Bangladesh has the potential to tap into the lucrative global halal food market valued at $5.2 trillion by implementing a comprehensive national policy and obtaining internationally recognized certification, according to business experts. This move is seen as a way to diversify the country’s export offerings and help achieve its ambitious goal of becoming a $1 trillion economy by 2034.
During the launch of a report titled “Halal Product Exports: One of the Key Sectors for Diversification” in Dhaka, stakeholders emphasized the importance of the government acknowledging halal as a crucial sector, given the current heavy reliance on ready-made garments for exports.
The report, drafted by the Bangladesh Chamber of Industries (BCI), recommends the formulation of a national policy to streamline coordination among relevant ministries. It suggests designating the Ministry of Industries as the lead ministry, with the Ministry of Commerce playing a supporting role.
Furthermore, the report proposes offering tax exemptions and export incentives to halal manufacturers and exporters to facilitate industry growth. It emphasizes the necessity of a stable support and incentive framework spanning 10 to 15 years to foster the development of the halal sector.
To elevate the status of the halal sector, the report suggests including it in the current five-year plan and integrating it into future plans as a national priority. This strategic move would streamline the approval and implementation of essential infrastructure projects required by the sector.
The establishment of halal manufacturing in Bangladesh was predominantly driven by private initiatives, with Bengal Meat being a pioneering entity. The Bangladesh Islamic Foundation initiated halal certification in 2007 and obtained approval from Malaysia’s Department of Islamic Development (JAKIM) in 2011, which was recently renewed for another three years.
Despite these efforts, stakeholders like PRAN and other industrialists expressed concerns that the foundation’s certification lacks credibility in export markets, leading importing countries to demand separate product assessments and verifications.
With Bangladesh being home to the world’s third-largest Muslim population, accounting for around 91% of its inhabitants, the demand for halal products is on the rise among the nearly 2 billion Muslims globally, as well as consumers of other faiths.
Global halal demand is currently estimated at $5.2 trillion, with an annual growth rate of 12.4%, projected to reach $9.45 trillion by 2034. However, only a small fraction of this demand is currently met, with Bangladesh’s halal product exports amounting to approximately $940 million, representing a minor share of the market.
As the country heavily relies on ready-made garments, which constitute about 81.5% of its total exports worth $48 billion, diversification is imperative, especially with the impending reduction of trade benefits post-graduation from least developed country status.
The government’s budget for the year includes targeted support for 14 sectors to expand exports, aligning with the goal of building a $1 trillion economy and generating 10 million jobs by 2034. The report emphasizes the potential of halal products in driving this growth, particularly in key markets such as the Middle East, Europe, North America, Southeast Asia, and regions with significant Muslim populations.
Anwar-ul Alam Chowdhury, President of the BCI, highlighted that enhancing halal output is achievable through restructuring the current framework with a focus on obtaining halal certification and industry recognition, without necessitating additional investments.
