Qatar’s halal economy has seen substantial expansion, as the nation supports key sectors with strong growth potential in developing products and services compliant with Islamic law, a government body reported.
Qatar’s Investment Promotion Agency disclosed that in 2021, the nation recorded market assets amounting to £114.4 billion in financial markets, alongside £730 million in Islamic insurance, known as takaful, £10.4 billion in Islamic tourism, £3.7 billion in healthcare, and £621 million in Islamic fintech.
The report also emphasised Qatar’s contribution to the global and national halal accreditation systems by forming the Organisation of Islamic Cooperation’s Halal Accreditation Centre and updating the Ministry of Public Health’s guidelines on importing halal food products.
The country is emerging as a regional centre for the halal economy, as “Qatar’s halal economy value chain is backed by participants across diverse industries, from sourcing halal materials to certifying and accrediting products that meet halal standards, as well as managing logistics and distribution to end-users.”
Qatar is also endorsing initiatives like the Ministry of Commerce and Industry’s “Halal Livelihood” programme, which seeks to increase awareness of halal living and the significance and potential of takaful, green investments, and sukuk issuance.
In line with the ambitious Qatar National Vision 2030, the nation aims to position itself as a top hub for trade, tourism, and investment in the region, including its halal economy, which is among the top 10 on the Global Islamic Economy Indicator.
The study further indicated that the Gulf Cooperation Council has led the market since 2021, with the region amassing a value of £1.1 trillion in financial assets and £42.6 billion in the halal food market.
In addition, venture capital funding in the Middle East and North Africa achieved £730 million in Islamic finance in 2020.
Lastly, the report unveiled that the global halal market is anticipated to grow at a compounded annual rate of 9.2% to £5.6 trillion by 2025, an increase from £2.3 trillion in 2015.
The market has gained prominence for adhering to Islamic principles and values, covering various sectors, from finance and food to pharmaceuticals, travel, cosmetics, and fashion.