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Home / Insights

Featured Insights

Islamic Finance

How AI is powering the future of the Islamic economy

30 Apr 2025
Insight

Opinion
Australia rekindling relationships with the Muslim World  
24 Apr 2025
Insight

Islamic Finance
Pakistan’s push for interest-free banking faces challenges
22 Apr 2025
Insight

OIC Economies
What will reconstructing besieged Gaza entail?
11 Apr 2025
Insight

OIC Economies
Indonesia's tech soul is on the line
10 Apr 2025
Insight

Halal Industry
Challenges, sensitivities dent lab-grown meat uptake  
07 Apr 2025
Insight


All Other Insights
OIC Economies
Can Indonesia’s new wealth fund lift or sink its economy?

In February 2025, Indonesia launched Danantara, a sovereign wealth fund tasked with managing $900 billion in state-owned enterprise (SOE) assets to propel economic growth.

Amid a turbulent economic landscape - marked by a weakening rupiah, a contracting equity markets space, and waning investor confidence - Danantara represents a bold bet on transforming Indonesia’s economy. 

Indonesian president Prabowo Subianto envisions it as a driver of propelling GDP growth from 5% to 8% by 2029, emulating giants like Singapore’s Temasek. Yet, public skepticism warns of governance risks and parallels to Malaysia’s 1MDB scandal. 

Potential to elevate Indonesia
Danantara’s ambitious scope - consolidating 65 SOEs, starting with seven giants like Bank Mandiri and Pertamina - offers a pathway to address Indonesia’s economic turbulence. By streamlining SOE operations, it could boost efficiency, reduce fiscal burdens, and unlock $20 billion in initial funding for high-impact sectors like infrastructure, renewable energy, and nickel downstreaming.

These investments could attract foreign direct investment (FDI), which is critical as investor confidence falters (e.g., LG Energy Solution’s $8.5 billion EV project withdrawal). 

If successful, Danantara could mirror Temasek’s role in Singapore, where state-led investments drive 5-6% annual GDP growth. For Indonesia, this could stabilize the rupiah, battered by global commodity price swings, and restore market momentum.

Beyond growth, the wealth fund could empower Indonesia to retain more economic value, addressing a longstanding issue for OIC nations often exploited by global corporations for low-value production. By investing in downstream industries like nickel processing, it could shift the country from raw material exporter to high-value producer, boosting national wealth. 

Its global advisory board, including billionaire and hedge fund manager Ray Dalio, signals intent to court international capital, positioning Indonesia as a regional economic powerhouse.

Risks that could compound challenges 
Danantara’s governance structure is a glaring concern, threatening to amplify Indonesia’s economic challenges. Unlike Temasek’s independent board, Danantara’s leadership raises fears of cronyism. National auditors (BPK, KPK) lack direct oversight, requiring House approval to probe finances. 

The appointment of Thaksin Shinawatra, Thailand’s former prime minister ousted in a 2006 coup and dogged by corruption allegations, to the advisory board further erodes credibility, calling Danantara’s integrity into question. This move risks alienating investors already wary after the Jakarta index responded negatively on the fund’s launch day.  

Weak governance could exacerbate currency volatility and capital flight, as seen in recent market trends. If Danantara bails out underperforming SOEs without reforms, it risks draining public funds - $325 trillion IDR from budget cuts is already committed. A 1MDB-like scandal, where political influence led to a $4.5 billion loss, could deepen the rupiah’s slide and deter FDI.

The Business Judgment Rule, shielding officials from liability, and optional supervisory committees heighten moral hazard, potentially turning Danantara into a political slush fund rather than an economic stabilizer.

Malaysia’s tale of triumph and tragedy
Malaysia, an OIC peer with a commodity-driven economy, offers a dual perspective on state-led investment through Khazanah Nasional Berhad and the 1MDB scandal - models of success and failure for Danantara to heed.

Khazanah, established in 1993, manages $40 billion in assets and has driven Malaysia’s economic growth (e.g., 5.6% GDP growth in 2022) by professionalizing SOE management and investing in technology and healthcare.

Unlike Danantara’s politically driven structure, Khazanah’s independent audits and professional board have attracted FDI, stabilizing Malaysia’s economy during commodity volatility. Its disciplined approach to high-return projects offers a roadmap for Danantara to boost Indonesia’s markets and rupiah. 

However, Khazanah’s early missteps, like bailing out Malaysia Airlines, warn Danantara against propping up inefficient SOEs without reforms, which could strain Indonesia’s budget amid 2025’s turbulence.

On the other hand, The 1MDB scandal, where $4.5 billion was siphoned off through corruption starting in 2009, underscores the perils of weak governance. Controlled by then-premier Najib Razak, 1MDB lacked independent oversight, leading to massive debt and a weakened ringgit. 
Thaksin Shinawatra’s advisory role in Danantara echoes 1MDB’s political entanglements, amplifying fears of elite capture.

To avoid 1MDB’s fate, Danantara must enforce rigorous audits and insulate its board from controversial figures, ensuring funds fuel growth, not enrichment.

Malaysia’s contrasting experiences highlight a clear lesson: professional governance is critical to economic success. Khazanah’s transparency offers Danantara a path to stabilize Indonesia’s economy, while 1MDB’s collapse warns of the catastrophic risks posed by political interference, which could deepen Indonesia’s currency and confidence crises.

High-stakes gamble
Danantara stands at a crossroads. If it adopts Khazanah’s professional governance and strategic focus, it could elevate Indonesia’s economy, stabilizing markets and attracting FDI to counter 2025’s turbulence. 

However, governance flaws - political leadership, Thaksin’s scandal-tainted appointment, and weak oversight - risk a 1MDB-like disaster, deepening currency woes and investor distrust. 

To succeed, Danantara needs transparent audits, a professional board free of controversial figures, and clear investment criteria, insulated from cronyism. 

As Indonesia navigates global headwinds, Danantara’s execution will determine whether it becomes a beacon of growth or a costly misstep. Policymakers must heed OIC lessons to ensure it lifts, not sinks, the nation’s prospects.
 

Rianovel Mere is a consultant and project manager at DinarStandard

06 May 2025
Insight
Islamic Finance
How AI is powering the future of the Islamic economy

Artificial intelligence (AI) is rapidly emerging as a transformative force within the Islamic economy, driving innovation across sectors from finance and food to tourism and education. 

By enhancing Shariah compliance, improving accessibility, and enabling personalized services, the technology is reshaping how the Islamic economy operates, while preserving its ethical foundations.

More broadly, the technology’s potential economic impact is substantial - AI could contribute up to $320 billion to the Middle East's economy by 2030, according to PwC.  

“The synergy between AI and the Islamic economy is immense,” says Badr Saidi, quality manager and technical auditor at Halal Consulting S.L., a Spain-based halal certification body.  

“By leveraging AI in areas like Shariah compliance, ethical finance, halal supply chains, smart cities, tourism, and education, we can drive sustainable growth while staying true to Islamic ethical principles.”

To succeed, Saidi emphasizes the need for collaboration between AI developers, Islamic scholars, and industry leaders to ensure technological advances align with religious values.

Transforming Islamic finance

AI’s most visible impact is unfolding in Islamic finance, where it is streamlining compliance processes, improving fraud detection, and fostering financial inclusion.

“With AI, Islamic banks and financial companies can better understand their customers - how they invest, what they need, and even their risk tolerance,” says Sara Husain Hammad, innovation and technology project manager at Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI). 

“This helps create personalized financial products that comply with Islamic guidelines while still being innovative,” she says.

AI-powered tools are already transforming traditional processes. According to Saidi, machine learning algorithms are now automating the verification of financial transactions to ensure they adhere to Shariah law, avoiding elements such as Riba (interest), Gharar (excessive uncertainty), and prohibited investments.

He adds that AI-driven robo-advisors are also curating tailored halal investment portfolios, while predictive analytics are optimizing Sukuk (Islamic bonds) issuance and improving fraud detection in Takaful (Islamic insurance).

Banks across the Muslim world are already deploying AI. Dubai Islamic Bank (DIB) is using AI tools to assess the Shariah compliance of companies and financial instruments. Bahrain Islamic Bank has launched a digital platform offering access to more than 1,800 Shariah rulings to help simplify complex regulations and encourage industry collaboration. 

Outside of the GCC, Bank Muamalat Malaysia has partnered with Google Cloud to to deploy generative AI and advanced data analytics to help it evolve into a fully digital Islamic institution. Egypt’s Faisal Islamic Bank has embraced AI to modernize and expand its services.

AI is also helping extend financial services to underserved communities. By analyzing alternative data - such as mobile payment history and social behaviour - AI can help individuals with limited credit histories, including those in rural areas or small business owners, to qualify for financing. This supports Islamic finance’s mission of ethical and inclusive banking.

“Combined with Islamic finance’s focus on ethical and community-centered banking, AI can open doors for more people to access financial services in a way that respects their beliefs,” says CIBAFI ‘s Hammad.

Securing the halal supply chain

Beyond finance, AI is shoring up the halal economy by ensuring product traceability, authenticity, and safety. One of the biggest challenges in halal certification is verifying that ingredients and production processes comply with Islamic dietary laws. 

“AI can assist in several ways, including in ingredient label analysis. AI-powered Natural Language Processing (NLP) can scan product ingredient lists and detect potential non-halal components like gelatin, alcohol, or animal-based enzymes,” says Saidi.

AI-powered blockchain platforms now provide end-to-end tracking of halal products, from source to shelf, while computer vision systems monitor production lines for contamination, he adds. Image recognition tools are detecting fraudulent halal logos, and IoT sensors help safeguard halal-certified goods during transportation and storage.

AI is also playing a crucial role in laboratory testing. Advanced spectroscopy and chemical analysis, supported by AI, can identify traces of non-halal substances in food, cosmetics, and pharmaceuticals with high accuracy. Meanwhile, AI-driven analytics are helping businesses forecast demand for halal products, ensuring better inventory management and reduced waste.

However, standardization remains a challenge. According to Saidi, differing certification criteria across countries make it difficult to create a universal AI model, and smaller enterprises may struggle with the costs of adopting these technologies.

Enhancing Muslim-friendly travel

The Muslim-friendly travel market is another area where AI is making strides. According to the State of the Global Islamic Economy Report 2023/24, AI is enabling personalized travel experiences and improving customer service with virtual assistants and predictive analytics.

“Platforms can now generate customized itineraries for Muslim travelers, factoring in prayer times, halal food, nearby mosques, and Muslim-friendly accommodations,” says Saidi.

The Saudi Tourism Authority is pioneering AI-powered services, having recently launched "Sara," a virtual tour guide offering real-time travel advice. The authority has also partnered with Visa to create a Tourism Data Lab to analyze visitor behaviour and spending trends.

Facilitating Islamic education

AI’s role in Islamic education is growing rapidly. NLP models can help scholars and students in deepening their understanding of Quranic and Hadith texts, while AI-based edtech solutions can offer personalized Islamic education and smart learning platforms for different age groups, according to Saidi.

Innovators are developing AI-powered Islamic chatbots, voice assistants, and digital Da’wah tools to facilitate knowledge sharing.

Startups are already making an impact. Pakistan’s Xeven Solutions recently launched Shahada GPT, offering Quranic translations, Hadith explanations, and halal guidance. Similarly, India-based QuranGPT answers religious queries. 

“The primary motivation behind developing QuranGPT was to bridge the gap between religion and modern individuals,” says Raihan Khan, an AI applications engineer and creator of QuranGPT. 

“Nowadays, people don’t want to spend hours flipping through books to find an answer or determine if something aligns with the teachings of the Holy Quran. QuranGPT simplifies this process by providing instant responses in natural language.”

However, combining AI with religious guidance carries significant risks. Without human oversight, AI can easily misinterpret Islamic teachings, spread misinformation, and inadvertently cause harm.

“While AI has the potential to enhance various aspects of the Islamic economy, its intersection with religion must be approached with extreme caution,” Khan warns.

“The biggest concerns lie in the inherent biases of AI models, the risk of misinformation, and the challenge of ensuring religious authenticity. Without strict monitoring, AI could do more harm than good in this space,” he adds.

Limited adoption

Despite AI's promise, adoption in the Islamic economy remains in its early stages. Most Islamic tech startups have yet to fully embrace AI, focusing instead on basic automation rather than sophisticated, AI-driven innovation.

“As of now, AI’s role in fostering innovation in the Islamic economy - particularly in tech startups or digital finance - is minimal,” says Khan. “While AI has the potential to enhance areas like Islamic banking, halal certification, and ethical investment screening, most Islamic tech startups have yet to fully explore or implement AI-driven solutions.”

30 Apr 2025
Insight
Opinion
Australia rekindling relationships with the Muslim World  

There was a palpable silence at the end of a premier screening of the documentary ‘Before 1770’ held late last year, punctuated only by distant sobs and the ruffling of tissue packets emanating from the audience of largely Muslim Australians.  

The reason why the feature documentary - showcased in multiple screenings across the country - evoked such an impassioned response was because it represented the connection Australia and its First Nations people held with the Muslim world.  

This deep connection, starting sometime in the mid-1600s, lasted for centuries until 1907 when the last ‘Perahu’ (sailing boat) from Makassar visited Arnhem land in Northern Australia. 

Dr Imran Lum (Image source: Supplied)

The reason why it resonated strongly with Muslim Australians, was because it was an untold story omitted from Australian history books; a tale intricately linking them with Australia’s First Nations people and their legacy. 

Before White colonisation, Muslim Bugis and Makassar traders would sail with the monsoon winds via the Flores and Savu seas, arriving on the shores of Northern Australia in places like the Kimberley and Arnhem Land to meet First Nations trading partners like the Yolŋu people.  

They would trade in trepang, a type of sea cucumber which was a delicacy and an aphrodisiac they would sell to lucrative Chinese markets. While their motivations for visiting Australia might have been for trepang, this was all part of wider regional trade patterns which connected Arab, Indian and Chinese markets via the Malay Archipelago.

These same Bugis seafaring traders would find themselves immersed in mercantile activity in historic port cities dotted across the Indian ocean like Aden, Muscat, and even as far as Zanzibar.  

Australia for them, was just part of an ancient maritime silk road that swapped out camels for Perahu sailing boats that covered vast distances with monsoonal winds. 

Fast forward a hundred years or so with the rise of the modern global Islamic economy, the vibrant Australian Muslim community like the Bugis before them, are rekindling historic linkages with the Muslim world through trade, halal food and Islamic finance.  

Australia is a melting point of a vibrant and dynamic Muslim population base comprising more than 70 different ethnicities. Nearly a million Muslims - more than half under the age of 25 -reside in growth areas in all the major cities and help create robust networks for business and investment opportunities.  

Halal food is now an AU$2 billion industry that helps serve the local Muslim community as well as major export markets such as Indonesia, Malaysia, the UAE and Saudi Arabia. Over 70% of Australian abattoirs are now reported to be halal certified.  

Muslim students from around the world are fostering long-lasting linkages with Australia. More than 30,000 students from Malaysia, Indonesia, and Pakistan and over 15,000 from the GCC are enrolled across universities and higher education institutes in the country. The Brunei government sends hundreds of students on scholarships to Australian universities each year. 

Education services with Muslim-majority countries amount to nearly AU$4 billion annually, generating revenue as well as creating investment opportunities across several quarters, including student accommodation, migration and employment, and halal food services. 

Lastly, Islamic finance is perhaps an untapped gold mine for Australia, having remained under the radar of Islamic investors worldwide for decades. For enterprising investors, Australia emerges as an unexpected yet compelling destination for Islamic investment. 

For select Islamic investors, Australia is not a distant continent, rather a destination that is geo-strategically situated on the fringes of vibrant Southeast Asian economies and one that offers a unique combination of a well-regulated market alongside growth opportunities for Islamic-conscious capital. 

The recently signed Australia-UAE Comprehensive Economic Partnership Agreement is the first Free Trade Agreement between Australia and a Middle Eastern country, facilitating investments in local projects. Shariah-compliant real estate investment has gained ground too, with institutions such as the National Australia Bank (NAB) offering Islamic products, enabling Muslims to finance their projects.

This unique offering has facilitated numerous partnerships between Islamic investors from the GCC and Southeast Asia and the vibrant and entrepreneurial Muslim business community in Australia. 

Shariah-compliant fixed-income solutions is another area of opportunity with Australia one of the rare AAA rated countries in the world according to Moody's, S&P and Fitch. There is a slew of ASX100 companies that are investment grade and above, offering a huge opportunity for Islamic fixed-income products or Sukuk bonds. 

With ongoing tariffs and geopolitical realities, perhaps Australia is not as far away as one might believe. With its growing young and dynamic Muslim community, Australia offers a combination of economic stability, diverse investment sectors, and financial governance. Throw delicious halal food in the mix and we have a sweet spot of opportunities. 

Perhaps now is the time for Islamic investors to set their sails Down Under. 
 
Dr Imran Lum is the head of Islamic finance at a major Australian bank. He is the host of the ‘Muslim Money’ Podcast and the author of 'A Comparative Study of Riba and Islamic finance in Australia and the UK (Routledge)'.

The opinions shared here are his own and do not reflect the views of his employer
 

24 Apr 2025
Insight
Islamic Finance
Pakistan’s push for interest-free banking faces challenges

Pakistan is aiming to implement an interest-free Shariah-compliant banking system by January 2028. While the ambition reflects a momentous shift toward an Islamic values-based financial system, practitioners caution that unresolved challenges could undermine the transition.

Renewed political will
In April 2022, the Federal Shariat Court (FSC), the country’s constitutional Islamic religious court, ruled that the entire banking system must be completely free of riba – more commonly known as interest - by the end of 2027. The court instructed federal and provincial governments to amend relevant banking laws to comply with the Shariah legislation. 

The directive, however, wasn’t the FSC’s first attempt to push for a fully Islamic banking system. The religious court made an initial declaration in 1999, notes Dr Sanaullah Ansari, CEO of Al-Iqtisad Consulting, only for it to be delayed by later governments through appeals and legal reviews. 

“This process continued and finally, in April 2022, FSC ordered the government to convert the current conventional banking system by December 31, 2027,” he says. 

However, this time there is adequate political will to introduce Islamic banking, complemented by a clear roadmap accorded by the State Bank of Pakistan (SBP), the country’s central bank. Following the FSC’s decision, the SBP released its five-year plan (2023–2028), setting ambitious goals to transform the conventional banking sector. 

There are currently 22 banks operating in Pakistan, including six fully-fledged Islamic lenders. Many of the remaining conventional banks either operate Islamic windows or have started planning for a full conversion. United Bank Limited (UBL) and Faysal Bank have transitioned, while Bank of Khyber and National Bank of Pakistan are en route. Others like Bank of Punjab are also exploring the shift.

In parallel, the Securities and Exchange Commission of Pakistan (SECP) - the country’s financial regulatory agency - introduced the Shariah governance guidelines in January 2023.

These apply to non-banking financial companies, Takaful operators, and private pension funds, with the aim of deepening Islamic capital markets.

Sovereign debt, coordination mar outlook 
Pakistan is the second-largest Muslim-majority country in the world. However, despite strong numbers, financial inclusivity across the country is fairly tepid. The country’s sovereign debt profile is another critical factor; the IMF notes that government debt stands at 71.4% of the Southeast Asian nation’s GDP, much of which is denominated in conventional, interest-bearing instruments.

“Most of the government’s liabilities are in conventional form,” says Mohamed Damak, head of Islamic Finance at S&P Global Ratings. “The government could choose to issue only sukuks going forward to refinance all commercial debt and net new borrowings, assuming that the market appetite for these instruments will be there.”

Damak adds that a significant portion of the debt is in the form of multilateral loans, bilateral loans, and central bank swap lines, with some of the multilateral loans having very long-term tenors. “It remains to be seen if and how these can be converted or structured in a Shariah-compliant format,” he adds.

Farrukh Raza, CEO of Islamic Finance Advisory & Assurance Services (IFAAS), believes that renegotiation is likely to take time due to legal and risk concerns from creditors, as well as the complexity of restructuring existing debt. “Stakeholders need to stay focused and resolve these matters as soon as possible.” 

Despite steps taken by the SBP and SECP, several market practitioners highlight a lack of coordination between key institutions and an absence of clear, realistic timelines.

“There needs to be a more well-thought-out process with a realistic plan and determined goals,” says Raza. “There needs to be better coordination with policies and implementation among the different entities in the country.”

He outlines three critical requirements for a successful transition.

“There needs to be a political will to genuinely support this transition and all stakeholders to be aligned on making it happen,” he says. 

“Secondly, you need a well-structured roadmap with clear targets and timelines for everyone to understand and work towards. Thirdly, you need to create a national champion among state institutions to own, lead and deliver this transition.”

This lack of coordination is closely tied to insufficient communication. Public engagement has been limited, with few workshops, conferences, or awareness campaigns to educate stakeholders about what this transition entails, according to Ansari.

“While the SBP and SECP have done valuable work, the broader market is still unclear about how this transition will play out,” he says. “Without consistent messaging and cooperation between players, implementation by 2027 will be difficult.”

Changing perceptions
A significant challenge lies in public perception. Many consumers raise doubts on the veracity of the Islamic banking system, considering it a repackaged version of the conventional banking system. This lack of trust dents its uptake as well as its credibility. 

Ansari notes that many banking customers question whether there is a meaningful distinction between Islamic and conventional products. “Whilst a lot of work has been done to facilitate Islamic banking, there is still a perception that it is merely a replication of conventional banking,” he says.

Sceptics also point to challenges in countries that have adopted Islamic financial systems, including Iran, Sudan and Afghanistan, though Raza believes comparisons with those countries to be unfair. 

“It’s not fair to compare Pakistan’s transition with these countries because all of them remain challenged on the international stage,” he says. “The issues they face are political in nature and not due to their financial systems being Shariah-compliant.”

Creating goodwill through education and awareness in addition to a clear timeline and roadmap to assimilate these changes thus remains key. 

22 Apr 2025
Insight
OIC Economies
What will reconstructing besieged Gaza entail?

It may be stating the obvious but rebuilding war-torn Gaza, after 15 months of relentless bombardment by Israeli forces, will be a massive and complex undertaking, which will entail conflating several elements such as financial aid, diplomatic engagement, humanitarian relief, and long-term political efforts.

The true ask: How can Muslim-majority countries play a critical part in this intense and long-term endeavour?

Scale of destruction

The Israel-Hamas conflict has caused nearly 50,000 deaths, displaced nearly a million people, and destroyed more than 60% of Gaza's housing stock along with much of its critical infrastructure, according to a report by the RAND Corporation.

The American research institute, which advises governments and international bodies on public policy, estimates that rebuilding housing and infrastructure could take over a decade, with costs exceeding $50 billion.

Similarly, a joint report by the World Bank, the United Nations, and the European Union found that reconstructing Gaza will require around $53 billion, with the largest portion allocated to rebuilding homes. 

Short-term recovery will need approximately $20 billion over the next three years, while long-term housing reconstruction will require an estimated $15.2 billion over the next five to eight years. Immediate recovery efforts include restoring essential social services such as healthcare and education, resuming basic utilities in the energy, water, and telecom sectors, ensuring food security, and repairing partially damaged homes. 

Additionally, a massive effort will be needed to clear over 50 million tons of rubble and debris caused by 15 months of relentless Israeli bombardment.

“The devastation by Israel in Gaza demands a response that matches the scale of reconstruction efforts seen in the aftermath of World War II, when cities like Berlin and Tokyo were rebuilt whilst preserving their communities and cultural heritage,” the Muslim Council of Britain stated in February. 

Innovative reconstruction strategies

Ahmed Fouad Alkhatib, a Gaza-born political analyst and resident senior fellow at the Atlantic Council, has proposed innovative solutions to Gaza’s immediate reconstruction challenges, including recycling its rubble to create an artificial peninsula off its central coast, which could host an airfield and a seaport. This could accord a vital, independent lifeline for the Strip’s recovery.

Additionally, Alkhatib proposes docking a floating power station offshore to supply electricity and deploying concrete breakers to process large debris. This would help clear space for temporary mobile homes, offering shelter for displaced residents as reconstruction progresses.

When it comes to providing shelter for Gaza’s displaced residents, the RAND report suggests that horizontal expansion alone cannot achieve the necessary population densities for returning communities.

Instead, the authors advocate for vertical expansion - adding floors to mid-rise buildings - as a practical solution for maximizing space in land-constrained urban areas. Additionally, vertical expansion aligns with the traditional Palestinian family structure, where generations often live in the same building, expanding upward as families grow through births and marriage, the report notes.

Muslim-countries helping rebuild Gaza

Muslim-majority countries, including Qatar, Turkey, Saudi Arabia, and the UAE, have previously provided billions in aid and may play a major role in funding Gaza’s infrastructure projects.

Qatar’s Gaza Reconstruction Committee has overseen hundreds of humanitarian projects since 2012. In 2024 alone, Qatar contributed over $49 million to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) to aid Gaza. Saudi Arabia has provided more than $5.3 billion in support for Palestinians across 289 projects, including $185 million since the latest escalation in 2023. Riyadh is now working with various UN agencies to raise $106 billion for reconstruction and humanitarian assistance.

Turkiye has supplied around $16.2 billion in aid to Gaza since October 2023, while the UAE's aid contributions to Gaza since the October war have been valued at $828 million. Egypt, too, has provided aid to Gaza worth nearly $196 million since the start of the war. 

Former USAID policy official Larry Garber notes that any effective reconstruction plan will require substantial resources in both personnel and funds. “Personnel might include security forces, civilian officials in formal governance roles, and technical advisers. The personnel also may have to meet a minimal vetting by Israeli authorities, depending on how they will be entering Gaza,” he said.

“Muslim-majority states should support locally-based and resilient reconstruction plans to ensure reconstruction actions respond to local needs and satisfy the ambitions of Gazan people,” says Abdalrahman Kittana, a postdoctoral research fellow at Finland’s Tampere University and an assistant professor of architectural engineering at Palestine’s Birzeit University.  

Beyond state-level support, Muslim populations - including doctors, engineers, and other specialists - can contribute by volunteering in Gaza. Kittana also suggests that offering remote job opportunities, particularly in the IT sector, and providing financial donations could further aid in the reconstruction process.

Egypt’s reconstruction plan

Egypt has already proposed a five-year $53 billion plan to rebuild Gaza, as an alternative to US President Donald Trump’s proposal to develop the enclave after depopulating it.

Endorsed by the Arab League and the Organisation of Islamic Cooperation (OIC), the plan envisions completing the reconstruction over the next five years. 

The proposal includes three phases, starting with the removal of rubble, construction of temporary housing, and restoration of partially damaged homes. The second phase envisions the establishment of utility networks and construction of housing units for 1.6 million people, while the third would involve completing housing for Gaza’s population, launching an industrial zone and technology hub, building fishing and commercial seaports, and developing an airport.

Egyptian businessman Hisham Talaat Moustafa, CEO of real estate developer TMG Holding, offers a more optimistic timeline. In a televised interview, he argued that Gaza’s reconstruction could be completed in three just years at a cost of $27 billion. His plan includes constructing 200,000 housing units to accommodate 1.3 million residents, with the involvement of 40 to 50 construction companies, both local and international.

Kittana believes Egypt’s proposal is impractical. While acknowledging its theoretical relevance, he argues that the plan was drafted during wartime without consulting Gaza’s local municipalities or residents, leading to critical oversights.

“The figures showing the general masterplans are out of scale architecturally and out of context practically,” Kittana explains. “The plans consider Gaza as ground zero, neglecting topographic, social, and contextual diversity as well as private ownership of the land. They deal with all of Gaza areas as if they were completely wiped out, raising questions about what they will do with undamaged or relatively sound buildings and areas.”

Furthermore, he notes that both the spatial plans and architectural typologies fail to align with Gazans’ social identity.

Kittana refers to the Gaza Phoenix Framework for the reconstruction of the strip as a more viable solution, describing it as a well-developed plan. Launched by Gaza municipalities and Palestinian grassroot communities, it encompasses fields such as urban planning, architecture, political strategies, economics, environment, and heritage.

Challenges and considerations

The success of Gaza’s reconstruction depends on multiple factors, including the stability of the three-phase ceasefire agreement and Israel’s position on material imports and border controls.

Following a renewed escalation during Ramadan last month, Egypt proposed a new ceasefire plan. 

“I don't think any country, Muslim or otherwise, has ‘committed’ any funds, which is wise on their part,” Garber says. “They should understandably wait until they can be reasonably certain that new fighting will not resume, and that the reconstruction process can proceed without impediments caused by delays in moving materials into Gaza.”

Moreover, some Muslim nations, including the UAE and Saudi Arabia, have indicated that their financial support is contingent on a clear pathway toward Palestinian statehood.

“I understand there are distinct positions even among the countries that participated in the discussions leading up to the Cairo summit,” Garber says. “My sense is that plans for trade routes should be included in the rebuilding plans, but that the initial priorities will require the restoration of essential services.”

While many Muslim-majority countries have expressed willingness to contribute, the real challenge will be sustaining long-term commitments rather than providing only short-term relief. 
 

11 Apr 2025
Insight
OIC Economies
Indonesia's tech soul is on the line

Southeast Asia’s tech landscape is bracing for a tectonic shift. Reports emerged this week that Grab Holdings Ltd., the Singapore-based ride-hailing giant, is raising capital to acquire GoTo Group, a consumer tech company and one of Indonesia’s most valuable startups. 

GoTo - born from the 2021 merger of Gojek and Tokopedia - has been a cornerstone of Indonesia’s digital economy. The GoTo ecosystem offers mobility, delivery and financial services, as well as extends e-commerce services through Tokopedia and banking solutions through its partnership with Bank Jago. 

The potential deal isn’t just a juicy headline for the daily’s business section; it’s a litmus test for the country to retain control over its technological destiny, especially after losing Tokopedia’s e-commerce arm to TikTok in early 2024 . 

At its heart lies a critical concept: platform power - the leverage a nation wields when it owns the enterprises driving its economy. 

As Jakarta weighs the implications, the stakes couldn’t be higher.

Homegrown brands feeling the heat
GoTo is no ordinary company. It’s an economic engine, contributing an estimated 2% to Indonesia’s $1.37 trillion GDP in 2023, according to World Bank figures - roughly $26 billion in annual impact. 

With two million drivers powering its Gojek arm and 14 million merchants on Tokopedia , GoTo processed ride-hailing and delivery transactions worth $3 billion in 2024 alone. The sheer scale of its business has made it a linchpin of Indonesia’s tech ecosystem, supporting livelihoods of multitudes, from urban drivers to rural sellers.

Cracks have begun to appear in its foundation, though. In January 2024, GoTo sold a controlling stake in Tokopedia to TikTok for over $1.5 billion, ceding one of its crown jewels to a Chinese tech giant after regulatory pressure forced TikTok to partner locally to resume e-commerce operations in Indonesia. 

The deal eroded GoTo’s e-commerce muscle, leaving Gojek as its primary driver. Once a symbol of Indonesia’s startup ambitions, GoTo’s reduced scope makes it a juicier target for Grab - and a stark reminder of how quickly platform power can slip away. 

As one of Southeast Asia’s rare unicorns - companies valued over $1 billion- GoTo still carries national weight, but the Tokopedia’s loss underscores the fragility of that status. 

Regional powerhouse in the making
For Grab, the acquisition makes strategic sense. Valued at $18 billion, the company reported $2.8 billion in revenue in 2024, an 18% jump year-over-year , and serves 43 million monthly users across  eight countries. Acquiring GoTo could create a $40–50 billion powerhouse, blending Grab’s regional reach with GoTo’s 60 million active users. Analysts see potential for a dominant player in Southeast Asia’s e-commerce market, projected to reach $280 billion by the end of the decade. 

The upside is tangible: expanded operations could generate thousands of new jobs, building on GoTo’s existing two million-strong driver base. 

Enhanced scale might also accelerate innovation - think AI-optimized logistics or seamless cross-border payments - positioning the combined entity to compete with global heavyweights like Amazon or Singapore’s Sea Group, which already claims 40% of Indonesia’s e-commerce via Shopee. 

For Indonesia, a stake in this regional titan could amplify its voice on the global stage, provided it retains influence post-deal.

Gig workers and national leverage at stake
The sheen fades when viewed through the lens of Indonesia’s gig economy.  

Gojek’s two million drivers are a case in point. A 2022 study in Jakarta found that 70% depend on the platform as their primary income, earning $150–$200 monthly after expenses  - near Indonesia’s minimum wage. Incentives have already shrunk amid rising competition. GoTo’s domestic roots have kept it attuned to these workers’ needs, balancing profit with local realities. 

A Grab-led future might shift that dynamic. Its track record offers clues: in Singapore, driver commissions fell, prompting protests. Extending that approach to Indonesia’s larger, less-regulated market could exacerbate pressures on an already fragile workforce. 

Platform power is a safeguard - when a platform prioritizes national interests, worker welfare potentially triumphs shareholder value. If GoTo’s ownership moves offshore, Indonesia risks losing that buffer, leaving gig workers exposed to decisions made far from Jakarta’s streets.

Shaping the future 
Indonesia isn’t powerless. Governments worldwide have tools to manage such shifts - antitrust reviews, local ownership mandates, or worker protection clauses. 

India offers a playbook: its Unified Payments Interface (UPI) processed $1.5 trillion in transactions in 2024 , bolstering domestic platforms while keeping foreign players in check. Jakarta could impose conditions on the Grab-GoTo deal - say, retaining a minority stake or mandating gig worker benefits - to preserve its power.

The country’s 2020 Omnibus Law already aims to boost digital investment - tweaking it to exert local control could be a start.

Timing matters, too. Indonesia’s digital economy is projected to reach up to $360 billion by 2030, per e-Conomy SEA 2024 Report , with GoTo as a key driver. 

Letting it slip away risks stunting that growth - or worse, ceding it to rivals. Regulators have flexed before: in 2023, they tightened rules on foreign e-commerce to protect local firms . A similar move now could ensure this merger doesn’t hollow out Indonesia’s tech ambitions.

This isn’t about blocking progress - it’s about shaping it. Platform power, in this context, is more than mere market share; it’s about sovereignty over a digital ecosystem that shapes – and funds - daily life. A handover to Grab risks diluting that influence, raising questions on the potential custodians of Indonesia’s tech future.

Solution: All stakeholders - regulators, startups, and the workforce - should be asking the same questions. And they must be aligned with national interests. 

Rianovel Mare is a consultant and project manager at DinarStandard

10 Apr 2025
Insight
Halal Industry
Challenges, sensitivities dent lab-grown meat uptake  

Sustainable life choices and the desire to eat clean are encouraging people to seek alternate proteins, but challenges stymie its acceptance and uptake. 

Lab-grown – or cultivated – meat is not a novel concept but for all its growth and progress over the past two decades, it has struggled to take off after the initial wave of optimism. 

Lab-grown refers to meat developed outside the body of an animal, as opposed to the traditional method of slaughtering living animals. Stem cells are extracted from an animal, cultivated in large tanks called bioreactors, and fed an oxygen- and nutrient-rich cell culture medium. Stem cells differentiate into components such as muscle, fat, and connective tissue, which are later harvested, prepared, and packaged, according to the Good Food Institute (GFI).

Its uptake, though, remains fairly modest, with the number of companies dedicated to cultivated meat development worldwide totalling 170 in 2023, according to a GFI report.

Lab-grown meat offers several advantages over conventional farming and slaughtering, including a lower environmental footprint, minimized water usage and lesser refrigeration costs.

Supply chain touchpoints are also limited as opposed to those of traditional meat, which generally include farm and feedlot operations, packing, processing, and retail operations, leading to a carbon footprint of 22kg carbon dioxide equivalent per kg of live weight, according to a DP World insights piece published last September.  

However, several reasons have stymied the growth of lab-grown meat, including religious sensitivities, protection of agricultural industries and the safeguarding of farmers’ interests.

Some view the adoption of cultivated protein as an attack on traditions, leading to varied acceptance across major jurisdictions and markets.

In Muslim-majority countries such as Malaysia, the uptake of cultivated meat is expected to bank on religious and cultural sensitivities.  

“Since Malaysia is a Muslim-majority country, the acceptance of lab-grown meat depends on its halal status. The Department of Islamic Development Malaysia (JAKIM) plays a crucial role in determining whether the process and ingredients used comply with Islamic dietary laws,” Saliza Binti Mohd Elias, associate professor at the Universiti Putra Malaysia’s department of Environmental and Occupational Health tells Salaam Gateway. 

“We understand that consumer acceptance of cultivated meat varies, especially in different cultural and religious contexts. For Muslim consumers, we are fully committed to ensuring our cultivated meat and fish are halal-compliant,” Jason Ng, vice president manufacturing of Cell AgriTech Sdn Bhd tells Salaam Gateway. The company claims to be the first cultivated meat company in Malaysia. 

“According to our survey, cost is the main concern for most consumers in Malaysia and Singapore. However, as long as the taste, texture, and price are on par with traditional meat, people are open to buy especially since cultivated meat is healthier and more sustainable.”

Singapore’s Islamic Religious Council issued a guidance last year, permitting Muslims to consume cultivated meat based on certain conditions, broadening its potential consumer pool across the multi-ethnic country. 

From a price standpoint, cultivated meat may obtain cost parity with conventional meat by the end of the decade, with its market worth $25billion in size by then, according to McKinsey & Company. Companies operating in the space must then work on reducing production costs for economic viability. 

The tissue-engineering techniques fuelling cultivated meat is a key area of regenerative medicine and has long been used across the pharmaceutical industry. For the production of lab-grown meat, Cell AgriTech has replaced pharmaceutical-grade equipment and materials with food-grade alternatives, reducing production costs. 

“The goal of our tissue engineering platform is to produce structured meat and fish tissue with the right texture, nutrition, and mouthfeel - without relying on scaffolds made from non-food materials. This approach allows us to make cultivated meat affordable, scalable, and closer to the texture and experience of traditional meat,” adds Ng. 

Besides cost concerns, long-term health implications of lab-grown meat also remain unknown, which could potentially dent its acceptance. 

Cultivated meat may not have the same micronutrient profile as traditional meat, potentially lacking essential compounds found in natural animal tissue, according to Mohd Elias.

“If not properly monitored, contamination with bacteria or unwanted chemicals during the production process is possible.” 

Lab-grown meat is considered safe, but potential health concerns include unknown long-term effects, differences in nutrient composition, and risks related to growth factors, contamination, and additives, notes Dr. Mian N. Riaz, associate department head and holder of the Professorship in Food Diversity in the Department of Food Science & Technology at Texas A&M University.

“There is also speculation about potential immune responses, though no strong evidence supports this,” Dr. Riaz tells Salaam Gateway. 

On the flipside, because cultivated meat is grown in sterile conditions, it is free from harmful bacteria like Salmonella and E. coli, which are often found in conventional meat and can cause foodborne illnesses, ads Ng. 

Other factors such as traditions and protecting the sanctity of agriculture are also manifesting as key obstacles in the growth of this space.  

Italy, France and Australia submitted a note to the Council of the European Union in January last year stating that artificial cell-based food production practices represent "a threat to primary farm-based approaches and genuine food production methods that are at the very heart of the European farming model.”

The note, supported by nine other countries, added that European agriculture stands out for its farm-based and primary production approach. 

Acrosst the Atlantic, three US states – Mississippi, Florida and Alabama – banned the sale of cultivated meat products, months after authorities approved companies to produce them. Florida’s commissioner of agriculture Wilton Simpson hailed the move, stating at the time that they must protect “farmers and the integrity of American agriculture.” The state of Iowa passed a bill mandating specific labelling for cell-cultivated meat. 

Dr. Riaz adds that while other states like Arizona, Tennessee, and Nebraska have considered similar measures, opposition and legislative hurdles have prevented additional bans. 

“Lab-grown meat could disrupt traditional farming by reducing demand for conventionally farmed meat and impacting rural economies, especially if policies favour cultivated meat. However, it also presents opportunities for coexistence by meeting growing protein demand, promoting sustainability partnerships, and allowing farmers to diversify their businesses.” 

07 Apr 2025
Insight
Halal Industry
Fragmented landscape dents Canada's promising halal food space

With a sizeable Muslim population that has doubled in the last two decades and continues to grow, interest in Canada’s halal food sector has intensified, driven by a mix of rising Muslim demographics and growing mainstream interest in ethically-sourced foods. 

The Canadian halal meat sector, is forecasted to hit an estimated $300 million by 2031, growing at an annual rate of 10 to 15%, according to Salima Jivraj, account director and multicultural lead at Nourish Food Marketing, a marketing agency specializing in the food sector. 

The epicenter of debate, however, is the country’s fragmented certification landscape. The lack or absence of a single regulatory body has led to confusion, inconsistent standards, and widespread frustration among consumers and businesses alike. While these challenges remain mostly confined to the certification and labeling domain for now, their potential economic and social effects could reverberate far beyond, shaping industry practices and consumer trust for years to come.

Canada presents a rapidly expanding halal food industry
The Canadian halal food sector is no small niche, tied as it is to the influx of immigrants. The country welcomes roughly half a million new immigrants each year, according to the Canadian government's stated goals, a sizeable percentage of whom reportedly spend over $1 billion on halal products annually.  

This is in line with global trends. According to Salaam Gateway's State of the Global Economy Report 2023/24, Muslim spending on food increased by 9.6% in 2022, reaching US$1.4 trillion, and is forecasted to reach US$1.89 trillion by 2027, growing at a CAGR of 6.1%.

While that is a significant increase in itself, what warrants attention is Canada’s position in the global meat trade, which forms the backbone of its domestic halal market. 

According to the United Nations COMTRADE Database, Canada imported approximately $2.58 billion worth of meat and edible meat offal in 2023 and exported $7.01 billion during the same period. 

Although these figures do not exclusively represent halal products, they highlight both the magnitude of the country’s meat sector and its capacity to supply and capitalize on international halal demand.

Regional dominance and emerging markets

Ontario and Quebec have traditionally led the halal food scene in Canada. Their significant Muslim communities underpin a robust ecosystem of halal-certified retailers, restaurants, and specialized grocers. However, provinces such as Alberta and British Columbia are fast catching up, propelled by higher immigration levels and rising consumer curiosity for speciality foods.

With the addition of e-commerce platforms and delivery services such as Uber Eats and Instacart, the reach and scale of halal items continues to grow. 

Industry giants and public sentiment

The potential of the halal food sector has led to big brands entering the market with mixed results. In May 2023, KFC Canada found itself at the center of social media backlash after reports suggested certain Ontario locations might switch to serving halal-only chicken. 

Other big brands such as Popeyes, Mary Brown, Boston Pizza, and Osmow’s have likewise introduced halal items at select outlets. Yet, they do not consistently disclose all measures taken to prevent cross-contamination, often prompting skepticism among observant consumers. 

On a consumer level, the push toward authentic halal offerings is manifesting in shifting brand perceptions, deeper skepticism of incomplete claims, and renewed calls for a more credible regulatory framework. 

While critics decry what they see as inadequate transparency, supporters point to this being a step in the right direction. While not all stages of the halal food process are certified, the moment still marks an inflection point for notable commercial brands entering the halal food market.  As Canada’s Muslim population climbs - reaching nearly 5% of the total population by 2021, as per Statistics Canada - producing and marketing halal options can be highly lucrative. 

Jivraj also pointed out that KFC’s halal offerings were part of a broader trend driven not just by population growth but also by increased interest among non-Muslim Canadians. 

"The criticism came mostly from a vocal minority amplified by social media," she explained, adding that poultry is a leading product in Canada’s halal sector, which she estimated to be worth about $1.5 billion. 

"Restaurants, fast food chains, grocers, and food manufacturers are increasingly exploring this space," Jivraj said. "This growth is being driven by both Muslim consumers and non-Muslims who recognize halal certification as a value-added quality marker."

However, integrating halal production into existing operations requires strategic planning and expertise. "Success depends on finding the right partners and understanding the nuances of the halal market," she explained. "Every business is different, and so the approach needs to be tailored."

Fragmented certification landscape
Despite reason for much optimism, Canada’s halal industry faces a critical dilemma: the absence of a unified, nationwide certification standard.

Currently, the Canadian Food Inspection Agency (CFIA) requires products labeled as halal to be certified but does not regulate the certifiers themselves. 

Current oversight relies on independent entities such as the Islamic Food and Nutrition Council of Canada (IFANCC), the Halal Monitoring Authority (HMA), and the Halal Advisory Group (HAG). 

“It’s a big challenge,” said HMA’s COO, Omar Subedar, emphasizing that without a comprehensive and uniform certification process, consumer trust can be compromised. 

To receive halal certification, products must undergo a thorough evaluation by an accredited halal-certifying organization. This involves a detailed review of the entire supply chain and manufacturing process to ensure that no elements or practices compromise the halal integrity through cross-contamination. 

The nuances extend beyond slaughtering protocols; cross-contamination, permissible feed for farmed seafood, and inclusion of non-halal ingredients like pork-based gelatin can all invalidate a product’s halal status if not carefully managed.

While the steps involved in certification are generally clear-cut, there is currently no universally accepted global authority governing halal certification. 

Critics argue that this fractured system 'dupes' consumers, who may believe that simply using halal meat is enough to ensure compliance. In reality, even minor contamination by non-halal substances - ranging from pork-based additives to cooking oils shared with non-halal items - can invalidate the halal status. 

Subedar and fellow members of the Canadian Council for Muslim Theologians corroborated this in 2004 by conducting a wide-ranging assessment of the halal meat sector. 

A parallel to broader regulatory realities
The closest example of a solution for Canada’s halal food labeling dilemma is the US, where the state of New Jersey has the Halal Food Consumer Protection Act. This act allows legal repercussions if companies mislabel or falsely advertise halal status. 

The lack or absence of a standard regulating body has repercussions that extend beyond the border and affect Canadian halal exports as well. Advocates for greater consistency point out that ongoing confusion can also stifle exports to Muslim-majority nations. Globally, there is no single, universally recognized halal certification authority. 

Countries such as Indonesia, Malaysia, Turkiye, and the United Arab Emirates require certifications from specific government-approved agencies. 

Canadian producers who wish to export often find themselves juggling multiple certifications, each with varying definitions of what constitutes halal. Failure to meet any of these sets of rules risks losing out on promising foreign markets that have a growing appetite for Canada’s high-quality products.

What's in store for halal food brands?
The future of Canada’s halal food industry hinges on its long-term halal food outlook with industry leaders remaining bullish. 

Driven by a younger generation of Muslims seeking convenient, read-to-eat halal foods that fit modern lifestyles, Agriculture and Agri-Food Canada projects the Canadian halal food sector primed for entrepreneurship and innovation. 

Analysts expect the Canadian halal food and beverage market - already pegged at $1 billion to $2.6 billion, depending on the forecast - to rise at a double-digit rate in the coming years.

According to Sayarun Nessa, director at Halal Commerce Canada Inc., investments in blockchain solutions and IoT (Internet of Things) can streamline the halal supply chain.

“Without a reliable system to trace a halal product from farm to fork, confusion will persist,” she states, underscoring the potential for technology-driven transparency to address fraud and unify protocols.

These developments highlight the promising potential of the halal food sector in Canada despite the need for transparency, oversight, and collaborative efforts among certifiers, government bodies, and industry stakeholders.

06 Apr 2025
Insight
Halal Industry
How has the UK's halal food space evolved?

The halal food market in the United Kingdom has grown tremendously over the past several years, reflecting an increase in the country's Muslim consumer base and a rising interest in ethical and healthy eating options.  

The sector in the UK is now worth billions, with projections of continued growth. Major supermarkets and grocery chains, such as Tesco, Sainsbury's, Morrisons and Asda, offer halal-certified products all year round, with expanded offerings around the holy month of Ramadan and the Eid festival.

This seasonal time is currently one of the biggest commercial events in the calendar, reinforcing a commitment to inclusivity and highlighting the economic draw of this space. From a trade standpoint, halal is also showcased at many exhibitions and trade shows in the UK and abroad. 

However, this wasn’t always the case. Halal foods' commercial journey in the UK is one for the books, starting more than two decades ago, from a modest family shop and progressing to find shelf space at a retailer in 2007, as part of the world foods category. The products on offer at the time included halal meat counters, prepacked halal meat, halal chilled products, halal sweets & confectionery. 

It didn’t stop there. Having worked in the space for years, I know that the initial opportunity could create a domino effect across the UK retail landscape and there was much to be done. Being a Muslim, the halal agenda is lived daily, and I, for one, was passionate about driving this market.

This commitment helped me launched the first ever Ramadan and Eid event at a UK retailer in 2008 - lasting 12 weeks. The event provided an opportunity to display halal offerings throughout highly-frequented stores, supported with marketing campaigns. Other retailers followed suit, one of which I supported to launch a similar campaign. The launch of Haribo Halal Sweets and halal Ramadan countdown calendars in the UK were also a few of my endeavours. 

Noor Ali BEM (Image: Supplied)

Fast forward to today, the halal food landscape has transformed. The dining out market is booming, with all manner of fare including Mexican, Far Eastern and Malaysian cuisines. Fast-food chains are massively growing, catering to a broader customer base, including non-Muslims. Brands like KFC and Nandos are betting big on halal outlets. Online shopping for halal products is also on the rise, with e-commerce platforms and specialized online retailers offering a gamut of halal products, especially at key times like Ramadan and Eid.

Challenges stymying sector growth
Whilst there are many opportunities for growth and expansion, key challenges such as misconceptions about halal practices and the need for consistent quality checks and certifications remain.

Retailers must navigate these challenges effectively to capitalise on the market's potential, recognising the cultural significance of halal practices and the dietary restrictions of Muslim consumers. This understanding can influence product selection and marketing strategies. 

Supply chain complexities and lack of education are some of the obstacles that hinder the progress of a thriving halal foods ecosystem. 

Supply chain – The halal supply chain is complex, and finding reliable suppliers offering halal-certified products consistently can be difficult. Retailers must ensure that suppliers meet quality standards and offer certifications, which would require ongoing monitoring and auditing. 

Any supermarket or independent shop offering halal products need to establish partnerships with reliable suppliers and manufacturers. This means having the resources but also the knowledge and awareness of different halal certification standards and processes.  

Education - It would be ideal for businesses offering halal products to conduct regular employee training and skilling/reskilling activities, apprising workers of cultural and religious sensitivities around halal practices. Offering customers timely information can help create a conducive shopping experience.

Building trust with the wider Muslim community is also essential. This could include outreach activities such as collaborations with local mosques and community organizations, and conducting community events and workshops to promote halal offerings and facilitate discussions around halal practices.

Understanding the customer - Probing deeper into the customer’s shopping habits would be another route to gaining valuable insights. Conducting regular market research to understand the varying facets of an average consumer’s shopping experience, such as his/her product preferences, purchasing habits, price and religious sensitivities, could help address preferences and concerns.

Facilitating online and in-store feedback to gather customer opinions and suggestions would also allow for adjustments based on consumer needs.

Addressing these challenges is critical for retailers aiming to successfully incorporate halal offerings and cater to a growing and diverse customer base. 

Noor Ali BEM is a UK-based world foods and halal category expert

 

11 Mar 2025
Insight
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