Halal goods market is on the rise at $3 trillion, but as a Muslim country, Bangladesh's influence is not noticeable.
“If the strategic road map for 2024–2029, passed in the last general meeting of the Developing 8 Countries (D8) Secretariat, is implemented as planned, Bangladesh and other D8 countries will be able to tap more into this Halal food market,” said Sheikh Fazle Fahim, president, D8 Chamber of Commerce and Industries (CCI) on Sunday.
“The global halal food market is valued at $3 trillion, but Bangladesh's role in this market is negligible. However, there are good opportunities for D8 countries, including Bangladesh. That's why we have undertaken a road map, which, if implemented, will further diversify our exports,” Sheikh Fazle Fahim said in a press meet on Sunday.
The global halal food market is projected to reach a value of $6 trillion by 2030.
Fahim also informed that their last general meeting discussed and approved the proposal of Indonesian Chamber of Commerce -Kadin to hold an International Halal Exposition in Jakarta in April 2024 in collaboration with D8CCI by participating all D8 countries business communities & national chambers.
Eight countries are in D8CCI - namely Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.
Regarding the Strategic Roadmap and Plan which was passed in the third General Assembly On February 28, D8CCI stated that several things were discussed there.
Experts and the government alike have been seeking to diversify Bangladesh’s export basket.
On February 13 at a seminar titled "Economic diversification and global market: Bangladesh's opportunities and way forward", experts stressed that Bangladesh should undertake rigorous programs for diversifying its products, markets and brands in order to increase exports and thereby face challenges after graduating from a least developed country (LDC), according to experts and policymakers.
At present, Bangladesh's major export markets are the EU and US, with 85% of all shipments to the two markets mainly comprising garment items.
Against this backdrop, experts suggest that Bangladesh explore markets in South America, Africa, Southeast Asia, East Asia and South Asia, where export levels have been very low.
They said the country has huge potential in exporting agro-processed items, leather, jute and related goods, pharmaceuticals, and ICT products.
Dr Md Deen Islam, an associate professor of economics at Dhaka University, said Bangladeshi producers often forget the need for market research and marketing.
"We have products but don't know the market. We also lack branding and packaging. Here, our ministries of commerce and foreign affairs need to collaborate," he added.
At another event on the very issue "Bangladesh’s Export Readiness: Post-LDC Graduation Perspective" organized by Dhaka Chamber of Commerce and Industry, Selim Raihan, executive director, South Asian Network on Economic Modeling (Sanem), said that Bangladesh’s export sector was heavily reliant on ready-made garments, which posed a risk due to its high concentration.
He pointed out that Bangladesh has added only nine new export products in the last 15 years, compared with 41 by Vietnam and 31 by Thailand in the same period.
Bangladesh’s Ministry of Religious Affairs approved a halal certification policy in November 2023 which serves as a formal guideline and incentive for companies to align with international halal standards, paving the way for Bangladesh to harness the potential of the global halal market, reports Arab News.
“This halal certification is very important for us since we are a Muslim country and 92% of our consumers are Muslim. Now, we will be able to explore the export potential of our halal goods,” Abu Saleh Patwary, deputy director of the halal certification department at the Bangladesh Islamic Foundation, told Arab News.
“Saudi Arabia and the UAE can be the major destination for our halal goods. We will be aiming to increase exports to Muslim countries, especially in the Gulf region,” he said.
“If we can grab 2 to 3% of global halal markets, it will boost our economy a lot. Now, a new horizon of halal goods has opened up for our local entrepreneurs,” he added.
This will also boost Forex reserves as it fell below $20 billion by the end of January, as per the latest Bangladesh Bank data.
Central bank data showed the country's foreign exchange reserves stood at $19.94 billion on January 31, according to the International Monetary Fund calculation method, compared with $17.20 billion on December 31.
Bangladesh Bank said the gross reserve was $25.09 billion by the end of January.
The reserve calculated under the IMF's balance of payments and investment position manual method is immediately usable, while the gross reserve is also usable subject to the realization of investment.
For a growing economy like Bangladesh, forex reserves equivalent to six months' import bills are considered adequate.
Meeting minutes from the conference
- Visa facilitation among D-8 Countries.
- Government intervention required to reduce logistic costs for easy transportation of imports and exports among member countries.
- Preferential Trade Agreements (PTAs) among member states must ensure to enhance more trade. More dialogue and consultations between the member countries Ministries of Trade, Foreign Affairs and Home Affairs are essential.
- Potential future collaborations among D8 member states and to identify specific strength sectors for this purpose.
- To set new goals and KPIs, follow up meetings every 3 months among the member countries should be held by virtually or hybrid dialogue.
- To promote Arbitration among D-8 member countries is essential for smooth & uninterrupted development of business, investment and trade. Although each country follow their own mechanism of using arbitration, but due to some limitation of resolving disputes for further examination, evaluation and study of the best practice, commonalities and modalities to find a new Standard Operating Procedures (SOPs) should be considered given the importance of establishing an alternative dispute resolution mechanism.
- The members present emphasized the need for Pegged Price Guarantees (PPG) among member countries that are essential considering the global volatile financial situation which has severe impact on inflation, price hike, and energy and food shortage. To address this situation an integrated strategy supported by currency swapping, alternative trade mechanism and barter system to be introduced among the member countries and in this context there is immediate requirement of carrying in depth studies and recommendations.
- The meeting discussed and approved the proposal of Indonesian Chamber of Commerce -Kadin to hold an International Halal Exposition in Jakarta in April 2024 in collaboration with D8CCI by participating all D8 Countries business communities & National Chambers.
D8CCI also informed that their 2nd General Assembly was held physically at the Pan Pacific Sonargaon Hotel, Dhaka in July 2022 when they also organized D-8 CCI Business Forum and Expo.
Afterwards, they have regular interaction and dialogues among our member countries.
Last year D8 CCI organized two business dialogues, one virtually in Bangladesh, and another in Pakistan.
