Journey towards

Global Halal Market

Presentation by:

Mohammad Younus DaghaSecretary Investment / DG

SBI – HDC MOU

the background

Chairman BOI and Advisor to CM on Investment

SBI planned to develop Halal sector in Sindh

HDC was found to be the only government organised

setup in a Muslim country

Meeting with Consul General of Malaysia

MOU sent in May 2010

Pursued by Pakistan HC in KL & CC Mr. Kundi

Signed on 1st December 2010

MOU signed between SBI and HDC on 1st December 2010

HALAL - the concept

Halal – free from prohibited (Haram) and any

contamination / filth –

Ingredients

Processes

Handling

Halal Certification also requires –

Good hygiene practices at the premises including

equipment / machinery / transport and by the employees

Global Halal Market

Potential

Halal market potential does not come only from Muslim

consumers but also from Non-Muslims because Halal

product means :

Close to Global Standards of HACCP, GMP and GHP

Healthy and Hygienic

Safe to use / consume

Nutritious

Good quality

Estimated Halal market potential: USD 1.2 trillion

Destinations: Middle East, USA, EU, ASEAN

Current Players

Malaysia

Brazil

Argentina

Australia

New Zealand

Thailand

New entrants: EU nations, Japan and China

……..Muslim countries losing to competition

Pakistan’s Potential

Agriculture – Food sufficiency

Scope for expansion and higher productivity

Strategic location

Desire for a Islamic way of life

Greater acceptability of Halal products Made

in Pakistan than in a non-Muslim country

Unsatisfied Demand Examples

In US, Muslims spend USD $ 16 bn on Kosher

items

Availability of Halal products as compared to

Kosher Products is 1:86 (85% of Kosher

products are consumed by non-Jews)

In UK, 12% of meat sales go to Muslims out of

which only 0.5% is certified Halal meat

(Source: www.halalworld.org)

Concerns and Prospects

In US, 12.5 m tonnes of dead animals, bones, fat and meat

waste, and used cooking fats and oils are heat-treated and

melted down

Mostly used as protein supplement in livestock and

poultry feed

Rest used to make products ranging from gelatin to

cosmetics

Swine placenta is a commonly used ingredient for the

cosmetics industry, because it is cheap and easily available

Concerns and Prospects

Survey in emerging Halal markets such as Indonesia and

Singapore found that:

Majority of Muslims are aware and claim that they will

purchase Halal cosmetics if the products are available

They admitted to having difficulties finding Halal cosmetics

Admittedly the current awareness level on Halal cosmetics

is still low, but it is definitely increasing rapidly

The market for beauty and grooming products in the Middle

East was valued at USD 2.1 billion last year

Scope for businesses

Meat and Slaughterhouses (Abattoirs)

Food and Beverages Manufacturing

Food Retailing and Restaurants

Leather made-ups

Cosmetics and Personal care products

Pharmaceuticals

Logistics and Warehousing

Financing

Insurance (Takaful)

Research for substitution and Technology

Standards, Audit and Certification

Halal Tourism !!

Jawhara Hotel - Dubai

Policy: “The Management and Staff of Al-Jawhara Group of

Hotels are committed to providing an excellent experience of unique

Islamic hospitality to the guests and to delight them with maximization

satisfaction levels of service”

They claim:

• We provide “a pure Halal atmosphere”

• We don't allow alcohol

• Right from the cleaning of the hotel up to the accounting, we

follow everything according to Islamic and Halal concept

• We give our guests “a taste of the Islamic concept, how the

people of Islam welcome their guests and take care of them.”

Halal Stocks DJ IMWI

In 1999, the Dow Jones Islamic Market Indices were introduced to

measure the global expanse of investable equities that pass screens

for Shari'ah compliance

An independent Shari'ah Supervisory Board counsels Dow Jones

Indexes on matters related to the compliance of index-eligible

companies. To determine their eligibility for the Dow Jones Islamic

Market Indexes, stocks are screened based on their industry type

and their financial ratios. Excluded are companies engaged in the

following lines of business: alcohol, tobacco, pork-related products,

interest based financial services, defence/weapons and

entertainment (of prohibited types).

The total free-float market capitalization of the reconstituted Dow

Jones Islamic Market World Index estimated at US$12.05 trillion

The way forward

Halal Standards Finalisation and Adoption

Halal Certification & Regulatory Framework

PSQCA

TDAP

Livestock & Fisheries Department

Agriculture Department

Religious Affairs Department

Local Governments

Shariah Scholars

Scientific and Research Bodies

Consultants / experts for Halal compliance

A Statutory Govt. agency for Halal Sector Development

Training and awareness

Halal Park

LDF 2011Livestock Dairy Fisheries & Poultry

Exhibition/Seminar

First of its kind to highlight these sectors

Initially planned to coincide with IHC 2011

Held on 7th and 8th February 2011

More than 300 exhibitors at stalls and livestock

show

Two days visitors estimated to be over 50,000

SBI plans to hold LDF and IHC together in 2012

LDF 2011Livestock Dairy Fisheries & Poultry

Exhibition/Seminar

LDF 2011Livestock Dairy Fisheries & Poultry

Exhibition/Seminar

LDF 2011Livestock Dairy Fisheries & Poultry

Exhibition/Seminar

LDF 2011Livestock Dairy Fisheries & Poultry

Exhibition/Seminar

Sessions on 23rd March

Technical Session:

Halal Certification & Regulatory Framework

10.00 – 11.50 am

Business Session:

Need Assessment for Pakistani Businesses

seeking entry in Halal Market

10.00 – 11.50 am

Thank You