The Islamic finance sector has improved as one of the most energetic growing financial services industries within the global at a rate of 15% to 25% per year.
Reports show that more than 1700 Islamic finance institutions are in operation in 46 countries, supporting the growth and development of Islamic Finance, including 526 Islamic Banking Institutions operating across 72 countries “only the Middle East and North Africa “excluding Iran” are home to 190 Islamic banks”.
The global Islamic finance market is multiplying due to Takaful, Sukuk bonds, Islamic Funds, Islamic Banking and substantial investments in the Halal Sectors infrastructure.
The banking system is the largest sector in the finance industry in the modern era, so Islamic banking is commonly seen to have two advantages over conventional banking. The first is a higher moral standard, and the second is earnings come from identifiable assets and cannot make money through interest.
The most extended verse of the Qur’an deals with commercial contracts involving immediate and future payments. Bribery is forbidden and can not be used to secure a deal or gain favor in a transaction. Including a ban on the charging of interest on loans, discourages price fixing, market manipulation, hoarding, concealment of vital information in a trade from the other party, inflating the price of commodities by creating artificial shortages and overbidding for the sole purpose of driving the prices up.
Muslim countries should continue to build more sturdy Islamic economy ecosystems as of today; a $2.5 trillion industry spread over more than 80 countries. Only a few Muslim countries are performing well; Malaysia currently leads the overall Global Islamic Economy, followed by Saudi Arabia, Indonesia, UAE, Sudan, Nigeria, Bangladesh and Brunei.
In Islam, most foods are considered halal, manufactured, processed, produced and stored using equipment, machinery, and utensils that have been cleansed according to Islamic law and are free from any component that Muslims are prohibited from eating by the Qur’an or the Hadith.
The global Islamic economy recommences to be developed by an increase in consumption of halal products and a large growing Muslim population. Still, many of the top producers are not Muslim countries. As the halal food market is booming worldwide, Muslims must also ensure that all foods, cosmetics and pharmaceuticals are halal.
Nutrition and food are basic human needs; for Muslims, consuming Halal products is not a choice but a matter of faith. In recent, digitalization is quickly transforming the halal food sector. Halal-ready meals are a flourishing consumer market for Muslims around the world. An increased number of companies, supermarkets, restaurants and retailers are providing halal processed foods and products, like chicken nuggets, pizza, spring rolls, foie grass, ravioli, lasagna, baby food, beverages and meat. Investments in the halal food sector are expected to continue, and so far, 81 countries have a solid halal industry presence.
As the Muslim population is growing, spending is increasing, and more companies are investing in halal food, online cosmetics marketplaces, delivery and the leisure travel sector. In the end, companies should seek halal certification to export to Muslim markets.