Halal is expanding. Not only the ubiquity of the halal label found on products, but the wide variety of applications of the concept. It is a trend in its own right, representing an opportunity for growth in numerous different societal actors, from big firms to government institutions – even the purchasing power of every-day citizens. From Cardi B’s lyrics of ‘eating halal, driving the Lam’ to Bahraini TikToker Bader Al Safer’s tagline of ‘so halal mode’, halal has even breached the popular culture zeitgeist. The halal economy, which in 2021 reached almost $2 trillion, continues with staggering growth, driven both by an extraordinary increase in halal production and consumption and expansion of lines and brands that are increasingly adopting and carrying the halal label.
Halal refers to more than just food, contrary to popular opinion. To see the breadth of halal’s reach, our scope must encompass all goods and services that are deemed compliant with Islamic law and permissible in Islam. Analysists and scholars have looked at halal expansion in two ways. Either they investigate the expansion of halal in Muslim countries or look at the impact of halal in non-Muslim countries. What is missing is an examination of halal on the global level and how halal specifically affects power relations and global order. This emerging dynamic presents a new halal geopolitics.
The global halal economy is composed of six sectors: Islamic finance (66.4 percent), followed by halal food (15.5 percent), and at more marginal levels, modest fashion, travel, media and recreation, and pharmaceuticals. The Organisation of Islamic Cooperation (OIC) presents a score for halal economy compatibility. Malaysia leads the way by a large margin in a 2021 report; followed by Saudi Arabia, UAE, and Indonesia.
Both Malaysia and Indonesia will play a major role in the further expansion of the halal economy. The unsuspecting Southeast Asian nation of Malaysia has become one of the chief halal-certifying authorities – closely followed by Singapore – that makes it easier for many countries to piggyback on the Malaysian and Singaporean Halal Certification Authority (HCA) for their local Halal Certification Boards (HCBs) instead of using resources of their own. Malaysia’s aspiration to become the top halal market can be seen with its project to build a halal park, a sort of buffer zone, for all entering goods to be checked.
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