Halal textiles are essential for creating modest clothing that aligns with Islamic principles. But what are the challenges in making halal fabric?

Halal textiles form the foundation of modest fashion, harmonizing Islamic principles with modern ethical standards. They represent an essential sector for innovation, addressing the growing demand for garments that meet both religious and sustainable criteria.

Yet, producing truly halal fabrics comes with notable challenges, Ahmad Soffian, CEO and co-founder of Sa’adah Global, a Jakarta-based halal business consultancy, explains.

“First, sourcing raw materials that are both ethically and Islamically compliant can be complex. Textile manufacturers must carefully consider inputs like dyes, animal-derived oils, and even certain synthetic chemicals, which can be non-halal if not processed according to Islamic principles,” Soffian points out.

Furthermore, transparency across the entire supply chain is necessary, yet challenging to establish. 

“Many suppliers and processing stages might be located across multiple countries, each with varying halal standards and certification requirements. This creates a need for robust traceability systems, which can be costly to implement,” says Soffian.

He further highlights the risks of contamination in shared production facilities, where even minimal cross-contamination can render products non-compliant with halal standards. “The cost and complexity of segregating production lines to maintain halal standards are significant, especially for small to medium manufacturers who may lack the infrastructure.”

Comprehensive compliance

Halal textiles go beyond merely excluding haram (unlawful) ingredients; they are also expected to embody Islamic principles such as animal welfare, ethical labour practices, sustainability, environmental stewardship, and fairness in trade. These values align with broader global trends in ethical and sustainable fashion.

Despite the growing innovation among modest fashion brands to cater to the diverse needs of Muslim consumers, there remains a significant gap in the production processes of fabric manufacturers. 

"Currently, the majority of fabric producers do not meet halal criteria," says Jeny Tjahyawati, a Jakarta-based modest fashion designer and founder of the Indonesia Modest Fashion Designers community.

This disparity underscores the need for systemic changes in the textile industry to ensure compliance with halal standards while meeting consumers’ ethical and sustainable expectations.

“Textile raw materials for fashion are made through a long process, from the fibre, yarn, and fabric, up until garment manufacturing. Each stage has a critical point that allows for mixed materials containing haram elements,” adds Tjahyawati. 

“As such, cooperation with textile experts who understand this and are able to identify producers that comply with halal criteria is the easiest way to get a halal certification for modest fashion.”

To ensure clothing products are halal from farm to wardrobe, businesses must uphold the integrity of raw materials - such as fabrics, cotton, and leather - as well as maintain compliance throughout production processes and facilities. 

This comprehensive approach is emphasized in research by Dr. Eli Sumarliah, a lecturer at the University of Science and Technology Beijing. The commitment to halal clothing extends across all stages of the supply chain, he notes, including sourcing, manufacturing, storage, packaging, transportation, and retail, each requiring strict adherence to halal standards.
 

One moment, Ahmed was laughing with his children over breakfast; the next, he was gone.

The whirlwind of his family’s grief was quickly followed by an avalanche of bills and bureaucracy. The funeral director quoted €4,800, probate fees totaled €5,000 to access Ahmed's frozen accounts. Add to that unpaid loans and Ahmed’s savings left his family less than a month’s rent.

Ahmed’s experience is not uncommon; the average cost of death is about two months' salary in the US, three months in Europe, and up to four months in Muslim countries like Malaysia. As Muslims, estate planning is an act of worship and it’s our duty to prepare for death by providing stability for our loved ones in a Shariah-compliant way. Keep reading to learn how you can protect your family and future.

The Islamic mandate for legacy planning
The Qur’an explicitly addresses inheritance in Surah An-Nisa (4:11-12), providing clear guidelines for the distribution of wealth after one’s passing. Unlike secular wills, which may allow total autonomy, the Islamic system is divinely ordained.

It ensures fairness and prevents disputes, emphasizing that estate planning is not just a practical step but a spiritual duty.

The Prophet Muhammad (ﷺ) said, “It is the duty of a Muslim who has anything to bequeath not to let two nights pass without writing a will about it.” (Sahih al-Bukhari). This Hadith is a powerful reminder that preparing for our departure is not morbid; it is an act of foresight and responsibility.

Protecting wealth the Islamic way
Estate planning is not just about dividing wealth; it’s about protecting it in a way that benefits your heirs and upholds Islamic ethics.

One part of safeguarding wealth means addressing debts; an obligation that is often overlooked. The Prophet Muhammad (ﷺ) warned, “The soul of the believer is held hostage by his debt until it is paid off.” (Sunan al-Tirmidhi). 

Planning your estate ensures that outstanding obligations are settled, freeing yourself and providing peace to your family.

Shariah-compliant estate planning solutions are now more accessible than ever. Islamic wills, trusts, and inheritance calculators help Muslims navigate the complexities of dividing assets while adhering to both religious and local legal requirements. Make sure to do your research and consult reputable sources before implementing your plan.

A modern Muslim’s step-by-step plan  
 

- Leverage modern Shariah-compliant wealth solutions

Leverage modern technology to align wealth management with Islamic principles. For example, The LifeDAO offers a Shariah-compliant alternative to life insurance, providing borderless, community-driven coverage inspired by the Aqilah system of the Prophet Muhammad’s ﷺ time. This ensures financial security for your family through collective support.

Islamic will
Without a proper Islamic will, your wealth may be distributed against Shariah laws. Learn about Islamic inheritance principles and ensure your will complies with both Shariah and local laws. Consult scholars and estate planners for guidance.

Appoint guardians for children
Appoint a guardian in your will to ensure your children are raised with Islamic values. Choose someone you trust who shares your beliefs to avoid court-appointed custody decisions.

Healthcare directives
Prepare a living will to ensure your medical care aligns with Islamic principles, like prohibiting euthanasia. Discuss your preferences with family and healthcare providers.

Power of Attorney
Assign a trusted individual to manage your affairs if you’re incapacitated. Ensure they understand and follow Islamic values when making decisions on your behalf.

Charitable giving
Leave a lasting impact through sadaqah jariyah or a waqf by dedicating assets to benefit causes like education or mosques. Seek advice to comply with Shariah and local laws.

Review your estate plan
Regularly update your estate plan to reflect life changes like marriage, divorce, or children, ensuring continued alignment with Shariah.

Resting in peace begins today
As Ahmed’s story shows, planning for your departure is not a luxury for the wealthy or elderly, but a vital obligation for every Muslim. Estate planning is a vital part of our Islamic identity, deeply rooted in the values of preparation, responsibility, and compassion. The question isn’t just whether you can afford to rest in peace - it’s whether your family can afford for you not to.

By using the tools we have to address this responsibility today, we ensure that tomorrow, we leave behind not just wealth, but a legacy of love, care, and adherence to our faith.

Sharene Lee is chief operating officer and Ameerah Langer is brand & communications head at Takadao

Islamic finance, as an industry, often finds itself at a crossroads. While there is much to celebrate -  double-digit growth and the establishment of a global trillion-dollar industry - there is also a need for honest introspection.

Too often, Islamic finance insiders dwell on external barriers: regulators, the global riba (interest-based) system, or the so-called “conventional” competition. These were valid concerns during the foundational years of modern Islamic finance (1970s–1990s). 

Today, however, such rhetoric risks are becoming an excuse for stagnation and complacency. Many conventional financial institutions and financial technology (fintech) companies have solved financial service challenges while adhering to principles far more aligned with the ethos of Islam than the Islamic finance industry has managed.

Yet, my critique comes from a place of deep belief. 

Islamic finance, at its core, is more than an alternative system to conventional finance. It is a mission-driven endeavour rooted in divine guidance, embodying justice, inclusivity, and sustainability. 

The Qur’an repeatedly emphasises these values while cautioning excess, extravagance and hoarding:

“Cooperate with one another in goodness and righteousness, and do not cooperate in sin and transgression.” (Al Qur’an, 5:2)

The Sharīʿah, as a socio-legal and ethical framework, seeks to ensure shared prosperity and justice. Yet, the disconnect between these principles and their application in modern Islamic finance is glaring. Even without accounting for the undisclosed private wealth of the Muslim ultra-rich stashed away in tax havens such as Switzerland or Singapore, there is a major inequality problem. 

The top 5 countries, as measured by total Islamic finance assets such as Saudi Arabia and Malaysia, represented ~81% of the total industry in 2022. None of the five countries with the largest Muslim nations such as Indonesia and Pakistan feature among the top Islamic finance centres. 

The data is clear, Islamic finance is primarily for and used by the wealthiest Muslims. This divergence must be rectified.

Rethinking Islamic finance in Australia
While a significantly smaller and more recent market, Australia’s Islamic finance sector exemplifies some of these challenges.

Australia has lagged more innovative Islamic finance markets like the United Kingdom, the United States and Singapore, where product diversity, robust institutions, and community foundations thrive.

In my reflections on the root causes for the obstacles to a flourishing Australia Islamic finance market, three things jump out:

Right products: Proliferation of “packaged” products
Islamic finance products are often packaged as “Shari’ah-compliant” without a wholesale bottom-up, comprehensive solution. For instance, many Islamic home loans are processed by brokers who repackage interest-bearing contracts from wholesale funders and banks under Shari’ah-approved structures. 

This “middleman” approach where the mortgage broker stands to make windfall risk-free brokerage fees leads to higher financing costs, longer processing times, and opaque pricing.

If we truly aspire to develop sustainable solutions, why haven’t we developed Shari’ah-compliant models like Brighte (green financing), Athena (home financing) or Prospa (business financing) who reimagined financial intermediation using digital innovations? 

Moreover, we need to develop upstream funding markets with securitisation and warehouse funding to create fixed income investment opportunities via sukuk issuances.

Right governance structures: Licensing and regulation
The proliferation of unprofessional, poorly structured schemes has undermined trust in Islamic finance. Reports of financial scandals and collapses highlight the risks of inadequate governance. Establishing properly licensed, well-regulated institutions is expensive and more challenging to launch but non-negotiable for the sector’s credibility and stakeholder protections. 

Right education: Going beyond halal
The assumption that labelling something “halal” will attract customers is fading.

Customers demand competitive, user-centric and value-driven products, especially Millennials and Gen Z customers. For example, there is blind faith in the property market – something that was unfortunately to the detriment of investors in the $200 million Qartaba Homes project who didn’t understand the liquidity and development risks. Over the past 30 years, real estate in Australia has appreciated at an average growth rate of 6.4% (before ownership costs). 

Meanwhile, the S&P 500 has achieved 9.9% over the same period. Over-reliance property investing diverts resources from critical areas like business financing, entrepreneurship and agriculture.

Opportunities for transformation
To bridge these gaps, the Australian Muslim community must work collectively across educational, religious, non-profit and corporate segments to:

1.    Develop talent
We lack tier-1 Islamic financial institutions to train the next generation of financial managers and entrepreneurs. In their midst, encouraging bright minds - particularly women - to pursue careers in finance, albeit with conventional financial institutions is critical. We need to address the stigma with working in finance and counter the unjustified emphasis on medicine, engineering and law that attracts the brightest young minds. Leaders in finance must also step up, taking lucrative pay cuts with new ventures if necessary to build enduring community-focused institutions.

2.    Embrace innovation
Rather than replicating conventional products, we should focus on disruptive models. Take Afterpay, which transformed point-of-sale consumer finance without requiring credit scores (using a trade-based murabaha financing model). Islamic finance needs bold thinking to address systematic financial service gaps.

3.    Educate consumers
Misconceptions about Islamic finance abound. Many believe it prohibits debt outright, ignoring nuanced Islamic rulings. 
Additionally, long-term investment vehicles like awqaf (endowments) or private credit remain underutilised compared to property funds and home financing. Effective consumer education is vital to empower communities and redirect resources toward long-term, impactful initiatives.

Inspiration and progress
Despite its challenges, Islamic finance is evolving. Across the globe, visionary leaders are pushing boundaries in partnership with conventional institutions.

For example, the US recently welcomed its first Islamic bank, Stearns Salaam Bank, incubated by a 110+ year-old institution committed to financial inclusion. 

The initial spark? The large under-served Somali Muslim community in Minnesota.  In Saudi Arabia, the Islamic Development Bank has pioneered blockchain-enabled systems to stabilise prices of assets traded on organised markets with SettleMint. At Wholesum, we are trying to offer a genuinely innovative investment product – passive income investing that pays monthly profit distributions from financing a global pool of small and medium-sized businesses (SMEs). 

The World Bank estimates that SME financing is key to socio-economic development and face a $5.2 trillion annual funding gap. These success stories highlight what’s possible when we embrace innovation and systematic thinking.

We must reframe Islamic finance not as an exercise in fear—avoiding riba out of concern for punishment—but as a vehicle for building a just, inclusive financial system. With inspiration from the Shari’ah, and a coalition of like-minded partners, we can develop products and services that are truly impactful and competitive.

Dr. Tanvir Ahmed Uddin is the founder and CEO of Invest Wholesum

Note: This editorial reflects the personal views of the author and does not represent the views of Wholesum, Wholesum’s affiliates or any other organisation that the author has associated with currently or in the past.

The Islamic economy has emerged as a powerful force in an ever-evolving global landscape. It is shaped by the principles of Shariah and driven by a quest for inclusive growth, ethical investments, and sustainable development.

Among the nations contributing to this dynamic sector, Malaysia has consistently set the benchmark, securing the top position in The Global Islamic Economy Indicator (GIEI) for ten consecutive years since the report's inception in 2013, surpassing countries with larger export volumes.

2024 marks a momentous occasion for Malaysia as it celebrates the Golden Jubilee of Halal Malaysia, the nation's halal certification registered trademark renowned globally. This milestone signifies 50 years of unwavering dedication and commitment to Halalan Toyyiban (lawful good things), assuring quality and integrity in products for consumers worldwide and upholding the principles of excellence (Itqan) and integrity (Nazaha).

Far from solely focusing on economic gain, this journey has profoundly shaped Malaysia's identity, establishing it as a global leader and trusted voice in halal certification and standards.

Contributions to global halal certification
Halal certification in Malaysia began in 1974 when the monarch and government recognised the need to regulate and ensure the integrity of halal products. This initiative aimed to protect Muslim consumers' rights and provide assurance that the products they consumed adhered to Islamic laws.

Halal Malaysia's journey began not with meat products but with certification for cooking oil made from Malaysian palm oil, highlighting the nation's early understanding of the vast scope and potential of the halal market.

Over the years, the halal certification process has evolved, becoming more rigorous and encompassing a more comprehensive range of products and services. This has established Malaysia as the global leader in halal standards and certification. 

Halal pharmaceuticals: A paradigm shift
Coincidentally, 2024 also marks the 25th year since the first Halal Malaysia certification was issued for vitamins and health supplements manufactured by a local large corporation pharmaceutical manufacturer in Malaysia. This milestone is a testament to Malaysia's pioneering role in the halal pharmaceuticals sector.

The introduction of halal-certified pharmaceuticals, supported by the world’s first ISO-level Halal Pharmaceuticals Standard MS2424, has revolutionised the industry domestically and internationally, aligning it with Halal Malaysia's principles of integrity and excellence.

It is a commendable breakthrough, marking a paradigm shift in mindset since health often falls under the “Dharurah” situation, where halal status is not the primary concern for consumption by Muslims. It also paves the way for a more inclusive and accessible halal market.

The Halal Malaysia journey paved the way for this game-changing mode in the pharmaceutical industry by creating a rigorous and trustworthy certification process that mirrors the stringent requirements of conventional pharmaceutical regulations.

Just as the pharmaceutical industry follows continuous improvement or Kaizen methodologies to enhance product quality and safety, halal certification adds an extra layer of assurance, emphasising purity and compliance with Islamic law. In return, the learnings from “Pharmaceutical Quality by Design” (QbD) led to the conceptualisation of Halal Built-In.

Pharmaceuticals certified with Halal Malaysia provide double assurance for consumers, Muslims and non-Muslims alike. Before applying for halal certification, pharmaceutical products must fulfil the registration requirements (GMP-Pharmaceuticals) of and be duly registered with the Ministry of Health Malaysia (MOH).

This dual approval process by two authoritative bodies, MOH (for Toyyiban aspects – safe, effective, high quality and hygienically processed) and JAKIM (halal aspects), offers consumers unparalleled peace of mind.

Next 50 Years: A future of continuous excellence
The Golden Jubilee of Halal Malaysia is not just a celebration of past achievements but a resounding commitment to the future that values integrity, excellence, and trust. Malaysia's legacy of halal excellence, built on a foundation of solid governance, stakeholder collaboration, and deep respect for Halalan Toyyiban principles, positions it as a beacon of halal excellence to lead the industry towards a future of sustainable and inclusive growth.

Malaysia recognises the growing importance of sustainability in the global halal market. Therefore, it has endeavoured to incorporate sustainable halal practices throughout the value chain. This includes encouraging the adoption of eco-friendly production methods, responsible ingredient sourcing, and reducing waste and emissions. By championing sustainable halal practices, Malaysia aims to create a more ethical and environmentally responsible halal industry that benefits both people and the planet.

As Malaysia continues to pioneer and innovate relentlessly, underscoring the transformative impact of Malaysia's halal certification, it will undoubtedly shape and inspire the future of the global Islamic economy, benefiting the Ummah and the world at large for decades to come.

Roziatul Akmam Osman is a halal subject matter expert and is the recipient of the Halal Malaysia industry lifetime achievement award 

Islamic finance in Kazakhstan continues to develop rapidly, showcasing significant potential for future economic growth and sustainability. Since the adoption of the initial legislative initiatives in 2009, the country has made substantial progress in establishing a legal framework that enables Islamic financial institutions to operate and expand both domestically and internationally.

The establishment of Al Hilal Bank, the first Islamic bank in Kazakhstan, in 2010 was a major milestone that marked the nation’s integration into the global Islamic financial system (recently renamed ADCB Islamic). Following this, the development of supporting legislation facilitated the entry of other Islamic financial entities, such as Kazakhstan Ijara Company, Al Saqr Finance, and the Islamic bank Zaman. 

In 2012 the Development Bank of Kazakhstan (DBK) raised MYR240 million (about $80 million) with the placement of a debut issue of a five-year sukuk. Kazakhstan investors bought 38% of the sukuk, and Malaysian the remaining 62%.

In 2023, the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, printed its first sukuk denominated in Tenge, raising KZT 2 billion ($4 million) with an auction of a five-year amortized sukuk. The sukuk, rated 'A+' by Fitch Ratings, was the first-ever KZT sukuk globally, the first in the national currency of one of the Commonwealth of Independent States (CIS) and the first KZT sukuk from an international development institution.

The role of AIFC in advancing Islamic finance
Today, the Astana International Financial Centre (AIFC) plays a pivotal role in promoting Islamic finance within the region. The AIFC offers a conducive environment for Islamic banks, asset management companies, brokers, and takaful (Islamic insurance) providers. With support from international bodies, including the IsDB, the Asian Development Bank (ADB), IFSB, AAOIFI, and CIBAFI, the AIFC has built a legal and regulatory foundation that aligns with global best practices.

In September 2024, the Islamic Finance Country Report, prepared with support from the IsDB and CSQ Law, was presented. It offers an in-depth analysis of the Islamic finance industry in Kazakhstan, a significant milestone for the nation.

To attract more companies, the AIFC has reduced the minimum capital requirements for Islamic financial institutions until May 2026. Currently, the requirement for Islamic banks is $6 million, and $100,000 for Islamic finance companies. Additionally, licensed financial services regulated by the AIFC, including Islamic banking, non-banking financial institutions, and takaful providers, are exempt from corporate income tax and VAT.

Islamic banks, financial companies, and takaful operators within the AIFC can offer their services to residents of Kazakhstan, both corporate and individual, in any currency, including the Kazakhstani tenge.

Since its establishment, the AIFC has become a platform for attracting key international players in Islamic finance from countries such as Malaysia, Bahrain, Pakistan, and Tatarstan. A notable development was the licensing of Alif Islamic Bank in December 2022, which actively provides financing to retail and corporate clients, including micro businesses. The bank has extended over KZT 3.6 billion ($7.3 million) in corporate funding and KZT 870 million ($1.76 million) for microbusinesses.

Another significant event was the launch of the Association of Islamic Finance and Business in September 2024. This association aimed to unite professionals and stakeholders in Kazakhstan’s Islamic finance industry and foster new opportunities for cooperation and growth.

New opportunities for issuers and businesses
The AIFC continues to support the development of a viable and competitive Islamic capital market.

In 2023, the rules for subsidising coupon payments on bonds issued under the national entrepreneurship development project were amended to include Islamic securities. This change opens up opportunities for Kazakhstani issuers to raise funds through sukuk issuance, creating a level playing field for Islamic and conventional securities.

A major event in the capital markets was the sukuk listing issued by the IsDB on the AIX official list. In June 2022, the first Shariah-compliant exchange-traded notes, including the iX Gold ETN, which received Shariah compliance certification, were listed on AIX.

These notes are available to retail investors via the AIFC’s Tabys app.

Additionally, in August 2023, the International Trading Platform (ITS) launched the ITS Shariah Index, which includes the 30 largest Shariah-compliant companies.

Islamic investment funds represent additional focus for the AIFC, responding to the rising demand for Shari’ah-compliant investment options in Kazakhstan. This demand is partly fueled by the scarcity of Islamic financial products within the local market. Although there are currently no officially listed Islamic funds, one firm is actively working on setting up an Islamic fund within the regulatory framework provided by the AIFC.

The AIFC has a lineup of potential sukuk issuers, including local and regional corporate entities. Recognising the significance of sukuk issuance for market development, the AIFC actively supports these initiatives. The expectation is that sukuk will be issued by the end of the year or during the first quarter of 2025.

Why it matters
The potential volume of Islamic retail financing in Kazakhstan, including mortgage, instalment plans, and auto financing, is estimated at KZT 3.9 trillion ($7.9 billion), with corporate sector demand exceeding KZT 760 billion ($1.54 billion).

These figures underscore that Islamic finance can become a key driver of sustainable economic growth in the country. With a robust legislative framework, support from international organisations, and the dynamic development of the AIFC, Kazakhstan is strengthening its position in the global Islamic finance arena.

Developing Islamic finance is a tool for sustainable economic growth and an opportunity for Kazakhstan to become a hub for attracting investments from various regions worldwide.

The country has the potential to solidify its role in the global Islamic economy and continue to create innovative, Shari’ah-compliant financial solutions.

Madina Tukulova is the head of Islamic finance at the Astana International Financial Centre and the chairperson of the Association of Islamic Finance and Business Development

Businesses have always welcomed endorsement. Someone who champions their offerings. Which is why brands and star power have historically crossed paths. Celebrities and athletes have endorsed products from food and beverages to cosmetics and household items to amplify their presence and uptake. 

But in today’s time of new-media capitalization, it is almost a matter of course for businesses to leverage the power of technology to bolster their reach. Social media has given rise to a cohort of content creators who have developed a digital presence, focus on engagement and community and have become a trusted presence within their communities, strong enough to exert a considerable 'influence' on their followers.  

This rising clout of influencers has forced businesses to return to the drawing board and pen a new marketing playbook. 

The hype is not misplaced - the global influencer marketing market size has more than trebled since 2019, increasing from $6.5 billion to an estimated $24 billion in 2024, according to data and business intelligence firm Statista. 

The halal food sector is no different. It is an evolving space, both in terms of options and uptake, and is now no longer restricted to Muslims. There has been evidence of its adoption among non-Muslims, throwing the arena wide open for halal food businesses to capture a sizeable chunk of the overall F&B ecosystem.

However, for halal food to find continuous favour among consumers, businesses must tap into the growing power of influencers, forging a personalised connect with the consumer. 

“Influencers, or rather, content creators, are crucial for halal food providers. With social media marketing dominating many brands' marketing budgets, this sector will only get bigger and more indispensable for every business in some way shape or form,” says Amena Khan, a UK-based social media influencer. 

Sealing the deal

Influencers wield considerable hold on consumers' purchasing power – a study by PR agency Matter Communications, that surveyed more than 1,000 US consumers, revealed 69% of respondents are likely to trust an influencer, friend or family recommendation over information coming directly from a brand. Food and beverage generated the most consumer interest and most potential to act on influencer content, followed by health and wellness. 

“Given how widely used social media is in this current day and age, influencers can play a vital role in a brand’s exposure and visibility to their Muslim consumers. All it takes is one image or short video of the restaurant going viral to reach a large and varied audience across the country - much quicker than any word of mouth or an online search would yield,” says Layla Hassanali, founder of Halal Girl About Town, a platform dedicated to finding the best halal restaurants in the UK. 

Influencers can help forge an alliance with the wider non-Muslim consumer base, which may struggle to recognize the benefits of halal food beyond religious context. An all-inclusive approach may also blur the social distance between Muslims and non-Muslims and help combat issues like Islamophobia. 

“To a non-Muslim, a halal restaurant might come across as having closed doors; a place that only caters to Muslims. With influencers continuing to post about halal food and growing their platform reach, they can open the doors to many non-Muslims by showing them that there is more to the restaurant/brand than just a halal certification,” adds Hassanali. 

Impact of 'choices'
Influencers help form a genuine digital interaction, offering their own seal of approval and helping draw businesses and consumers closer. But for that to happen seamlessly, influencers must develop their own credibility. Especially in a field such as halal food, which has religious threads attached to it.

Hassanali explains: “Over time, an influencer’s platform will curate a specific audience that resonate with the influencer’s own lifestyle and brand choices. Lifestyle and brand choices are more impactful if they are in line with what you stand for.”

When we talk about DAOs (decentralized autonomous organizations), the conversation usually revolves around blockchain technology, decentralized governance, and the future of the internet.

But what if I told you that the essence of a DAO — community-driven decision-making, mutual responsibility, and shared ownership — has been a core part of Islamic history for centuries?

DAOs offer an opportunity to revive these values in a modern, digital context. Let’s explore how DAOs are not just a tech innovation but a continuation of cooperative systems we’ve practiced for centuries in Islam.

What is a DAO?

A DAO is an organization governed by code, not by a central authority. Decisions are made collectively by stakeholders through blockchain technology.

Think of it as a global cooperative where each member has a voice, and all decisions are transparent and executed automatically via smart contracts. DAOs operate on decentralization, trust, and shared ownership - values that resonate deeply with Islamic ethics.

Shura: The Islamic tradition of collective decision-making

One of the foundational elements of DAOs is collective decision-making, and that’s where Islam has a lot to teach us. The concept of shura (consultation) is central to Islamic governance.

In the Qur’an, Allah instructs the Prophet Muhammad (ﷺ) to consult with his followers in matters of mutual concern: “…and consult them in the matter. And when you have decided, then rely upon Allah” (3:159).

Shura involves the community in decision-making - a system where individuals’ opinions are valued. This reflects the democratic essence of DAOs, where every participant has a vote. Shura can be seen as a precursor to DAO governance. Decisions are made collectively, with no single person dictating the organization’s future.

Waqf: The Islamic model of decentralized charity
DAOs often manage collective funds transparently, paralleling the Islamic practice of waqf. A waqf is an endowment, typically for charitable purposes, managed by trustees on behalf of the community.

The waqf system operates independently from centralized control, with trustees ensuring the community benefits. The structure is transparent, much like DAOs, where resources are decentralized and managed for the collective good with accountability at its core.

The Ummah: Community and mutual ownership

Islam emphasizes the ummah - the global Muslim community united by faith, support, and shared responsibility. In a sense, DAOs extend this concept into the digital age. The ummah is decentralized, spread across continents and cultures, yet connected by faith and a collective sense of belonging.

DAOs, much like the ummah, function on shared ownership and responsibility. Each member of a DAO has a stake in its success, with decisions made for the collective benefit. Just as the ummah operates without a central leader, relying on mutual cooperation, DAOs embody this decentralized approach to governance.

Zakat: Financial responsibility and fair distribution

The principle of Zakat (obligatory charity) parallels another critical component of DAOs: fair and transparent wealth distribution.

In the same way that Zakat ensures equitable wealth distribution in the Muslim community, DAOs can ensure resources are allocated fairly. Whether focused on charity, community projects, or business, DAOs are designed to prevent exploitation and promote fairness.

What’s compelling about DAOs is their removal of intermediaries. Just as Zakat is a direct transaction between the giver and those in need, DAOs allow participants to decide directly how funds are used, cutting out middlemen who could misuse resources.

A return to Islamic values through technology

So, where does that leave us as Muslims in this increasingly decentralized world? The answer is clear: DAOs are not just compatible with Islamic values - they are an opportunity to revive and enhance those values using modern technology.

We live in an age where transparency, collective decision-making, and mutual ownership are not just ideals; they are achievable realities thanks to blockchain and decentralized systems.

By embracing DAOs, we are not merely adopting a new technological trend. We are returning to the heart of our Islamic tradition - one that values consultation, transparency, mutual support, and equitable resource distribution. DAOs allow us to create a new kind of ummah, one that is digital but grounded in the principles of our faith.

This is more than just an opportunity; it’s a responsibility. We now have the tools to build systems that reflect the best of Islamic governance, charity, and cooperation.

The question is, are we ready to step into this new digital frontier, guided by the values that have been with us all along?

Sharene Lee is chief operating officer and Ameerah Langer is brand & communications head at Takadao

East Africa hosts several opportunities for Islamic finance to thrive. The region is home to a burgeoning Muslim customer base which presents significant demand for Islamic finance products and services, as well as offers substantial opportunities to develop and deepen the existing ecosystem.  

However, the industry has struggled to realise its potential owed to several challenges, including regulatory gaps and a lack of adoption stemming from limited awareness and education.

On balance, East Africa is an economic powerhouse, hosting some of the fastest growing economies on the continent. It is forecasted to lead Africa’s economic pulse, with growth projected to scale from 3.5% in 2023 to 5.1% in 2024 and 5.7% in 2025, according to an Africa Development Bank (AfDB) report. Seven economies in the region are projected to grow 5% or more in 2024, it adds. 

Similarly, East African nations are seeking to develop relations with Gulf countries both in terms of trade and foreign direct investment (FDI). GCC countries have collectively invested more than $100 billion in Africa over the last decade, while GCC companies announced 73 FDI projects worth $53 billion in Africa last year. 

Yet, despite potential opportunities for Islamic finance in the region, the past decade has yielded mixed results, according to analysts.

Islamic finance faces a lot of challenges in East Africa, according to Samira Mensah, director and lead analyst Africa, financial institutions & sovereign ratings at S&P Global. 

“There has been robust headline economic growth, but external shocks, high level of sovereign debt and debt service costs have hindered public finances and investments.”

Kenya
Islamic finance has been active in Kenya since the 1990s. In 2017, the government pledged to offer Islamic finance a bigger chunk of the country’s financial infrastructure. 

Key Islamic banks include Gulf African Bank, Premier Bank (previously First Community Bank) and Dubai Islamic Bank. Meanwhile, conventional lenders like Absa Kenya, National Bank of Kenya and Kenya Commercial Bank, operate Islamic banking windows.

But S&P’s Samira Mensah believes that Islamic finance in Kenya over the last decade has been a disappointing story. 

“The industry has faced several challenges including weak public finances and indebtedness. Nonetheless, Kenya has the legal framework that caters to Islamic finance, which should attract foreign investors.”

Saad Rehman, CEO at Salaam Investment Bank in Kenya, adds that the actual adoption of Islamic products among Kenyans remains an open question.

“It depends on the age group of consumers. With the older generation, it will be harder,” he says. “There is movement from younger millennials while Gen Z is demanding Islamic products.”

There is room for optimism in the capital markets space. Linzi Finco, a subsidiary of Liaison Group, sold the country’s first sukuk this August. The 3 billion Kenyan shilling ($23 million) 15-year sukuk offers a profit rate of 11.13%. The listed debt will be used to fund the construction of over 3,000 affordable institutional housing units, supporting the Kenyan government’s affordable housing agenda.

However, Mensah remains sceptical on corporate sukuk issuances, adding that Kenya’s capital markets are neither deep nor broad and are largely animated by sovereign issuance. 

“Banks in Kenya are reliant on customer deposits to fund their lending operations. Rather they rely on development banks for foreign currency funding. We haven’t seen much corporate issuance in the conventional space,” she says.

A more positive area could be within Kenya’s fintech sector. S&P notes 80% of the country’s adult population used mobile money service providers for money transfers in 2022, compared to 44.1% for banks. The fintech ecosystem  is spread across four key sectors: payments and remittances, lending, finance business administration  and insurance.

“I think there is a lot of potential for technological solutions like fintech and tokenization in East Africa,” says Rehman. “Technology can democratise Islamic financial services and products like retail sukuk.”
 
Tanzania
Tanzania introduced Islamic banking in 2008, allowing lenders to offer Shariah-compliant products to a large Muslim population, estimated to comprise 35-40% of the total resident base of over 61 million.

Aman Bank is Tanzania’s first fully-fledged Islamic bank, while conventional lenders like National Bank of Commerce operate an Islamic window.

Whilst the country permits Islamic banking, there is no specific regulatory framework. However, the East African nation is developing its Islamic finance industry beyond banking. For example, in April 2022, Tanzania’s insurance regulator issued guidelines on takaful activities.

Although there has yet to be a sovereign sukuk issuance, Imaan Finance, a local financial services provider, sold the country’s first sukuk worth 2.72 billion Tanzanian shilling  ($1.17 million) in 2021.

Salum Awadh, CEO, Shirkah Asset Management, believes sukuk issuances are increasing, awareness is growing, and the industry is gaining traction. 

“[In particular], we have seen the launch of two takaful operators, an asset-backed sukuk, as well as the first halal mutual fund and sukuk guidelines have been issued,” he notes. 

Awadh also identifies challenges such as tepid education and awareness levels as significant barriers to growth. 

"We really need to invest here; then the enactment of Islamic banking regulations will be a key opener. We need more investment products in the market, and the use of technology through fintech will disrupt the traditional paths to stimulate faster growth through innovation, increasing access, and lowering costs.”

Uganda
Uganda’s nascent Islamic finance sector is slowly becoming part of the country’s financial ecosystem. Muslims constitute around 14% of the country’s population of about 47 million.

In 2016, the Bank of Uganda, the country’s central bank, began working on legislative amendments to introduce Islamic banking.

In September last year, Bank of Uganda granted its first Islamic banking license to Salaam Bank Uganda, a subsidiary of a Djibouti-based bank. Saudi-headquartered Islamic Development Bank (IsDB) has also established a regional hub in Kampala, responsible for overseeing its activities in Uganda as well as in Comoros, Djibouti, Mozambique, and Somalia.

Its fintech sector is beginning to expand, too, with companies like Thiqa Digital Finance, offering Shariah-compliant products such as payments, asset financing, and trade finance.

Ethiopia
The National Bank of Ethiopia authorised commercial banks to offer interest-free banking windows within its conventional banking system in 2011. In 2019, authorities expanded the framework to enable fully-fledged Shariah-compliant lenders.

ZamZam Bank, the first Islamic lender in Ethiopia was established in 2020, followed by Hijra Bank a year later. Conventional banks like Commercial Bank of Ethiopia and Abay Bank, continue to offer Shariah-compliant services through Islamic windows.

Nonetheless, lack of managerial expertise and regulatory gaps in areas like takaful, sukuk, and Islamic capital markets, remain. S&P’s Mensah adds that markets like Ethiopia and Madagascar face their own [economic] challenges, which makes it difficult for Islamic finance to develop.  

“In Ethiopia, the sovereign defaulted on its Eurobond and the financial sector is to a large extent public sector led,” she says.

However, the Ethiopian Securities Exchange is reportedly looking to develop Shariah-compliant capital market products.

Djibouti
In 2011, the government introduced its Islamic banking law, followed by takaful legislation a year later. Furthermore, in October 2016, it established a National Shariah Council to oversee the sector. However, it does not have a sukuk law in place and currently does not borrow from international capital markets.

The Central Bank of Djibouti is an AAOIFI regulatory member and a full IFSB member. Djibouti is a member of the IsDB, too. Islamic banks operating in Djibouti include Dahabshil Bank International, East Africa Bank, Salaam Bank, Saba African Bank, and Shoura Bank. 

Conventional lenders like Djibouti International Bank, operate Islamic banking windows. 

Collectively, these banks are estimated to hold between 15% and 20% of the local financial market.

A year in, the ongoing conflict in Israel and Gaza has had a profound impact on brands and businesses in the UK and around the world, particularly those perceived to have connections or inclinations towards Israel or Palestine. 

This article explores these impacts and the rise of alternative beverage options in the UK market. 

Effects on brands and businesses: 
Several brands have faced calls for boycotts from activists and groups supporting Palestine. This includes companies seen as supporting Israel or operating in contested territories.

Importantly, these boycotts are not limited to Muslim consumers but include a diverse range of individuals who advocate for justice and oppose occupation. 

Brands that made statements or took stances related to the conflict have also faced significant backlash on social media. This has led to reputational challenges and forced companies to reassess their public communications strategies. 

To counter rising consumer wrath, some companies have altered their marketing strategies or public relations approaches. These changes aim to avoid alienating customers or to align with public sentiment. 

In terms of bottom lines, certain sectors, especially those linked to tourism or international business, have faced and may continue to experience financial repercussions. This is due to changing consumer behaviour and increased scrutiny of companies' geopolitical stances. 

Additionally, companies operating in or sourcing from the region may need to reassess their supply chains in light of the conflict. This could lead to changes in procurement strategies and potentially affect product availability or pricing. 

Rise of alternative beverages: 
In response to boycotts of major brands like Coca-Cola and Pepsi, several alternative beverage options have gained prominence in the UK and European markets. 

Some of the generic alternative soft drinks include Karma Drinks, known for its organic soft drinks and ethical sourcing; Pop Soda, which is said to focus on craft sodas with unique flavours and natural ingredients; Lixir Drinks, which specialises in low-calorie mixers and soft drinks; and Cawston Press, which offers sparkling fruit drinks made from pressed fruit with no artificial additives. 

Some emerging 'ethnic' cola brands have emerged to cater specifically to consumers looking for alternatives to major cola brands. These include: Mecca Cola, which was launched in France in 2002, and has since gained popularity in European Muslim communities.

Then there is Zamzam Cola, an Iranian brand that has found a market in some European countries. Others include Evoca Cola, a British brand that markets itself as an ethical alternative to mainstream colas; Qibla Cola, a UK-based brand that emphasises ethical consumption; and Yo Cola, a new British brand. 

These brands often market themselves as socially conscious alternatives, appealing to consumers who are looking to align purchasing decisions with their values. 

Broader implications: 
The emergence of these alternative brands reflects a growing trend of conscious consumerism. It demonstrates how geopolitical events can significantly influence market dynamics and consumer behaviour. 

The situation also highlights the increasing importance of brand values and ethical stances in consumer decision-making. It shows the potential for niche markets to grow rapidly in response to changing societal attitudes. 

The Israel-Gaza conflict has had far-reaching effects on the UK business landscape, particularly in the beverage industry. As consumers become more aware of the geopolitical implications of their purchasing decisions, brands are forced to navigate complex ethical territories.

The rise of alternative beverage options, especially in the cola market, illustrates the market's ability to adapt to these changing consumer preferences and values. 

Naved Syed is a UK-based halal food and beverage consultant