Halal Finance and Halal Foods: Are They Falling Apart?

• Main Authors: Abdul Ghafar Ismail, Mohd Ali Mohd Noor
• Format: Article
• Language: English
• Published: Danubius University 2016-06-01
• Series: Acta Universitatis Danubius: Oeconomica
• Subjects: standardization; halal goods; sharia compliant; regulation; Halal GNP
• Online Access: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3450/3279

For a country that is looking for new sources of growth, the Halal industry has the potential to achieve that ambition. To realize this aspiration, the country has to put in place measures to support the industrial growth, and should have the strategy of becoming one of the most trusted and reliable Halal providers in the world. To achieve the aspiration of becoming a centre for production and trade of halal foods and services, regulations need to be developed. However, our analysis indicates that: first, the regulation on halal foods and services shows that the halal property is used as the underlying assets for Islamic financial transactions. Second, a new set of filter needs to be introduced that look into the halal sources of funds (halal funds/money) for companies operating in the halal industry. Third, a halal GNP could be introduced as a result of the integration between halal finance and halal foods. Therefore, both halal foods and halal finance should be integrated to create a new source of growth.