Authors

  • Z. Suvonov

DOI:

https://doi.org/10.71337/inlibrary.uz.jasss.113697

Abstract

 This article examines the characteristics of the halal services market in countries around the world and provides suggestions for its development in Uzbekistan.

 

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THE HALAL SERVICES MARKET IN THE ECONOMY AND ITS DEVELOPMENT

PROSPECTS

Z.Suvonov

SamISI, senior lecturer of the “Service” department

Abstract:

This article examines the characteristics of the halal services market in countries

around the world and provides suggestions for its development in Uzbekistan.

Keywords:

Halal, halal food, halal food industry, Muslims, Sharia, Islamic countries, halal

certificate, Muslim consumers.

Introduction.

Given the growing number of Muslims in the world, halal products have

enormous potential both in the Muslim world and in the global market. The production of halal

products and services covers almost all sectors of the modern economy: tourism, fashion,

finance, IT and media, and the halal lifestyle is becoming popular not only among Muslims, but

also among people of other faiths.

Halal economy is the offering of products and services by enterprises and organizations of the

economy to consumers that are produced in accordance with the norms, rules, and methods

permitted by Sharia.

The philosophy of halal is based on the understanding that goods and services are created to

create comfortable conditions for consumers, improve living conditions and do good deeds for

the sake of Allah, not for personal gain. Halal is, first of all, a quality and responsible attitude

towards the buyer. The values created and fair wages for work and the efforts made by the

manufacturer to produce them cannot be called halal if they are associated with consumer

deception, monopoly profit, speculative transactions, violation of contractual obligations and

illegal production methods. Halal production refers to the values and traditions established in

the culture and religion of Muslim peoples.

According to the Mastercard-Crescent Ranking Global Muslim Travel Index :

• The number of international Muslim tourists in 2022 was 110 million, accounting for 12% of

all international arrivals. This is a significant increase;

•The number of travelers increased by 140 million in 2023 and returned to the pre-pandemic

level of 160 million in 2024;

• The number of Muslims will reach 230 million by 2028, and the costs are estimated at 225

billion US dollars.

the halal economy grows year by year, this type of food is consumed not only by Muslims but

also by non-Muslim customers. Initially, non-Muslims and some Muslims thought that halal

food was safe and hygienic, so the demand for such products increased, and with its widespread

acceptance, the halal food market emerged. It is no exaggeration to say that the halal food

market has now become one of the largest consumer markets in the world. This is because the

number of Muslims around the world who contribute to the halal food industry is increasing

dramatically. Due to this, the demand for the halal food industry and services is increasing.

Analysis of the literature on the topic.

Due to the diversity of tastes and interests of the

Muslim population living in the world, it is shown that there is a high demand for halal food

products in the food market. In this area, world scientists Mian N. Riaz, Muhammad M.


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Chaudry [2], Florence Bergeaud-Blackler, John Lever, Johan Fischer [3], Wan Melissa Wan-

Hassan, Khairil Wahidin Awang [4], Al Qaradawi [5]. conducted research in their scientific

works. At the same time, scientists from the CIS countries Uzakov YA.M. [6]. Damir

Mukhetdinov [7]. The world halal food market and the requirements for developing products

for them are analyzed. In this regard, there are great opportunities in Uzbekistan, but scientific

research is required.

The word "halal" is derived from the Arabic word "halal" and means "free", "unbound". It

refers to actions and deeds that are permissible for Muslims in Sharia, and foods that are

considered clean and pure. Therefore, halal food refers to foods that meet the laws and

conditions permitted in Sharia.

For foods to be halal, they must fully comply with the following conditions:

- not contain animal products or parts that are not halal for Muslims or animal products that

have not been slaughtered according to Sharia law;

- foods that do not contain najas (things that are impure according to Sharia: blood, alcohol,

dog meat, pork, their milk, dead animals, etc.) according to Sharia law;

- be safe and harmless;

- according to Sharia law, it must not be prepared or manufactured using equipment

contaminated with unclean materials;

- food or its ingredients do not contain human parts;

- during the processes of preparation, processing, packaging, storage or transportation of food,

it must be carried out separately from other products that are not prepared in accordance with

the above rules.

Research methodology.

The methods of observation, comparison, experimentation, analysis,

and synthesis were used in the analysis and research processes of this article .

Analysis and results.

Following halal guidelines, especially in purchasing daily food products

and adhering to the dietary system, is the most important condition of Islamic relations.

First of all, in order to engage in the halal food industry, countries must have a halal standard

and a halal food logo. There are organizations that control these halal standards and logos.

They are the Organization of Islamic Cooperation (OIC, 1969) and the Standards and

Metrology Institute of Islamic Countries (SMIIC, 1998). Their main tasks are to provide a

strong mechanism for harmonizing standards among member countries and preparing new ones,

to implement harmonized standards in member countries and to eliminate technical deficiencies.

In addition, they are to establish certification and accreditation schemes in order to facilitate the

exchange of materials, manufactured products and products between member countries, starting

from the mutual recognition of certificates. The Organization of Islamic Cooperation (OIC) has

57 member countries and the Standards and Metrology Institute of Islamic Countries (SMIIC)

has 42 member countries.

Among many countries, Malaysia was the first to attempt to establish a global halal standard

and in 1974, Malaysia introduced a national halal certification. This effort was carried out by

the Islamic Affairs Department Research Centre under the Prime Minister's Office. Later, in

2005, the Department of Islamic Development Malaysia (JAKIM) introduced a halal

certification system. It is responsible for overseeing halal compliance in Malaysia. Malaysia's

JAKIM halal certification system is the only certification system supported by the Organisation

of Islamic Cooperation (OIC) as an internationally standardized logo and an approved


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certification system for use by all Muslim countries. To further strengthen Malaysia's position

as a leading global halal hub, the Halal Industry Development Corporation (HDC) was

established in 2006. It was established to improve halal standards, promote commercial and

industrial development, and strengthen branding. The Malaysian government has also

implemented the Halal Industry Master Plan (2008-2020). This has positioned the country as a

global leader in several halal-related sectors, including specialty processed foods, ingredients,

cosmetics and personal care, pharmaceutical innovation, manufacturing and trade, livestock,

services, particularly logistics, tourism and healthcare. The introduction of designated halal

parks has fueled the growth of Malaysia's halal industry. There are currently 25 halal zones in

Malaysia, each of which is designed to serve a specific halal industry.

A number of multinational companies (MCNs), including local food processors, have now set

up their own food processing plants in Malaysia with the intention of distributing their halal

products in the local and (ASEAN) Asian markets. For example, Nestle, a Swiss company that

is one of the world’s largest food and beverage manufacturers, established Nestlé Malaysia in

Malaysia in the early 1970s and all its products are certified by JAKIM. Nestlé Malaysia

currently has 8 halal food factories and several private brands, including Maggi, Nescafe and

Milo. Nestlé Malaysia exports its products to over 50 countries. On the global stage, Malaysia

once again achieved the highest score in the Global Economic Outlook in four out of six sectors,

namely halal food, Islamic finance, Muslim-friendly travel, pharmaceuticals and cosmetics, for

the eighth consecutive year.

Another country with a strong track record in the halal food industry is Singapore. Singapore

has a halal certification div (Majelis Ugama Islam/MUIS) that serves the country’s minority

Muslim population. MUIS Halal Services was launched in 1973 and MUIS established the

Halal Certification Standards Unit to regulate the Halal sector. MUIS has implemented several

initiatives to continuously improve the credibility of MUIS Halal certification. These include

the MUIS e-Halal System (2007), the Halal Quality Management System (HalMQ; 2008) and

MUIS Halal Audits and Inspections (2009-2012). Halal certification in the food sector in

Singapore is voluntary. According to MUIS, halal certification is not mandatory in Singapore,

but if a business also targets Muslim consumers, it applies for halal certification. Singapore’s

halal industry has grown 5 times in the last 10 years. Singapore is considered a region with high

potential after Malaysia and Indonesia, with a growing halal food market, tourism, and demand

for halal-certified restaurants, cafes, and grocery stores. In 2015, Singapore welcomed 15.2

million tourists, including 2.73 million from Indonesia and 1.17 million from Malaysia.

Singapore's halal food market is booming, with food and beverage outlets opening and halal

certifications. According to the Mastercard-Crescent Rating Halal Food Lifestyle – Singapore

2021 , the halal food market in 2019 was estimated at S$1 billion, with S $700 million spent by

local Muslims. The rise of the halal food industry can be seen in the growth of halal

certification. According to statistics from the Singapore Islamic Religious Council (MUIS) ,

53,060 products were certified halal in 2018, a 160% increase from 2013. The number of

restaurants certified halal has grown at a CAGR of 9.4% since 2013. In 2019, 16% of these

eateries were located in shopping malls. For the first time, Singapore has been ranked in the top

15 in the Global Islamic Economy Index, which measures the ability of leading national

ecosystems to best support the development of Islamic economic entrepreneurship. This

indicates the significant role and momentum of the Islamic economy for Singapore. Singapore's


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strong performance in Halal Food (2nd place), Pharmaceuticals and Cosmetics (3rd place),

Media and Recreation (3rd place) and Muslim-Friendly Travel (9th place) are positive signs of

the role of the Islamic economy in the post-pandemic economic recovery. It is worth noting that

Singapore's share of the global halal trade of over $255 billion per year is significant ,

indicating that there is huge potential and opportunity for growth in halal trade.

Indonesia, a country that can compete in the global market in several sectors of the halal

industry - halal is a country that aims to become a major player in the market and is currently

the world's largest consumer of halal products. With more than 207 million Muslims (about

87% of the population), Indonesia is home to the world's largest Muslim community. The

demand for halal-certified products has become a huge business opportunity for this Southeast

Asian country. Let's take a closer look at how the halal industry is developing in Indonesia. In

2014, the Ministry of Tourism focused on developing halal tourism to attract more Muslim

travelers. The concept offers a range of services designed to comply with Islamic law, from

halal-certified food to Muslim-friendly hotels. According to the Global Muslim Travel Index,

Indonesia ranked first in the world for halal tourism in 2019 .

The consumption and sale of alcoholic beverages is strictly regulated by the Indonesian

government. Advertising of alcoholic beverages in the media is strictly prohibited.

Until 2019, the Indonesian Ulema Council and the Indonesian Ulema Council's Food and Drug

Evaluation Body (LPPOM MUI) were recognized as the only halal certification bodies in the

country. LPPOM MUI evaluates technical components and the MUI (fatwa council) makes the

Halal decision. Then, the Indonesian Halal Law, effective from October 17, 2019, requires

many consumer products and related services in the country to be Halal certified. Businesses

that need Halal certification will now need to apply to the newly established Halal Product

Certification Agency (BPJPH). The Halal Law regulates the processing, materials, and

certification of halal products, in addition to establishing cooperation with international Halal

agencies. According to the Global Islamic Economic Outlook 2020-2021, Indonesia's halal

food industry ranks 4th, halal tourism industry ranks 6th in the world, Muslim fashion industry

ranks 3rd, and Islamic finance industry ranks 6th. Here are some statistics showing the

spending of Muslim consumers in Indonesia on halal lifestyle products and services in 2017

and the forecast for 2025. In 2017, Muslim consumers in Indonesia spent an estimated

US$170.2 billion on halal food and beverages. This figure is expected to reach US$247.8

billion in 2025.

Uzbekistan is also implementing a number of measures to enter and achieve high results in the

developing halal industry. Free economic zones are a key tool for Uzbekistan to quickly

develop a strong halal ecosystem and attract leading transnational companies with developed

internal halal processes.

According to world tourism organizations, 300-330 million tourists visit the world's most

important religious sites every year.

Conclusions and suggestions.

From our research work, we can conclude that there are

advantages to implementing the "Halal" standard in our country and that manufacturing

enterprises, including food manufacturers, will have the following opportunities by adopting

this standard:

Firstly, by exporting all halal products produced in Uzbekistan to Muslim countries, it

contributes to the growth of the national economy;


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secondly, improving national infrastructure and receiving recommendations from

international experts, and on this basis, entering this industry and gaining a strong position;

Third, an important step for the country to tap into broader export opportunities is to

work with key global certification and accreditation bodies to develop robust certification

capabilities;

Fourth, it will provide an opportunity to develop pilgrimage tourism in Uzbekistan and

provide visiting Muslim tourists with halal food and other halal products.

List of used literature

1. Global Muslim Travel Index 2020, Mastercard-Crescent Rating, APRIL 2020.

2. Mian N. Riaz, Muhammad M. Chaudry. - HALAL FOOD PRODUCTION Boca Raton

London New York Washington, DC 2004.

3. Bergeaud-Blackler, John Lever, Johan Fischer HALAL MATTERS Islam, politics and

markets in global perspective. New York. 2016

4. Wan Melissa Wan-Hassan, Khairil Wahidin Awang. Halal Food in New Zealand Restaurants:

An Exploratory Study. Int. Journal of Economics and Management. ISSN 1823 - 836X

5. Al Qaradawi, Y. 1985 (1995) Al-halāl wal harām fil Islām (The lawful and the prohibited in

Islam) (Kamal El-Hebawy, MM Siddiqui, Syed Shukry and Ahmad Zaki Hammad, Trans.),

Islamic Book Trust: Petaling Jaya, Malaysia

6. Uzakov YA.M. Pererabotka masa i proizvodstvo myasoproduktov po tekhnologii ―Khalyal

Uchebnoe posobie. Almaty. 2008

7. Damir Mukhetdinov, Sergey Borodai - Islam v Evrope Uchebnoe posobie. ID "Medina".

Moscow. 2016 g.

8. Edited by Zuhriddin Husniddinov – ISLAM ENCYCLOPEDIA "National Encyclopedia of

Uzbekistan" State Scientific Publishing House, 2004

9. Joanie Dong, Ira Sugita GAIN Report 2017

10. Garrett McDonald GAIN Report 2021

11.

https://moneycompass.com

12.

https://www.aseanbriefing.com

13.

https://www.asiahalaldirectory.com

14.

https://www.standart.uz​ ​

References

Global Muslim Travel Index 2020, Mastercard-Crescent Rating, APRIL 2020.

Mian N. Riaz, Muhammad M. Chaudry. - HALAL FOOD PRODUCTION Boca Raton London New York Washington, DC 2004.

Bergeaud-Blackler, John Lever, Johan Fischer HALAL MATTERS Islam, politics and markets in global perspective. New York. 2016

Wan Melissa Wan-Hassan, Khairil Wahidin Awang. Halal Food in New Zealand Restaurants: An Exploratory Study. Int. Journal of Economics and Management. ISSN 1823 - 836X

Al Qaradawi, Y. 1985 (1995) Al-halāl wal harām fil Islām (The lawful and the prohibited in Islam) (Kamal El-Hebawy, MM Siddiqui, Syed Shukry and Ahmad Zaki Hammad, Trans.), Islamic Book Trust: Petaling Jaya, Malaysia

Uzakov YA.M. Pererabotka masa i proizvodstvo myasoproduktov po tekhnologii ―Khalyal Uchebnoe posobie. Almaty. 2008

Damir Mukhetdinov, Sergey Borodai - Islam v Evrope Uchebnoe posobie. ID "Medina". Moscow. 2016 g.

Edited by Zuhriddin Husniddinov – ISLAM ENCYCLOPEDIA "National Encyclopedia of Uzbekistan" State Scientific Publishing House, 2004

Joanie Dong, Ira Sugita GAIN Report 2017

Garrett McDonald GAIN Report 2021