The Investment Promotion Agency in Qatar revealed that the country continues its efforts and contributions locally and globally in the field of adopting the Halal economy. Actors across multiple sectors support the value chains of the Halal economy in the country, from the procurement of Halal products to their certification and Halal standards certification, logistics and distribution to end users. Qatar is working to enhance this collaborative spirit through initiatives such as the “Halal Livelihood” visual program of the Ministry of Commerce and Industry; Which aims to raise awareness about halal life and the great potential of its Islamic banks, with regard to takaful, green investments (investments that respect environmental standards) and issuance of sukuk.
Thanks to its stable and resilient economy, business-friendly climate, comprehensive knowledge system, and rich culture, Qatar offers foreign investors an attractive and competitive business environment. Within the framework of its ambitious National Vision 2030, the country aims to strengthen its position as a leading destination in the fields of trade, tourism and investment in the region, including its economy. Halal, which is ranked among the top ten halal economies according to the Global Islamic Economy Index.
On the other hand, the demand for halal products and services is increasing, not only by Muslim consumers, but also by non-Muslims, who view halal products as healthy, safe and in compliance with ethical standards. Media spending for this market is expected to reach $308 billion by 2025, with Qatar retaining its rank among the top three countries in the Organization of Islamic Cooperation in the field of media services and lifestyles of an Islamic nature. This growth contributes to the possibility of creating more job opportunities, promoting innovation and contributing to economic development.
In order to benefit from the market for halal products and services, companies and investors need to cooperate with various parties and destinations, including the halal certification body, distribution platforms, marketing companies, logistics and warehousing companies, and retailers. With the continued expansion of the halal economy globally, Qatar’s strategic location, its great involvement in this sector and the strong infrastructure of the halal economy make it an attractive destination for investors from the region and around the world.
While the world is witnessing these blessed days of the holy month, the halal economy continues to grow and enhance its importance globally and significantly, as its size and market value potential is expected to reach $7.7 trillion by 2025, up from $3.2 trillion in 2015. This thriving sector includes Islamic principles and values span a wide range of sectors, from finance to food and medicine, travel, cosmetics, and fashion. In recent years, the Halal economy has gained wide interest and increased investments with an expected compound annual growth rate of 9.2% between 2015 and 2025. As the halal economy continues to expand and diversify, it provides a unique opportunity for companies and investors to benefit from the growing market of consumers who seek halal products and services within the framework of their ethical values.
According to a recent specialized study conducted by the Investment Promotion Agency in Qatar on the halal economy, the GCC countries are well positioned to benefit from the growth of this market, especially in light of Qatar’s position as a center for this thriving sector. Qatar has proven its leadership in the halal food sector through the presence of key stakeholders in the market, such as Hassad Food Company, which contribute to enhancing food security, sustainability and innovation. Qatar’s focus on key areas with high growth potential has resulted in an impressive increase in the size of the halal economy market across multiple sectors. In 2021, the market assets of the halal economy amounted to $156.4 billion in the financial markets. And $1 billion in Islamic insurance (Takaful), $14.2 billion in Islamic tourism, $5.1 billion in the healthcare sector, in addition to $849 million in Islamic financial technology.
The main indicators of the dominance of the Gulf Cooperation Council countries in the global market for the halal economy:
1- The value of the halal food market: $58.2 billion in 2021 in the GCC countries
2- The financial assets of the halal economy: the market value reached $ 1.5 trillion in 2021 in the region
3- Growth rate: The expected growth rate is +7% between 2020 and 2026 for the economies of the Organization of the Islamic Conference.
4- Venture capital financing: The value of Islamic financing for emerging companies in the Middle East and North Africa region reached $1 billion
