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UAE must whet appetite for crucial halal industry

It is in line with emirate's goal of leading Islamic economy

The UAE's ambition of establishing Dubai as the capital of Islamic economy is a key pillar of the government's broader strategic plan. By positioning Dubai as the centre of knowledge, expertise and trade for the Islamic economy, we will fuel trade, gross domestic product (GDP) growth and job creation. With the halal industry playing a significant role in Dubai's grand plan, it is imperative that we cultivate and foster this sector by bringing both government and industry closer together.
The growth of the global Islamic economy, and with it the halal sector, has proved prolific. It is estimated that over the next five years, global demand for halal products will increase between 15 and 20 per cent.
According to a report by Thomson Reuters and Dinar Standard, the global halal food and beverage market is expected be worth $1.6 trillion by 2018. Business Monitor International (BMI) believes global demand for halal processed food will grow significantly over the next five years, underpinned by rising awareness, a fast growing Muslim population and increasing incomes in majority?Muslim populated countries.
Countries have seen the opportunity to grow with this market and have reacted accordingly. Most recently, Russia said it will launch halal poultry exports this year, with the UAE and Qatar to be supplied first. In 2014, Russia didn't export any halal poultry products but is now set to take advantage of this booming sector.
While the oil and gas industry remains the dominant contributor to Saudi Arabia's exports, a number of additional strategic sectors have witnessed considerable growth and development - including the halal industry. Not surprisingly, the number of exporters of halal products and services from Saudi Arabia has also grown. The country had over 40 representative companies at the Malaysia International Halal Showcase this year - making it the largest foreign country participation at the world's biggest halal-only expo.
In Asia, the largest halal market, South Korea, has launched a new halal food agency in a bid to expand its food exports to the Middle East and other Muslim countries. The government is also keen to seize a share of the global halal industry. It announced in March that it plans to double halal food exports to at least $1.23 billion.
The UAE has also embraced the economic potential of halal products. According to a study by Thomson Reuters, Dubai's Islamic market has a potential value of $6.7 trillion, bigger than both the US and China. With its easy access to global trade routes, the UAE has a unique opportunity to cater to not only the local market, but also an international audience with a big appetite for halal products, such as Egypt, Indonesia and Turkey.
Within the region, BMI estimates that local food consumption will grow to Dh33 billion during 2015 and Dh35 billion in 2016, demonstrating a rapidly growing market that makes significant contributions towards GDP. An opportunity exists for the UAE to tap into this trend by promoting the halal industry in the Middle East, while also bringing world class structure and standards to the sector.
At DuBiotech, we have witnessed first-hand this rise in demand and have assisted a number of halal-specific companies to set up within our free zone. One such company is Himalaya, a specialised laboratory that provides halal testing for a wide range of consumer goods, enabling them to be categorised as approved halal products.
The GCC Standardisation Organisation (GSO), the body that sets the standards and technical regulations for the region, recently announced the formalisation of a certification that provides approved products with a halal mark as part of Dubai's push to become the global capital of the Islamic economy, ensuring that products sold in our market adhere to the global standard for halal. The halal certification covers the full Shariah-compliant process from farm to plate.
The GSO standard will address the problem of companies claiming halal processes without due cause. We can alleviate the fragmentation of halal certification. By creating consistency in the halal food market, we are able to stand shoulder to shoulder with other international Islamic markets and make the most of the potential we see in this industry.
If we are to achieve the government's ambition of becoming the leading Islamic economy, engaging and working with producers, importers and exporters of consumer goods is crucial. We must assist the public and private sector in working together to establish a framework for stimulating the industry that leads to innovation and ultimately a stronger economy. At DuBiotech, we are committed to providing the bridge between sectors to help drive greater collaboration and partnerships that benefit all parties.
The writer is executive director at DuBiotech. The views expressed are that of the writer and do not reflect that of the newspaper.