Global halal food sector set to boom as market grows

An employee shows a halal bowl of cut fruit at a dining hall in a university near Tokyo. The halal food industry has ballooned globally. (Reuters)
Updated 28 November 2017
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Global halal food sector set to boom as market grows

LONDON: The global halal food and beverage (F&B) market is set to boom in the next five years, driven by new entrants to the market.
The sector is expected to grow from $1.24 trillion in 2016 to reach $1.93 trillion by 2022, according to the “State of the Global Islamic Economy” report.
“Halal food is the largest and most diverse sector of the Islamic economy. New entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, ready-made meals, snacks and children’s food,” said the report, published by Dubai Islamic Economy Development Center (DIEDC) in conjunction with Thomson Reuters:
It revealed that Muslim spend on food and beverages is growing at nearly double that of global growth — creating significant opportunities for investment and the creation of global halal food brands.
Commenting on the report, Imran Kausar, co-founder of London-headquartered multinational halal food firm Haloodies, told Arab News: “The halal opportunity continues to grow with innovation and consumer-focused brands leading the way. Halal brands that capture a mainstream audience will open halal foods to even larger audiences.”
Food and beverage (F&B) leads Muslim spend by category, followed by clothing and apparel at $254 billion, media and entertainment at $198 billion, travel at $169 billion, and pharmaceuticals and cosmetics at $83 billion and $57.4 billion, said the report.
It notes that established players are expanding at home and abroad through franchising and that multinationals have also made major investments in Muslim-majority markets, anticipating rising demand.
Investment and sovereign wealth funds have been particularly active, and a number of halal investment funds are in development, it said.
Family-friendly halal travel is another growth market with the number of Muslims traveling at an all-time high, and there is corresponding demand for travel that adheres to Islamic values — from hotels and beach resorts, to dining options and airlines.
Halal hotel chains are emerging and family-friendly attractions are being developed in the GCC.
Along with a plethora of new online agencies catering to Muslim tourists, Muslim equivalents of Airbnb have emerged in the UK and globally. Muslim spend on travel was $169 billion in 2016, and is expected to grow to $283 billion by 2022.
Designer brands and boutiques are also developing new modest fashion lines and Ramadan collections.
The reports said: “Start-up modest fashion brands have also been making inroads around the world, particularly for hijabs, gaining traction by spreading the word through social media. Modest athletic apparel is a notably trendy segment, with Nike getting in on the act as well as Danish label Hummel. Muslim spend on clothing was $254 billion in 2016, and is forecast to reach $373 billion by 2022.
Romanna Bint-Abubaker, founder and CEO of global modest fashion brand Haute-Elan.com, told Arab News: “As the first global marketplace for modest fashion, we welcome international brands in producing collections and products for the fastest growing global consumer (Muslims). Our primary issue as a marketplace is the current supply does not meet demand and our consumers are still forced to go to the high street for their basic ­requirements.”


Lebanon’s Jammal Trust Bank forced to close by US sanctions

Updated 19 September 2019

Lebanon’s Jammal Trust Bank forced to close by US sanctions

  • Jammal Trust Bank is accused of helping to fund the Hezbollah movement in Lebanon
  • The bank has 25 branches in Lebanon and representative offices in Nigeria, the Ivory Coast and Britain

BEIRUT: Lebanon’s Jammal Trust Bank has been forced to wind itself down after being hit last month by US sanctions for allegedly helping to fund the Iran-backed Hezbollah movement, the bank said on Thursday.
The central bank said the value of the bank’s assets, and its share of the national deposit guarantee body, were “in principle enough to pay all deposits and commitments.”
Jammal Trust Bank denied the US allegations in August after the bank and its subsidiaries were hit with sanctions, accused of helping to fund the Hezbollah movement in Lebanon.
“Despite its sound financial situation ... and its full compliance with banking regulations, the (bank) was forced to take the decision to liquidate itself in full coordination with the central bank,” Jammal Trust said in a statement.
The bank has 25 branches in Lebanon and representative offices in Nigeria, the Ivory Coast and Britain, its website says.
It is a relatively small lender, with net assets of 1,600 billion Lebanese pounds ($1 billion) at the end of 2017, according to the annual report on the latest year for which data is available.
Washington has sought to choke off Hezbollah’s funding worldwide, with sanctions among a slew of steps against Tehran since US President Donald Trump withdrew last year from a 2015 international nuclear deal with Iran.