Market Size and Potentials: The global halal market is expanding rapidly, with the

halal economy projected to grow from over $3 trillion to $7 trillion by 2025.

Bangladesh, with its robust manufacturing capabilities, has the potential to become
a key player in this market. The country contributes about 5.4% to the global halal
economy. The domestic halal consumer market is the second-largest globally after
Indonesia, with spending reaching USD 94.5 billion on halal food and USD 3 billion
on the Islamic lifestyle in the 2018-2019 fiscal year. In the 2020-2021 fiscal
year, Bangladesh exported approximately USD 1 billion worth of halal products, with
70% of these products going to Muslim-majority countries.
Positive Signs: A recent initiative by the Islamic Foundation, the publication of a
comprehensive policy on halal certification on 21 November 2023, is an inception to
promoting halal products.
Export Opportunity: By complying with the Organization of Islamic Cooperation (OIC)
standards and seeking membership in the Halal Accreditation Council and
International Halal Accreditation Forum, Bangladesh can significantly boost its
export potential. Already, 179 companies have received halal certification from the
BIF, producing around 1,800 items, with 57 companies exporting more than 300 halal-
certified products to various countries. The export potential is substantial,
particularly in lucrative markets such as the Middle East and Southeast Asia. With
the right certification and adherence to international standards, Bangladesh’s
halal products can gain a competitive edge in the global market, further increasing
foreign exchange earnings.

3. Issues and Challenges

Current Certification Process: The Islamic Foundation is the sole body responsible
for halal certification, which can lead to bottlenecks and delays. The process
needs to be streamlined to handle the increasing demand efficiently.
Resource Constraints: Limited resources and manpower hinder the Foundation’s
ability to conduct thorough audits and provide necessary training. There is a need
for more trained professionals and better infrastructure to support the
certification process.
Compliance and Enforcement: Ensuring compliance with halal standards across diverse
industries remains a significant challenge. There is a need for robust compliance
mechanisms and regular monitoring to maintain the integrity of halal certification.
Lack of Halal Awareness: There is a need to develop a professional pool of halal
experts to ensure a supportive environment for halal certification. Awareness
campaigns are essential to educate manufacturers and consumers about the importance
of halal certification.
Standardization Limitations: Cooperation with international halal certification
bodies is necessary to increase capacity for halal certification activities.
Standardization of halal certification processes will help in maintaining
consistency and credibility.
Qualified Human Resources: Specific academic programs are needed to meet the demand
for qualified human resources in the halal sector. Investment in education and
training will help in building a skilled workforce for the halal industry.
Promotion of Halal Products: Effective campaigns are required to promote halal
products and services both domestically and internationally. Marketing strategies
should highlight the benefits of halal certification to attract more consumers.
Halal Infrastructure: Strong partnerships between public and private sectors are
needed to play an effective role in halal certification. Investment in
infrastructure will support the growth of the halal industry.
Research Programs: Enhanced research activities on halal issues are essential to
introduce new products, services, and policy initiatives. Collaboration with
academic institutions and research organizations will drive innovation in the halal
sector.
Financial support: A long-term strategy involving government and private financial
institutions is needed to support the halal economy. Financial support will help in
the development and expansion of halal businesses.
4. Policy Recommendations
Expand Certification Bodies: Allow other qualified organizations to assist the
Islamic Foundation in the certification process to increase efficiency and
coverage. This will help in handling the growing demand for halal certification.
Establishment of an Independent Halal Shariah Committee: It is crucial to establish
an independent Halal Shariah Committee to ensure the accurate and thorough
completion of the Halal certification process. This committee should include
qualified Shariah scholars and will be responsible for independently overseeing the
Inspection Committee mentioned in Halal Certification Policy-2023, policy no.
15.1(1), as well as the Certification and Logo Issuance Committee approved by the
board of government mentioned in policy no. 15.3. Additionally, the Halal Shariah
Committee will serve as the Shariah policy maker, guiding the overall certification
framework. [N:B: Halal Certification Policy-2023,policy no. 15.1(1) and 15(02)]
Authorization of Halal Inspection Authorities: Approve several Shariah consulting
firms, staffed with qualified Muftis, to serve as independent Halal inspection
authorities. These firms will be responsible for conducting thorough Halal
inspections and ensuring compliance with Shariah principles. The involvement of
qualified Muftis ensures that the inspections are carried out with deep Islamic
knowledge and adherence to the highest standards of Halal certification. [N:B:
Halal Certification Policy-2023,policy no. 15.1(1) and 15.2(03)]
Enhance and Mandate Halal Training Programs: Develop and issue comprehensive
training guidelines for auditors, industry stakeholders, and members of the Halal
inspection committee. Companies seeking Halal certification will be required to
participate in these training programs to ensure a thorough understanding of Halal
standards. Additionally, approve and designate external training bodies to conduct
these sessions, making continuous education and training mandatory for all involved
in the Halal certification process. This will improve the overall quality and
consistency of Halal certification. [N:B: Halal Certification Policy-2023,policy
no. 10(06) and 14(09)]
Collaborative Approach: Form a consortium of organizations, including industry
experts, academic institutions, and international halal certification bodies, to
support the Islamic Foundation. This collaborative approach will ensure a
comprehensive and efficient halal certification process.
Strengthen Compliance Mechanisms: Implement robust compliance and enforcement
mechanisms, including regular audits and surprise inspections, to ensure adherence
to halal guidelines. Strict enforcement will maintain the credibility of halal
certification.
Public-Private Collaborations: Encourage collaborations between public and private
sectors to support the halal certification process. Joint efforts will enhance the
overall efficiency and effectiveness of halal certification.
International Collaboration: Strengthen collaboration with international halal
certification bodies to align with global standards. This will enhance the
credibility of Bangladeshi halal products in the international market.
Capacity Building: Invest in capacity-building initiatives to enhance the
Foundation’s resources and capabilities. This includes improving infrastructure,
increasing manpower, and providing necessary tools and technologies.
Public Awareness Campaigns: Launch comprehensive public awareness campaigns to
educate manufacturers and consumers about the importance and benefits of halal
certification. Utilize social media platforms as key tools to reach a broader
audience and engage with the public. Organize various awareness programs, seminars,
and workshops attended by Shariah scholars and experts on halal, to provide in-
depth knowledge and foster greater understanding. Effective communication
strategies will significantly increase the acceptance and demand for halal
products.
Leveraging Technologies for Halal Certification Financial support: Invest in the
development of user-friendly applications and digital platforms to streamline the
halal certification process. These tools can facilitate easier access to
certification services, provide real-time updates, and enhance transparency.
Regularly update and maintain a comprehensive list of certified companies and halal
products online, ensuring that consumers and stakeholders have quick and reliable
access to accurate information. This technological approach will improve
efficiency, accessibility, and trust in the halal certification system.