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.
 

Here's a roundup of key developments across the OIC ecosystem during the month of November

Editor's Note: Sustainability is the new watchword the world over, and rightfully so. The Islamic Development Bank has teamed up with Kazakhstan to launch a climate resilient water project, while it is looking to train an entire generation of sustainable development leaders, too.

Meanwhile, a business forum held in Istanbul showcased opportunities for Turkish investors in Saudi Arabia. 

Trade Developments

Saudi Arabia

Islamic Development Bank Institute delivers program to empower future leaders 

The Islamic Development Bank Institute (IsDBI) has trained a new generation of sustainable development leaders.

The program, held in Jeddah, Saudi Arabia, brought together professionals from various countries. The event focused on leveraging Islamic finance to address global challenges and highlighted the IsDB Group's efforts to support socioeconomic development in member countries. (Zawya)

Maldives / Qatar

MoU signed between Maldives and Qatar to elevate financial sector 

The Maldives and Qatar have joined forces to elevate the Maldives' financial sector.

The Maldives' Ministry of Economic Development and Trade has signed a Memorandum of Understanding with the Qatar Financial Centre (QFC) to foster knowledge sharing and capacity building.

This strategic partnership aims to realize the Maldives' ambition of becoming a world-class financial hub and bolstering its economic resilience. (Zawya)

Qatar / UAE

Over 25 Qatari companies poised to transform Gulf business landscape

Qatar Development Bank (QDB) is leading a trade mission to Dubai, bringing together over 25 Qatari companies to explore opportunities and form partnerships with Emirati businesses.

The mission, organized by QDB's export promotion arm Tasdeer, is expected to boost trade between the two nations. (Global SME News)

Saudi Arabia / Türkiye

Saudi-Turkish business forum yields 10 agreements

A business forum held in Istanbul showcased opportunities available to Turkish investors in the kingdom, particularly in tourism, healthcare, digital services, and energy.

Both countries aim to increase trade volume and foster partnerships in various sectors, including agriculture, food, technology, and logistics.

Several cooperation agreements were signed during the forum, reflecting the growing economic relationship between the two nations. (Saudi Press Agency)

Malaysia / Vietnam

Malaysia, Vietnam to strengthen ties through halal investments, strategic partnership

Vietnam has urged Malaysian investors to contribute to its halal industry, Deputy Prime Minister Dr Ahmad Zahid Hamidi revealed. 

Vietnam seeks Malaysia's expertise in halal development as part of its ambition to become a developed nation by 2045. (The Sun)

Bahrain / UAE

Bahrain  and the UAE building on trade pact

Bahrain and the UAE are advancing their collaboration under the January 2024 MoU between their respective ministries of industry.

Technical teams finalized steps to align Bahrain's Takamul Programme with the UAE's National In-Country Value (ICV) initiative.

Bahraini firms can now apply for ICV certification to bid on UAE federal tenders, while Emirati firms gain a 10% preference in Bahrain's Takamul Programme after qualification. (Zawya)

UAE / Albania

UAE and Albania launch inaugural Joint Economic Committee in Tirana

The UAE and Albania have launched their first Joint Economic Committee (JEC) in Tirana, boosting bilateral trade and investment ties.

Co-chaired by the UAE Minister Dr. Thani Bin Ahmed Al Zeyoudi and Albania’s Deputy PM Belinda Balluku, the meeting prioritized collaboration in renewable energy, logistics, infrastructure, agriculture, food security, and technology, with participation from senior officials and private sector leaders from both nations. (Gulf Today)

ESG Developments

OIC / Kazakhstan

IsDB, Kazakhstan launch $1.32bn climate-resilient water project

The Islamic Development Bank (IsDB) and the Republic of Kazakhstan have entered into a significant partnership to launch Phase 1 of the Climate Resilient Water Resources Development Project.

The $1.32 billion initiative, backed by $1.15 billion in IsDB funding, aims to enhance Kazakhstan's water infrastructure and bolster its resilience to climate change.

Key components of the project include the construction of 11 strategic reservoirs for seasonal water storage and flood control, the rehabilitation of 3,400 kilometers of irrigation networks, and the improvement of river flows across 100 kilometers. (Zawya)

Canadian Islamic finance firm Manzil Wealth has launched a halal wealth management platform to offer a gamut of Shariah-compliant financial services.

The Manzil Wealth Platform aims to support investors seeking ethical and Islamic financial products, providing access to services, including halal investments, Sharia-compliant mortgages, and comprehensive financial planning.

Manzil Wealth has also acquired Canadian Islamic Wealth, a Manitoba-based halal investment and financial services provider, as part of the launch. The acquisition strengthens Manzil’s aim to lead the halal finance industry in Canada by expanding its reach and enhancing its product offerings, the company said in a statement.

Jesse Reitberger, founder of Canadian Islamic Wealth, will join Manzil Wealth as a senior wealth advisor.

Dr. Mohamad Sawwaf, CEO of Manzil said that the launch of the platform and the acquisition of Canadian Islamic Wealth represent a pivotal moment in Islamic finance in Canada.

“This platform sets a new standard for halal wealth management, providing advisors and clients with the resources they need to achieve financial success while staying true to their values.”

Islam was the second most commonly reported religion in Canada in 2021, with nearly 1.8 million. The share of the Muslim population in Canada has more than doubled in the duo of decades, up from 2% in 2001 to 4.9% in 2021.

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

Australian Islamic financial services provider Hejaz has launched a financial app to offer Shariah-compliant financial services to the country’s growing Muslim community.

The Halal Money app provides features tailored to the needs of Muslim investors, including Sharia-compliant superannuation services, home loans, auto finance and exchange traded funds (ETFs) that would otherwise be forbidden.

Hejaz has teamed up with Bahrain’s ruling family to launch a regional HQ in Bahrain, in tandem with the Australian launch. 

The move facilitates Hejaz's expansion into the UK and European markets, leveraging Bahrain as a springboard for its global growth, the company said in a statement. 

Currently, two billion Muslims worldwide hold $4.5 trillion in assets yet face slim pickings in terms of investment options with financial institutions that offer Shariah-compliant services. 

Muslims comprise 3.2% of Australia’s approximately 25.5 million people in 2021, according to the country’s latest census data. 

“The Muslim community, like all other communities globally, must be empowered to have values-aligned access to finances, payment infrastructure, and investment opportunities. And yet this growing global market has been underserviced in this regard for decades, including in Australia,” said Hakan Ozyon, founder and CEO of Hejaz Group.  

The platform aims to democratise access to halal investments and provide a user-friendly interface for managing Islamic finance portfolios in one single app, he added. 

“We’re not like the big four banks that have a million apps for every service they offer, with the Hejaz app you can spend, invest and save, all in one.”