The halal chain is one of the plans for the development of the Hala industry in Dubai,
debuted in Dubai on Nov 21st, and introduce its purpose.This n exclusive interview with the co-founder of the Halal chain project from Dubai, Mr. Sultan Al Howymel, who is the economic director of the Dubai International Islamic Center and has a deep special political background and financial resources in the Middle East countries.
According to statistics, the global Halal food market has grown from $2.3 trillion in 2014 to $3.2 trillion. At the same time, this data is still growing, It is predicted that 2018 global halal industry's annual output value will increase to 6.4 trillion U.S. dollars. With the rapid growth of market demand, the market has countless halal food waiting for excavation. So what is the exact halal industry that is so big in market size? Halal is the legal act of the Islamic Shariah. The universal dietary statutes of the world's Muslims, which are developed and formed on the basis of halal.
1. Information asymmetry difficulties of trust establishment
Halal food, which conforms to the Islamic HALAL food standard. In China, Halal food usually refers to food products that are slaughtered, processed and manufactured in accordance with Halal requirements according to Chinese Muslim eating habits. However, there are many obstacles to the development of the market at present, the first is the lack of halal product certification system. Around 2 billion Muslims worldwide are scattered around the world, each region has formed a relatively closed halal product market, resulting in many excellent domestic halal food and industries can not be docked with the international market. There is a serious information asymmetry of halal product, resulting in a lot of ordinary users can not identify the hands of the product is really halal products, especially for small and medium-sized brands their halal products can not obtain the trust of consumers, which for the sale of products and circulation caused a hindrance. And the lack of a highly effective regulatory portal for regulation can systematically control the whole process from raw material supply to sales. For some central management mechanism is not yet the sound state of the Halal food market regulation of the relevant laws and regulations have not been promulgated, it causes problems in the halal industry problems incessantly. In response to this series of problems, The blockchain has the characteristics of decentralization, traceability, and data unchangeable, which can solve the pain points in the halal industry.
2. Halal chain will be launching soon, and Chinese investors can get involved
Sultan Al Howymel says the halal industry will be greatly developed in the coming critical time node. The halal industry includes not only Halal food, but also all the industries involved in halal. Halal related products in 2021 will be twice times the volume of 2014. Investors who are expected to invest in halal products in the near future will be rewarded handsomely. One of the plans for the development of the Halal industry in Dubai is Halal Chain, it will debut in Dubai on November 21st, and Halal Chain project will be officially released to the public and introduced for its purpose. The project will allow more enterprises, more transactions into the block chain, is expected after the launch of the halal chain, the chain will be very impressive trading volume. Chinese investors will also be involved in the project as investors in the UAE, which are expected to become one of the largest halal industry in the global market in 3 years.
This project encourages businesses and commodity producers to trade on this halal chain, and no matter what kind of products you offer will be shown to consumers around the world in this chain, it will allow businesses to offer the highest quality products in line with JAKIM Halal standards. Second, because the use of block-chain users from all over the world, facing the global market, so the user base will be very large, this huge market will also enable companies willing to join the halal chain transactions.
The halal chain will integrate market resources, which will benefit every business that joins the ecosystem. However, the project is still in the release phase and will begin inviting enterprises to join the project after the project is issued.
3. The utilization of traceability of the block chain enables more SMEs to join the Halal industry
Before the advent of the halal chain, if the product is JAKIM certified, consumers can be very clearly informed when buying the product is halal, consumers can be assured to buy, but in addition to this method, there is no other choice. The advent of the halal chain will encourage small and medium-sized enterprises, especially small ones, to join the ecosystem of the block chain and enter the Halal market. Currently Halal market participants are far less than should be in this market, we will encourage those who should be able to enter the market to join the halal industry.
The global halal food market reached 1.2 trillion dollars in 2014, by 2021 this figure will increase to 1.9 trillion dollars, the growth of this market is huge, this is only the food industry, halal industries such as tourism, fashion, media and other industries, it could expect a big growth in the whole industry.
The Block chain bring the whole market into the new era, in the traditional market, only has the halal mark to be able to import the commodity and the export commodity, without this mark will not be able to provide the commodity in the market, but under the push of the block chain technology, more enterprises can join in this industry, New technologies will also lead businesses to move beyond traditional barriers. For Dubai governments, this is not just a plan but has actually been put into practice, they hope Dubai can become the center of the world's block chain.just four weeks ago, Dubai government officials announced, "as of 2020, all Dubai government agencies will use the block chain technology." "So in 2020 the block chain will spread throughout the Dubai, and the halal chain is one of the key links." After halal chain into the ecosystem, it will create a 1 billion-note economy, from which Chinese manufacturers can join. Dubai hopes to become a global leader in the halal industry, so the industry-related ecology will be supported by the government.
4. Dubai Government to support the development of the block chain, the halal chain is an important part of the plan.
Dubai's government affairs are also considering using block-chain technology to improve government efficiency, with six government departments considering the introduction of block-chain projects, including Smart Dubai. Dubai has never done anything like the halal chain, and the halal chain is a unique project, which is why the project has been widely supported.
Dubai will actively embrace such new technology as the block chain, being committed to promoting the development of the block chain technology, everyone will inevitably use the block chain in Dubai, in the future government departments will be closed offices, replaced by the use of online office, to encourage people to use technology to deal with business. Not only to encourage the use of block chain technology, but also to allow each individual to join the block chain ecology, especially halal chain.
The halal chain will be holding a global conference in Dubai on November 21st, please looking forward to it.