ALLIANCE?
• IHI Alliance is NOT a Halal Certification Body

• IHI Alliance was envisioned for the outset to be a non-

profit, non-governmental organization to solve the
biggest issues facing the international Halal Industry

• Harmonization of standards and alignment of Halal

certification practices …

TO ENSURE GLOBAL HALAL

INTEGRITY FOR THE CONSUMER

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

 HALAL INTEGRITY
• Products that are labeled as “Halal” are in fact truly Halal
• Any representations (incl. labeling, verbal, signage etc)
must conform to a Halal standard
• The Halal standard must be endorsed or approved by a
panel of experts including Scientists and Shariah Scholars
• The standard must be made available and transparent to
everyone
• The standard should be clear in its requirements for all
the relevant stakeholders, especially the manufacturers
to understand and implement effectively
• A robust framework must be in place to consistently
monitor and enforce when necessary.
Copyright © 2010 International Halal Integrity Alliance . All rights reserved.
 INTERNATIONAL HALAL
INTEGRITY ALLIANCE
16-2, JALAN 27/70A DESA SRI HARTAMAS
50480 KUALA LUMPUR, MALAYSIA
www.ihialliance.org / info@ihialliance.org
A PARTNER OF
ISLAMIC CHAMBER OF COMMERCE & INDUSTRY
P.O.BOX: 430 JEDDAH 21411, KINGDOM OF SAUDI ARABIA

Copyright © 2010 International Halal Integrity Alliance . All rights reserved.

Thank You
Darhim Dali Hashim
darhim@ihialliance.org