Why halal standards need to be institutionalized

This will help drive the growth and regulation of the halal industry

Every economic system needs a cultural and academic framework that sets standards for product quality and outlines its ultimate objectives. Customer confidence in products and production processes depends on their trust in the standards that these comply with, their alignment with the interests and rights of consumers and their responsiveness to the evolving needs of consumers.

It is to verify quality and gain the confidence of consumers that markets have throughout history sought to unify standards.

The issue of standardisation becomes a crucial priority for any new economic system or an existing one that seeks to gain credibility and uptake. Having achieved significant strides since the launch of the Dubai: Capital of Islamic Economy initiative in 2013, the Islamic economy today is at a crossroads as it seeks expand its offerings and foray into uncharted shores.

When it comes to standardisation for Islamic economy, the most important questions for us to address include: What is the difference between halal standards and other international standards? Why do we need distinctive halal standards? Also, what value can halal standards add to our efforts to drive the Islamic economy?

Although conventional quality standards have always had the right intentions, they have not been stringent enough. On the other hand, instead of verifying the quality of a product at the point of entering the market, halal standards ensure quality from the beginning of the production process, encompassing all aspects, such as preservation of human rights, protection of health and conservation of resources and the environment. This is the first difference between the two.

Secondly, instead of trying to beat competitors or impede their market access, competition in the Islamic economy aims to safeguard the consumers' interests, and that can only be achieved through the production of goods and provision of services that integrate a high degree of security and safety at the lowest possible cost.

The third difference has been the variation in conventional quality standards due to the absence of a unified international umbrella. I am pleased to share that through the joint efforts of the strategic partners of the Dubai: Capital of Islamic Economy initiative - the Global Halal Industry Platform and the International Halal Accreditation Forum - the Islamic economy is well on track to ensuring such an umbrella with its stakeholders collectively adopting the highest consumer-friendly standards for quality control worldwide.

The fourth difference is the adherence of the global halal industry to international social security as well as food and health security standards. In 2017, we appealed to our private sector partners to prioritise investment in the production of safe food, provision of advanced medical treatment, facilitation of modern education and building state-of-the-art infrastructure. These sectors bring tremendous opportunities, as basic goods and services are always in high demand.

When it comes to boosting the halal industry, we need to acknowledge the importance of standards and their global institutionalisation. The Emirates Authority for Standardisation and Metrology reports that the halal industry has grown by 8 per cent year on year, and the global halal market is valued at about $2.3 trillion, with food and beverages accounting for 67 per cent.

This astonishing growth is due to the fact that the halal industry is constantly expanding to include new types of products, such as equipment, building materials, electronics and other commodities. All these products can enter the halal system based on the criteria applied in their production and the extent of the producers' compliance with the protection of resources, fair utilisation of human capital and reasonable pricing.

The expanding partnerships between the Dubai: Capital of Islamic Economy initiative and entities in markets such as Asia, Latin America and Europe, are also set to boost the volume of halal production.

The decisive factor that can drive the growth and regulation of the halal industry is the overall institutional development of the sector. We must create a global network of organisations and companies operating in the Islamic economy domain to enable them to access unified quality standards and in-depth knowledge of markets and consumers.

The growing demand for halal products among all segments of society, regardless of religion and ethnicity, will enable the industry to capture a significant share of the global business.

The writer is CEO of Dubai Islamic Economy Development Centre. Views expressed are his own and do not reflect the newspaper's policy.

Link->https://www.khaleejtimes.com/business/economy/why-halal-standards-need-to-be-institutionalised