Recognise halal sector as key to export diversification

Bangladesh could capture a share of the global halal food market, estimated at $5.2 trillion, if it adopts a comprehensive national policy and internationally accepted certification, business leaders said.

According to them, this will diversify the country’s export basket and help it reach its ambitious $1 trillion economy goal by 2034.

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Speaking at the launch of a report titled “Halal Product Exports: One of the Key Sectors for Diversification” in Dhaka yesterday, they urged the government to recognise halal as a key sector, as exports still depend heavily on readymade garments.

The report, prepared by the Bangladesh Chamber of Industries (BCI), proposes a national policy to coordinate the ministries involved. It suggests the Ministry of Industries could act as the lead ministry, with the Ministry of Commerce as co-lead.

It also recommends tax exemptions and export incentives for halal manufacturers and exporters to help the industry take root. To make this work, the government must put forward a stable support and incentive plan spanning 10 to 15 years, it said.

The halal sector should be named in the current five-year plan and firmly embedded in the next as a national priority, the report added. This would make it easier to approve and carry out the infrastructure projects the sector needs.

Halal manufacturing in Bangladesh grew mainly out of private initiative, with Bengal Meat a pioneer.

The Bangladesh Islamic Foundation began halal certification in 2007, and in 2011 received permission from Malaysia’s Department of Islamic Development (JAKIM) to issue certificates.

JAKIM renewed its approval this year for another three years.

The foundation has applied for approval from the Saudi Accreditation Center and the Halal Product Assurance Organizing Agency in Indonesia. So far, it has issued halal certificates for 600 products from 276 organisations and has drawn up the “Halal Certification Policy 2023”.

But large food processors such as PRAN, along with other industrialists, said the foundation’s certification carries little weight in export markets. Because it is not widely accepted, importing countries require exporters to have their products assessed and verified separately.

Bangladesh has the world’s third-largest Muslim population, with about 91 percent of its people following Islam. Demand for halal products is rising steadily among the world’s nearly 2 billion Muslims, and among consumers of other faiths.

According to 2026 data, global halal demand stands at $5.2 trillion, is growing by an average of 12.4 percent a year and could reach $9.45 trillion by 2034. Only about 20 percent of that demand is currently met.

Bangladesh exports roughly $940 million worth of halal products, a tiny share of the market.

Readymade garments, meanwhile, make up about 81.5 percent of the country’s $48 billion in total exports, and many existing trade benefits will shrink or vanish after graduation from least developed country status. Export diversification is no longer optional.

This year’s budget earmarks special support for 14 sectors to broaden exports, as part of a goal to build a $1 trillion economy and create 10 million jobs by 2034. The report said halal products stand out as a promising part of this push.

It identified the Middle East, Europe and North America, where large Muslim diaspora communities live, and the Muslim-majority countries of Southeast Asia as Bangladesh’s natural markets.

Anwar-ul Alam Chowdhury, president of the BCI, said halal output would rise if the current setup is reorganised, without any extra investment. “What we need is halal certification and the necessary recognition.”