Dubai: For the promotion of Halal industry the role of Islamic finance is very important. By the support of Islamic banking and finance institutions, Halal industry is growing rapidly and Halal ecosystem is developing rapidly throughout the world. These views were expressed by Muhammad Zubair Mughal, CEO of AlHuda CIBE, while addressing in the Global Halal Assembly which was organized by Government of Philippines in Manila. Many of representatives from internal Halal industry participated in the conference. During his address in Global Halal Assembly Mr. Zubair said that there are different parts of Halal ecosystem. Food and production is one of them in which entire food industry for example drinks, food, meat, confectionary, spices, baking and more than 100 industries are related. While services are the second part of Halal ecosystem in which Islamic banking and finance, Takaful, Sukuk, Halal tourism, Halal logistics and other halal services are included.
The third part of Halal ecosystem consist of Halal infrastructure development in which different projects of development and ware-houses are included.
He said that different products of Islamic Banking and finance are playing a prominent role for the promotion of Halal industry. In the meanwhile, Takaful is mitigating different risks as per Islamic rules from Halal industry. Sukuk is facilitating Halal industry in different mega projects through funding other than Islamic capital markets and Islamic funds are also improving financing in Halal industry. Different products of Islamic banking like Murabaha, Salam, Ijarah etc. are also promoting Halal industry in multiple ways.
He emphasized in Halal Assembly that before issuing Halal certification to any of the company, Halal certificate issuing institutions should make sure the ways of financing. If that company avails Riba based financing, then it should be converted from conventional financing to Islamic financing so that Halal philosophy would be fulfilled. He said that in US $ 6.4 trillion Halal industry the volume of Islamic banking and finance is only US $ 2.4 trillion. If we believe that US $ 2.4 trillion are being utilized for serving Halal industry than half of the Halal industry is serving financially to the conventional banking which is the big question mark on Halal certification which needs immediate correction.