Certification gaps hinder halal export growth: BCI

Bangladesh’s efforts to expand its share of the multitrillion-dollar global halal market are being held back by fragmented certification processes, a shortage of accredited testing laboratories and a lack of technical expertise, according to a recent policy report by the Bangladesh Chamber of Industries (BCI).

The report says the absence of a single, standardised halal certification authority makes exports more time-consuming and costly for local businesses. It also weakens Bangladesh’s brand identity in international markets.

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Halal certification is currently handled by two state institutions. The Islamic Foundation began issuing halal certificates in 2011 with assistance from Malaysia’s Department of Islamic Development, known as JAKIM.

The Bangladesh Standards and Testing Institution (BSTI) started its halal certification programme in 2022 under guidelines developed by the Standards and Metrology Institute for Islamic Countries (SMIIC) of the Organisation of Islamic Cooperation (OIC).

BCI President Anwar-ul Alam Chowdhury raised these structural problems at a meeting between business leaders and Prime Minister Tarique Rahman on Monday. He also handed over the chamber’s detailed policy guidelines for reforming the sector.

The report also highlights a serious shortage of accredited testing laboratories, inadequate physical infrastructure and a lack of skilled technical personnel. These shortcomings make it difficult for exporters to meet the requirements of international markets. The challenges come at a time when the global halal market offers huge opportunities. Bangladesh currently exports about $940 million worth of halal products, while global demand is estimated at $5.2 trillion in 2026. The market is projected to reach $9.45 trillion by 2034.

Bangladesh has significant scope to increase exports to major halal markets in the Middle East and Southeast Asia. There are also opportunities in Europe and North America, where large Muslim diaspora populations create demand for halal products.

To address these problems, the BCI proposed setting up a central Bangladesh Halal Development Authority to coordinate certification and oversight.

The chamber also urged the government to establish accredited testing facilities, train specialised personnel, and negotiate mutual recognition agreements with major halal markets such as Malaysia, Indonesia, Saudi Arabia, and the UAE.

Other recommendations include introducing specific halal classification codes under the existing Harmonised System (HS), increasing participation in international trade fairs and introducing a 10- to 15-year policy support package with coordinated national incentives.

The BCI said these measures could help make halal trade a major source of export diversification.

The policy report has been sent to relevant ministers, government secretaries and agency heads for consideration.