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Regulations for Halal foods and beverages in the Gulf
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Friday, 01 February, 2019, 08 : 00 AM [IST]
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Venkatesh Ganapathy
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Introduction
The UAE's status as an international centre for Halal food trading is advancing since it is the most developed cutting-edge wholesale market, being home to 62% of all the modern, West-influenced outlets. The United Arab Emirates (UAE) is the first Middle-East country to regulate Halal certificates and logos for all food products claiming to be Halal.
The UAE Halal food & beverages market was projected to surpass $5.5 billion by 2022. Growth in e-commerce, increase in the population and rise in per capita income are factors that are leading to increased demand for Halal food products in the UAE. Even non-Muslims are now accepting Halal food. Regulations for import and export of Halal food and beverage have become more stringent now.
The worldwide spending on global Halal food and lifestyle products is expected to rise to 10.8% per year until 2019. The latest Global Islamic Economy report estimates that this will create an international industry worth 13.59 trillion AED. The lucrative Halal tourism market now represents 11.6% of global tourism expenditure.
Understanding Halal
The Halal tourism sector in the UAE has been a major driver of food, beverage and hospitality sales. Every eatery and food brand in the UAE claims that the food to be Halal is scanned and details of the used ingredients will be displayed. All processes should be compliant with Sharia regulations.
Halal means lawful or permitted and “non-Halal” means prohibited as per the Islamic law (Shariah). Having traces of pork, animals slaughtered in a non-Islamic way or the presence of alcohol in food products among other things are not allowed according to Islamic law.
Products are considered to be Halal when they are made of 1. Animals slaughtered as per the Islamic principles; 2. Free from prohibited component; 3. Processed using allowed machinery.
ESMA – The Regulator
The possibility of developing the legislative structure in the food industry at the federal level with crucial inputs from the private sector has been examined by the Emirates Authority for Standardization and Metrology (ESMA). It has signed a Memorandum of Understanding (MoU) with a group of food and beverage manufacturers, represented by 575 members, which manages investments worth 39.5 billion dirhams. ESMA has also steered a discussion with 40 leading manufacturers, suppliers and traders to cooperate and coordinate with them in developing standards related to food products.
Standards for product quality add value to an economic system. Customer trust in production and production processes rely on these standards. It is also vital that these standards are aligned with consumers’ needs and interests. This is the reason why markets have always sought to unify standards.
The MoU ensures that national legislation is modernised on an ongoing basis to promote domestic manufacturing and encourage the movement of exports. ESMA has sought to develop the opportunities of the food industry sector. UAE’s economic diversification has always benefited from active participation of the private sector.
The latter has been a key pillar in improving the economic competitiveness of the UAE.
ESMA has stressed that adherence to these specifications and technical regulations provide the national producers with good business opportunities. It also reduces the chances of entering competing products that do not meet the UAE specifications.
How are Halal Standards Different?
The most important questions that we need to address are Difference between Halal standards and other international standards; Why do we need distinctive Halal standards; What is the value added by Halal standards to drive the Islamic economy?
Halal standards ensure quality from the beginning of the production process. They espouse values like preservation of human rights, protection of health, conservation of environment and resource optimisation. Rather than stifling competition or using deviant tactics to block market access, Islamic economy aims to protect and safeguard consumers’ interests. This is possible through production of goods and services that stand testimony to the best standards of safety and hygiene.
Through the joint efforts of strategic partners of the Global Halal Industry Platform and the International Halal Accreditation Forum, the Islamic economy is on track to ensure a unified international umbrella for quality standards. Global Halal industry standards adhere to international social security as well as food and health security standards.
Certification
The Halal certificate shall be issued by a certification body in the country of origin only, and the certification body must be registered with ESMA. If there is no ESMA registered certification body in the country of origin, the certificate can be issued by ESMA’s registered certification body in a neighbouring country.
The certification requirements are based on the UAE Standard Specifications UAE.S 2055-1: 2015 “Halal Products – General Requirements" and Dubai Municipality Standard Specifications No. DMS 032: 2014 “Halal Assurance Management System – General Requirements."
Also, juice and beverage products must meet the approved standards, product information on labels have to match the specifications and images and phrases used on the packaging should not contradict public morals and Islamic values.
The quantity in the package must meet stated requirements, and that products shall be packaged in suitable containers that maintain food safety and protect its properties from deterioration.
The New Regulations by ESMA
The new regulation covers beverages as well as fruit juices, milk and dairy products. Traders and manufacturers will have a year’s time to adhere to the new standards and the authority has set up an awareness workshop for more than 300 traders and suppliers in the UAE on mandatory technical regulations.
ESMA had upgraded the UAE regulation for energy drinks, following the release of international reports that cite risks in consuming drinks containing high amounts of stimulants. The continuous updating of regulations will contribute significantly to the sustainable development drive and further raise quality standards of the products traded in the UAE markets.
The new regulation for the control of juices is aimed at protecting the consumer, especially the youth and children, from the impact of drinking sugary juices. The Halal industry has grown by 8% year on year, and the global Halal market is valued at about $2.3 trillion, with food and beverages accounting for 67%.The growing demand for Halal products among all segments of society, regardless of religion and ethnicity, will enable the industry to capture a significant share of the global business. The regulations are in the best interests of the consumer.
(The author is associate professor (marketing), Presidency Business School, Bangalore)
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