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Contrary to popular belief, the Islamic world is not living in the total dark age. Significant scientific advancements led by Muslims is by no means a mere story of the past. Even today, there is much innovation by Muslims within this field, especially spurred by increasing demand. The Thomson Reuters Report 2016/2017 estimates Muslim spending on pharmaceuticals to be $78 billion in 2015, 7 percent of global expenditure. This is a growth of 4.2 percent from the previous year, slightly lower than the global market growth rate of 5.3 percent. Muslim spend on pharmaceuticals is expected to reach $132 billion by 2021, a compound annual growth rate of 9 percent from 2015.

An emerging Muslim consumer segment exists for nutritionally enhanced products, also known as Nutraceuticals. It is riding the wave of higher purchasing power and health awareness, successfully marketing products without porcine or any other haram substance. There are a number of players emerging globally that are focused on Halal nutraceuticals including U.S.-based Noor Vitamins, Madina Vitamins, the Netherlands-based HalalVital, and the UK’s Natures Well.

There are also an increasing number of players in the industry. While there are over 300 ingredients manufacturers globally, in the Halal Pharmaceuticals and Cosmetics industries over 322 ingredients manufacturers have been identified, responding to the needs of Muslims across the world. This also means leading pharmaceuticals manufacturers have all sought Halal certification to address Muslim, and predominantly, OIC demand for Halal products, such as Teva Pharmaceuticals and Dow Chemicals. This tale is a global one, with BASF’s Care Chemicals division having announced that two of its facilities in Germany would manufacture 145 Halal-certified ingredients used in personal care products. The chemical giant will continue to expand in order to adapt to rising Muslim demand.

Halal pharmaceuticals also owes its expansion to halal medical tourism, a fast growing sector, estimated at 25 percent growth per annum, and worth over $439 billion worldwide based on the aforementioned Thomson Reuters Report. The top five medical tourist destinations include Thailand, India, Singapore and Malaysia, which have targeted Muslim medical tourists through dedicated Halal healthcare facilities and offerings, such as the Malaysia Healthcare Travel Council.
The landscape of the economy itself is transforming, especially after the lifting of sanctions on Iran. This change means that the country of 79 million people is set to become a major global player in this sector. The country’s current pharmaceutical market is estimated to be worth $2.35 billion while in cosmetics Iran is the second largest market in the Middle East, valued at an estimated $4 billion. Furthermore, with fast-developing innovations occurring in this sector in areas such as nutraceuticals, Muslims spending on pharmaceuticals is estimated to reach $132 billion, a promising look for the Islamic economy as a whole.

According to Halal Expo Europe, the global ingredients industry was estimated at $245 billion in 2015 across food and beverage, pharmaceuticals and cosmetics products. In 2014, the 57 Organisation of Islamic Cooperation (OIC) member states imported in total $33 billion of ingredients across all categories, accounting for 13 percent of total ingredients demand.

The industry is highly sophisticated, with the leading players predominantly located in non-OIC countries, and there is a substantial range of ingredients that are sourced either from animals or that contain alcohol content. This is due to the lack of standardization of halal certification and enforcement in certain sectors.

The most notable haram ingredients include gelatin, lard, pepsin (which is used in dairy products, in particular cheese), and carmine (red coloring derived from insects). As consumer awareness increases and as OIC member states become stricter in their requirements for halal ingredients, there are substantial opportunities for halal ingredients manufacturers to address the global Muslim consumer market.

In this current environment, there is a high need for robust halal certification across the food value chain in order to ensure non-halal ingredients are not used. In order for this to happen food formulators and processors need to be aware of the source of many common food ingredients, such as flavourings, colourings and proteins, if they are to be used for halal packaged foods. A central information hub or database that can be referred to by consumers and suppliers alike should be established. So far the collation of this information is only happening on a local basis.

Organisations such as Muslim Consumer Group, attempt at enumerating halal ingredients for worldwide application, but is still predominantly North American in the products it lists. Collaboration between nations in the OIC in creating a standard global hub for information would aid not just consumers, but also facilitate the procedures of halal certification.

Muslims make up 23% of the world’s population and it’s no surprise that the Muslim fashion industry has increased at an alarming rate in recent years. In comparison to 5 years ago, many more Muslim public figures have debuted themselves into global frontiers. These Muslims come from a wide range of backgrounds and occupations—athletes, fashion designers and popstars.

The world seems to have warmed up to the presence of modestly dressed public figures such as Ibtihaj Muhammad, a Muslim American sabre fencer who made history by being the first American woman to compete in the Olympics wearing a hijab. The world has also had the pleasure of listening to the soothing sounds of Yuna’s music, a Muslim Malaysian pop-star who created an avalanche of support back home after the release of her duet with world famous artist, Usher. Lastly, Dina Tokio, a YouTuber of Egyptian and English mixed heritage made waves in the YouTube community after being part of YouTube’s ‘Made For You’ campaign last year alongside a diverse selection of other YouTube content creators.

Turning the spotlight to local progress, the Malaysian fashion industry alone has proved to be a thriving member of the global Muslim fashion industry. Almost every Malaysian has dabbled in fashion designing—releasing heaps of hijab and clothing lines. Mostly dealing with clothing, fashion and fragrances. Malaysian actress, host and businesswoman, Neelofa seemingly initiated this craze with her ever so successful hijab and fashion line Naelofar Hijab that launched in 2014.

We’ve also seen participation by international brands such as Dolce & Gabbana in acknowledging their Muslim consumers by coming out with an abaya range to appeal to their Middle Eastern and Muslim customers. Not to forget, H&M included a hijabi model in their campaign, Mariah Idrissi who embodied class, cool and composure in the 30 second H&M advertisement. Joining the group of international fashion brands that have represented the Muslim community is, Uniqlo. The Japanese brand released an elegant and modest earthy-toned line in collaboration with Hana Tajima. The line was hugely successful and not only attracted the Muslim but also non-Muslims.

Another contributing factor to the Muslim fashion industry is the presence of fashion shows that put the focus on Muslim designers around the world. A recent example would be Istanbul Fashion Week where many fashion designers put forth their designs. Modest fashion shows have also paved the way for Muslim designers and strengthened the industry. Recently, Anniesa Hasibuan, and Indonesian designer represented her nation and religion at the New York Fashion Week. She made history by being the first Indonesian designer to bring forth Islamic design on the internationally acclaimed runway. In addition to that, the models sporting her apparel were all donned in pretty pastel hijabs, dropping jaws of all the spectators.
Muslim fashion does not look like it will be experiencing any setbacks anytime soon. It’s definitely a force to be reckoned with.

Is Islamic banking better than conventional banking? This has been an age long question, sitting at the back of the heads of people in the banking industry and even the ordinary laymen. Islamic banking has rapidly increased in the past decade and rightly so—the number of Muslims has been significantly increasing. This can be seen in the United States of America, welcoming as many as 20,000 Muslims every year.

Furthermore, these new Muslims will be turning to banks that provide Islamic banking services. Islam is significantly growing and Muslims will always have the need to consume Sharia compliant services, causing more and more banks to eventually adopt the Islamic banking system. Although Islamic and conventional banking share several similarities, they share a larger amount of differences that drastically set them apart and these differences are what determine their client count.

The Islamic banking system has proven to erase the possible loopholes found in the conventional banking system. Besides being Sharia compliant, the Islamic banking system has four main principles that are; prohibiting usury, avoiding speculation, avoiding gambling and investing ethically. These principles provide efficiency for the parties involved in Islamic banking systems and ensure the rights of clients. In Islamic banking, money is treated as a mere medium of exchange—it is not looked at for its value’s worth.

A main advantage of Islamic banking is that the asset that is being invested in, must be specified to its investors. This is a major perk as it alleviates any possibilities of unknown risks. An investor is clearly informed on what they are investing in, making it easier to determine the success of said investment. This way, investors are confident walking into an investment and have no speculation. It’s also worth noting that Islamic financing does not allow investments that deal with prohibited material such as alcohol, pork any form of trade that produces haram (unlawful) money. Furthermore, there is a lower probability of failure in Islamic banks because the banks are extremely concerned with the choices their customers make and ensure that their clients choose wisely when it comes to investments.

In addition to that, Islamic banking contributes to the general health of the economy. As a result of Non-Sharia compliant systems that conventional banks provide, Muslims often take the route of abstaining from banking all-together. With Islamic banking, Muslims around the world contribute to the monetary ecosystem, ensuring a balanced overall economy with contributions from all religious demographics.

All-in-all, the Islamic banking system fares better than the conventional banking system that most of the current world uses. With the increasing number of Muslims, surely there will be a need to adopt Sharia compliant banking in potentially all banks around the globe. The Islamic system is a stable, strict and standardised system that is reliable and works in ways where the conventional system may not be able to deliver in. The fate of Islamic banking looks promising and we’re curious to see what the future holds.

Islamic banking has experienced a convincing growth in recent years and the fever has spread to non-Muslim majority countries, increasing at a projected rate of 10-15% per year in countries such as the United States and Britain. In a world where society is quickly starting to avoid conventional banks in fear of scandals and profit-greedy banks, Islamic banking is seen as the more ethical and sustainable alternative to the more common conventional banking system which seems to have benefited Islamic banks. This proves to be true as the existing Islamic Finance market stands at a $2 trillion in assets according to Thomson Reuters’ Global Islamic economy Report 2016/17.

The world is paying close attention to Islamic banking following the financial crash of 2008 that shook the global economy at its roots, damaging conventional banks’ progress all around the world. As many of the world was feeling the aftermath of the 2008 crisis, as many as 500 Islamic banks expanded by 28.6% states a report by Standard and Poor’s. This pushed researchers to further explore Islamic banking and the efficiency of banks that practice it. They concluded that Islamic banking’s risk-adverse and anti-speculation policies only outperform conventional banking in periods of crisis.

In 2016, an article posted on BloombergBusinessweek expressed concern regarding an inevitable financial crisis that will hit the shores of banks all around the world. With proven resilience from Islamic banks, there is an expected surge in banks around the world in possibly implementing the Islamic system. The Islamic finance market is predicted to be worth $3,461 billion in the year 2021—that’s only 4 years away!

In addition to that, the current countries that are leaders in the Islamic finance industry such as Saudi Arabia, Kuwait and Malaysia will no longer be the main players in the Islamic finance industry. We say this because interest in the Islamic finance industry has been shown by Non-Muslim majority countries such as South Africa, Hong Kong and the United Kingdom. In fact, as many as two dozen British banks provide Islamic finance services, managing approximately $19 billion worth of assets as of 2011 and is ranked ninth in the world. There’s a reason why these Non-Muslim majority countries are showing an interest in the Islamic banking system.

Although there’s no saying for sure whether Islamic banking will dominate the future finance world, Islamic banking has a promising few decades ahead, guaranteed!

Many Muslims and non-Muslims typically associate halal with food. This is understandable. However, such misconceptions limit the people’s mind that they must guard themselves away from everything non-Muslims prepare, sell, or do which is perceived as non-halal. Such action then creates a barrier where people become distant from each other just because of their religious beliefs. Nowadays, people are no longer creating differences as they have many things in common.

There are many categories in the halal industry namely food, Islamic finance, travel, modest fashion, pharmaceuticals and cosmetics as well as media and recreational sectors, among others. Food and beverages are more essential and most searched topic for the halal preferred as the halal industry is a growing demand all over the world.

As the largest Islamic Economy pillar by revenue, halal food sector has shown clear signs of maturity with increased private equity investments in the sector, including $30 million invested in United Kingdom’s Janan Meat, and Malaysia’s Dagang Halal undertaking an IPO on the London Stock Exchange. Upgrades in regulations are also occurring, with the introduction of accreditation to oversee certifiers set to reduce complexity and encourage more players to enter the Halal Food industry.

The Islamic finance sector has shown robust growth and increasing sophistication. This has been coupled by the emergence of crowdfunding platforms. However, the sector has been held back by a lack of awareness of Islamic Finance product offerings.

There’s also, halal tourism which continues to broaden its reach with tremendous growth in halal beach resorts, the launch of several dedicated airlines and the launch of the Muslim answer to Airbnb, Bookhalalhomes, and TripAdvisor, Tripfez.

In the modest fashion industry, several retailers and brands such as Dolce & Gabana, Uniqlo and Burberry entering the industry is gaining mainstream interest. There are several notable investments driving the sector forward, including Qatar’s Mayhoola investment fund buying French luxury label Balmain and crowdfunding being used to develop a climate-adapting hijab.

Meanwhile in the halal pharmaceuticals and cosmetics continues to expand as awareness about ingredients rises fostering new product developments, such as permeable nail polish, the development of halal vaccines and new ranges of pharmaceuticals.

Lastly, halal media and recreation is driving a positive reinforcement of Muslims, be it in publishing, new magazines or new offerings such as Muslim Kids TV and notable technological innovations like Quran Academy.

There are many other halal products that need to be considered and carefully deliberated. One must obey by the laws that is required and must apply for a valid halal certification. Halal certificate is an assurance that a particular product has been thoroughly investigated and found

Companies in the past, especially those from the Western world tend to have a more coercive attitude towards their products, expecting others to adapt to their identity brand (i.e. how Coca-Cola for the longest time would use the same marketing for all the countries they sell to). Nowadays the need for marketers to scrutinize, analyse and consider various elements of culture has become inextricable in launching a product in foreign markets. This applies to companies’ ability to penetrate the halal market too. With a population at more than 1.7 billion people, making up over 23% of the global population, the economic, cultural, and political environment of these countries cannot be neglected.

Firstly, it is more than just being halal. It is about marketing strategy. When enquired whether a company might target Muslim consumers, “we don’t do halal” is a common response. However, it’s as important to recognize that Muslim consumers shop at different times and for different reasons, even if they are essentially buying the same products. An instance of this is the multinational company, Johnson & Johnson. The company has always enjoyed a New Year sales bump when it comes to nicotine patches, but also noticed a Ramadan sales bump as Muslims used the patches to stop smoking during the month-long fast, which has led to a change in marketing behaviour. The same goes for halal tourism as well. HalalTrip.com advertises its accommodations according to how near they are to halal restaurants and mosques.

The Muslim world is also diverse from an economic perspective. Choosing between global and local marketing strategies depends very much on the countries, whether they have a high GDP per capita (Qatar) or high overall GDP (Indonesia & Turkey), or on the poorer end of the spectrum (Somalia or Comoros). Even in poorer communities, opportunities still exist because of the bottom of the pyramid approach and workers remittances. As a whole, growing GDPs, coupled with an increasing demography makes a great combo in terms of a good market.

Furthermore, when selling to the halal market, due consideration must be paid to local legal barriers. Boycott of one company or one country – as is the case with the Arab League boycott of Israel is a landmark example of this. This puts companies in a tough position, as they are made to choose between accessing the Israeli market or Arab League member markets. A country’s legal system is a huge factor. Malaysia, for instance, has separate statutory authorities regarding industries such as Islamic banking, or the halal certification of food. Harmonizing a company’s standard with the standard of the country they are selling to would be an integral part of selling products to Muslim consumers.

The halal market is large and diverse amongst the Muslim world, with the global Muslim consumers having specific demands, which changes according to local context. However, with all of those factors kept in mind, access to such a massive growing market becomes more possible.

As demand for halal products grow, its positive impact on the landscape for halal e-commerce platforms to leverage on the seemingly untapped market of consumers and businesses interested in halal certified products.

Malaysia based DagangHalal, which began operations in 2007, was the first B2B platform in this sector. Its pioneer status has led to the listing of 4,000 sellers comprising 21,000 products, ranging from food, food ingredients and halal additives to pharmaceutical and personal care products. DagangHalal partners 40 of the world’s 73 halal certification bodies to offer a convenient Islamic compliance verification tool on its platform. In April 2016, the company listed on London’s ISDX Growth Market Exchange. It is currently valued at over $20 million.

Zilzar is another Malaysia based halal e-commerce site. When launched in 2014, The Muslim Lifestyle start-up was billed to challenge Alibaba and was quickly named on Medium.com’s “50 Most Innovative Global Muslim Startups for 2015” as an honoree. Although still short of its target to become a household name, Zilzar lists 25,000 halal suppliers and 30,000 halal products on its site.

In the modest fashion sector, Turkey-based Modanisa leads the way with over 35% market share and boasts 4.5 million visitors every month. The modest fashion online brand exports to as many as 57 countries, mainly to the United States, Australia and European countries.

Websites such as Modanisa have shot up in recent years mirroring the growing awareness and size of the modest Muslim fashion market which currently is estimated at $200 billion.

Up next on our list is the halal e-commerce site, Aladdin Street. Founded by the very first Malaysian astronaut, Dr Sheikh Muszaphar, he decided that having a whiff of outer space wasn’t enough, he had to dominate the cyber space as well. The company which is relatively new, launched in April 2016 and similarly to Zilzar, is based in Malaysia. Aladdin Street hopes to build itself until it is known as the Malaysian halal competitor to world famous e-commerce brands, Amazon and Alibaba. The site is focused on providing a reliable and stable e-commerce platform for businesses to commence and for customers to be able to pay for the best quality halal products in the market.

The halal e-commerce industry is growing stronger and bigger. All things considered, the halal e-commerce industry looks like it can only go one way—up. With support from local governments, the growth of these halal e-commerce sites will be assured. Subsequently, the expansion of halal into the World Wide Web, and in turn, the world, will be more than certain.

Travelling is an Islamic endeavour, backed by Quranic verses such as ‘Say, [Oh Muhammad, PBUH], “Travel through the land and observe how He began creation.”’ (29:20, Quran)”. The Thomson Reuters report estimates that Muslim populations globally spending have reached a total of $151 billion on travel in 2015 (excluding Hajj and Umrah). This is a growth of 4.9 percent from the previous year, and is higher than the 3 percent increase in the global market. This report also estimates the revenues derived from Muslim Friendly Travel services to be worth $24 billion in 2015.

A report entitled Tourism and the Halal Industry: A Global Shariah Perspective, authored by Professor Dr Mohammad Hashim Kamali, founding CEO of the International Institute of Advanced Islamic Studies (IAIS) Malaysia stated,
“Upon first glance, Islamic tourism seems only to cater for the needs of millions of Muslims around the globe who are performing ḥajj or umrah, visiting Mecca and Medina, or the shrines of Najaf and Karbala in Iraq. In several ways Islamic tourism is lagging behind more conventional forms of international tourism and has yet to achieve its full capacity”
A variable integral to viewing the halal travel industry from a global sharia perspective is regarding Muslim dietary rules. These rules have also assumed new significance in the travel industry because such rules as many Muslims are demonstrating, conform to the findings of scientific research on healthy food. Halāl certification procedures ensure such attributes as attractiveness, quality, cleanliness, and clean operations in ḥalāl food chains and storage provided at tourist spots. Even from a macro perspective, the absence of unified standards in Halal tourism affects the confidence of consumers as “Halal” or “Muslim-friendly” have varying levels of compliance.

From a fiqh perspective, the question of halal and haram is dictated by Quran and Sunnah, and any lacunas or obscurities in those sources is complemented by other sources such as ijma’, ijtihad and the opinions and methods of interpretation of prominent schools of thoughts such as Hanafi, Shafi’I, Maliki, and Hanbali. It is at times affected by the culture and customs of a specific community too. As quoted from Tourism and the Halal Industry: A Global Shariah Perspective by Professor Dr Mohammad Hashim Kamali:

“The Ḥanafī Muslims of Pakistan, for example, do not take prawns, notwithstanding the clear ḥadīth text to the effect that “the sea is clean, its water is clean and so is the dead of the sea.”49 It is also true that not all sea creatures are perceived to be equally clean and ḥalāl for public consumption. Horse meat and camel meat are also lawful to eat, yet customary practice in many Asian countries has not encouraged their consumption. People’s living conditions and natural environment play a role as well in determining of their customary practices and choices of food.”

All of this affects the halal tourism industry and the ability for suppliers to adapt to the customs and ensure that they are compliant with halal standards is important to access the market. It involves matters such as ensuring that alcoholic substances do not end up being mixed with halal products at hotel accommodations. The providing of prayer places is also an important matter to consider, something that is universal across all halal travel sectors.

Challenges still abound, the next step is for countries from the OIC and other nations looking to access the halal travel sector, need to set a more standard criteria of halal certification for more broad-ranging services. The fiqh of halal travel often shows encouragement for a Muslim to be able to experience other parts of the world, but it is the duty of all players to provide the most Shariah-compliant means to do so.

The success of the halal industry heavily relies upon its promotion machinery. Halal certification and the halal logo has power in and of itself. As quoted by a research paper on behavioural sciences, ‘Understanding Mechanisms to Promote Halal Industry: The Stakeholders’ Views by Rahimah Mohamed Yunosa, Che Faridah Che Mahmood , Nor Hafizah Abd Mansora, “Halal certified products provide assurance to the consumers in particular the Muslims that the product ingredients and their production processes are Shariah (Islamic law) compliance.” However, the mechanisms of halal promotion goes beyond certification.

Firstly, let’s examine what halal certification actually means. In the context of the halal food industry, it refers to the examination of food processes (preparation, slaughtering, ingredients used, cleaning, handling, processing and storage), including transportation and distribution. Halal certification can only be obtained when the food has been verified as nutritious and prepared from permissible ingredients in a clean and hygienic manner (Badruldin et al., 2011). Halal is a product attribute that cannot be verified by an individual consumer even after consuming the goods. Thus, Halal certification illustrates industrial convention, one of mechanisms of quality conventions and coordination that may be used to signal quality. The most important step in terms of promoting the industry then is to increase awareness of these conventions.

One of the ways to do so is to utilize people’s perception of halal products as green. On understanding halal principles and practices, one may realize that halal concept is also related to green. Halal certification focuses on the hygienic, quality, and safety aspects of the food and its preparation; while green management focuses on reducing the negative impact of human activities towards the environment. When halal branding is associated with eco-friendliness, a bigger demographic can be reached, especially in a world more increasingly health-conscious and environmentally aware. A halal logo is not the only variable considered by consumers.

More than just awareness, more importance needs to be placed upon the education of consumers. Educating the consumer is essential to highlight the benefits of consuming Halal food, not only to the non-Muslims but to the Muslims as well. Consumers need to understand better about: a) the procedures of Halal food production and its benefits; b) the credibility of Halal logo through understanding procedures of post certification; c) the roles of Halal agents in promoting the marketability of the Halal certified products. Rezai, Mohamed and Shamsudin (2012) reported that the non-Muslim consumers perceived Halal procedures of animal slaughtering is inhuman, made evident by the existence of the groups like Boycott Halal; even though Islamic way of slaughtering is one of the best way as it causes less pain compared to captive bolt stunning (Schulze & Hazim, 2001).

Mechanisms like exhibitions are integral too; in addition to the presence of vendors, it functions as a vital platform for education and awareness. Exhibitions tend to have press conferences which explains halal mechanisms like logistics, or booths by religious agencies of respective countries with informative material to aid their decisions. This is further boosted by the media, as broadcast television such as Halal TV or digital platforms, with focus on promoting halal awareness and products.