Growth of halal trade in China: what are the repercussions for the Arab world?

The halal market, which today represents nearly $2.3 trillion and affects more than 2 billion Muslim consumers, sees China becoming a central player. In 2021, it established itself as the leading exporter to member countries of the Organization of Islamic Cooperation (OIC), with exports amounting to $40.4 billion. This success is based in particular on halal-certified pharmaceutical and cosmetic products, an area in which China has been able to take advantage of its strong biotechnological expertise, establishing strategic partnerships with Muslim countries such as Malaysia and Morocco.

In the food sector, China’s interest in Arab countries is just as strong. Since the region joined the Belt and Road Initiative (BRI), several food infrastructure projects, such as the 2017 deal between Dubai Food Park and Chinese company Ningxia Forward Fund Management, illustrate China’s ambitions in this market in full expansion. With an investment of $1.5 billion, the project plans to build 30 food factories, thus consolidating the Chinese presence in the Gulf countries.

For Arab countries, this partnership also represents an opportunity for modernization: thanks to China’s advances in digital technologies and logistics, the United Arab Emirates and Saudi Arabia aim to strengthen their position in the halal economy. However, the issue of halal certification remains sensitive. If countries like Malaysia, with its JAKIM organization, and the Gulf countries enjoy great credibility in terms of certification, China remains faced with legitimacy challenges. Cooperative initiatives with organizations like JAKIM and potential agreements with Gulf certifiers could improve the perception of Chinese halal certification.

With this growing commitment, China appears well positioned to play a key role in the global halal economy. It remains to be seen whether it will succeed in harmonizing its standards with those of the Arab world to establish itself sustainably in this highly regulated sector.