Qatar is a flourishing halal economy hub: IPA Qatar
The study further shows that the global halal economy is taking centre stage, showcasing its significant growth and potential to reach a staggering $7.7trln in market value by 2025
Staff Writer, The Peninsula
Doha: The Investment Promotion Agency of Qatar (IPA Qatar) conducted a study that shows that the State of Qatar serves as a flourishing halal economy hub, as Qatar focuses on core sectors with high growth potential has set the stage for an impressive halal market size across industries.
The study further shows that the global halal economy is taking centre stage, showcasing its significant growth and potential to reach a staggering USD 7.7 trillion in market value by 2025, up from USD 3.2 trillion in 2015.
This thriving sector, which adheres to Islamic principles and values, encompasses a wide range of industries from finance and food to pharmaceuticals, travel, cosmetics and fashion. In recent years, the halal economy has gained increasing attention and investment, with a compound annual growth rate of 9.2 percent forecast between 2015 and 2025.
As the halal economy continues to expand and diversify, it presents a unique opportunity for businesses and investors to tap into a growing market of consumers, who seek ethical halal products and services.
The study pointed to the fact that the GCC region is well-positioned to benefit from this market growth, with Qatar serving as the hub of this booming sector.
The country has already established itself as a leader in the halal food industry, with key market players such as Hassad Food promoting food security, sustainability and innovation.
IPA Qatar’s study demonstrates that in 2021, it recorded market assets worth USD 156.4 billion in financial markets, USD 1 billion in Islamic insurance (Takaful), USD 14.2 billion in Islamic tourism, USD 5.1 billion in healthcare, and USD 849 million in Islamic Fintech.
The study found that the Key indicators show that the GCC region dominates the global Halal market: with Halal Food Market Value: USD 58.2 billion in 2021 in the GCC region, the Halal Financial Assets: USD 1.5 trillion market value in 2021 in the region, with a +7 percent growth rate projected between 2020 and 2026 for OIC economies, and Venture Capital Funding: USD 1 billion MENA-based start-up funding in Islamic finance in 2020.
IPA Qatar’s study said that the State of Qatar’s efforts in global and national Halal accreditation are also notable, exemplified by the establishment of the Organization of Islamic Cooperations (OIC) Halal Accreditation Centre and the issuance of a guide on importing Halal food products by the Ministry of Public Health (MoPH).
The country’s halal economy value chain is supported by players across industries, from purchasing halal inputs to certifying and accrediting products for halal standards, and logistics and distribution to end-users.
Qatar is promoting this collaborative spirit through initiatives like the Ministry of Commerce and Industrys (MOCI) “Halal Livelihood” programme to raise awareness about halal living and its Islamic banks substantial potential in takaful, green investments and Sukuk issuance.
With its stable and resilient economy, pro-business climate, vibrant knowledge ecosystem and rich culture, Qatar offers foreign investors an attractive and competitive business environment. As part of its ambitious Qatar National Vision 2030, the country aims to position itself as a leading hub for trade, tourism and investment in the region including in its halal economy, which ranks in the top ten on the Global Islamic Economy Indicator (GIEI).
Demand for Halal products and services is rising, not just from Muslim consumers but also from non-Muslims who view Halal items as ethical, healthy and safe.
Spending in the Halal media market alone is expected to reach USD 308 billion by 2025, with Qatar, incidentally, placing among the top three OIC nations for Islamic-themed media and lifestyle services.
This growth has the potential to create jobs, foster innovation and contribute to economic development.
The study said that in order to tap into this market, businesses and investors must collaborate with various players, including halal certification bodies, distribution platforms, marketing companies, logistics and warehousing companies, and retailers.
As the global halal economy continues to expand, Qatar’s strategic location, deep industry involvement and robust halal infrastructure make it a compelling destination for investors from the region and globally.
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