Government Seeks Malaysian and Saudi Investment to Establish Major Trade Hub by 2030

Bangladesh is intensifying efforts to establish a significant presence in the multibillion-dollar global halal economy while attracting foreign investors to capitalize on the country’s expanding domestic market and export capabilities, according to government officials.

The government has focused on the emerging halal trade sector, aiming to position Bangladesh as a major halal hub by 2030. This strategy leverages the country’s competitive pricing advantages and substantial consumer base to gain market share in the rapidly growing industry.

Officials report that Dhaka is working to bring domestic production into full compliance with international halal standards, responding to requirements from multiple importing nations. The Ministry of Commerce emphasizes that without proper certification covering the entire process from production to export, Bangladesh risks missing valuable market opportunities in the Middle East and Southeast Asia.

Market Size and Growth Projections

The global halal economy reached approximately $7.7 trillion in 2025 and is expected to grow to $10 trillion by 2030. Muslim-majority countries including Malaysia, Indonesia, and Saudi Arabia currently dominate consumption and certification markets, while countries with non-Muslim majorities such as India, Brazil, and Australia rank among the largest exporters.

Expert Analysis and Market Potential

Dr M Mashrur Reaz, founder-chairman and CEO of Policy Exchange, told The Financial Express that the halal industry offers tremendous potential, though Bangladesh has yet to effectively tap into this market due to inadequate certification and accreditation systems. Despite these limitations, some local companies have successfully demonstrated their capabilities by exporting halal meat, albeit in small volumes.

“Developing the industry will require coordinated effort from relevant ministries, including the Ministry of Fisheries and Livestock and the Ministry of Commerce, with BIDA playing a facilitating and coordinating role,” Dr Reaz explained.

Competitive Landscape and Bangladesh’s Advantages

Business leaders stress that Bangladesh must act swiftly, as regional competitors including Thailand, Malaysia, Indonesia, and India have already achieved considerable success in global halal trade. However, Bangladesh possesses distinct competitive advantages through cost-effectiveness and growing domestic and international demand.

By 2030, Bangladesh is projected to become the world’s eighth-largest consumer market, surpassing the UK economy in size. Additionally, approximately 10 million Bangladeshi expatriates residing in the Gulf and Southeast Asia represent a substantial potential consumer base for Bangladeshi halal products.

Investment Opportunities and International Partnerships

• Malaysia Collaboration

Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun presented investment opportunities during a business forum on trade and investment between Bangladesh and Malaysia in Kuala Lumpur. He described Malaysian investment in Bangladesh’s halal industry as a mutually beneficial opportunity.

“Malaysia can benefit from competitive sourcing, while Bangladesh gains access to Malaysia’s established certification ecosystem and global market networks. Together, we can build a powerful halal supply chain,” he stated.

• Investment Strategy Framework

Bangladesh is pursuing three distinct investment approaches: greenfield projects, joint ventures, and participation in state-owned enterprises. The BIDA chairman noted that Bangladesh has been rapidly liberalizing, opening state-owned entities to private investment, emphasizing that market entry represents a long-term opportunity with proven significant rewards.

Certification Requirements and Standards

• Saudi Arabia’s Stringent Requirements

Experts and exporters report that the Saudi government has announced globally that no country will be permitted to export food without certifications from Saudi authorities. These include the Saudi Accreditation Centre (SAAC), The Saudi Standards, Metrology and Quality Organization (SASO), and the Saudi Food and Drug Authority (SFDA). Malaysia’s JAKIM certification will also be essential for Bangladesh to access their market.

• Recent Assessment Visits

In July 2025, a delegation from the Saudi Accreditation Centre visited Bangladesh to evaluate facilities, including Bengal Meat’s plant in Pabna. Bengal Meat CEO AFM Asif confirmed that Saudi delegations recently inspected their factory, accompanied by Islamic Foundation representatives, as they have obtained halal certifications from the foundation.

Comprehensive Halal Certification Scope

Halal certification encompasses a broad range of sectors beyond food and beverages, including clothing, cosmetics, pharmaceuticals, tourism, and financial services. The certification system ensures quality and adherence to Islamic principles across these diverse product categories.

Dr Md Abu Saleh Patwary, Deputy Director of the Halal Certification Department at the Islamic Foundation, explains that obtaining Saudi halal certification involves a lengthy process. Applications have been submitted online for five sectors: meat, food, beverages, pharmaceuticals, and cosmetics.

The visiting delegation expressed satisfaction with facilities at Bengal Meat’s slaughterhouse and Akij Food and Beverage factory in Manikganj, while providing recommendations to the Islamic Foundation, including formalizing agreements between factories and the foundation to ensure halal process compliance.

International Cooperation Initiatives

Dhaka and Kuala Lumpur have initiated cooperation through a “reverse linkage project” involving Malaysia’s Serunai Halal Centre of Excellence and the Islamic Development Bank. This collaboration aims to enhance Bangladesh’s certification capacity and build a comprehensive halal ecosystem.

Currently, only approximately 100 Bangladeshi companies hold halal certification from Malaysia’s JAKIM. The BIDA chief envisions significant growth potential, stating, “Imagine if that number grew tenfold, or if we established a dedicated halal economic zone.”

Industry Challenges and Recommendations

Bangladesh currently exports meat, food, beverages, pharmaceuticals, and cosmetics to various countries in the Middle East, East Asia, South Asia, South America, and North America through halal certification processes.

Anwarul Alam Parvez, president of the Bangladesh Chambers of Industries (BCI), identifies significant challenges in capitalizing on the growing global halal market despite the country’s potential. He notes that the concept of halal is expanding beyond meat to include all products, with even non-Muslim countries like Japan and Korea embracing this transition.

The BCI president emphasizes that Bangladesh lacks the institutional capacity and globally recognized certifications necessary to properly assess and certify halal products for international markets. He calls for both the Islamic Foundation and the Bangladesh Standards and Testing Institution (BSTI) to undergo significant capacity building and global acceptance to compete effectively.

To enhance export capabilities, Parvez recommends that the government reduce certification fees and actively promote Bangladeshi halal products through branding initiatives. He also encourages manufacturers to participate in global events, such as the upcoming halal fair in Turkey this September, to gain valuable knowledge and market exposure.

Industry insiders emphasize that strategic planning, international certification, and coordinated stakeholder engagement will be essential for Bangladesh to emerge successfully as a halal hub in the global market.

Original Article:

Uddin, J. (2025, August 18). Govt eyes $10 trillion global halal market. The Financial Express. https://today.thefinancialexpress.com.bd/first-page/govt-eyes-10-trillion-global-halal-market-1755280361?amp=true