Saudi Arabia sees soaring demand for halal products in a sign of wider global market growth for the sector

Saudi Arabia plays a big role in the growth of the halal industry because it wants to redefine the definition of halal products and create a global reference point for halal certification, halal inspection and halal qualification. (Shutterstock)
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Updated 16 July 2023
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Saudi Arabia sees soaring demand for halal products in a sign of wider global market growth for the sector

  • Kingdom witnessing a boom as an increasingly number of Muslims across the world buy halal products
  • Global halal economy could grow to $4.96 trillion by 2030

RIYADH: The growth of halal medicines, cosmetics and even sportswear is fueling an economic boom that is reaching far beyond  Saudi Arabia, and the wider Middle East.

Global product launches with halal claims jumped by 19 percent from 2018 to 2020, from over 16,000 products to more than 20,000. 

Some 63 percent of these products have been reported to be coming from Asia, followed by Africa and the Middle East.

FASTFACT

$4.96 trillion According to American marketing research company Frost and Sullivan, the global halal economy is one of the fastest-growing in the world and has the potential to reach $4.96 trillion by 2030.

All this shows that those who still think of “halal” as just a set of Islamic rules regarding meat are missing out on a sector that still has a huge growth potential.

What constitutes halal?

Halal is an Arabic word that means “permissible” or “lawful.” 

According to Islamic law and stated in the Holy Quran, the term refers to both goods and services that are acceptable to Muslims. 

Halal products are typically known as being pork free, for their specific method of slaughter — whereby an animal must be killed by a cut to its throat and the procedure must be performed by a Muslim, and alcohol free. 

The opposite of halal is haram, which means “forbidden.” There are now governing bodies that issue certificates to businesses certifying that their goods are indeed made according to halal procedures.

The halal industry was “valued at $1.27 trillion in 2021 and is projected to reach $1.67 trillion in 2025,” , the acting chief product and partnership officer of the Islamic Development Bank told Arab News, adding that the food sector is largest part of that.

According to American marketing research company Frost and Sullivan, the global halal economy is one of the fastest-growing in the world and has the potential to reach $4.96 trillion by 2030. 

This would represent a sizeable increase from 2020, when the value of the global halal economy  reached $2.30 trillion.

 With a worldwide presence of 2.2 billion people or approximately 26 percent of the world’s population, Muslim consumers are a fast-growing segment.

Saudi Arabia, the birthplace of Islam, is currently undergoing rapid social and economic transformation and witnessing a boom in the halal economy.

“Halal economy is expanding,” Hussein Shobokshi, Saudi businessman and columnist told Arab News. “It used to be only for poultry and beef and for general food items and now involves cosmetics, cleaning, and household items.”

He added: “There is now also an argument to be made for products that are sustainable, made responsibly and green that should also fall under halal.

“Saudi Arabia is now championing the halal industry because it is the largest consumer of halal products in the Middle East.”

There is a huge market potential for the halal economy stresses Shobokshi, however, he emphasizes that with the increase in potential and desire by companies to take advantage of the growing scope of the industry, “the challenge now is to clarify and define what constitutes halal.”

The businessman added: “We are talking about relatively a very juicy, attractive, and serious market potential. 

“That's why a lot of the major players such as Procter and Gamble, Unilever and the Nestle and all the major food, cosmetics and clothing producers are targeting this market to be qualified as halal producers as well.”

Saudi Arabia, continues Shobokshi, plays a big role in the growth of the halal industry “because it wants to redefine the definition of halal products and create a global reference point for halal certification, halal inspection, halal qualification to become more global in its standards and remove any gray areas that would leave the consumers in a confusing area.”




Hussein Shobokshi

To be at the forefront of the halal economy is a natural step for the Kingdom given its recent transformation and the fact that it is the center of the Islamic world.

“It is a natural extension of its position to strive to lead the growing halal economy,” he added.

In October 2022, Saudi Arabia’s Public Investment Fund announced the launch of the Halal Products Development Co. 

The new company will invest in localizing the production of the halal industry in Saudi Arabia and increase the efficiency of the ecosystem locally, including plans to export to global markets. 

HPDC aims to enable small and medium-sized enterprises to grow and expand across global halal markets in partnership with key local and international players.

“Saudi Arabia has a unique and important role to play, not only among Muslim countries but all the over the world when it comes to both Fiqh Al-Muamalat (civic matters) as well as Fiqh Al-Ibaadaat (religious matters),” Waheed Qaiser, a British-Pakistani Islamic banker and entrepreneur told Arab News.  

Qaiser states that since the set-up of the first Islamic bank in 1975 in Dubai, “the focus on thalal economy and its products has brought a wake-up call among Muslims and the demand has intensified.”

He further notes how due to an increase in the health-conscious consumer, which includes Muslims, the market for natural and organic food items has grown.

“This trend has led to increased utilization of halal food products as overall they offer better hygiene and sanitation which is good for the human body and prevents various diseases,” he claimed, adding: “This is why today you see halal concessions/dedicated areas for halal products in all western-style supermarkets all over the western world.” 




Waheed Qaiser

Qaiser recalled how he was once told by a major supermarket that by introducing a halal counter their overall sales had gone up significantly.  

Buying halal products is also seen to reinforce a sense of Muslim pride and identity and this extends from Saudi Arabia to the greater Gulf, Asia, Africa and beyond. 

Many Islamic Development Bank member countries are making conscious efforts to develop their halal economies and capture the potential of the market. 

Additionally, between 2020 and 2026, economies of the Organization for Islamic Cooperation are forecasted to experience a growth rate of over 7 percent, with Malaysia, the UAE, Saudi Arabia, Qatar, and Turkey having clear visions of becoming hubs for the global halal trade. 

Even non-majority Muslim countries like Thailand, Japan, and South Korea aim to position themselves as key players in the halal market. Australia and Brazil, meanwhile, are among the top halal meat and poultry suppliers to countries in the Middle East.

One Gulf Cooperation Council country that is perceived as a major player and has been witnessing massive growth when it comes to the halal economy is Qatar.

The nation has been encouraging core sectors with high growth potential to develop products and services prescribed by Islamic law, according to resereach by the Investment Promotion Agency of Qatar.  

The study shows the country 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 research also highlighted Qatar’s role in developing the global and national halal accreditation ecosystem by establishing the Organization of Islamic Cooperation Halal Accreditation Center and the evolution of the Ministry of Public Health’s guidance on importing halal food products.  

There is no doubt about the boom of the halal market both within in the GCC, wider Middle East and globally. There seems to be no limit to the quantity and variety of halal products now being produced.

However, the challenge that remains is clarifying the definition of halal.

Bukvic agrees: “There is a need to address two important challenges facing the halal economy, namely financing the halal industry and effective management of the halal supply chain.”


Closing Bell: Saudi main index slips to close at 11,411 

Updated 04 May 2025
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Closing Bell: Saudi main index slips to close at 11,411 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 132.17 points, or 1.14 percent, to close at 11,411.50. 

The total trading turnover of the benchmark index was SR3.5 billion ($944.3 million), as 41 stocks advanced and 198 retreated.    

Similarly, the Kingdom’s parallel market Nomu lost 116.45 points, or 0.41 percent, to close at 28,013.32. This comes as 30 of the listed stocks advanced while 39 retreated.    

The MSCI Tadawul Index lost 20.74 points, or 1.41 percent, to close at 1,451.17.     

The best-performing stock of the day was Umm Al Qura for Development and Construction Co., whose share price surged 2.77 percent to SR25.95.   

Other top performers included National Industrialization Co., which saw its share price rise 2.26 percent to SR9.49, and Arabian Contracting Services Co., whose share price increased 1.69 percent to SR132.00. 

Zahrat Al Waha for Trading Co. recorded the most significant drop, falling 7.05 percent to SR27.70. 

Saudi Automotive Services Co. saw its stock prices fall 5.67 percent to SR61.50. 

Emaar The Economic City also saw its stock prices decline 4.50 percent to SR14.00. 

On the announcements front, Dar Alarkan Real Estate Development Co. reported its interim financial results for the period ending March 31. 

According to a Tadawul statement, the company posted a net profit of SR209.34 million in the first quarter of 2025, marking a 36.2 percent increase compared to the same quarter in 2024.  

The rise in net income was primarily driven by higher property sales. Increased lease revenues, lower finance costs, and greater non-operating income from Islamic Murabaha deposits also contributed to the gains, though these were partially offset by higher operating expenses and reduced earnings from associates. 

Dar Alarkan Real Estate Development Co. ended the session at SR21.04, down 1.05 percent. 

Saudi Aramco Base Oil Co. – Luberef has announced its interim financial results for the first quarter of 2025. A bourse filing showed the company recorded a net profit of SR221.5 million for the period ending March 31, reflecting a 7.3 percent decline compared to the same quarter last year. The drop in earnings was mainly due to lower by-product crack margins, despite an increase in base oil crack margins. 

Luberef’s shares closed the session at SR98.70, down 0.20 percent. 

Dr. Sulaiman Al Habib Medical Services Group has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the firm posted a net profit of SR557.01 million in the first quarter of 2025, marking a 1.09 percent increase compared to the same quarter in 2024. The growth was primarily driven by higher revenue, although fixed operating costs from recent strategic expansions have temporarily weighed on profit margins. These expansions are still ramping up and are expected to gradually reach full operational efficiency. 

The company’s shares closed at SR289.00, down 2.15 percent. 

The National Agricultural Development Co. reported its consolidated financial results for the first quarter of 2025, posting a net profit of SR103.42 million for the period ending March 31 — a 2.06 percent rise compared to the year-earlier period.  

The increase was supported by higher revenue, reduced general and administrative expenses, stronger operating profit, and increased treasury income. These gains were partially offset by higher cost of sales, increased impairment losses on trade and other receivables, and a decline in finance costs. 

NADEC shares ended the session at SR22.20, down 1.54 percent. 

Saudi Basic Industries Corp. announced a net loss of SR1.21 billion for the first quarter of 2025, compared to a net profit of SR250 million in the same period last year. The loss was primarily due to a SR1.05 billion decline in gross profit, driven by higher feedstock prices and increased operating expenses. These included non-recurring costs of SR1.07 billion linked to a strategic restructuring initiative aimed at improving long-term performance and reducing costs. 

SABIC shares closed at SR60.70, down 2.77 percent. 


Jeddah unveils 29 real estate projects across industrial, residential, retail sectors

Updated 04 May 2025
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Jeddah unveils 29 real estate projects across industrial, residential, retail sectors

RIYADH: Jeddah Municipality has announced 29 new investment opportunities across more than 1.4 million sq. meters, targeting sectors such as commercial, industrial, residential, and recreation. 

Jeddah’s investment package includes 13 commercial opportunities featuring developing and operating retail shops and commercial complexes across various districts. The initiatives include the development of an integrated container city spanning 846,684 sq. meters and a second container park at 429,223 sq. meters.  

This latest undertaking also follows a similar wave of investment opportunities recently launched in Riyadh, underscoring a nationwide push to diversify Saudi Arabia’s economy and enhance urban livability.  

Jeddah’s additional projects feature a 145,472-sq.-meter barley milling and packaging facility, eight worker residential compounds, and eight public parks equipped with kindergartens and retail outlets.  

A food truck zone under the municipal incubator program in South Obhur has also been introduced. In the education sector, a health college project has been announced.   

The strategically distributed initiatives aim to meet neighborhood needs while ensuring synergy between activities.   

The municipality has invited investors to submit proposals through the Furas Saudi investment portal. It noted that the bid submissions will be accepted from May 1 until July 8, as per the scheduled timeline. The Furas portal streamlines investor access, reflecting a unified approach to municipal investments.  

This undertaking underscores Jeddah’s commitment to economic growth and urban development in alignment with national objectives. 

Riyadh’s 2025 investment portfolio — spanning commercial, industrial, and leisure projects — mirrors the Kingdom’s strategic focus on private-sector-driven development under Vision 2030. 

In March, the Riyadh Municipality unveiled 20 new investment prospects across 175,000 sq. meters, including mixed-use spaces, retail hubs, and industrial zones, with contracts ranging from five to 25 years.  

Key districts like Jarir, Al-Rawdah, and Al-Qadisiyah are prioritized to ensure balanced growth. Complementing these efforts, the city has expanded its green infrastructure, adding 87 parks since 2022 to reach over 745,000 sq. meters of green space — transforming them into multifunctional community venues. 

These parallel initiatives highlight Saudi cities’ commitment to sustainable urbanization, economic diversification, and elevated quality of life, cementing the Kingdom’s position as a regional leader in transformative urban development. 


Saudi Arabia rolls out new guidelines for off-plan property deals

Updated 04 May 2025
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Saudi Arabia rolls out new guidelines for off-plan property deals

JEDDAH: Saudi Arabia has issued a detailed procedural guide to implement its previously approved off-plan real estate regulation, aiming to enhance transparency, protect buyers, and formalize developer obligations.

The new framework was formally approved by Real Estate General Authority CEO Abdullah bin Saud Al-Hammad on May 2 and took effect immediately, according to the official gazette Umm Al-Qura.

This guide is part of the regulatory rollout following the Cabinet’s 2023 decision to formalize off-plan real estate sales and leasing. It is designed to strengthen investor confidence in a sector that accounts for approximately 7 percent of Saudi Arabia’s gross domestic product and plays a crucial role in supporting related industries such as construction and finance.

In a post on its official X handle, REGA stated: “The Real Estate Authority issued the procedural guide for the sale and rent of real estate projects off-plan, with the aim of clarifying the requirements of the procedures that regulate and control the stages of licensing, marketing, selling, leasing, and managing real estate projects off-plan, including requests for amendments or changes, opening and managing an escrow account, and other regulatory procedures.”

The updated model outlines 55 defined scenarios, covering applications by legal and individual developers to register or update their status, improve evaluation scores, or request project modifications. It also details processes for certifying completion, changing contractors, switching project banks, and reallocating escrowed funds.

Refunds to buyers from escrow accounts are permitted in cases such as the cancellation of marketing permits, project delays exceeding 180 days, or failure to secure a sales license. The guide also addresses scenarios involving project restructuring, title transfers, license revocations, and developer substitutions for delayed projects.

The reforms are intended to provide legal clarity and investor assurance as off-plan development becomes an increasingly prominent feature of the Kingdom’s residential and commercial real estate landscape.

Legal entities and individuals seeking to develop off-plan properties must now comply with strict registration and reporting requirements, including updates to developer evaluations and the appointment of certified consultants and accountants.

The regulatory update underscores Saudi Arabia’s push to build a robust legal infrastructure for its real estate sector, positioning the Kingdom as a competitive and secure environment for local and foreign investors.


Qatar welcomes over 1.5m international visitors in Q1 2025

Updated 04 May 2025
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Qatar welcomes over 1.5m international visitors in Q1 2025

RIYADH: Qatar received more than 1.5 million international visitors in the first quarter of 2025, according to newly released figures, as the country continues to push forward with its comprehensive tourism strategy anchored in major events, strategic partnerships, and diverse travel offerings.

While slightly below the 1.6 million visitors recorded during the same period in 2024, the latest numbers highlight Qatar’s sustained momentum in attracting global travelers.

Visitors from Gulf Cooperation Council countries accounted for 36 percent of arrivals, followed by Europe at 28 percent and Asia and Oceania at 20 percent, underscoring Qatar’s growing appeal across varied markets.

The increase aligns with the nation’s long-term objective of drawing six million visitors annually by 2030. It also coincides with the third phase of the Qatar National Development Strategy (2024–2030), launched in January 2024, which designates tourism as a critical pillar in the country’s economic diversification agenda.

“The achievements of the first quarter of 2025 demonstrate some of the planned outputs of our long-term approach to tourism development,” said Saad Bin Ali Al-Kharji, chairman of Qatar Tourism and chair of the board of directors of Visit Qatar.

“Part of the development transcends into deepening collaboration across local, regional and international markets and continue to diversify source markets, enhance visitor experiences, and reinforce Qatar’s position as a dynamic, year-round destination. We are excited to have welcomed 1.5M in Q1 and look forward to welcoming more guests throughout this year,” he added.

Qatar’s multi-access strategy also appears to be paying off. Of the total visitors, 51 percent arrived by air, 34 percent by land, and 15 percent by sea.

During the Eid Al-Fitr holidays, the country recorded its highest holiday visitor count in three years, attracting 214,000 travelers over an eight-day period — a 26 percent increase from 2024. Nearly half (49 percent) of those visitors came from GCC countries, representing an 18 percent year-on-year rise. Hotel occupancy during this period reached 77 percent, up from 67 percent the previous year.

The hospitality industry reported robust performance overall in Q1, with an average hotel occupancy rate of 71 percent and 2.6 million room nights sold. Key drivers included major international events such as Web Summit Qatar, the Doha Jewellery & Watches Exhibition, and the Qatar International Food Festival.

Reinforcing its position as a regional tourism hub, Qatar also hosted the 51st UN Tourism Regional Committee for the Middle East. The gathering focused on leveraging the country's strengths in sports, innovation, and infrastructure to promote sustainable tourism across the region.

Looking ahead, Qatar is set to continue its tourism push with a strong slate of upcoming events. The country will annually host the T100 Triathlon World Championship Final in partnership with the Professional Triathletes Organization through 2030. Additional highlights include the FIFA Arab Cup Qatar 2025, the Visit Qatar E1 Grand Prix of Electric Boats, and a series of high-profile festivals and sports events, all aimed at enriching Qatar’s tourism offerings and supporting its continued growth.


Syria to sign deal to import electricity from Turkiye, minister says

Updated 04 May 2025
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Syria to sign deal to import electricity from Turkiye, minister says

CAIRO: Syria is set to sign a deal to import electricity from Turkiye through a 400-kilovolt transmission line between the two countries “soon,” the Syrian state news agency cited the country’s energy minister as saying on Sunday.
Syria is also working on establishing a natural gas pipeline connecting the Turkish border town of Kilis and Syria’s northern city of Aleppo, minister Mohamed Al-Bashir said.
“The pipeline will allow the supply of 6 million cubic meters of gas per day to power plants in Syria which will contribute in improving the country’s energy situation,” he added.
Syria has suffered from severe power shortages. On separate occasions, the country said it was working with partners including Gulf states, in the energy and electricity sectors.