RIYADH: Qatar’s halal economy has been witnessing massive growth, with the country encouraging core sectors with high growth potential to develop products and services prescribed by Islamic law, a state agency said.
According to the Investment Promotion Agency of Qatar, the state recorded market assets worth $156.4 billion in financial markets in 2021, followed by $1 billion in Islamic insurance, also known as takaful, $14.2 billion in Islamic tourism, $5.1 billion in healthcare and $849 million in Islamic fintech.
The study also highlighted Qatar’s role in developing the global and national halal accreditation ecosystem by establishing the Organization of Islamic Cooperations Halal Accreditation Centre and the evolution of the Ministry of Public Health’s guidance on importing halal food products.
The state is developing as the halal economy hub in the region.
“The country’s halal economy value chain is supported by players across industries, from purchasing halal inputs to certifying and accrediting products for halal standards and logistics and distribution to end-users,” the report stated.
Qatar is also promoting initiatives such as the Ministry of Commerce and Industry’s “Halal Livelihood” program to raise awareness about halal living and the significance and potential of takaful, green investments and sukuk issuance.
As part of its ambitious Qatar National Vision 2030, the country aims to position itself as a leading hub for trade, tourism and investment in the region, including in its halal economy, which ranks in the top 10 on the Global Islamic Economy Indicator.
The study also indicated that the Gulf Cooperation Council had dominated the market since 2021 when the region recorded a value of $1.5 trillion in financial assets and $58.2 billion in the halal food market.
Additionally, venture capital funding in the Middle East and North Africa touched $1 billion in Islamic finance in 2020.
The report further disclosed that the global halal market is expected to grow at a compounded annual growth rate of 9.2 percent to $7.7 trillion by 2025 from $3.2 trillion in 2015.
The market has been gaining prominence as it adheres to Islamic principles and values and encompasses various industries, from finance and food to pharmaceuticals, travel, cosmetics and fashion.