Halal Business Forum 2021 held

Halal certificate increases revenues, opens up new collaborations and markets

Zagreb, 22 September 2021 – Following the introduction of the halal certificate, product exports are rising, with an impact on revenue growth as well as profitability, according to research conducted among Croatian manufacturers holding halal certificates prior to the pandemic. The pandemic has further increased global demand for halal products and services, thereby opening up numerous markets and business opportunities. Why and how the halal market is developing, what challenges and perspectives exist, the role of halal in certification and standardization, how and to what extent it contributes to exports and tourism in Croatia, and what international halal experiences look like, were the topics discussed at the first Halal Business Forum, held on Tuesday, 21 September at the Westin Hotel in Zagreb.

On behalf of the organizer, the Centre for Halal Quality Certification, Head Assoc. Prof. Dr. Aldin Dugonjić particularly emphasized that to date 160 certificates have been issued, that 84 companies in Croatia hold a halal certificate, of which 52 are food manufacturers and 32 service providers, and as a special feature he highlighted that one educational institution, Matija Gupac Primary School, also holds a halal certificate, as does the first producer of halal disinfectants in Croatia, Genox.

As part of the Forum, three new halal certificates were ceremonially presented – to the Tammy craft enterprise, which provides services in processing hazelnuts as a raw material and for the production of hazelnut oil, flour and butter; to Luxury Villi Subventus from the island of Krk; and to the Vodice d.o.o. olive oil company, owner of a modern olive oil centre.

Academic Mufti Aziz Hasanović, President of the Mešihat of the Islamic Community in the Republic of Croatia, recalled that the Islamic Community founded the Centre in 2010, from the outset with the desire to increase not only the number of companies but also products and services bearing the halal mark, thereby opening up the enormous global halal market, which is estimated to soon be worth 3 trillion dollars (3,000 billion dollars). He believes there is room for cooperation, expansion of production capabilities, and joint appearances in third markets.

For Sandra Herman, State Secretary at the Ministry of Tourism and Sports, there is no doubt. Halal tourism will have its place in the Tourism Development Strategy until 2027, which is currently being prepared, not only in the seasonal segment but also off-season, and in the development of health and wellness tourism. She recalled that a total of 12 hotel accommodations hold a halal certificate, as does one travel agency.

The Ambassadorial Panel included: H.E. Kennedy Mayong Onon, Ambassador of Malaysia; H.E. Parviz Esmaeili, Ambassador of the Islamic Republic of Iran; H.E. Fakhraddin Gurbanov, Ambassador of Azerbaijan; and Mr. Wasana Adi Nugraha, First Secretary at the Embassy of Indonesia in Croatia. It was emphasized that there is room, as well as interest, for developing mutual foreign trade exchange. The establishment and operation of joint chambers/business associations, as well as information exchange, constant communication and the presentation and recognition of potential, could contribute to acceleration. They also invited Croatian companies to freely contact them with inquiries about possible collaborations.

The value of the halal market in EU countries is estimated at 66 billion dollars, with annual growth of between 2 and 3 percentage points. A very large number of halal products are produced in the EU both for the needs of the domestic population and, at the same time, extensively for export.

Eggs, bakery products, pumpkin seed oil, disinfectants and plastic packaging all hold halal certificates, which have secured greater demand, additional confirmation of quality, and export business. Magi Lukač, Director of Lukač d.o.o., Ivana Jukić, Export Director of Milinar Bakery Industry, Nives Lovrić, Director of Grbić d.o.o., Rok Andlar, Chief Operating Officer of Gec d.o.o., and Kristina Bišćan, Key Accounts Manager at TLK Ekologija d.o.o., believe that additional education and stronger representation abroad are needed, even organized through the Centre, to promote the potential of halal certificate holders. All efforts, they emphasized, should be directed towards expanding the brand “Croatia – Halal Friendly Destination.”

Linking halal markets in Southeast Europe is not only possible but is showing a need, as well as concrete collaborations. Meetings and B2B discussions among entrepreneurs should be intensified; joint branding of the offer and recognition of the types of products offered are also necessary, which could lead to opportunities for joint appearances in third markets, emphasized speakers at the third HBF panel – Amela Semić, Director of Quality Assurance at AS Holding, Saška Biorčević from the Chamber of Commerce of Serbia, Dino Selimović, Director of Marketing and Communications at BBI Bank, Vedran Kelek, Executive Director for New Markets at Podravka, and Arsilan Hajdinaga, President of the Montenegrin Association for the Promotion and Development of the Islamic Economy.

Throughout the Halal Business Forum, tourism was mentioned as the economic sector with the greatest potential. Approximately 168 million Muslims travel annually; previously they were focused on individual markets, but now, for many reasons, their interest in new countries in the EU, such as Croatia, is evident. Package arrangements in cooperation among several countries are possible here, as are longer stays, such as preparations for certain national sports teams, as well as congress tourism. It should also be noted that as many as 54 percent of tourists are under 30 years of age, so adaptation to new information channels about the offer is necessary. In doing so, one must also take into account numerous guests from traditional markets in EU countries, who also seek the halal mark during their stay, was emphasized at the panel in which Berina Bajrović, Executive Director of Hotel Europa Sarajevo, Jurica Protić, Director of Zvona Catering, Igor Nekić, Director of Terme Sveti Martin, and branding and halal expert Assoc. Prof. Dr. sc. Olivera Jurković Majić participated.

Education, communication, promotion and association were the messages of the first Halal Business Forum, which intends to be not only a traditional annual gathering but also a platform and specialized service for halal to numerous stakeholders – from industry, non-profit organizations, representatives of state bodies, leaders of business and hotel management, travel agencies, local government units, university lecturers, scientific researchers, financial institutions, buyers and trade visitors.

The growing population consuming halal products and services, along with their purchasing power, make the halal market extremely attractive. The Halal Business Forum is designed to encourage new thinking and action, along with analysis of what has been done and what should be done. See you at the Halal Business Forum 2022!, Dugonjić announced.

The list of certified companies, service providers and products can be found at the link [https://halal.hr/halal-certificirane-tvrtke-i-proizvodi](https://halal.hr/halal-certificirane-tvrtke-i-proizvodi).