Dubai and Malaysia have inked a number of MoUs and agreements to create a global halal trade network aimed at generating investment opportunities and strengthening multilateral trade among halal-based industries.

The Memorandum of Understanding and agreements were signed here by Dubai Exports in partnership with the Halal Industry Development Corporation (HDC) of Malaysia and the Dubai Islamic Economy Development Centre yesterday.

“This initiative will significantly strengthen economic activity, not just in Muslim majority countries but also in countries, such as New Zealand and Brazil, that have significant halal-based industries,” said Mohammed Al Gergawi, Chairman of Dubai Islamic Economy Development Centre.

The creation of the halal network will strengthen bilateral trade between developed and developing Muslim majority countries, giving an immediate boost to the volume of halal products, which in turn will bolster foreign exchange earnings and help create new jobs.

The agreements, with trade hubs and jurisdictions across the world, will bolster efforts to create a global halal trade network, with common standards, that will enable regional and international companies to tap the growing global interest in halal products.

“The Halal industry is at the heart of Dubai’s vision for the global Islamic economy. This series of hub-to-hub agreements provides a solid foundation on which to drive the development of the halal sector and encourage cross border halal trade.

“This, in turn, will generate significant investment opportunities for major international, regional and local businesses,” Gergawi said, adding that the halal sector is poised for significant growth over the next five years.

The total halal market is forecast to grow to $1.6 trillion by 2018, according to Thomson Reuters’s research.

The global halal food segment is worth around $667 billion and accounts for around 20 per cent of the global food trade. Demand for halal products is expected to grow by 15-20 per cent over the next five years, according to estimates.

*This article was originally published on The Economic Times on 27 October 2014. Read the original article here.