Halal Goes Global
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Chapter 7 – ITC AND THE HALAL SECTOR 53<br />
integrate into these halal value chains because the halal<br />
market is still a relatively young emerging market.<br />
ITC is helping to identify the sectors that have good potential<br />
for regional trade, analyse the gaps in the value chains and<br />
strengthen the corresponding support services. Regional<br />
business associations can also play an important role in<br />
the halal market by building up their own expertise and<br />
participating in the development of trade-related policies<br />
and halal-sector regulations and standards.<br />
Trade and market<br />
intelligence<br />
Accurate trade information and market intelligence is<br />
generally the exclusive domain of the powerful, adding to<br />
the disadvantages experienced by the majority of SMEs.<br />
ITC’s web-based tools can play an important role in the<br />
halal marketplace by providing up-to-date, reliable and<br />
accessible information. Accurate data on the halal market<br />
sectors have been very difficult to obtain for years, as many<br />
halal products are not certified. Many of these goods are<br />
simply ‘halal by nature’ and therefore less obviously an<br />
integral part of the halal space.<br />
ITC’s web-based Standards Map has started to include halalbased<br />
standards, so they can be compared and contrasted.<br />
This alone will be of immense benefit to manufacturers and<br />
traders. The arena of halal standards today is characterized<br />
by confusion and overlap that sometimes impedes or even<br />
prevents exports. Current initiatives by the OIC and others<br />
aim to harmonize, if not unify, halal standards, especially for<br />
the F&B sector.<br />
By incorporating different halal standards into the Standards<br />
Map, ITC will start to bring some long-awaited clarity and<br />
transparency to this issue.<br />
ITC’s online Trade Map service is similarly an important<br />
and powerful tool for the halal sector as, with practice, it<br />
enables users to track and understand the flow of halal<br />
goods around the world. This is a valuable service, not just<br />
for manufacturers and traders, but also for TISIs that are<br />
looking for ways to enhance their national competitiveness<br />
and find suitable niches in the market for their local SMEs.<br />
This data can form the basis for developing specific<br />
intelligence products that can translate information into<br />
successful business models and practices.<br />
<strong>Halal</strong> market<br />
opportunities<br />
The surge in interest in the halal food market over the past<br />
decade has opened a new window of opportunity. Food is a<br />
powerful force – it forms the basis of life for all people, and<br />
at the same time it is a global market trading in trillions of<br />
dollars annually. The halal food market, when viewed as a<br />
collective entity, is valued at US$ 1.29 trillion, greater than<br />
the markets of China, the United States, Japan and India.<br />
Box 6: ITC and the Islamic Development Bank<br />
There is a natural convergence of both interests and values<br />
between ITC and the Islamic Development Bank (IDB). Both<br />
share the belief that trade can be a positive force for good that<br />
can enhance people’s livelihoods, reduce poverty and enable<br />
lower-income countries, especially those with rural economies,<br />
to recover a real sense of social stability and wellbeing.<br />
Many cultures have a traditional saying along the lines that<br />
rather than give a poor man a fish to eat, it is better to give<br />
him a fishing rod and teach him how to fish, for then he can<br />
feed himself and his family forever.<br />
This summarizes ITC’s and IDB’s shared approach to trade<br />
and development. A more open trade and clear trade rules will<br />
be important to generate opportunities leading to growth. This<br />
will need to be coupled with ‘Aid for Trade’ and with private<br />
sector investment to translate the opportunities into reality.<br />
Studies conducted in the MENA region have shown that for<br />
every 1% rise in real gross domestic product, the number of<br />
poor people declines by 4%–5%.<br />
IDB has always had a strong commitment to infrastructure<br />
projects among member countries, and there is a clear<br />
opportunity to develop a powerful synergy by linking this<br />
development to agricultural projects that are connected to<br />
the halal food markets.<br />
ITC, with its targeted services for the business community in<br />
developing countries, including those outlined in this chapter<br />
related to the halal industry, has a natural synergy with<br />
IDB. As the halal market evolves, so do their collaborative<br />
interventions.