The Halal Journal - May/June 2010

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business f lifestyle f trends

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issue

34 :: May+June 2010

MALAYSIAN HALAL SECTOR:

At a Crossroad

Changes in leadership, structure and the evolution of the market

LIVING h LEST WE FORGET: JIHAD, SOCIAL DISCRIMINATION, h BARBARISM & ISLAMISATION h UMRAH: A SPIRITUAL JOURNEY h BOOK: AL GHAZALI ON MUSIC AND SINGING h MOVIE: PRINCE

AMONG SLAVES h MUSIC: LIZA GARZA 65

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LEAD, FOLLOW OR GET OUT OF THE WAY An analysis of power within the Halal market BEAUTY ON THE SURFACE Non-Halal ingredients in cosmetics THE ROLE OF BANKS To rule the world?

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contents | May+June 2010

©2009 KasehDia Sdn. Bhd. All Rights Reserved

Disclaimer :  While all care is taken, the publisher accepts no responsibility for the information contained herein which is believed to be reliable. The publisher/editor takes no responsibility for opinions expressed or implied as they are the writers’ own and do not necessarily reflect that of the publisher or editor who make no warranties governing material, including advertising or features contained within this publication. This publication may not in whole or part, be copied, reproduced or translated without prior written permission of the publisher.

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MALAYSIAN HALAL SECTOR : cov er story

At a crossroad

Changes in leadership, structure and the evolution of the market

30} LEAD, FOLLOW OR GET OUT OF THE WAY An analysis of power within the Halal market

49} FASTRACK EUROPE Shariaappoinments.com: A new job revolution – Islamic Finance and Industry

36} BEAUTY ON THE SURFACE Non-Halal ingredients in cosmetics

50} FASTRACK EUROPE Energy-Drinks: SternVitamin supports ideas for innovative products

42} THE ROLE OF BANKS To rule the world? 46} FASTRACK AUSTRALASIA Mello Apps Limited launched Halal Scanner for the iPhone

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47} FASTRACK EUROPE The French Halal market 48} FASTRACK EUROPE Belgium’s Volys Star ready for new markets

51} FASTRACK ASIA CCM inks MOU with British Dispensary 52} FASTRACK ASIA Tun Musa Hitam receives international honour as the World Islamic Economic Forum (WIEF) Foundation Chairman 58} ISLAMIC FINANCE Islamic and Conventional Finance – Similar yet different!

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contents

Ed’s Note Five years ago, the world woke up

to the dawn of a Halal industry. The source?

“But most of all we favour transparency and always welcome our customers to see for themselves how we work. After all, for us Halal is built in, not inspected in.” Ko e n D e P r aete r e > V OLYS S TAR

Regulars 08} Global News  A brief insight into events currently shaping the Halal industry around the globe + Calendar of Events 18} IHI ALLIANCE NEWS Updates on activities of the International Halal Integrity (IHI) Alliance 54} Country in Focus The colourful world of Kazakhstan

Living 65} FEATURE COVER Lest we forget: Jihad, social discrimination, barbarism & Islamisation 70} journey Umrah: My Spiritual Journey 74} Browsing Al Ghazali on Music and Singing in Books; Liza Garza in Music; Prince Among Slaves in Films; Peter Gould in Artists; SAFI Men in Products; and Photography and Photojournalism 80} parting words Koen De Praetere, General Manager, Volys Star S. A., Belgium

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A small country in South East Asia: Malaysia. With activities and developments aplenty since 2006, the state of the Halal industry in Malaysia has reached a crossroad, or so everyone says. This issue’s main feature outlines Halal-related episodes in Malaysia since the 1980s, and includes suggestions on the way forward. Is it really at a crossroad? Read p22 and you (our readers) decide. In one of our Feature articles, you will be led through an analysis of power within the global Halal market. This article (p30) discusses the roles of those involved, from governments to industry players to consumers. After all, a market is not a one man show; it cannot run with just one participant. Skincare and beauty products line the vanity of most women regardless of culture, race and religion, and of late, women around the world have begun questioning the ingredients in their cosmetics. Dr. Mahvash HussainGambles explains these ingredients and what happens to the skin underneath the “beauty” (p34). Banks are established all over the world to serve humankind in their daily life, and there is this perception that we cannot function without banks. Read it on p42. Going back to basics, our Islamic Finance feature delineates the difference between Islamic and conventional finance. Understand the fundamentals as explained by Omer Khan and Ken Owens of PricewaterhouseCoopers Ireland on p58. Our Living section features recommended entertainment and people in the art scene. The main article debunks myths surrounding jihad, and clarifies negative perceptions on Halal relating to social discrimination, barbarism, and Islamisation. Read about it on p65, lest you forget. . As usual, do drop us your comments to info@halaljournal.com. Enjoy your read!

The Halal Journal Team

the Heart of T he Halal Jour nal

Halal refers to that which the Creator has made lawful. Its opposite Haram, refers to what is forbidden. The realm of Halal extends beyond the obvious references to food and touches on all matters relating to human life. In the commercial arena, all goods and services, market transactions, currencies and other activities come under the judgments of Halal and Haram. These parameters include protecting the environment, humane treatment for animals, ethical investments, the intrinsic value of currencies, and fairness in all commercial transactions. The global Halal market is now a new economic sector, and we believe it will be one of the great market forces in the coming decades.

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“...the w first se orld’s Halal froies of restaur od gui ant The Asdes.” i

WRITER Zaahira Muhammad zaahira@halaljournal.com RESEARCHERs Mohd Amri Sofi Dayana Nordin Suraiya Ilyas Contributing Writers Ken Owens Omer Khan Nawel Dehiri Hajj Abdalhamid Evans Dr. Mahvash Hussain-Gambles

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Over 180 reviews of restaurants, cafes, food courts, bakeries and confectioners Descriptive photographs Index and icons to find the exact place you want Maps for reference

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global news

Compiled by Zaahira Muhammad

“We feel it is unethical that by paying RM800 to RM1,000, a restaurant is issued a Halal certificate. Those issuing fake Halal certificates could be penalised under the Trade Description Act 1972. There might be more companies involved in this activity but were yet to be identified,”

FRANCE

FRENCH FAST FOOD CHAIN QUICK SPARKS HALAL BURGER APPEAL A French council has lodged a complaint against a fast food chain that serves only meat that conforms to Islamic dietary laws at a local branch. The mayor of Roubaix, in northern France, said the Halal menu constituted “discrimination” against non-Muslims. The Roubaix branch is one of several restaurants at which the chain, Quick, took non-Halal products and pork off the menu in November. The move has triggered the latest row over France’s Muslim minority. Several deputies from French President Nicolas Sarkozy’s conservative UMP party have condemned the move, while Marine Le Pen, a vice-president of the far-right National Front, warned of “lamisation” Their comments came ahead of regional elections in France next month, and against the backdrop of a debate over French national identity launched by Mr Sarkozy’s government. |SOURCE: BBC NEWS, 19 FEBRUARY 2010

MALAYSIA MALAYSIA

HUNDREDS OF EATERIES USING FAKE HALAL CERTIFICATES Hundreds of eateries in the country are believed to be using fake Halal certificates purchased at between RM800 and RM1,000 each from two companies said to be involved in the business. Exposing the matter Tuesday, Muslim Consumers Association of Malaysia (PPIM) executive secretary Datuk Nadzim Johan said it had received complaints on the use of Halal certificates which were not recognised by the Islamic Development Department (JAKIM) by many eateries, including gourmet cafes, kopitiams and fast food outlets. It is said that over 160 eateries had obtained certificates from the two companies, one of which is based in Kuala Lumpur and the other in Petaling Jaya. Nadzim said three police reports were lodged by consumers Monday to enable investigations to be carried out on the companies involved. “We feel it is unethical that by paying RM800 to RM1,000, a restaurant is issued a Halal certificate. Those issuing fake Halal certificates could be penalised under the Trade Description Act 1972. There might be more companies involved in this activity but were yet to be identified,” he said. He added that the misuse of Halal certificates must be curbed in order to maintain Malaysia’s credibility as a Halal hub. |SOURCE: BERNAMA, 9 FEBRUARY 2010 The Halal Journal | May+June 2010 |

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HALAL MEETING FROM MALAYSIA The Penang International Halal Hub (PIHH), in collaboration with the Halal Industries Group from the United Kingdom, is organising the Halal Capital Markets Conference in London. Calling for participants, Penang Domestic Trade, Religious and Consumer Affairs Committee chairman Abdul Malik Abul Kassim said the event would be a “world’s first” and would be launched by Chief Minister Lim Guan Eng. The aim is to bring together the Halal sector players and mainstream financial institutions to discuss various commercial and business opportunities. The event will also feature a financial services expo, Syariah recruitment expo and Halal investment showcase of companies from the United Kingdom, European Union, America and 57 Organisation of the Islamic Conference (OIC) countries. More

The Halal Journal welcomes all queries, comments, suggestions and criticisms. Email us at info@halaljournal.com or fax your letters to +603 6203 4072.

than 2,000 institutional and private equity investors plus fund managers will be involved,” he said, adding that the speakers would include many world leaders. |SOURCE: MEAT TRADE NEWS DAILY, 9 FEBRUARY 2010

MALAYSIA

BORNEO CONVENTION CENTRE GETS ‘HALAL’ CERTIFICATION IN TIME FOR PBB CONVENTION Borneo Convention Centre Kuching (BCCK) has been granted ‘Halal’ status by the Sarawak Islamic Council (JAIS) just in time for Parti Pesaka-Bumiputera Bersatu (PBB) Convention. BCCK executive director, Dr Mohamadon Abdullah, said the standard would be a challenge to keep up. Regarding the convention, he felt proud that they were prepared to feed at least 5,000 persons attending it. He revealed that most of them are hospitality students from institutions of higher learning in the city. The BCCK Culinary Production Team has incorporated the Halal requirements into Hazard Analysis and Critical Control Points (HACCP), having regard to the fact that BCCK caters for multi-racial, multi-cultural and multi-religious mix of its clientele. Mohamadon added that culinary production at BCCK not only emphasises on the absence of ingredients that are prohibited by Islam, but also to the International Standard of hygiene and cleanliness of food. |SOURCE: BORNEO POST ONLINE, 24 FEBRUARY 2010

UNITED KINGDOM

UK MUSLIM SCHOLARS REJECT MECHANICAL SLAUGHTERING Muslim scholars have rejected calls for mechanical slaughtering in the UK Halal meat industry, a survey commissioned by the Halal Monitoring Committee (HMC) has revealed. UK scholars were asked a series of questions regarding the acceptance of mechanical slaughtering where, according to the HMC, 95 per cent of the Ulama (Muslim legal scholars) did not accept “mechanical slaughtering”

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as an accepted method of Halal slaughtering in Islam, while 2.1 per cent said they wanted to understand the issue further. HMC operations manager, Nadeem Adam, said that people will be surprised to learn of the widespread use of mechanical slaughter in the provision of Halal poultry in the UK. There are many UK superstores that need to be aware of the message from UK scholars and should ensure their Halal products are at a standard acceptable to their Muslim consumers. The responses received from 282 Imams and Muftis (Sunni Islamic scholars) from cities such as London, Birmingham, Glasgow and Leicester also revealed that 99.7 per cent stated that the ‘Bismillah’ (prayer) should be recited individually by a Muslim slaughtering, and not taped or by a person standing by a machine. This survey is the largest of its kind conducted in the UK and sets clear guidelines of acceptability and standards for Halal in this country, added HMC chairman and Eblex Steering Group member, Shaykh Yunus Dudhwala. |SOURCE: MEATINFO.CO.UK, 17 FEBRUARY 2010

PAKISTAN

PAKISTAN TO PARTICIPATE IN WORLD HALAL MOOT Pakistan Halal Products Development Board (PHPDB) has decided to send a high-level delegation to participate in the International Halal Conference and Exhibition to be held under the auspices of the Islamic Chamber Research and Information Centre (ICRIC) in Tehran from 2 to 5 March. Board Chairman, Haroon Shafiq Chaudhry, will lead the delegation and the board is sponsoring three technical papers at the conference. All countries of the Organisation of the Islamic Conference (OIC) are taking part in the international conference and exhibition which will be of great help in giving boost to export of Halal products. The establishment of the board is a landmark step of the Lahore Chamber of Commerce and Industry which will help Pakistan get

recognition in the global Halal arena. The board is also developing Halal standards for food and non-food items. |SOURCE: THE NEWS (PAKISTAN), 9 FEBRUARY 2010

“Harrisons Poultry Limited is one of those British companies which supplies a fantastic, high quality product but has unfortunately come across some hard times.” UNITED KINGDOM

HARRISONS POULTRY CONTINUES TRADE Harrisons Poultry Limited, reportedly the UK’s leading supplier of high quality Poussin, is continuing to trade, despite going into administration in January. The appointed administrator is hopeful a buyer for the business can be found as a going concern because of its position in the market as a major domestic and foreign supplier of poussin to supermarkets and the Halal trade. The company, which is based near Northwich, Cheshire, and which employs around 74 people, went into administration due to severe competition in the market place resulting in low sales and poor prices, reports state. Established in 1972 by the Harrison family, Harrisons Poultry produces approx. 4.7 million birds a year and turned over £7.2 million in 2009. In December 2009, Harrisons lost a planning appeal at the High Court in Birmingham concerning the operation of a poultry rendering plant, which when combined with the legal costs added further, significant financial pressure on the business. John Twizell, speaking on behalf of the administrators Geoffrey Martin & Co.: “Harrisons Poultry Limited is one of those British companies which supplies a fantastic, high quality product but has unfortunately come across some hard times. With the ever increasing interest in food and The Halal Journal | May+June 2010 |

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more importantly UK and locally grown produce this is a business and a product which is incredibly relevant to today’s consumers and we are hopeful of finding a buyer.” |SOURCE: MEAT TRADE NEWS DAILY, 9 FEBRUARY 2010

MALAYSIA

MISC KEEPS FINGER ON THE PULSE OF MIDDLE EAST Malaysian shipping company MISC Bhd has established a regional office in Dubai as the company seeks to further boost its role as a leading transportation partner for the Middle East region. MISC president and chief executive, Amir Hamzah Azizan, said the move was based on geography and the company’s long-term business plan for its liner services. It also fits in with MISC’s strategy to become a leading provider of safe and trusted transportation for the Halal industry. The region now had a leadership role in the global oil and gas market and was seeing a strong and growing economy. Being one of the world’s leading energy transporters, it makes sense for MISC to be closely associated with the leading producers of oil and gas he said. MISC’s presence in Dubai would support Malaysian oil and gas giant Petronas’ continued growth and expansion in the Middle East. He alluded to Petronas’ foray into the Iraqi oil and gas industry, having been recently successful in obtaining development rights to oilfields in Iraq. Currently, MISC vessels Seri Balhaf and Seri Balqis are servicing the Yemeni LNG (liquefied natural gas) project, delivering LNG to the United States and Mexico. MISC’s VLCCs (very large crude carriers), Aframaxes and chemical tankers are also calling at main oil and petrochemical terminals in the Gulf region. Since its inception in 1968 with two ships to its name, MISC has grown into a fully integrated maritime, heavy engineering and logistics services provider with an operating fleet of more than 170 vessels. |SOURCE: BERNAMA, 9 FEBRUARY 2010

AUSTRALIA

NOT ALL MUSLIMS HAPPY ABOUT HALAL PRODUCTS The expansion of Halal products on the market has not pleased all Muslims – some are calling the certification of products a marketing ploy. Wiley Park’s Aziza Rifai said she was horrified to see the Rosken hand cream she purchased carry the Halal label. She said, “Halal isn’t a word you use for hand cream or any other medical treatment. I think these companies just use the word Halal as a marketing tool to get more people to buy their products. To promote things, especially hand cream by putting Halal on it, it’s just not right. It’s ridiculous. We don’t want it to be a promotional tool.” But a Rosken spokeswoman said the moisturising range was Halalcertified because a lot of its products were sold in Malaysia where most people are Muslim. Mrs Rifai said businesses had exploited the Muslim religious beliefs before by using “Halal” to sell its products. “A few years ago there was a butcher in the area that wasn’t making much money so he put Halal at the front of his shop The Halal Journal | May+June 2010 |

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“Halal isn’t a word you use for hand cream or any other medical treatment. I think these companies just use the word Halal as a marketing tool to get more people to buy their products. To promote things, especially hand cream by putting Halal on it, it’s just not right. It’s ridiculous. We don’t want it to be a promotional tool.”

to attract business without even knowing the meaning of Halal,” she said. Islamic Council of NSW vice president Ali Roude mentioned companies must submit a full report to an Islamic organisation if a product is to be Halal certified. Many products were certified Halal so they could be sold overseas in Muslim nations such as Indonesia. When assessed, it must be referred to a religious adviser before a certificate is issued. Mr. Roude also said, “We don’t look at it from a commercial point of view. Our main concern is that the product is Halal. We have a moral and religious objection to tell that company: “Yes, go ahead, you have nothing to worry about””. |SOURCE: CANTERBURY-BANKSTOWN EXPRESS, 16 FEBRUARY 2010

The seminar was arranged by Trade Development Authority of Pakistan (TDAP) Multan Office in collaboration with Multan Chamber of Commerce and Industry, to encourage and promote export of Halal products. Highlighting the power of Halal branding, he advocated that quality of Halal products and Halal standards are very high and Halal logo is considered as a top class brand besides being hygienic. |SOURCE: DAILY TIMES PAKISTAN, 17 FEBRUARY 2010

MALAYSIA

HALAL FOOD MANUFACTURERS ASKED TO ADOPT “TOYYIBAN” HALAL SYSTEM Food manufacturers must enhance the value and quality of their products by adopting the “toyyiban” (or good) Halal system. Minister in the Prime Minister’s Department, Tan Sri Nor Mohamed Yakcop, said the system would ensure the purity of the products along the supply chain which included transportation, storage and packaging. This system will avert and minimise the possibility of product contamination by illegal methods of food preparation and ensure the integrity of Halal products. Nor Mohamed said the local Halal food industry was worth RM45 billion while the global Halal market was valued at about RM2 trillion. The National Toyyiban Halal System Consultative Forum, organised by the Yayasan Ekonomi Sejagat with the cooperation of the Halal Industry Development Corporation and Department of Standards Malaysia, is aimed at introducing the “toyyiban” Halal system to Halal food entrepreneurs. |SOURCE: BERNAMA, 11 FEBRUARY 2010

PAKISTAN

BRUNEI DARUSSALAM

QUALITY OF HALAL PRODUCTS IS BEST IN THE WORLD: HDP Halal Development Project (HDP) CEO, Asad Sajjad, delivered a comprehensive presentation on “Power of Halal Branding” in a seminar held at Multan Chamber of Commerce and Industry.

TEST KIT TO FIND PORK IN 10 MINUTES Technology has played a major role in today’s Islamic science especially in helping Muslims know what they are consuming is Halal. The Department of Agriculture and Agrifood has been working with

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Calendar of Events The Halal Journal Partner Event

a Japanese company to develop a kit to detect pork from other meat. Tests were conducted on meat samples to verify if it was pork or contained pork ingredients. A demonstration using strips was held at the Department of Agriculture and Agrifood, Old Airport. It was presented by Senior Consultant from the Tanak Kikinzoku Group, Quamrul Hasan, and Research Engineer and Pharmaceutical Member from the Medical Department, Yoshiro Sakakibara. Tanaka Kikinzoku Group and the Medical Department have successfully developed and launched the highly sensitive and accurate test kit and said one doesn’t require laboratory facilities or special skills to conduct the tests. During the tests, all sticks that were swabbed on meat samples showed two red stripes after being dipped inside special water for 10 minutes, which proved that the meat was pork. The strips will soon be used by officials in Brunei to conduct checks on food that are suspected to contain pork. The main objective of the demonstration was to show the public the new and convenient method to verify if the meat is pork or not. The Department of Agriculture and Agrifood has been working closely with Tanaka for over a year on the development of the test kit. Tanaka, Japan, said it supports the launch of the test kit in the Halal market. |SOURCE: BRUDIRECT.COM, 17 FEBRUARY 2010

AUSTRALIA

HALAL CAMEL MEAT SOON ON THE MARKET An abattoir near Alice Springs in central Australia is on the verge of signing a contract to supply at least 10 per cent of Australia’s Muslim population with Halal camel meat, the Australian Associated Press (AAP) said. The first Muslims in Australia arrived in 1860 as economic migrants, prepared to work tirelessly to develop the vast interior. Hailing from Afghanistan, India and Pakistan, they brought with them a great understanding of arid lands, as well as the 20,000

one-humped dromedaries needed to carry out the gruelling work. From 1920 onwards, as roads improved and the use of motor vehicles for freight haulage increased, the numbers of captive domestic camels declined and many were released into the wild. According to Garry Dann, who runs the abattoir operation at Wamboden, about 30 km north of Alice Springs, Australian Muslims could again play an important part in overcoming a problem of national significance. Feral camels, spread across Australia, are estimated to total about one million and are tipped to double within the next eight or nine years. A partnership between Dann and a Melbourne Halal distributor has the support of Imam Kafrawi Hamzah from the Alice Springs Mosque. Dann told AAP he had been asked to supply about 10 per cent of Australia’s Muslim population with half a kilogramme of Halal camel meat each a week. |SOURCE: BERNAMA, 22 FEBRUARY 2010

INDONESIA

FIVE FOOD COMPANIES FAIL TO GET HALAL LABEL IN S. SUMATRA The South Sumatra Indonesian Ulema Council (MUI) on Tuesday refused to grant Halal (permissible) certificates to five food producers as the companies refuse to alter some haram (prohibited) ingredients in their products. The five companies produce various food products, including pastries, chocolates, ‘pempek’ (fishcake) and fried tofu. South Sumatra MUI officer, Mahmud Jumhur, said that the pastries and chocolate producers refused to scrap rum ingredient for fear to change special flavour of their products, while the fried tofu producer declined to alter the type of salt and cooking oil for making its product. We also cannot give Halal certificates to some companies which produce their goods in unhygienic place, such as near poultry cages. On the same day, the MUI issued Halal labels to 18 food companies in the province. |SOURCE: THE JAKARTA POST, 16 FEBRUARY 2010

NETHERLANDS

MUSLIM TURKS WINED AND DINED AS BUSINESS LAUNCHES HALAL DRINKS A Dutch businessman of Turkish descent says he is preparing to bring a new taste to the Islamic world. Taner Tabak has produced alcohol-free wine, and is about to bring his product to Turkey. He says he is also eyeing Iran, Saudi Arabia and the Gulf region as potential markets. “It tastes and feels almost the same,” said owner of Delikatwine in the Netherlands, Mr Tabak, about “Kevserhelalwine”. He wants to bring the

18 – 20th May 2010 World Islamic Economic Forum (WIEF) 2010 Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia WIEF Foundation Tel: +603 2145 5500 Fax: +603 2145 5504 Website: www.wief.org 3rd – 6th June 2010 Brunei International Halal Products Expo 2010 International Convention Centre Berakas, Brunei Darussalam Sunlit Advertising Sdn Bhd Tel: +673 245 3666 Fax: +673 245 3777 Email: sales@sunlitadvertising.com Website: www.bruneihalalexpo.com 5 – 6th June 2010 5th International Halal Market Conference International Convention Centre Berakas, Brunei Darussalam Imarat Consultants Email: salama@imaratconsultants.com Website: www.ihmcbrunei.com 7 – 9th June 2010 Moscow Halal Expo 2010 CROCUS EXPO International Exhibition Centre Moscow, Russia Russia Mufties Council & Centre for Standardization and Certification “Halal” Tel: +7 (495) 681 7372 Fax: +7 (495) 684 7679 Email: moscow.halal@gmail.com Website: www.halalexpo.org 21st – 22nd June 2010 World Halal Forum 2010 Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 Email: info@worldhalalforum.org Website: www.worldhalalforum.org 23rd – 25th June 2010 World Halal Research Summit 2010 Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia Halal Industry Development Corporation (HDC) Tel: +603 7965 5555 Fax: +603 7965 5500 Email: whr.event@hdcglobal.com Website: http://whr.hdcglobal.com

The Halal Journal | May+June 2010 |

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alcohol-free wine to supermarkets and hotels in Turkey in the coming months. Alcohol is legal in Turkey, a secular Muslim country of 70 million people, and wine has become more popular in recent years, even if consumption rates do not compare with those in Western Europe. While alcohol consumption is climbing, Turkey has also seen the rise of a religiously conservative middle class in recent years, a development that has fanned demand for lifestyle choices in line with a more observant outlook. There have been booms in interest-free banking and in so-called “headscarf hotels” that cater to conservative holidaymakers who prefer facilities such as separate pools for men and women. That is the market Mr Tabak is pinning his hopes on. He says he plans to sell 200,000 bottles of his alcohol-free wine in Turkey in its first year. During a recent tourism fair in Istanbul, he was inundated by requests for his wine from more than three dozen hotels. |SOURCE: THE NATIONAL, 22 FEBRUARY 2010

The socialist-run town council accused Quick of “subordinating the supply of a good, the hamburger, to belonging or not belonging to a particular religion.” FRANCE

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|SOURCE: MEAT TRADE NEWS DAILY, 6 MARCH 2010

MALAYSIA

TERENGGANU TO BECOME GLOBAL FOOD PROCESSING HUB Terengganu is poised to be a global Halal food processing hub when Pertima Terengganu Sdn Bhd (Pertima) acquires the capacity to handle an increased output of canned korban (sacrificial) meat. Menteri Besar Datuk Ahmad Said said Pertima, established 37 years ago, would be able to accept bigger orders of canned korban meat with the RM3.5mil allocation received to raise the capacity of its factory. “We will diversify the factory production capacity to compliment the state government’s objective of making Pertima one of the world’s major Halal hub,” he said when flagging off the despatch of Islamic Relief Worldwide (IRW) korban meat products at Pertima’s factory in Chendering Industrial Park yesterday. IRW representative from Birmingham, London, Dr Adel Sabir, and Malaysia IRW director, Zawahir Abdullah, witnessed the event. |SOURCE: THE STAR ONLINE, 1 MARCH 2010

RACISM AND BEEF BURGERS French politicians say the company is breaching the country’s secular tradition. In eight restaurants Quick is serving only beef from cows slaughtered in accordance with Islamic practice and all pork products have been removed. The controversy has again raised attention French sensitivities about living with the largest The Halal Journal | May+June 2010 |

Muslim population in Europe, at five million. The town council In Roubaix, northern France, home to one of the outlets concerned, said it would take legal action against the fast food chain for discrimination. The socialist-run town council accused Quick of “subordinating the supply of a good, the hamburger, to belonging or not belonging to a particular religion.” The mayor of Marseille, who is centre-right, called for Quick to offer regular as well as Halal beef in the two restaurants in the city that were part of the experiment.

DUBAI

GULFOOD SHOW HIGHLIGHTS EXPORT OPPORTUNITIES FOR HALAL MEAT Around 400 international sheep meat buyers sampled quality Halal lamb at the Gulfood Show in Dubai thanks to EBLEX. EBLEX took a stand at this major show to help put foreign buyers in touch with

domestic producers, particularly of Halal sheep meat for the Muslim consumer. EBLEX Export manager Jean-Pierre Garnier said the well-attended event was an excellent opportunity to showcase quality sheep meat and evaluate the potential in the Gulf for Quality Standard premium lamb based on superior freshness and eating quality. A Halal steering group established by EBLEX has just commissioned a comprehensive research project to look at the Halal market and Muslim consumer trends. |SOURCE: MEAT TRADE NEWS DAILY, 3 MARCH 2010

MALAYSIA

TABLING OF HALAL ACT IN PARLIAMENT PART OF KPI – JAMIL Minister in the Prime Minister’s Department, Datuk Seri Jamil Khir Baharom, said tabling of the Halal Act in parliament is among the Key Performance Indicators (KPI) entrusted to him. The others include five per cent development of wakaf land nationwide and the standardisation of Islamic family laws. The retreat was aimed at strengthening strategic programmes to achieve the KPI for this year. Other KPI targeted were the rebranding of Islam Hadhari, increasing the allowance of KAFA religious teachers and setting up of the Islamic TV station. The Halal Act would be finalised after discussion by officers from the Department of Islamic Development Malaysia (JAKIM), Attorney-General’s Chambers, and the Ministry of Domestic Trade, Cooperatives and Consumerism. |SOURCE: BERNAMA, 18 FEBRUARY 2010

MALAYSIA

HALAL PARK The Halal Park in Bukit Minyak, Seberang Prai in Penang, has attracted good response with the first phase, which covers more than 11ha of the 53ha-park, almost all taken up. Chief Minister Lim Guan Eng said the phase was nearly filled up by companies involved in niche and high-technology Halal activities such as manufacturing bulk liquid packaging, biotech and organic products. “We are now receiving applications for the second phase. Potential investors include food manufacturing companies from Riyadh and China. They are looking to set up re-packaging and re-labelling facilities using the Halal Malaysia certification. Domestic investors are also set to expand their operations by re-investing in their current site or setting up another facility.” he said at the inaugural Penang International Halal Conference 2010. Lim noted that the Penang International Halal Hub (PIHH) had forged trade and investment links with countries such as Saudi Arabia, China, Germany, Nether-lands, UK, Singapore, Bahrain and Iran to facilitate trading, woo investors and enable local SMEs to venture into the global market. Nine memorandums of understanding (MoUs) have been signed with parties from Malaysia, Australia, Saudi Arabia, United Arab Emirates, United Kingdom, China and Yemen in Islamic financing, Halal park development, hotel,

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Calendar of Events The Halal Journal Partner Event

tourism and agro-based industries. He also said Penang would adhere to Syariah laws in order to transform itself into a Halal hub. |SOURCE: MEAT TRADE NEWS DAILY, 9 FEBRUARY 2010

PAKISTAN

OPPORTUNITIES IN GLOBAL HALAL MARKET Awareness is being fostered regarding the opportunities in the global Halal market. An announcement to this effect was made in a statement issued here. It said that as part of the campaign, a presentation on opportunities in the Global Halal Market has been arranged in Multan on 11 February. This is aimed at initiating the Halal awareness process and informing companies in Multan regarding the export potential of international Halal market for Pakistani companies. At the seminar on the opportunities in Global Halal Market on 11 February, Asad Sajjad, Chief Executive Officer of the Halal Development Project, gave a presentation on the importance of Halal Branding on the occasion. |SOURCE: PAKISTAN OBSERVER, 12 FEBRUARY 2010

MALAYSIA

JAIS ORDERS SIX COMPANIES TO STOP ISSUING HALAL CERTIFICATE The Selangor Islamic Religious Department (JAIS) directed six companies to immediately stop issuing the Halal certificate and logo to food traders and outlets in Selangor. JAIS Director, Datuk Mohammed Khusrin Munawi, said the six companies were Bahtera Lagenda Sdn Bhd, Islamic Food and Research Council, SAS-H Consultancy, Perak Religious Officer Association, Halal Food Council S.E.A and IFANCA International. He said JAIS had neither given its consent nor recognition to these companies to issue the Halal certificate and logo to several food outlets in the state, especially coffee shops and food courts. Mohamed Khusrin said the companies were also found to have failed to monitor the food

outlets issued with the Halal certificate and logo as was done by JAIS and the Department of Islamic Development Malaysia (JAKIM). “Effective today, only Halal certificates and logos issued by JAIS and JAKIM will be recognised for use at all food outlets in Selangor,” he said. Mohamed Khusrin said the companies would be given three months to settle all transactions involving Halal certificate applications which they had received earlier. Those who have yet to apply for or renew their Halal certificate and logo are advised to do so through JAIS or JAKIM, adding that action could be taken against errant food traders or outlets under Section 12 (b) of the Selangor Syariah Crimes Enactment 1995. |SOURCE: BERNAMA, 5 MARCH 2010

“The US food manufacturing and hospitality industries are missing opportunities to service a growing domestic Halal market,” AMERICA

“IFANCA BRINGS HALAL TALK TO THE SKIES”: IFANCA DISCUSSES GROWING US HALAL MARKET ON SKY RADIO, INC. In March and April 2010, Dr. Chaudry, President of Islamic Food and Nutrition Council of America (IFANCA) talks about the growing US Halal market on Sky Radio Network. Nearly 20,000 US Airways international flights will air the interview of Dr. Chaudry, noted Halal food consultant, and co-author of “Halal Food Production” where he shares what Halal, a growing new food category, represents for the US economy. Sky Radio Network provides business, technology and health programming to some of the largest airlines in the world, including United, America, Delta, US Airways and Virgin America. This is the first time the network will feature a segment about Halal and its growth in the USA. “The US food manufacturing and hospitality industries are missing opportunities to service a growing domestic Halal market,” says Dr. Chaudry. In his interview, Dr. Chaudry touches upon the requirements for Halal certification, which includes the absence of pork and alcohol, among other qualifiers. Further, Dr. Chaudry also notes the burgeoning spending power of American Muslims estimated at around USD170 billion. Go to Sky Radio Inc.’s official website www. SkyRadioNet.com for more information.

23rd – 27th June 2010 7th International Halal Showcase (MIHAS 2010) MATRADE Exhibition & Convention Centre (MECC) Kuala Lumpur, Malaysia Malaysia External Trade Development Corporation (MATRADE) Tel: +603 6203 4433 Fax: +603 6203 4422 Email: enquiry@halal.org.my Website: www.halal.com.my 30th June – 4th July 2010 World of Halal 2010 IMPACT Exhibition Center Bangkok, Thailand Koelnmesse Pte Ltd Tel: +65 6500 6712 Fax: +65 6294 8403 Email: l.how@koelnmesse.com.sg Website: www.world-of-halal.com 9 – 11th July 2010 Global Halal Expo Pakistan 2010 Karachi Expo Centre Karachi, Pakistan Global Exhibitions & Marketing Tel: +92 21 3531 0301 Fax: +92 21 3531 0030 Email: info@halalexpopakistan.com Website: www.globalhalalexpo.com 10 – 11th July 2010 Global Halal Congress Pakistan 2010 Karachi Expo Centre Karachi, Pakistan Global Exhibitions & Marketing Tel: +92 21 3531 0301 Fax: +92 21 3531 0030 Email: info@globalhalalcongress.com Website: www.globalhalalcongress.com 2nd – 5th August 2010 7th Kuala Lumpur Islamic Finance Forum (KLIFF 2010) Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia CERT Events Sdn Bhd Tel: +603 4108 1439 Fax: +603 4106 1549 Website: www.kliff.com.my 30th September – 3rd October 2010 Halal & Healthy Products Fair 2010 CNR Expo Istanbul, Turkey CNR Ekspo Trade Fairs Tel: +90 212 465 7474 Fax: +90 212 465 7476/ +90 212 465 747677 Website: www.cnr-helal.com

| SOURCE: PRESS RELEASE, 8 MARCH 2010 The Halal Journal | May+June 2010 |

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EVENT: THE 6TH WORLD ISLAMIC ECONOMIC FORUM (WIEF) DATE: 18 – 20 MAY 2010 VENUE: KUALA LUMPUR CONVENTION CENTRE, MALAYSIA

World Islamic Economic Forum: Building Bridges Through Business

The list of attendees to the World Islamic Economic Forum (WIEF) to be held in Kuala Lumpur from 18 to 20 May 2010 is starting to look like a Global Who’s Who. World leaders from Brunei, Senegal, Syria, Indonesia, Kosovo, Maldives, Kazakhstan, Pakistan, Bangladesh and Malaysia have confirmed their attendance and will be rubbing shoulders with business leaders from around the globe including H.E. Dr. Ahmed Mohamed Ali (President, Islamic Development Bank), Dr. Halil Kulluk (Chairman, Intekno Group of Companies, Turkey) and Mr. Ian Powell (Chairman and Senior Partner, PricewaterhouseCoopers, UK and the Middle East). The Forum, purported to be one of the most important business forums scheduled for the year 2010, could not have come at a better time. The Halal Journal | May+June 2010 |

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As nations start to come out of their worst financial crisis in decades, politicians and businessmen need a new direction. Attendees to the Forum will be able to get insights from the brightest minds on the planet on solutions to deep-rooted problems in our post-crisis world. Among the highlights of the forum is the Leadership Panel session entitled Leadership Challenges for the New Era which will feature several prominent current and former leaders such as H.E. Jack Whitaker Straw, Secretary of State for Justice, UK; H.E. Avril Phaedra Douglas Campbell, former Prime Minister of Canada; and Tun Abdullah Ahmad Badawi, former Prime Minister of Malaysia who will share their experiences on managing pressing global issues in the past and provide

insights on solving present and future issues that lie ahead. Another highlight is the Global CEO Panel session entitled The New Game Plan: Thriving in a Post-Crisis World. Top level business leaders from around the world including Mr. Tidjane Thiam (Chief Executive, Prudential Assurance Company, UK) will talk about the key success factors required to ensure business survivability and sustainability. The Forum will also include special programmes for youth and women through Pre-Forum events such as the WIEF Young Leaders Forum and WIEF Businesswomen Forum. The WIEF Young Leaders Forum is especially important given the fact that 65 per cent of the population of the Muslim world is below the age of 30 and it is this demographic that will take the reins to become leaders in the near future.

Distinguished speakers at the WIEF Young Leaders Forum will include H.E. Sheikha Lubna Al Qasimi, Minister of Foreign Trade, United Arab Emirates; Hon. Caseem Uteem, Former President of Mauritius; and Dato’ Sri Nazir Tun Abdul Razak, Chief Executive and Managing Director of Commerce International Merchant Bankers Berhad, Malaysia and Chairman of the WIEF Young Leaders Network. The WIEF Businesswomen Forum is an acknowledgement of the huge role played by women in Muslim societies and provides an important network, a source of inspiration and support to women entrepreneurs. The Forum will feature a CEO Exchange session where women leaders – including HRH Princess Lolowah Al-Faisal, Vice Chair of the Board of Trustees, Effat University, Kingdom of Saudi Arabia; Ms. Douja Gharbi, President and Founder, Forge de la Louve, Tunisia; and Ms. Assilah Zaher Al Harthy, Head, Economic and Business Research, Oman Oil Company S.A.O.C, Oman – to discuss the changing role of women in today’s society and balancing of objectives and priorities from a women’s perspective. The 6th WIEF returns to Kuala Lumpur after three years and will be held at the Kuala Lumpur Convention Centre from 18 – 20 May 2010. Participants who want to register for the Forum can do so online at www.6thwief. org. Further enquiries can be made to Ms Azrina Ahmad (azrina@wief.org) or Mr Izran Al-Amin (izran@wief. org) at +603 2145 5500.

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EVENT: 5TH INTERNATIONAL HALAL PRODUCTS EXPO (IHPE) DATE: 3RD – 6TH JUNE 2010 VENUE: INTERNATIONAL CONVENTION CENTRE, BRUNEI DARUSSALAM

Brunei’s IHPE - new and exciting direction

Brunei is an Islamic country with a Sultanate that recognises the potential of its strong image in creating value in the global Halal industry, which has emerged as a powerful force in the international market. International Halal Products Expo 2010 (IHPE 2010) is important to His Majesty’s Government’s efforts to establish Brunei as a premier Halal Centre. Jointly organised by the Ministry of Industry and Primary Resources, Ministry of Religious Affairs and Ministry of Health, the expo is part of the nation’s efforts to diversify the economy in line with the country’s philosophy of Malay Islamic Monarchy (MIB), through exchange of knowledge, experiences and cultures. This would enable the nation to enhance its understanding on the production of certified food products, thus making food more readily available to Muslim consumers worldwide.. The five key sectors to be featured at IHPE 2010 are:

• Food Products: canned, frozen and organic food; confectioneries; beverages; agricultural, dairy, meat, herbs and spices, and grocery products • Non-food Products: pharmaceuticals; cosmetics, perfumes, and toiletries; Islamic fashion, Islamic art, crafts, and gift items; chemicals; healthcare, lifestyle, beauty and natural/ organic products; food and research development technologies • Shariah–compliant Banking and Financial Service: banking; takaful; financial service; Investment and Unit Trust products • Catering: abattoirs; hotels; catering service; hospitals; restaurants; storage, packaging and shipping companies • Other Related Products and Services: mass media; government agencies; food promotional boards; Islamic Chambers of Commerce; Islamic publications – books

and magazines; Halal certification and classification authorities; Islamic promotion and development; Halal development hubs and Free Trade Zones; Islamic cultural/ heritage authorities The role of IHPE IHPE is a platform for interested players in the Halal industry to come together, meet each other and conclude deals that would be beneficial for all. It provides a suitable platform to understand the movement of this dynamic industry. It also facilitates local and international entrepreneurs to expand their business networks, especially on the production and trading of certified food products. The expo also showcases initiatives to develop the Brunei Brand. The aim of the brand was to allocate a platform for SMEs in the country to penetrate the international market. We believe that IHPE 2010 and the International Halal Market Conference (IHMC)

2010 will define a new and exciting direction to highlight and enhance the stature and significance of this exposition. All participants and visitors alike will, we trust, be able to benefit from the knowledge base, the incisive insights, the research findings, as well as the discussion of the various issues pertaining to the Halal Industry worldwide. With these two important agendas working in synergy, the 2010 Brunei International Halal Expo will define an integrated platform, not only to showcase Shariah-compliant products and services, but also to facilitate the exchange and discussion of ideas and issues pertaining to Shariahcompliance-and-conformance. Get the leaders advantage by participating.

For more information log on to www.bruneihalalexpo. com or contact the organisers at +673 245 3666 or sales@ sunlitadvertising.com. The Halal Journal | May+June 2010 |

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EVENT: 5TH INTERNaTIONal Halal MaRKET CONFERENCE (IHMC) DATE: 5 – 6th june 2010 VENUE: international CONVENTION CENTRE, brunei darussalam

Brunei’s IHMC has outstanding programme for 2010

Now in its 5th year, Brunei’s International Halal Market Conference is being hosted at the International Convention Centre in Bandar Seri Begawan on 5-6 June 2010. Every year, the organisers at the Entrepreneurial Development Centre at the Ministry of Industry and Primary Resources, in collaboration with Imarat Consultants Sdn Bhd, endeavour to put together a programme that addresses issues at the cutting-edge of the emerging Halal market. Halal plays a pivotal role in the diversification of the Brunei economy, and is arguably more central to the growth of their economy than in any other Muslim majority country, and this ‘ideas leadership’ role is reflected in the programme of the IHMC 2010.

the latest developments of this groundbreaking project at the IHMC. Other major corporate speakers in Session One will include Peter Vogt, the new Managing Director at Nestlé Malaysia, and marketing expert, Ayman Hamed who is currently Marketing Director to Al Islami Foods in Dubai. What’s Next? Session Two looks at the convergences taking place in the Halal sector with activities in the Islamic Finance sector, tourism and hospitality, as well as the impact that online media and networking is having at both industry and consumer levels. In this session, David Smith from Global Futures and Foresight in the UK, Shahed Amanullah of HalalFire Media in the USA as well as Islamic Finance veteran, Rushdi Siddiqui, from Thomson Reuters will be putting forward their views and giving an indication of the directions that the wider Halal market will be taking in the coming years. Rushdi Siddiqui has been working with TR partners Ideal Ratings, using some of the latest analytical tools to assess the financial strength of the Halal sector, and his findings will be presented for the first time at the IHMC, further strengthening the links between the Halal sector and Islamic Finance.

Taking in the Big Picture With a theme “Halal – The Next Decade”, the IHMC 2010 aims to review some of the significant developments in the Halal sector in recent years, analyse the current trends and dynamics at work in the Halal market, and to try and take a look upstream to see what the coming decade is likely to bring. One of the major headlines for this year is the roll-out of the much anticipated Brunei Halal range of branded products, with the first fifty products expected to be on show at Brunei’s concurrent International Halal Products Expo from 3-6 June. Ghanim International Foods is in charge of the Brunei Halal brand project, and their new CEO, Wahid Kandil will be presenting The Halal Journal | May+June 2010 |

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Halal as a Tool for Economic Growth Sessions on Day Two will cover a spectrum of key national Halal development programmes from countries such as Singapore, Thailand,

the Philippines, Australia, Bosnia-Herzegovina and the United Kingdom, as well as contributions from Malaysia and IHMC hosts Brunei Darussalam. These countries will all play strategically important roles in the next stage of development for the Halal markets, and with South East Asia continuing to play a leading role, the development plans of these countries will be really worth hearing. European countries are also becoming an increasingly important element in the next chapter of the Halal market, and companies from Bosnia and the UK are going to be key players in the coming years as the demand for Halal products and services continues to grow in both eastern and Western Europe. So, the IHMC organisers stress that this event is not just food related, and companies and organisations that are involved in Islamic finance, travel and tourism, hospitality, media and networking, as well as

government officers dealing with economic development policy will find the IHMC content highly relevant. There is a world-class line up, and an opportunity not to be missed! Once again, the IHMC programme reflects Brunei’s serious commitment to the Halal sector, and this event confirms their conviction that developing the Halal market is a ‘fardu kifaya’ or collective responsibility for Muslims.

More details and a full programme is available at www.ihmcbrunei.com or for other queries, please email info@ihmcbrunei.com or info@halalfocus.com.

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EVENT: WORLD HALAL FORUM 2010 DATE: 21 – 22 JUNE 2010 VENUE: KUALA LUMPUR CONVENTION CENTRE, MALAYSIA

State of the Industry: Market Access & International Trade

The World Halal Forum (WHF) 2010 will once again be held at the prestigious Kuala Lumpur Convention Centre, which is adjacent to one of Malaysia’s major attractions, the Petronas Twin Towers, located in the heart of downtown Kuala Lumpur. Timely themed “State of the Industry: Market Access & International Trade”, the 5th edition of this world-class event will present results related to the lasting regulatory architecture of the fragmented Halal market in Europe and the rest of the world, and how to gain trade and market access. From WHF 2009 and WHF Europe, the Halal industry is tipped to surpass USD654 billion in 2010, but international trade of Halal goods still remains a fraction of this. Therefore, the organisers, KasehDia Sdn Bhd, believe that this is an opportune time to be a part of this maturing Halal industry by being a part of this gathering of high-level participants, industry experts, academicians, and scholars, as deliberations and resolutions at WHF 2010 will mould the future of the Halal industry.

Among the major topics that will be discussed at the forum are: State of the Industry (Panel Discussion) Current Realities of the Halal Industry • Perspective from Fiqh on Global Halal Regulation • Debunking the Myths: Understanding the Facts and Figures of the Global Halal Market • Current Issues and Realities from the Global Trade of Halal Meat • Industry Issues and Challenges: Perspective from Halal Certifying Agency International Trade and Competitiveness of Global Halal Industry • Ensuring Competitiveness of Halal Food Industries • Regulatory Framework for Halal Industry • The Needs of Standardisation to Ensure Competitiveness in the Industry Halal Assurance to Cater Mass Market • Halal Foods Assurance System for Worldwide

Humanitarian/ Relief Efforts • Benchmarking: Food Safety Assurance for Mass Market • Integrating Multimodal Transports and Production Chain for Halal Industry Determine Factors in Halal Standards, Animal Welfare, Ethics and Transparent Rules • Malaysian Halal Standard and Animal Welfare Issues • Regulating Halal in New Zealand • Ethics and Responsibility in Halal Industry: Case of CCM Halal Pharmaceuticals Additionally this year, three workshops on animal slaughtering, Genetic Modification, and biotechnology in food production respectively, will be held concurrently on the second day. One of the resolutions at the 4th WHF was for the continued support for the International Halal Integrity Alliance (IHI Alliance) to develop the remaining modules of the International Halal Standard

– a single standard to unify the fragmented industry and ensure global Halal integrity. WHF 2010 will, once again, be the platform for releasing the remaining six modules of the standard for a period of six months for public review. The 5th WHF marks the growing maturity of the Halal industry, and on that note, the WHF Secretariat (KasehDia) opens sponsorship opportunities to companies and captains of the industry, as well as interested parties to register as delegates today. Get first-hand information from the experts on the topics to be discussed, and be the first to know and understand the impact and importance of the International Halal Standard. Be a part of this maturing industry with WHF 2010 today. For more information, log on to www.worldhalalforum.org or contact the WHF Secretariat at +603 6203 1025 or info@worldhalalforum.org. The Halal Journal | May+June 2010 |

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IHI Alliance news + updates

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IHI ALLIANCE MEETS MABIMS HALAL AUTHORITIES On 5 February 2010, Halal authorities from Southeast Asia’s association of four countries that encompasses Brunei Darussalam, Indonesia, Malaysia and Singapore (MABIMS) gathered in Jakarta, Indonesia for an informal meeting to discuss issues of Halal development within the region. Hosted by Ministry of Religious Affairs, Republic of Indonesia at Hotel Borobudur Jakarta, the meeting was attended by representatives from Ministry of Religious Affairs of Brunei Darussalam, Department of Islamic Development of Malaysia (JAKIM) and Islamic Religious Council of Singapore (MUIS). IHI Alliance’s presence at the meeting was under the ambit of its strategic partner, Islamic Chamber of Commerce and Industry (ICCI), the key organ that has been tasked to spearhead OIC’s global Halal agenda. Prof. Dr. H. Alwi Shihab, Secretary General of ICCI, presided over the meeting together with CEO of IHI Alliance, Darhim Hashim. The inception of MABIMS came about in May 1989 during the 4th Conference of Ministers of Wakaf and Religious Affairs in Jeddah, Saudi Arabia. Since then MABIMS has become the platform for the four countries to enhance the level of cooperation and unity through meetings, exchange of knowledge and sharing of expertise on religious matters. During the meeting, IHI Alliance was officially introduced to the MABIMS Halal authorities with updates on the OIC mandate and current issues that led to its global Halal initiatives in the field of certification and harmonisation of the Halal standards. Darhim in his speech brought up some of the rising challenges faced by the industry and called for a working consensus towards a common policy for approval of foreign Halal certification bodies especially from non-OIC countries. Approximately 240 million Muslims live in the 10 countries that comprise the Association of Southeast Asian Nations (ASEAN) with a significant presence in the subregion of the Malay Archipelago. Halal trade accessibility within ASEAN countries is expected to improve after the realisation of ASEAN Free Trade Area (AFTA) in January this year that will eliminate import duties of all products to integrate the market where there will be a free flow of goods within the region.

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IRAN’S FIRST INTERNATIONAL HALAL CONFERENCE AND EXHIBITION 2009 IHI Alliance recently participated at Iran’s inaugural International Halal Conference and Exhibition which was held from 2 – 5 March The Halal Journal | May+June 2010 |

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The International Halal Integrity Alliance ( IHI ALLIANCE ) is an international, non-profit initiative created to present the international Halal industry players with one definitive voice. The IHI ALLIANCE’s mission is to strengthen the Halal market and uphold the integrity of Halal for the benefit of all.

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01. Group photo at the end of MABIMS’s meeting. The meeting was co-hosted by Islamic Chamber of Commerce & Industry (ICCI) and the Ministry of Religious Affairs, Republic of Indonesia. 02. CEO Darhim Hashim presenting IHI Alliance’s global Halal initiatives to officials from Halal authorities of MABIMS in Jakarta. 03. Iran’s first International Halal Conference and Exhibition 2010 in Tehran. From left: Dr. A. Fakhari of ICRIC, Mohammad Hossein Shojaee of Faroogh Life Sciences Research Laboratory, Asad Sajjad of MESSE Pakistan, İhsan ÖVÜT of TSE, Darhim Hashim and Ahmet Suayb Gundogdu of International Islamic Trade Finance Corporation. 04. Darhim with Dr. Mohd Reza Karbasi, Director General of ICCIM). 05. Meeting with The World Society for the Protection of Animals (WSPA). 06. At Paris Mosque with Rector’s Assistant Cheikh Al Sid Cheikh 07. Dr. Adel Sabir, Administration and Support Director of Islamic Relief Worldwide (left) with Darhim Hashim

2010 in Tehran. Representing IHI Alliance was CEO, Darhim Hashim, who was invited to present a paper on Halal cosmetics and toiletries on the second day of the conference. Hosted by Iran Chamber of Commerce, Industries and Mines (ICCIM) in collaboration with the Islamic Development Bank (IDB), Islamic Chamber Research and Information Center (ICRIC) as well as the Islamic Chamber of Commerce and Industry (ICCI), both events drew heavy participation of dignitaries from OIC member countries including Bosnia & Herzegovina, Brunei Darussalam, Kuwait, Malaysia, Pakistan, Senegal and Turkey as well as non-Muslim countries such as Canada, Japan, New Zealand and United States of America. In his presentation, Darhim explained the great potential of Halal cosmetics and toiletries to the conference audience largely made of ambassadors, ministers, standards experts and Halal certifying bodies. According to him, the challenge will be on how to best integrate Halal requirements into the mainstream cosmetics and toiletries industry framework. “Collaboration is the key. With one strong voice, 1.8 billion Muslims worldwide can dictate terms to the multi-national corporations and industry at large,” explained Darhim. In the Middle Eastern region alone, Halal personal care market is estimated to be worth USD560 million yearly. Halal cosmetic and toiletries is also one of the global Halal standard modules currently being developed by IHI Alliance and slated for public review at the upcoming 5th World Halal Forum in Kuala Lumpur this year. Known as Persia until 1935, Iran officially became an Islamic republic in 1979, following the revolution. Its economy is highly dependent on oil production (nearly 80 per cent of exports and 60 per cent of its fiscal revenue) hence the desire to diversify into other sectors. With 98 per cent Muslim population in the country, Iran holds a vast captive Halal market of over 60 million people. MEETING WITH MUSLIM COUNCIL OF BRITAIN The Muslim Council of Britain (MCB) recently met Darhim Hashim during the IHI Alliance CEO’s visit to United Kingdom on 18 January 2010. Representing the council was Dr. Shuja Shafi, Chair of Food Standards and Chaplaincy Committee. Inaugurated in November 1997, MCB is a national representative Muslim umbrella body with over 500 affiliated national, regional and The Halal Journal | May+June 2010 |

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local organisations, mosques, charities and schools. Since its inception, MCB has pledged to work for the common good of society as a whole; encouraging individual Muslims and Muslim organisations to play a full and participatory role in public life. In his discussion with Darhim, Dr. Shuja talked about MCB’s involvement in Halal standards and its development as part of the council’s activities in promoting cooperation, consensus and unity of Muslim affairs in Britain. The British Halal market, considered under-served in the UK, is estimated worth up to USD6.27 billion yearly. Over the years, MCB has also successfully promulgated several innovative projects funded by government and nongovernment bodies to raise the capability of British Muslims academically, nurturing leadership and role models as well as enhancement of service provision by British mosques. In 2007, MCB collaborated with Cornell University College of Agriculture and Applied Science in a project entitled “Developing a humane, Halal compliant sheep and goat slaughter system”, aiming to help the Muslim community and others doing “local” slaughter to do a better job of meeting modern animal welfare requirements. Dr. Shuja himself was one of the key persons in the project that also had the world’s most prominent animal scientist, Temple Grandin as a collaborator. Darhim also learned from Dr. Shuja about the Muslim’s community struggle against the rise of “Islamophobia” and growing anti-Muslim movement in Britain - issues which seem echoed throughout Europe. Islam is the second The Halal Journal | May+June 2010 |

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largest in the UK with Muslims being the fastest growing segment of middle class. IHI ALLIANCE VISITS THE MOSLEM INSTITUTE OF PARIS MOSQUE On 15 January 2010, CEO of IHI Alliance, Darhim Hashim paid a visit to The Moslem Institute of Paris Mosque (“Paris Mosque”) to meet Rector’s Assistant Cheikh Al Sid Cheikh. Founded in 1922 and later inaugurated in 1926, the mosque is located at the heart of Paris’ fifth district and until today stands as a symbol of France’s gratefulness to brave Muslim soldiers who fought against Germany during the World War 1. Stretching over a land of a hectare in size, this memorial monument is the largest mosque in France and the second largest in Europe. The mosque is an architecture marvel with a minaret towering proud at 34 metres high. For almost a century, the Paris Mosque has played a significant role in bridging the Islamic world and western civilization in Europe. In 2009 at the 4th World Halal Forum, the mosque officially joined as a member of IHI Alliance. Rector’s Assistant Cheikh shared some insights with Darhim regarding the mosque’s initiatives to become an internationally recognised Halal certification body. In addition to animal slaughter, the mosque also has been certifying processed goods such as cheese, processed food and pharmaceuticals. Darhim presented the latest development of IHI Alliance’s activities that include joint efforts and collaborations with Halal authorities around the world. The mosque, like most certification bodies, is no stranger to the difficulty of

gaining recognition by importing authorities. Recently, the Paris Mosque started a pilot project with the Belgian fast-food chain “Quick” that saw eight restaurants located in Toulouse, Marseille, Roubaix, Villeurbanne, Argenteuil, Garges-lès-Gonesse and Buchelay certified Halal for a trial period of six months. Despite all the challenges, the Halal industry continues to flourish in France that has an estimated five million Muslims. In 2009, Times newsmagazine reported a study conducted by ethnic-marketing consultancy Solis Conseil in Paris estimated that French Muslims currently purchase about USD5.7 billion worth of specialised Halal foodstuffs and related products – a market that’s been increasing nearly 15 per cent annually for almost a decade. IHI ALLIANCE AT THE WORLD SOCIETY FOR THE PROTECTION OF ANIMALS (WSPA) Continuing his tour in Europe, CEO Darhim Hashim visited The World Society for the Protection of Animals (WSPA) office in London to meet Dr. Rasto Kolesar, the organisation’s Farm Animal’s Programme Manager to discuss the latest updates on the Animal Welfare module of the IHI Alliance standard. WSPA was the appointed secretariat of the module which was presented at the 4th World Halal Forum last year drawing positive feedback and support from global Halal players. Also joining the meeting was Sofia Parente, Programme Manager – Farm Animals Welfare, Carol McKenna, Interim Director of International Programme and Joyce D’Silva, Ambassador for Compassion in World Farming (CIWF). For over 25 years, WSPA has been actively promoting its global initiatives working with governments and key decision makers to change practices and introduce new laws to protect or improve the welfare of animals. A consultant to the United Nations and the Council of Europe, WSPA is the world’s largest alliance of animal welfare societies, with more than 900 member organisations in over 150 countries. It was heartening for Darhim to listen to Dr. Kolesar’s presentation on WSPA’s latest activities and projects, and discover how much both organisations share in objectives and common values towards preserving the good practice of animal welfare in intensive farming, long distance transport and slaughter of animals for food. Halal slaughter, despite having been

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IHI Around the Globe 6 May 2010 THE HALAL SUPPLY CHAIN DIALOGUE, KUALA LUMPUR The Halal Supply Chain Dialogue aims to involve leading logistics service providers, users (manufacturers, brand owners and shippers) and ancillary players in the market – locally, regionally and internationally. The dialogue is essentially a platform for open sharing and informal networking and collaborating. 18 -20 May 2010 WORLD ISLAMIC ECONOMIC FORUM (WIEF), KUALA LUMPUR The 6th World Islamic Economic Forum is back in Kuala Lumpur and is scheduled to be held at the Kuala Lumpur Convention Centre on 18-20 May 2010. Purportedly one of the most important business forums scheduled for the year 2010, at least one that focuses on a niche market of the emerging economies of the Muslim world, the 6th WIEF is expected to attract an estimated 2,000 participants based on the past record of 1,728 participants at the 5th WIEF in Jakarta in March 2009. 4 – 6 June 2010 MUSLIMSBIG 2010 BUSINESS AND INVESTMENT GALA, KUALA LUMPUR MuslimsBIG 2010 Business & Investment Gala aims to provide an ideal platform for businessmen, entrepreneurs, international investors & buyers from all parts of the world to explore Joint Venture, Investment and Trade opportunities available in the Muslim countries as well as in other participating countries. 5 – 6 June 2010 5th INTERNATIONAL Halal MARKET CONFERENCE, BRUNEI DARUSSALAM The expo is a platform for interested players in the Halal industry to come together, meet each other and conclude deals that would be beneficial for all. It is also expected to facilitate both local and international entrepreneurs to expand their business network especially on the production and trading of Halal certified food products. It also provides a suitable platform to understand the movement of this dynamic industry. 21-22 June 2010 5TH WORLD HALAL FORUM, KUALA LUMPUR At the close of the 4th World Halal Forum (2009), a resolution was arrived at, for the continued support for the International Halal Integrity Alliance (IHI Alliance), to develop the remaining modules of the International Halal Standard – a single standard to harmonise the fragmented industry and enhance global Halal integrity. In line with this year’s theme, “State Of The Industry: Market Access & International Trade”, the 5th edition will see the release of four more modules of the standard for the first time for a period of public review of six months. 23-25 June 2010 WORLD HALAL RESEARCH, KUALA LUMPUR The World Halal Research Summit 2010 is an international conference which provides a platform for scientists, researchers, scholars, academicians, etc. to meet, discuss and exchange ideas on new research findings, emerging technologies, trends, issues and challenges in the global Halal industry. 23-27 June 2010 MIHAS 2010, KUALA LUMPUR Malaysia International Halal Showcase (MIHAS 2010) is the world’s largest halal trade fair and Malaysia’s largest food and beverage exhibition. It is held every year to congregate the largest annual gathering of Halal industry players and entrepreneurs in the effort to ease the sourcing and selling of global quality Halal products

scientifically proven to be in compliance with animal welfare requirements, is still disputed by certain animal rights groups calling the method inhumane. Both European Union and United Kingdom legislation on the welfare of animals at slaughter allow exemptions for religious communities. IHI ALLIANCE MEETS ISLAMIC RELIEF Dr. Adel Sabir, Administration and Support Director of Islamic Relief Worldwide recently hosted a visit from CEO of IHI Alliance, Darhim Hashim, in support of the global Halal authority’s continuous effort to strengthen working relationships with leading Islamic organisations around the world. Established in 1984 in Birmingham, United Kingdom, Islamic Relief Worldwide is an independent non-government Muslim humanitarian organisation actively involved in emergency relief and humanitarian development all over the world. With a vast global network of fundraising partners and field offices, the organisation also has been developing local projects to eradicate poverty, illiteracy and disease in Africa, Asia, Europe and Middle East. Islamic Relief Worldwide earned a consultative status with the Economic and Social Council (ECOSOC) in 1993 and also a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movements and NGOs in Disaster Relief. Dr. Adel in presenting the organisation’s latest activities emphasized the core fundamentals of Islamic Relief Worldwide that are derived from Islamic values in providing assistance to the world regardless of race, colour, political affiliation, gender or belief, and without expecting anything in return. Darhim also had the great privilege of meeting the dedicated team members behind the organisations humanitarian relief effort, media and communication and various regional coordinators. He later presented a paper to the group about IHI Alliance’s global Halal initiatives and global scenario of Halal standards and certification. Islamic Relief was the first aid agency to establish an organised camp for people who lost their homes in Port-au-Prince after a devastating earthquake struck Haiti in January 2010 killing more than 200 people and leaving over 1.5 million Haitian homeless. The camp now houses 200 families who had previously been living in appalling conditions in makeshift settlements. The Halal Journal | May+June 2010 |

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South East Asia’s blessing in the Halal market came from the fact that its society is pluralistic in nature. The people here generally do not take the concept of Halal for granted. While the concept of Halal has been around since the time of Prophet Muhammad (peace be upon him, p.b.u.h), it was at the dawn of the 21st century that the moderate, progressive and strong trading Islamic country, Malaysia, created a new awareness of a new market – the Halal market. But changes in leadership, structure and the evolution of the market are testing this country to see if it has staying power at the critical position of thought leadership in this burgeoning sector. Here’s a look at Malaysia’s Halal track record and its stalwarts up to the point of the crossroad where the country is finding itself on now.

Malaysian Halal Sector

At a Crossroad Changes in leadership, stru cture and the evolution of the market

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The birth of an idea: 2000 to 2008 The Halal market awareness was created through a paradigm shift. Malaysia started its Halal labelling regulation in 1975 which set the course for the country to create a whole new market idea for a globalised world with its own set of rules and boundaries which are still evolving and being defined. It was an idea whose time had come; and for Malaysia, it seemed her stars were aligned. Various key initiatives from the government and private sector came together in perfect timing to create a global ‘Big Bang’ for Halal awareness. This sudden widening consciousness of the Halal market was created not only due to the mandate by the Government of Malaysia but was also largely due to the zeal of professional Muslims equipped with various expertise who saw it not only as work but also their obligation to the faith. And if the Halal portfolio fell on non-Muslims, they took it on with similar vigour as they saw how fitting this market was to Malaysia and Malaysian ventures. The Malaysian Halal stalwarts Standards Malaysia (then known as Department of Standards Malaysia) had Fadilah Baharin, who maintains how important standards are to the development of the industry. Under her purview, the most widely referred to Halal standard, the Malaysian standard MS1500: 2000, was revised in 2004, and again in 2009. The standards was developed under the Malaysian Standard Development System by the Department of Standards Malaysia of the Ministry of Science, Technology and Innovation (MOSTI) with involvement and cooperation of JAKIM (Department of Islamic Development Malaysia), relevant government agencies, non-governmental organisations, universities and industries. Strong woman, Dato’ Hafsah The Halal Journal | May+June 2010 |

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Hashim, was and still is leading SME Corp (formerly known as Small and Medium Industries Development Corporation or SMIDEC) in offering key programmes to develop small and medium enterprises (SMEs) – a critical sector of the Malaysian economy – to enter the market. The Malaysian External Trade Development Corporation (MATRADE), led by CEO Dato’ Noharuddin Nordin, who also sees the promotion of Halal products as modern day da’wah, can boast of strong track record of Halal programmes to promote Malaysian exports to the world. Up the supply chain, Dato’ Dr. Abd. Aziz Jamaluddin, Director General of the Department of Veterinary Services (DVS) is dealing with quality assurance and food safety for meat and meatrelated products in Malaysia. On the academic side, Professor Dr. Yaakob Che Man, a professor at the University Putra Malaysia (UPM), saw to the establishment of the Halal Products Research Institute (HPRI) in 2006. The Department of Islamic Development of Malaysia (JAKIM) was of course in the thick of it all. Formed in 1997, JAKIM is now one of the most established Halal certification agencies in the world. Up the political ladder, Malaysia at this time had former Ministry of International Trade and Industry (MITI) minister Tan Sri Rafidah Aziz, and former Prime Minister Tun Abdullah Badawi who were both staunch advocates of the Halal industry. On the private sector side, two companies separately came up with key projects that caught the world’s attention – Indah Profiles Sdn Bhd and KasehDia Sdn Bhd. Indah Profiles, led by Mohd. Shukri Abdullah organised the first Malaysia International Halal Showcase (MIHAS) in 2004. The same year, KasehDia came out with a small unassuming guidebook series called the Halal Food Guide, which the Asian

Halal Power

Placing the Halal label on your product, service or organisation name, however, does not mean that it will succeed and be given total leverage or authority. Market factors still dictate. Halal proponents need to maintain integrity in their conduct and they have to keep it real. The false, fake and fraudulent will eventually falter in this arena of Halal market place which was created to stamp them out in the first place.

When Halal affects trade

Following the Malaysian Standard MS1500:2004, JAKIM had to ban beef imports from New Zealand and Australia in 2005. It sparked polarised responses. The decision was in light of the slaughter practice in the respective countries. JAKIM maintained that the animals were not slaughtered in accordance to the rightful requirements of Shariah, because of the practice of thoracic sticking. While many Muslims in Malaysia were appreciative of JAKIM’s ban, traders and exporters however felt disgruntled over the decision made by the Malaysian authority. A reader’s response about the ban was published in the September/ October 2005 edition of The Halal Journal: “The approach taken [banning meat imports] is in my opinion not in the best interest of promoting Halal products or MS1500: 2004 certification if standards or practices cannot be harmonised or standardised but left to mere interpretations. If OIC [Organisation of the Islamic Conferences] or Malaysia is serious about pushing Halal as a recognised world standard, a reliable model is needed.” This incident had ignited greater interest amongst exporters and importers within the Malaysian Halal industry on the issue of Halal, and standards and certification.

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Comments on the current state of the Malaysian Halal industry

This sudden widening consciousness of the Halal market was created not only due to the mandate by the Government of Malaysia but was also largely due to the zeal of professional Muslims equipped with various expertise who saw it not only as work but also their obligation to the faith.

Jacoba Bolderheij, Head of Economic & Trade Section, the Embassy of the Kingdom of the Netherlands

“The Halal market in Malaysia has a lot of potential. Halal producers should market and brand their products abroad, and therefore invest heavily in marketing and commercialisation. In other Halal exporting countries, all products, packings, and documents are labelled as “Halal”, so that all parties in the logistic chain, shops and buyers are then aware of this, and will act accordingly. Failing to do so, a trade flow will never occur and therefore a hub will never be feasible. An international logistical hub can only be created when there is sufficient trade between markets.”

Haji Falah Alizzi, Export Manager (Zabiha Halal), Maple Lodge Farms, Canada

“Other countries are already looking at Malaysia as a Halal hub, but the Malaysian Halal industry has been idle lately. We do not know what is currently happening in Malaysia except the World Halal Forum, The Halal Journal, and MIHAS. Since Malaysia is already well known, it is rather disappointing that nothing interesting has happened since the past couple of years, because Malaysia is looked at as a role model for Halal industries in other parts of the world.”

Mohamed Shaakir, Halal Monitoring Committee (HMC), United Kingdom

“It is important for the Muslim community wherever they are in the world to protect the integrity of Halal and respect the majority opinion of the scholars. HMC is extremely pleased to see the latest Malaysian Halal Standard where the mechanical slaughter of poultry has been removed. The Halal industry is a rapidly increasing market, but this should not lead to crucial decisions on Halal being dictated solely on the basis of financial gain by the industry. Consumers’ and scholars’ views are equally important, if not more important.” The Halal Journal | May+June 2010

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Comments on the current state of the Malaysian Halal industry Badlisyah Abdul Ghani, CEO, CIMB Islamic, Malaysia

“Perhaps we should champion our Halal industry first rather than the world.” Koen De Praetere, General Manager, Volys Star S.A, Belgium

“The only thing I observe is that sometimes people and companies think that because they are Halal and they are Malaysian (obtained Malaysian Halal certification from JAKIM), success is guaranteed. Malaysia had a head start because it had a good standard and had acquired Halal knowledge through the process of establishing this Halal standard, and this knowledge is starting to spread. But I do not have the impression that Malaysian companies are fully utilising their head start. Somehow it seems that these companies think they are ahead because Malaysia was ahead. In my opinion, as a European, I would go back to the basics of being industrial – get to work, find out what you need to do and do it right. Use the Halal knowledge there is in Malaysia, use the Halal prestige of Malaysia as leverage to your business. But do not try to do it the other way around.

Today, with this wealth of experience, the good and bad, Malaysia finds itself in a situation where it can leverage on making a strong and clear move forward.

Dr. Hani Mansour Mosa Al-Mazeedi, Associate Research Scientist, Kuwait Institute for Scientific Research, Kuwait

“The Malaysian Halal industry today has been a result of long efforts made by JAKIM and HDC. With dubious products Muslims consume nowadays in every country, we need the experience of JAKIM to be transferred to every Muslim country. I have shopped around Malaysia and I was able to purchase items such as Colgate toothpaste, Polo candy, Camay, and Lux products that I was unable to purchase in my own country for the very simple reason that they were not Halal. However, the Malaysian Halal industry must be more strictly-compliant to the Halal System all the time. The best way to keep the Malaysian Halal industry moving forward is to keep it under the control of the religious sector of the Malaysian government. Otherwise, this industry will lose its credibility if it is shifted to other departments such as standards, commerce, or trade.” The Halal Journal | May+June 2010 |

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Wall Street Journal called: “...the world’s first series of Halal food restaurant guides.” This global series was the start of KasehDia’s global Halal initiative, which was progressively rolled out – a research and consulting services for global markets, The Halal Journal magazine, radio and TV, and the World Halal Forum. Out of all the announcements and resolutions made at the World Halal Forum, two were highly important: the first is the establishment of the government-owned Halal Industry Development Corporation (HDC) in 2006, and second is the formation of the non-profit and non-governmental International Halal Integrity (IHI) Alliance in 2007. In this period also, various “Halal Parks” projects were announced. The Halal Coordination Committee under MITI listed twelve Halal Park projects. In the Ninth Malaysian Plan (9MP), six Halal Park projects were mentioned to be built in Kedah, Perlis, Kelantan, Terengganu, Labuan and Pahang. In the 2007 Budget Speech, RM50 million was allocated to set up Halal Parks in Pasir Mas, Kelantan; Gambang, Pahang; Chendering, Terengganu; and Padang Besar, Perlis, under the Ministry of Entrepreneurial and Cooperative Development (now dissolved) and Ministry of Federal Territory (see The Halal Journal May/ June 2008 issue, ‘Malaysian Halal Parks’). Most importantly, a significant size of companies, multinationals and SMEs as well as financial institutions came to the foreground to leverage on this market by offering new and better Shariah-compliant products and services. Many players in the industry shifted their entire production to Halal. Changes in motion While the Halal fervour enveloped Malaysia and subsequently the region and the rest of the world, on the implementation level, the government made some fundamental changes with mixed consequences. The establishment of HDC, the first of its kind in the world, was supposed to create a central point for the coordination of Halal initiatives in Malaysia that cuts across multiple sectors. It was to provide a holistic approach to develop the Malaysian Halal industry in an integrated manner. Due to this, the Halal certification exercise was transferred from JAKIM to HDC in 2008 to ensure a more efficient service. In 2009, the Halal certification was transferred back to JAKIM, and in October 2010, HDC was placed to be an agency under MITI. The pioneering Halal trade show, MIHAS, has been bought by the government and is now a programme of MATRADE. The World Halal Forum remains independent with continued support

from the government, but a small number of traditionally strong private supporters, the bigger corporations in Malaysia, are having a “wait-and-see” stance as they literally wait to see who will be the Malaysian patron of Halal and the event. It seems in Malaysia, the patronage mentality still runs strong in some when merit should be the case. The Halal agenda in Malaysia now is under the purview of MITI and JAKIM. Back to how it all started. Getting real: 2010 onwards Today, with this wealth of experience, the good and bad, Malaysia finds itself in a situation where it can leverage on making a strong and clear move forward. There are new structures and new personnel in the picture which can help galvanise the existing Halal stalwarts previously mentioned to be even better. Without a doubt, Halal has been championed more by Tun Abdullah Badawi than the current Prime Minister, Dato’ Seri Najib Tun Razak. Nevertheless, the importance of Halal as a significant economic catalyst in Malaysia was reaffirmed by Najib recently at the World Islamic Economic Forum (WIEF). The Prime Minister mentioned Halal as one of the opportunities for the new growth sector, in line with his recently revealed New Economic Model for Malaysia. His New Economic Model aims, amongst others, to use capital more effectively to increase productivity, stimulate innovation and enhance the skills of the Malaysian workforce. It also aims to end an over-reliance on a few dominant sectors, when what is needed is strength across many industries, particularly areas of high value growth such as technology, financial services and energy. Another aim is to rebalance the relationship between the private and public

sectors, where the role of the government to empower and enable wealth creation across all groups and income levels in the private sector is recognised. “One area of opportunity is the burgeoning Halal market. Its assets are estimated to be worth more than one trillion US dollars, which bodes well for the development of various Halal hubs worldwide,” he said. “This is indeed a positive development, as no single Halal hub can cater to the global needs of the Muslim Ummah. To achieve this, linkages must be established between regional hubs to ensure coordination and standardisation of Halal products. Such linkages would enable efficient sourcing and deployment of Halal products by donor countries and nongovernment organisations when Muslim communities face natural disasters. “Much has also been said about Islamic finance and banking as key to our futures. Muslim countries must continue to play a leading role in transforming this sector from being considered niche banking into something that’s widely accepted as central to long-term economic stability around the world. The right conditions need to be put into place. These include an appropriate regulatory framework and an infrastructure and architecture that promote Islamic capital markets. Islamic finance and banking must be systematically put in place, with the involvement of all stakeholders. It will require getting a higher level of acceptance of “ethical banking” as a norm in modern day banking. The time is right for this. We see positive trends prevailing for the development of Islamic finance.” The main points set out by Najib, namely the development of regional Halal hubs and the establishment of greater linkages The Halal Journal | May+June 2010

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between them, the coordination and standardisation of Halal products, as well as the growth and role of Islamic banking and finance in galvanising Islamic capital markets, are all essentially prescriptions for bringing the potential of Halal in Malaysia to greater fruition. In line with the New Economic Model and Malaysia’s experience and head start in Halal initiatives and Islamic finance, MITI is keen on fulfilling the potential, and MITI Deputy Minister Dato’ Mukhriz Mahathir elucidates this. “MITI is very focused in seeing the potential of Halal in Malaysia actualised,” he said recently. “We (MITI) are here to encourage the industry to take up Halal. Previously we have focused on Halal standards and integrity, and I am happy to note that we have achieved and maintained our position as the leader in this. But now we must focus on converting more local industries into Halal, creating awareness of the Halal ecosystem and stronger linkages with Islamic and banking sectors. “It is crucial that we arrive at a solution that will help to facilitate the collaboration between the government and private sectors in order to strengthen the credibility, strengthen the integrity and revive the once progressive momentum of Malaysia’s Halal industry.” Under MITI now are critical agencies for Halal – MATRADE, SME Corp, HDC, Malaysian Investment Development Agency (MIDA) and Malaysia Productivity Corporation (MPC). It has to come up with a plan to streamline these agencies and work closely with JAKIM and the rest of the other relevant ministries to push things forward. The government also announced the Malaysian Halal Act, which is to be completed in 2011, and may finally curb the confusion with regards to certification issues that had been prevalent within this industry of late. In the long run, businesses will begin to understand that the sanctity and integrity of Halal takes precedence over monetary concerns. The Halal Journal | May+June 2010 |

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Halal certificates galore

In 2008, certification authority was transferred from JAKIM to HDC and back to JAKIM in 2009. This massive double move took a lot of time and effort from both organisations. In the meantime, there was confusion and frustration in the local and international markets during this period. New Halal certification companies proliferated and were sought after by the industry that needed someone with ease to verify their Halal products to attract consumers. Now with the announcement of the Halal Act (to be finalised in 2011) which dictates that certification in Malaysia can only be done by JAKIM, proper structure and enforcement policy can be put into place to further strengthen and ensure integrity in the domestic market.

A case for ASEAN

A majority of ASEAN countries have an interest in the Halal market. Each country in this region has varying strengths when it comes to Halal: Indonesia is the largest Muslim consumer market and is rich in natural resources; Thailand’s core competitive advantage is its food production; whereas Singapore is a strong trading and logistics nation. Brunei is currently trying to diversify, and Malaysia on the other hand is clearly prominent in Halal knowledge and has successfully positioned itself as a thought leader within the industry. Can ASEAN find it in itself to collaborate to be a regional Halal hub?

The IHI Alliance is also working hard to establish a global Halal accreditation and recognition system that will link all the service providers that can uphold the integrity of Halal for the benefit of the Ummah. To date, out of twelve, four Halal Parks are reported to be active to a certain extent, namely the Selangor Halal Hub, Penang International Halal Hub, Serkam Halal Park in Melaka, and the Tanjung Manis Halal Park in Sarawak. To facilitate Malaysian states involved in their development of Halal Parks, HDC created the HalMas initiative, and the “HDC Designated Halal Parks Development Guidelines” which was published in June 2009. Halal Malaysia or ‘HALMAS’ is a special status reserved for the Halal Park operators who have complied with the requirements under the “HDC Designated Halal Parks Development Guidelines”. It is also a mark for a Halal Park to produce Halal products that are of the highest quality, integrity and safe consumption. Malaysia’s sought after MS1500, remains integral in setting the Halal standard benchmark globally. With many Halal economies adapting or even adopting the MS1500 (such as Kyrgyzstan and Kazakhstan), Malaysia is seen by the international community as the thought leader of the global Halal industry. Malaysia now is on track to strengthen its own market infrastructure and government policies. Additionally, it should take on more active government-to-government approach to create new markets. Malaysia already has done such a huge service to the Ummah. It created the Halal market awareness, and the idea of a new market upheld by Islamic values. And now, how well it performs in the market it helped create is up to the stakeholders involved. For the rest of the world who is mesmerised by this new market, it is full steam ahead; with or without Malaysia. hj

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Lead, follow or get out of the way

Words by Hajj Abdalhamid Evans

An analysis of power within the Halal marketplace The leadership vacuum in the Muslim world is so evident that it scarcely needs to be pointed out. It is a chronic ailment with no easy remedy in sight. Ever since the decaying Ottoman Khalifate failed to come to terms with the challenges of the unfolding 20th century, the Muslim Ummah has been fractured and wounded. Our leaders have been caught in a political game whose rules they did not write, and can barely comprehend. Our scholars, for the most part, unable to tackle real issues, have remained marginalised in academic institutions dealing with matters that are either theoretical or superficial. The rich and powerful went shopping, and built dream palaces, both for themselves and for tourists.

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The 20th Century was not a stellar one for the Muslim world.

And yet, amongst all the rampant consumerism and wars on terror, a curious phenomenon has unfolded. As we enter the second decade of the 21st century, with the Muslim consumer market tagged as ‘the fastest growing consumer segment in the world’, everyone wants to take home a slice of the Halal Market pie. In many ways, the Halal Market is unique. It has, primarily, a singular defining parameter, that the products must be Halal, permissible, for Muslim consumption, a parameter that encompasses and highlights what may well be the largest consumer demographic on earth: the Muslim consumers. But it is by no means just one market. Halal cuts across geography, colour, race and culture; it cuts across taste, style and age. As a market, it is being defined, and defining itself as we speak. It is so old, and yet so new. And it is full of players of many shapes and sizes. The National Governments Governmental initiatives to engage with the Halal market can really be divided into two: Muslim majority and Muslim minority. Malaysia was really the first Muslim majority country where the government announced the development of the Halal sector as a potential engine of growth for the national economy. They were possibly the first to incorporate Halal into the scope of their long-term economic planning, certainly the first country to declare an ambition to be a global hub for Halal goods and services, the first to create a specific agency for developing the Halal industry, and to develop a Masterplan for the national Halal sector. While the rhetoric may have run way ahead of the results, this process, starting in 2003-4, laid out the basic ground plan for any other country to follow. Brunei Darussalam, more quietly, but with arguably more imagination, recognised the Halal sector as a potential means of diversifying the national economy away from an overdependence on oil and gas revenues, and in this respect have probably given Halal a bigger task than any other country on earth. Certainly, Brunei’s idea to create a ‘Brunei Halal’ brand for products sourced and sold all over the world is unique, and it fits into a complex ecosystem of Halal-related projects that will indeed shape the local economy, regardless of how much they contribute to the national coffers. Indeed, in many countries in South East Asia, perhaps feeling the need to respond to Malaysia’s claims, national Halal programmes are being rolled out, each one aiming to take advantage of their perceived strengths; Singapore’s service sector, Thailand’s food processing and manufacturing, Filippino raw materials and cheap labour, Indonesia’s sheer size. The rest of the Muslim world has been remarkably slow to recognise the potential of this market, and, so far, have certainly not played a leading role; one could say that they are following the lead from South East Asia, and while they might disagree with that The Halal Journal | May+June 2010 |

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definition, they are certainly following a similar course. Many of the Muslimminority countries were already way ahead, but in different ways. Australia has long recognised the potential of the Halal consumer market in the Middle East for red meat, and has staked a strong claim in that arena; similarly, Brazil with their chicken exports, and New Zealand with their lamb. While these Halal initiatives were simply adaptations of their regular production processes, recent developments to regulate their entire Halal value-chain have taken this to a new level, requiring new approaches to the Muslim associations that issue the Halal certificates. New Zealand, in particular, has initiated a new programme that requires all Halal certification agencies to get government accreditation, with ISO compliance and recognition from established semigovernmental agencies, (such as JAKIM in Malaysia, or MUI in Indonesia) as pre-conditions. And here lies the irony. JAKIM, although itself a government body with a global reputation as a respected Halal certification authority, is itself not ISO-compliant. Furthermore, a JAKIM certification does not ensure compliance with health and safety issues, let alone social or environmental compliance. It is simply a religious certification that in some way sees its parameters as being separate from the industry norms of the global marketplace. And here is where the big industry players may well start to flex their muscles. The Industry Players All of the world’s largest food corporations – manufacturers, restaurants and retailers – have major interests in the Halal market, and have done so for The Halal Journal | May+June 2010 |

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many years. They all operate in the Muslim world, and they understand the stakes, the issues and problems, as well as the money that is there to be made. Large corporations are risk-averse; they like stable, long-term relationships with their suppliers and markets. It is in their interests to get the entire Halal process to conform to the normal procedural standards that are practiced in the rest of the food industry. They see Halal compliance, understandably, more as a plug-in to the existing health and safety standards already in use, rather than as a standalone requirement. Indeed, on its own, a Halal certificate is not going to get your product very far in the global market. Furthermore, some major corporations have expressed a concern that the Halal auditing and certification process is itself not monitored in any effective way, especially in the non-Muslim world where the majority of the Halal food manufacturing and processing takes place. A senior representative of one of the world’s largest food corporations recently stated that what he (speaking on behalf of ‘big industry’) is hoping to see in the near future is a transparent and clear separation between a) the standards in use, b) the auditing process and c) the issuance of the Halal certificate. And for this entire process to be monitored by some form of Accreditation body. This is the way things are done in other sectors of the food industry, and that the Halal compliance process should fit into these industry norms. This is indeed a valid point.

Until the process by which Halal certification is carried out is monitored by an accreditation body with real authority, there will continue to be shortcuts, conflicts of interest and mistrust; exactly the kinds of problems that the Islamic Shariah is designed to prevent.

The Certification Bodies If the certification process is not monitored, then there will inevitably be doubt and rumour from all corners. For

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a company with brand value to protect, the weakest link may well be the logo of a certifying body that is itself self-regulating; that is to say, they use their own standard, conduct their own audit, and then issue their own certificate. One of the main principles of the Islamic Shariah is the removal of doubt, particularly when it comes to business; terms are made clear and transparent; agreements are witnessed. If the process by which the Halal industry obtains proof of Shariah compliance is itself not transparent and free of conflicts of interest, then the actual foundations of the Halal market itself are not stable. This statement is not an accusation. It is a recognition of something that needs to be put right. The Halal industry is in a process of evolution. It began by adapting existing procedures in a minimal way to provide market access. It has not been ‘designed’ from the ground up; it has rather grown along the lines of least resistance. The market has not been built on a Shariah foundation, but has rather followed the line, ‘What is the least we can do to get the product to market?’; thinking that has actually, in many ways, characterised the manufacturing as well as the certification processes. Until the process by which Halal certification is carried out is monitored by an accreditation body with real authority, there will continue to be shortcuts, conflicts of interest and mistrust; exactly the kinds of problems that the Islamic Shariah is designed to prevent. Standards must be clear and readily available; the auditing process must be done by a body that is independent from the one that issues the certificate. Certification bodies cannot be doubling-up as unofficial sales agents working on commission. In short, the same level of transparency and regulation existing in the other sectors of the general food industry must also be applied to the Halal food sector. It is inevitable that new accreditation authorities will appear in the more dynamic and forward-thinking areas of the Halal market. They are likely to encounter resistance from some quarters, but unless genuine accreditation structures are put in place, the process of Halal regulation will remain a lawless one. And there is a nice paradox if ever there was one! There are some genuine moves among some certification bodies to group together and form larger umbrella organisations, and it is to be hoped that these moves will produce beneficial results. It is, however, too early

to ascertain to what extent these new moves will bring about positive changes of the kind we have described. As always, time will tell. The Finance The question as to why the Islamic Financial institutions are not investing in the Halal industry is still an unanswered one. I gave a paper entitled “Halal food and Islamic Finance – Natural Allies” at the International Islamic Finance Forum in Dubai in 2004. The only person in the room, other than me, who seemed to be genuinely excited at the suggestion was the Event Organiser, who recognised, correctly, that there was a ‘Halal event boom’ waiting to happen. A leading Halal food manufacturer in the USA told me recently that when he went looking for funds for the expansion programme for his business, he was told by the Islamic financial institutions that the food business was considered too risky; they preferred real estate. In the wake of the collapsing US real estate market they may have reassessed that opinion, but it certainly demonstrates the limited thinking and profound lack of imagination that exists in the world of Islamic Finance. At the inaugural World Halal Forum in 2006, the Islamic Development Bank stated that they would be creating a fund to help develop the Halal industry in the OIC member countries. Four years later, perhaps they are still ‘in conference’ on the subject. Indeed, the lack of interest in the Halal food industry from the Arab heartland, other than the parts they can roast on a spit, is still conspicuous. Do we really need the world’s tallest tower or the largest race-track? An investment roughly equivalent to one horse would probably The Halal Journal | May+June 2010 |

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For the general public, the eco-ethicalenvironmental issues are also now characterdefining tags. They also speak to our identity, we choose to be on one side of that green line or the other; they speak to our desire to be good to ourselves, to each other and to the world.

The Halal Journal | May+June 2010 |

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be enough to create the world’s first ‘designed-from-scratch’ Halal slaughter line that could end the speculative and time-consuming arguments about stunning and mechanical slaughter, and simply build a line that is designed to do the job in the best way. What IS the best way?…let’s find out. How hard can that be? How much would it cost? Probably, not much more than the gold fittings in some of the Royal bathrooms around the Muslim world. So what might be the trigger for change in all of this complex equation? How about consumer power? The Public In many ways, the consuming public are the most important and most overlooked component of the power dynamics of the Halal market. The moment when the mouthful of Halal food is consumed is actually the pivotal moment in the whole equation; it is the point of the entire process. All of the above-mentioned power players are all working (albeit with varying agendas) towards the moment of consumption, and without it, the rest is meaningless. The recognition of the importance of the Halal consumer will generate a new ‘gear’ to drive the Halal market to the next level. Understanding the consumers’ needs and priorities, both Muslim and non-Muslim, will require study and research, but the results will be a new level of product and service development, plus, importantly, an entirely new approach to marketing. As the standards development agencies struggle to keep up with the pace of industrial development, and as new Halal standard modules appear to fill the ‘farm-to-fork’ spectrum, another development will appear along side the legal requirements; issues to do with identity. Halal and Tayyib are, properly speaking, inseparable if we are to take a holistic and comprehensive view of the parameters for consumer products. Either

one on its own is not enough; together they will create a new market niche that is a fusion of specific religious compliance with broader eco-ethical concerns. For the Muslims, Halal food is an identity issue as much as anything else. Food is a core human concern, the deep human resonance of ‘mama’s home cooking’… nothing ever really comes close. It shapes who we are in a fundamental way. Eat Halal, Think Halal, Live Halal is already a T-shirt. For the general public, the ecoethical-environmental issues are also now character defining tags. They also speak to our identity, we choose to be on one side of that green line or the other; they speak to our desire to be good to ourselves, to each other and to the world. The Quranic injunctions that give human beings responsibility for the welfare of the earth and everything on it has somehow, so far, been more readily understood by the non-Muslim population. But for a new generation of Muslims, exposed to Western ideas and thinking processes, coupled with a sincere desire to take on Islam in a way that is genuinely transformative, these green concerns and Halal/ Tayyib concerns will merge into a more comprehensive fusion of ‘deep green’ awareness. We are about to turn the page and embark on a new chapter in the Halal market. New awareness, new technologies and deeper understanding will drive this market into the next phase. Fasten your seatbelt; Halal 2.0 will not be boring. Finally, for all the analysis of the dynamics of power, the evolution of the industry, the integrity of the Halal certifiers and economic policies, the final truth is that this affair belongs to Allah, and it will unfold according to His Will, and by His Power. The more we understand the reality of this, the greater our success. hj

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masta ad THJ.indd 1

12/24/09 12:10:59 AM


Halal Skincare:

Beyond ...

Words by Dr. Mahvash Hussain-Gambles

The saying for chocolates, “A moment on the lips = a life time on the hips!�, may be just as applicable to cosmetics, considering women on average may eat several tonnes of lipstick during their lifetime; up to five pounds per year of chemicals may get absorbed into the body as a result of putting on cosmetics every day and up to 60 per cent of what we put on our skin can get absorbed into the body! The Halal Journal | May+June 2010 |

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e scan food labels for ingredients, but how many of us take the time to do the same with personal products? Personal care products include skincare, body care, shampoos, hair conditioners, hair dyes, colour cosmetics, and other personal hygiene products such as antiperspirants, toothpaste and mouthwash. Many of these contain natural ingredients, but many can also have questionable (Mashbooh) ingredients with regards to health and religious compliance. With an increasing global demand for Halal personal care products, and the complexity of ingredients used in these products, it would be naive for a Muslim consumer to look for just ‘pig free’ ingredients, which frankly are now few and far in between, thanks mainly to the Vegetarian/ Vegan lobbying around the globe. For example, there are now plenty of Vegetable and Marine-based collagen alternatives around. The demand for non-animal personal care ingredients also stems from people who are increasingly concerned about the ‘chemical nasties’ they may be putting on their skin, as well as diseases in certain animal species, such as BSE or mad cow disease in cattle, and foot and mouth disease and avian flu in poultry. This has prompted many consumers to buy animal-free personal care products and supplements; meaning, ingredient manufacturers are now having to develop synthetic or vegetarian alternatives. For a Halal consumer, the focus should also be on the non-active ingredients, which are used to ‘carry’ active ingredients in a formulation, such as emulsifiers (for mixing oil with water), preservatives (many of which are banned in the European Union for health reasons), colouring, foaming agents, and even packaging. Some of the more commonly used personal care ingredients with dubious origins are discussed in this article. It is important to remember that defining what is Halal, is far more complex than just ‘pork-free’ ingredients and Halal slaughter, and this can often be overlooked due to the fact that the focus has been largely on Halal food. There are a large number of religious questions associated with deciding what is or is not Halal. Perhaps, the most important factor in deciding whether or not a product or ingredient is Halal is the premise of preserving human health. One of the most basic premises in Islam is to

preserve human well-being, which inarguably is of utmost importance to Allah. Based on this, is it Halal to use skin lightening ingredients such as Hydroquinone or Kojic acid, when Hydroquinone is banned from cosmetics in the EU because it causes skin cancer, and Kojic acid has been shown to cause cancer in laboratory animals? Technically speaking, both these ingredients can be classed as Halal due to their non-animal source origin, however, in terms of religion, is it Halal for a Muslim to use ingredients which clearly can cause harm to their bodies? Looking good on the outside has never been so hazardous for our health and well-being. Thousands of personal care products and cosmetics have come under the microscope and some have now been banned in Europe. These include phthalates, commonly found in many personal care products including deodorants and perfumes, and linked to reproductive abnormalities and ‘feminising’ boys. They may appear on the ingredients list as dimethyl phthalate (DMP), diethyl phthalate (DEP), butyl cyclohexyl phthalate (BCP), di-n-pentyl phthalate (DNPP), and so on. Phthalates are not of animal origin. Similar to phthalates, many other petrochemical-based ingredients can be classed as Halal due to their non-animal origin, but they also tend to be fat soluble and can go through the skin barrier, into your blood stream and end up being stored in your body’s fat cells. Have you ever wondered why following an aggressive weight loss programme, you end up with skin eruptions? It gets worse; these chemicals can also

get stored in the fatty breast tissue, and passed onto your baby through breast feeding. As you can see, identifying dubious (Mashbooh) or potentially Haram ingredients in the long list of personal care ingredients is not very clear cut. Next, I will attempt to provide some basic information on modern personal care ingredients; explore some which may be of dubious nature and potentially Haram. As there are thousands of ingredients commonly used in personal care products, it is beyond the scope of this article to list them all. It is also impossible to ascertain whether they are of plant or animal origin. This information can only be obtained from the manufacturer of each ingredient, as well as a credible Muslim Halal certification body. ‘Alcohols’ in skincare have also come under investigation in the West, as most are petroleum derivatives and can be toxic. It takes a chemist to really know which of the ingredients in the personal care products, containing ‘alcohol’ are actually intoxicating and therefore Haram. If we go through some of the common ingredients with alcohol in the name in more detail we can see the complexity of the situation. Benzyl alcohol is produced naturally by many plants and is commonly found in fruits and teas. It is also found in a variety of essential oils including jasmine, hyacinth, and ylang-ylang. It is used as a bactericide (kills bacteria) in personal care formulations and it does not cause intoxication, therefore it is classed as Halal, even though its chemical name contains the word ‘alcohol’. Stearyl alcohol, cetearyl alcohol, myristyl alcohol, The Halal Journal | May+June 2010 |

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Glycerine is perhaps one of the most commonly used ingredients in all personal care products after water. It is used as a humectant (attracts water to the skin) in anything from skin creams to shampoos and tooth paste. Glycerine can be obtained from vegetable source or can be of animal origin.

The Halal Journal | May+June 2010 |

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behenyl alcohol and cetyl alcohol are emulsifiers, which mean they help the oily ingredients in the formulation dissolve in the water phase to give the cream a smooth consistency. They tend to be white, waxy solids and are known as fatty alcohols, which occur naturally in some plants and animals. These could be Halal, even though the name suggests otherwise, because if ingested, they are not intoxicating. Cetyl alcohol for example is a hard wax obtained usually from palm oil. However, there is no way of knowing if they are originally derived from animals or vegetables and thus a well recognised third party Muslim approval is of great importance. Glyceryl stearate is another common emulsifier and imparts a smooth feel on the skin. It is made by reacting glycerine with stearic acid (both can be of either animal or vegetable origin) and unless the source of both glycerine and stearic acid is known, glyceryl stearate can also be of doubtful origin. Phenoxy ethanol is a commonly used bacteriocide in many preparations, including baby products as it is classed as fairly safe and gentle. Phenoxy ethnol is a thick syrup in appearance and made synthetically from petrochemicals, therefore it can be argued as Halal. Personal care products containing these types of alcohols are still “alcoholfree”. The reason for the apparent confusion is the difference between the terms used by scientists and those used by the general public. To the layman, beer, wines, spirits, and so on contain alcohol; to the scientist, they contain ethanol. To the layman, alcohol is a single

substance, but scientifically speaking, the term describes a whole group of chemical substances or ingredients with differing properties. Simple alcohols, like ethanol, are defined as having a general chemical formula of CnH2n+1OH, where n equals any number from 1 upwards. If n=1, the compound is CH3OH known as methanol (often used as anti-freeze) or methyl alcohol. In the case of ‘alcohol’ (ethanol), n=2 and the formula is C2H5OH. This group of chemicals is also known as ‘aliphatic alcohols’ and they cause intoxication when ingested. Furthermore, there is a religious ruling of its prohibition if ingested, and therefore it is classed as Haram. In summary, the layman’s ‘alcohol’ means ‘ethanol’, and products that are “alcoholfree” are actually “ethanolfree”. All the above products with names ending in alcohol normally are not edibles that can be consumed, and as such they are not considered khamr (wine). Hence, generally Fatwas consider them as Halal for use in skin care products. In some skin care products, ethanol is listed on the label as ‘alcohol’ or ‘alcohol denat’, and since it causes intoxication, we believe that it should be considered Haram. nti-ageing products segment is the fastest growing in the personal care industry. One of the more commonly used anti-ageing ingredients in cosmetic preparations is collagen or hydrolysed collagen. Apart from skin application, it is also used to strengthen nails and hair. Collagen is derived from the bones and cartilages

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of slaughterhouse animal carcass such as cows, pigs and sheep. It can also be produced from fish bones, and in this case potentially acceptable by Muslims. Marine-based collagen is a safer alternative for Muslims. Botox on the surface appears to be Halal due to its origin being from a bacterial toxin; however, it is usually combined with pig-derived ingredients for delivery as an injectable. Acetyl hexapeptide or the commonly known Argireline has the same function as Botox. It protects the skin from wrinkling and ageing by acting as a natural muscle relaxant, but is vegetarian, and therefore a good alternative to Botox. ther anti-ageing ingredients include hyaluronic acid, which is derived from sodium hyaluronate and is available in a form which is suitable for vegetarians. However, sometimes hyaluronic acid is derived from chicken or other animal sources. Only the manufacturer, with a third party Muslim organisation approval, can advice about the religious status of any of these ingredients. Glycerine is perhaps one of the most commonly used ingredients in all personal care products after water. It is used as a humectant (attracts water to the skin) in anything from skin creams to shampoos and tooth paste. Glycerine can be obtained from vegetable source or can be of animal origin. It is best to go for Halal, Vegetarian or Vegan certified products if there is any doubt as to the origin of glycerine in your personal care products. Polyethylene glycol (recognisable as PEG in the ingredients list) and its derivatives butylene glycol, ethoxydiglycol and dipropylene glycol, and so on, are commonly used to help stop water and oil from separating. They are manufactured chemically and therefore, there should not be any concerns about their Halal status, but they are associated with skin sensitivities, toxicity and even potential carcinogenicity. When reacted with stearic acid (either animal or vegetable source), they can form other ingredients used in personal care products such as sorbitan stearates, sorbitan oleate, sorbitan palmitate and sorbitan tristearate, and so on. As the origin of the stearic acid may be from animal or vegetable, these ingredients are dubious and should be avoided or would warrant further investigation by The Halal Journal | May+June 2010 |

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contacting the manufacturer or a Muslim Halal certifier. Personal care products also contain silicones to impart a soft feel/ touch to the formulation and subsequently the skin or hair. Examples of silicones include dimethicone and methicone. They are considered Halal as they are silicone (mineral-based) and are chemically manufactured. Other ingredients used in personal care industry are paraffin, or other micro crystalline waxes. These are synthetically manufactured ‘butters’ and not likely to be

of concern from a Halal point of view. They are cheaper alternatives to natural cocoa butter or Shea butter and give hardness and used as an emollient in creams and lipsticks. Lanolin also falls in this category, and this is natural as it is obtained from the wool of sheep and is considered Halal. Other ingredients worth mentioning are surfactants or foaming agents used in soaps, shampoos, detergents and even toothpaste. Sodium laureth sulfate, or sodium lauryl ethyl sulfate (SLES) and its derivatives, are found in many

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As the origin of the stearic acid may be from animal or vegetable, these ingredients are dubious and should be avoided or would warrant further investigation by contacting the manufacturer or a Muslim Halal certifier.

personal care products and are made by mixing sulphuric acid, monododecyl ester, and sodium salt. Monododecyl ester may be from coconut or palm oil, or from animal source. Because of this, it is considered doubtful or Mashbooh. Traditional soaps can be made from tallow, which is fat from animal source (usually cows, sheep or pigs). Vegetable alternatives originating from palm or coconut oil are readily available; if in doubt it is advisable to use Vegetarian-approved products. astly, we need to look at the ingredients which are used as preservatives in many personal care systems. All personal care formulations (unless they do not contain any water) need to be

adequately preserved to keep the quality and extend shelf life. Those which do not contain preservatives can be dangerous as the product can grow fungi and bacteria and there have been cases of people going blind with a particular type of bacteria which grows in unpreserved face and eye creams. Commonly used preservatives are listed below, and to the best of my knowledge, are all from synthetic origin and suitable for Vegetarians and Vegans. However, I am personally doubtful whether some of them should be considered Halal due to their scientifically documented harmful nature. • Butylated hydroxyanisole (BHA) and related chemicals are also nicknamed gender benders because they mimic the female hormone estrogen. • Methylchloroisothiazolinone and methylisothiazolinone can trigger an immune system response that includes itching, burning, scaling, hives, and blistering of skin. They can also trigger an immune system response that includes asthma attacks or other problems with the lungs and airways. • Parabens are a family of chemicals including methyl paraben, ethyl paraben, propyl paraben, butyl paraben, and isobutyl paraben. There are scientifically unfounded rumours that they may mimic female hormones, but there are plenty of scientifically credible studies to show that they are amongst the safest and gentlest preservatives around and do not mimic female hormones. They are of chemical origin, and are naturally found abundantly in fruits and vegetables. • Imidazolidinyl urea and

diazolidinyl urea are cheaper preservatives and work by slowly releasing formaldehyde in the formulation to kill any bacterial or fungal growth. Please note that formaldehyde is a known carcinogen and a banned substance for use in personal care preparations in Europe. In this article, I have given a brief overview of commonly used ingredients in personal care products; this is just the tip of the iceberg. Even for chemists, it is virtually impossible to tell the origin of the ingredients unless they are trained as cosmetic scientists. For consumers, the best advice is to buy certified Halal, Vegetarian or Vegan products – the latter two may however contain alcohol. Contacting the manufacturer or a credible Muslim Halal authority with good knowledge of industrial chemistry are other options. It appears that current views on the use of Halal personal care products are almost synonymous with the Halal food guidelines, with a focus on Halal slaughter and the type of animal used. Clearly for the personal care market this should not be the main focus and there is a need to be far more encompassing. For me personally, Halal guidelines should also embrace purity, quality and personal safety. hj *Note: The author would like to thank Dr. Hani Mansour Mosa Al-Mazeedi from Kuwait Institute for Scientific Research (KISR) for his helpful comments on this article. *About the Author: Dr. Mahvash Hussain-Gambles (Bsc, MA, PhD, MRSC, Dip Hom) is the founder and formulator of Saaf Pure Skincare UK. Dr. Mah has a Doctorate in Clinical Trials (Leeds Medical School, UK), an in-depth knowledge of healing plants and evidence-based medicine due to her formal training in Homeopathic Medicine, first degree in Pharmacology and later a Masters Degree in Health Service Research, with work experience in the field of cancer medicine. She is highly published in her field and also a Member of the Royal Society of Chemistry and the Society for Cosmetic Scientists. The Halal Journal | May+June 2010 |

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Banks: the Real Rulers of our world?

The Halal Journal | May+June 2010 |

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Words by Radha Vengadasalam

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The world

is no longer controlled

The incessant and ever hungry need for year-on-year increase in profits and ego trip in wanting to be the biggest and most influential have turned banks into a modern weapon capable of wiping out nations and bringing them to their knees.

by political parties or superpowers but in reality, controlled by banks and financial institutions. Money makes the world go round and round; now apparently, it can even stop it.

I

n my schooldays, my dad took me to the bank whenever he needed to do a transaction. I used to wonder in bewilderment at how long banks made us wait and how complicated the process was to withdraw the money we have deposited in the first place, and how little respect they had when dealing with customers. My interest in banking shenanigans and moaning about lop-sided treatment must have started then. 30 years on, I still wonder the same; in reality, the banking system has been transformed into an advanced state-of-theart with internet banking and what-nots, but in actuality, the respect for customers, and more importantly, the need to safeguard the very basic essence of the financial system remains the same if not deteriorated. The take it or leave it attitude, one-sided contractual terms which regulators are often not bothered to object to, anti-customer practices such as requiring us to deal with an approved panel of lawyers and other professional bodies, illogical and unnecessary additional work such as requiring additional documentation and charge on property when facility amounts are increased although the original security given had no maximum value. Over the years, my many head locking with banks, both in personal and business matters, will be a good fodder for

some enlightening publication at some point and will be interesting read in my old days. The incessant and ever hungry need for year-on-year increase in profits and ego trip in wanting to be the biggest and most influential have turned banks into a modern weapon capable of wiping out nations and bringing them to their knees. I don’t think anyone should have any objection to making money, but isn’t billions a year enough? Why the need to keep pushing and taking risk and coming out with convoluted schemes? What good will come out destroying the base that one makes its living from? Banks have become such an intrinsic part of modern society that governments bend backwards to salvage it from not failing. Letting one or two go under may be a good thing in my opinion. No modern entity draws such revulsion and negative feelings, yet continues to be over protected by nations and citizens alike who fear banking failure to be a bigger evil than banking unfriendly deeds. One banker recently had the audacity to declare that they are doing god’s work in raising capital and assisting in company growth. Notwithstanding the blasphemous nature of such claim, he got this the wrong way around. It is the hardworking citizens and companies who have assisted in the bank’s growth until it has become such an out-of-control mammoth egoistic entity, devoid of any tendency, as well as complete The Halal Journal | May+June 2010 |

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amnesia, of its original objective for its birth, which is to help its depositors and customers grow. In my experience, sometimes it is the lack of business experience among those deciding on customer needs that makes it worse. Lending based on collaterals cover may be good for the bank to protect their lending but may not be good for business growth where a viable business proposition with excellent cash flow is rejected due to lacking in collateral cover. This does little for economic expansion and maintaining financial stability. Those who are evaluating must know business inside out, it is more than just looking at numbers. Experts need to be roped in. All bankers, especially those who are advising companies on financial schemes and options must have a reasonable accounting knowledge – just basic finance is not enough as mistakes can be made. There is this celebrated story about a merger where the CEO was boasting how the synergies is going to drive revenue and profitability through the roof, but when the year ends and results came, it took a nose dive. The reason being, goodwill arising out of combination had to be written off, hence the reduction. Obviously this is not a cash item but knowing the accounting treatment would have meant structuring the merger differently and saving some red face. These bankers brought financial Armageddon closer. The modern way of life was seriously jeopardised and months on, the main players have learned little. It’s business as usual. The plans are already being made in many boardrooms for the next crisis. Sic. It may be a good idea for the banks to indeed play god. They will share the joy as well as the grief of their customers. Be happy when customers are doing well and be concerned when customers are going through a hard time; not pull the blanket off when it gets chilly, but give a thermal jacket instead. Many banks started of as building societies where like-minded citizens came together to pool their funds and make financial transactions happen. That’s long forgotten now.

E

xecutive remuneration based on short term profitability has driven CEOs and senior management to be reckless, resulting in long term loss, both to the bank and customers. Somehow, the interest of few individuals has surpassed the thousands of shareholders and millions of customers. Some of these excesses and imbalances are products of government regulation and restrictive practices. The market needs to be opened up. Banks earn a lot of fees from nonlending sources, advisory and coordinating work. Being a chartered accountant, I have always watched in envy and frustration on the sheer amount of fees and commission earned in capital-raising exercises by the banks and totally skewed correlation between effort and reward as compared to other professionals involved in the same exercise. Accountants and Lawyers contribute significant amount of input and background materials and opinion as well as undertake great risks for giving such advice but earn very little fees in return. On the other hand, banks which pretty much collate this stuff from accountants and lawyers do a nice covering letter The Halal Journal | May+June 2010 |

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The inability to pay will still result in repossession and banks ending up with a glut of properties that they will not know what to do with.

and submit to the regulatory body for approval, earn a lot more, not in proportion to the risk and efforts undertaken. Now, why is this so? It is because regulations prohibit accountants and lawyers from submitting this submission to these regulatory bodies. There are no valid reasons for this, except that historically, that has been the case. There is no specialist knowledge involved, such as giving an audit opinion or legal opinion, so anyone should be able to do it. Some might retort that conveyance matters should not need lawyers and auditing need not be done by accountants, but we shall leave that to another discussion thread. It has been touted that unless banks follow socially responsible lending practices, there will be more crises in the future. It has been touted Islamic financing is the answer to avoiding these crises. I am a bit pessimistic that the answer is that simple. Socially responsible lending or Islamic financing is not enough. What is needed is socially responsible behaviour in the first place. What this means are banks must act and behave as it is their duty to protect and serve the society they operate in, not just to milk them dry and leave them hanging for more. It is not sufficient that the financial product is Halal or Shariah-compliant. The whole banking behaviour and attitude must be Halal. The primary motive of lending should be to assist customers, not to make profit for the bank. There have been criticisms that many Islamic products are just mirror images of the conventional counterparts and merely give the illusion of not being so. Difference of opinion among Shariah scholars on various key issues also poses a risk that it may not be enough to fully address the questions coming out of this crisis. Personally, I don’t think Islamic financing can avert crisis fully, as although the payable is fixed and backed by asset, it does not mean that economic crisis

will not hit it. The inability to pay will still result in repossession and banks ending up with a glut of properties that they will not know what to do with. Maybe we have yet to discover the exact application of Islamic financing in the spirit it is truly intended, something time will resolve. The application of Islamic financing that espouses the sharing of risk is a good start; we just need to push it further. I believe we need to apply the wholesome Halal concept broadly both in substance and form. Banks need to treat customers as “god”. Sacrificing few billions in profit to steer customers out of trouble will not damage a bank but will ensure goodwill as well continuation of a community. Off course damage via incompetence in managing business should not be covered, those breed should be allowed to fade into oblivion. Banking should not be a form of gambling but more a considered conscious decision to expand economic activity. Although, of course the lack of fancy and obnoxiously named instruments that are based on hot air and not backed up by asset will be absent from Islamic financing, and this reduces considerably the avenue for foolhardy and devious manipulation by banks in pursuit of those 24-month bonuses for just rolling money around. I would love to run a bank applying these concepts. I would not be too bothered if this year my bank makes less than last year. Balancing the needs of shareholders and customers will not be easy but at least we must try and do that, not just decide for shareholders all the time. Of course when shareholders are management, it gets extremely hazy trying to keep a balanced view. This is where Islamic finance must blaze the trail, not only in eradication of ‘interest’ but more on method and approach as well as philosophy. These can be done; we just need the heart and soul for it. hj

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fastrack

Australasia •• Mello Apps Limited launched Halal Scanner for the iPhone Developed by Mello Apps Limited (located in Auckland, New Zealand), Halal Scanner 1.0, with an Innovative Ingredient Scanner, takes a photo of the ingredients label of a food product and determines the Halal status of any food additives contained in the product automatically. Users also have the option of searching through a database of food additives on the iPhone instead of using the iPhone camera. Muslims all around the world find it difficult shopping for food products with such a large variety of additives in food products these days. Halal Scanner is an innovative one-of-a-kind Islamic iPhone application that aims to solve this problem by providing a database of food additives that users can either search or scan using the iPhone 3GS camera. “I remember how frustrating it was going to the supermarket and trying to figure out if the numbers on the ingredients were Halal. It was out of this frustration that Halal Scanner was born,” said Faizal Mohammed, inventor of Halal Scanner. The core features of Halal Scanner 1.0 are

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‘Scan’, ‘Search’, and ‘Browse’. With the ‘Scan’ feature, users can take a photo of the ingredients label using the iPhone camera. The user will then be prompted to crop the photo to select the area containing the ingredients. Upon cropping, Halal Scanner 1.0 will start processing and come back with the Halal status of the food additives found in the product. Users are prompted to check all other ingredients not found in the scan manually. The ‘Search’ and ‘Browse’ features allow the user to search through a database of food additives. This is done entirely on the iPhone and no network connection is required for any of the features in Halal Scanner.

Device Requirements: • iPhone 3GS • iPod touch, iPhone 2G, iPhone 3G with limited features • iPhone OS 3.1.3 or later • 4.5MB Pricing and Availability: Halal Scanner 1.0 is currently selling at the introductory price of USD1.99 and is available exclusively through the App Store in the Utilities category. Review copies are also available upon request. For more information, log on to www.halalscanner.com or watch the demonstration video on YouTube at www.youtube.com/ watch?v=mEhh69CjcQU.

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Europe •• The French Halal Market By Nawel Dehiri **Note on the author: Ms. Nawel Dehiri is currently a Masters student at the ISC Paris Business School. She is pursuing her Masters in Marketing and International Business.

According to a study programme on the Halal market by Solis, a Research Institute that deals mainly with processing complex media data such as campaign results and ethnic survey among others, there are five million Muslims in France with 70 per cent originating from Maghreb countries (Algeria, Morocco, and Tunisia. From the same survey, it was estimated that the turnover of the Halal market in 2010 will reach EUR5.5 billion, with EUR4.5 billion for home consumption (in circuits of Hyper/supermarket and traditional stores) and EUR1 billion for out-ofhome consumption with especially fast food. Our analysis focused on four main regions where the majority of immigrant population in France is located (the North, the Paris region – Ile de France, Southeast – Provence, Alpes, Côte d’Azur, and the Rhône-Alpes region), where we conducted more than 1,500 interviews. Halal food is not a recent phenomenon in France. In the 1980s, Halal stores arrived in areas with large Muslim populations, but what is new is the shelving of Halal products in retail outlets (i.e. supermarkets and hypermarkets). According to Solis, the French Muslim customers purchase their Halal meat mainly from Muslim butchers, which represent the most

important circuits of Halal meat purchased in France with more than 90 per cent, whereas the hypermarkets and supermarkets attained only approximately 20 per cent (see graph). To add to this, numerous efforts have been done to expand the offer of Halal products in the hypermarkets and supermarkets in order to satisfy the consumer needs and demand. Nowadays, Muslim customers can find a wide range of Halal products in this circuit, with products such as soups, ravioli, pizzas, baked dishes, lasagne, and so on. There are not only Muslims who purchase Halal food; even the non-Muslims are attracted to purchase Halal products, perhaps because of the price or the healthy values promoted. This market represents a real growth opportunity for distributors, manufacturers, and industries, especially in this period of crisis, and will continue to grow, thanks to an increase in demand with the arrival of the generations after the Baby Boomers – who are the second and third generations – of immigrants living in France. They are young, and 56.3 per cent of Halal products consumers are below 40 years old. They are used to eating Halal food with their parents, and to purchase their food in super/ hypermarkets. They like to buy their milk,

Solis’ results: Attitude and purchasing behaviour of customers from Maghreb countries • More than nine out of 10 Maghrebis buy Halal products • The purchase of meat remains dominant at 99 per cent. Other products such as sausages, represent also a high percentage (70 per cent) from total products bought • Between February and December, convenience food in Paris region grew up to 51 per cent. This shows that Muslim customers want to buy packaged ready-to-eat Halal food products • Purchase of Halal meat is concentrated on traditional channels such as Muslim butcheries. Hypermarkets and supermarkets only attain about 20 per cent out of total Halal meat sales in the country

their water and also their Halal food in the same place. This represents a real opportunity for the distributors in France, which is why many of them are looking at launching their own brand, just like what the Casino Group had done before with their own Halal brand, “Wassila”. Carrefour too does not want to miss out on this opportunity and had announced that they will launch their own Halal brand soon. National brands like Fleury Michon, Labeyrie, and Herta have already launched a range of Halal products. We can say that today the French Muslim customers are targeted just like consumers of bio-product ones. Some people in France may look at the scenario of Muslim customers looking for Halal products as a sign of religious adherence, but quite the contrary, this represent a sign of integration, because Muslims are considered as a targeted

consumer group and many brands and distributors are interested in offering this kind of products to this group of people. The fast food restaurant, Quick, faced complications based on people’s misconception of Halal and religious adherence when they offered an all-Halal menu in eight of their 372 restaurants in France to test the market. On the issue raised by locals, Quick explained that they only offer Halal products for economics reasons; because Halal represents a promising market. The arrival of Halal products changed people’s views. In the beginning, it was difficult for supermarkets/ hypermarkets to display that they are offering Halal products, but now promotion is openly displayed just like kosher or organic products – because now everyone knows that Halal is a significant market in France, and in other parts of the world. The Halal Journal | May+June 2010 |

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fastrack

Europe •• Volys Star ready for new markets

After pioneering with Poultry Cold Cuts in Europe some 40 years ago, Volys Star now also enjoys some 20 years of experience in the European Halal Market with its Premium Products Range. France, the biggest market for value-added Halal products in Europe, has become the second home market for this Belgium based company. Hence, not surprisingly, Quick France knocked on Volys Star’s door when they were developing their Halal Burgers. Indeed, someone had to replace the slice of bacon in their bacon-based burgers. As it was not the first time that Volys Star developed a Halal equivalent for a pork product, its Product Development Department came up with a new product fully matching Quick’s stringent requirements. Koen De Praetere, General Manager of Volys Star said, “We are very proud to be able to assist Quick France with the roll-out of their Halal burgers and Halal outlets in France.” Because market The Halal Journal | May+June 2010 |

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potential for Premium Halal Products is still rather limited in Europe, Volys Star has meanwhile eyed other markets. The Middle East looked attractive as it was not too far away and its markets had a real demand for Premium Products. After participating in Gulfood in 2006, Volys Star started finding its way on the Middle Eastern markets. “Soon, we were supplying customers like Emirates, Qatar Airways, next to building up a presence in the local supermarkets such as Carrefour, Bou Khalil, Géant and the like,” Mr De Praetere added. By the end of 2009, Volys Star realised a new technological breakthrough. Mr. De

Praetere explained, “Indeed, our Premium Products are traditionally made using simple and pure formulations. No preservatives are used for prolonging shelf-life. After years of research, we found a new way to significantly prolong our products’ shelf-life without compromising whatsoever on product quality or taste.” This new product line has been received very well and is now selling in the Lebanon, Egypt, Syria, Qatar, Jordan, Bahrein, Oman and lately also at the Danube Supermarket in the Kingdom of Saudi Arabia. Not only successful in the Middle East, this same product also found a place in Switzerland,

another European market that favours high quality products. Mr. De Praetere explained, “Premium Quality Products can only be produced from Premium Quality Raw Materials which is the reason why Volys Star is still slaughtering turkeys today. By slaughtering ourselves, we assure high raw material quality. Hence, we are very proud for having received the Halal certification by JAKIM (Department of Islamic Development Malaysia) earlier this year, for our Turkey Slaughterhouse. So now, Asian markets have also come within our reach with first shipments to Malaysia, Indonesia, Singapore and India on their way.”

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Europe •• A New Job Revolution – Islamic Finance and Industry

Halal Industries Group plc is a UK company that has launched a dedicated Shariah job site, www. shariaappointments.com, to cater to the ever growing demand for Shariah knowledge workers from financial services to the Islamic Industry. The Islamic finance industry is considered to be around USD1.03 trillion as per the latest HSBC industry statistics report released at the Reuters Islamic Summit in February 2010. A recent survey showed that the barrier for entry for most financial institutions in the US, UK and Europe into Islamic finance was the dependency on a handful of Shariah Scholars and expertise and the severe lack of knowledge-based workers in Shariah product development and management among the mainstream workforce. The environment of distrust in conventional products has given Islamic finance a unique opportunity. Confidence in Islamic products is now higher because there are easy-to-understand

underlying assets backing each transaction. Moreover, Islamic finance’s record of innovation and adaptation over the past four years, demonstrates its ability to capitalise on the temporary weakness of conventional products. Nevertheless, for Islamic finance to capitalise on the opportunities presented by the recent financial crisis, it must overcome the skills shortage that has become evident in the past four years of growth. Islamic finance, unlike conventional finance, adheres to strict Shariah principles. This needs high quality financial reporting and enhanced disclosure of financial information. There is also a need for a centralised Shariah supervisory board which is independent and consistent. A shortage of expertise and a lack of regulatory harmonisation among Shariah principles are the biggest obstacles for growth in the Islamic finance sector, according to a new report published by the British accounting firm, BDO.

In spite of such obstacles, most of the executives in the Islamic finance sector still see it growing by as much as 20 per cent in the next three years because of a lack of confidence in the “conventional” banking sector. The IMF says the number and reach of Shariah-compliant financial institutions worldwide has risen from one institution in one country in 1975, to more than 300 institutions operating in more than 75 countries today. Over the past year alone, Shariah-compliant assets across the globe have grown by almost a third to more than USD639 billion, according to the latest analysis of the industry from the Banker magazine. Given the current trends, the Islamic finance sector has broken through the USD1 trillion mark in 2010. Here in Britain, the Financial Services Authority has licensed five stand-alone Islamic banks – including the Islamic Bank of Britain, which has been reporting a significant increase in the number of non-Muslim customers applying for accounts since the start of the financial crisis. Bank officials say the numbers are growing because Islamic finance offers a “safer option” for savers and investors, regardless of faith. Just late last month, the government announced the launch of the first Shariahcompliant pension fund, and officials are now even considering using special interest-free, asset-backed

Islamic bonds, or Sukuk, to help fund the building of the athletes’ village for the London 2012 Olympics. In America early last month, the US treasury department hosted a course for policymakers called “Islamic Finance 101”. This followed a visit to Saudi Arabia by the treasury deputy secretary Robert Kimmitt, during which he confirmed that Shariah-compliant finance is now firmly on his country’s agenda. “The US government is studying the salient features of Islamic banking to ascertain how far it could be useful in fighting the ongoing world economic crisis,” he said. There are a number of key challenges in the development of Islamic finance which can be summarised under a number of headings: • Inadequate legal and regulatory framework; • Inconsistent financial reporting and inadequate accounting framework; and • Insufficient Shariah convergence. Are hard numbers or projections available for employment in Islamic finance? The size of the market is unknown. However, the growth of the Islamic investment funds suggests that this sector is growing at a phenomenal pace. “The market is simply in too early stages to fathom,” said Mahesh Jayanarayan, CEO of Halal Industries Group plc, “The only show stopper to growth of this sector could be the lack of expertise.” The Halal Journal | May+June 2010 |

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fastrack

Europe •• Energy-Drinks: SternVitamin supports ideas for innovative products

Energy drinks are one of the fastest-growing segments worldwide in the field of non-alcoholic beverages. The booming markets are chiefly the USA and Western Europe. Nowadays, these power drinks are by no means restricted to the young target groups. Market research shows that further consumer groups can be reached with suitable strategies for new products. SternVitamin GmbH & Co. KG assists manufacturers of energy drinks with individual premixes. These can contain a specific composition of vitamins, minerals and plant extracts as requested by the customer. The great advantage: the tailormade premix is very easy and economical to handle. As a rule, energy drinks contain caffeine, various B vitamins, inositol and the amino acid taurine, that has antioxidant properties and is said to heighten the effect of caffeine. Besides premixes with all the basic active ingredients, SternVitamin (a member of the SternWywiol Gruppe), offers ready-to-use blends that only have to be mixed with water, processed and filled. For small companies, especially, the The Halal Journal | May+June 2010 |

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latter offer a simple and economical solution. Plant extracts like guarana, ginseng, ginkgo biloba and yerba mate can be included as well, to give the drinks even more value. “Customers are completely free in their choice of nutrients. Everything is possible. We offer the whole range of vitamins and minerals that can be used to fortify drinks,” said Verena Budnick from SternVitamin’s development team. The ingredients are chosen in such a way that the end products meet all the requirements in respect of clarity, solubility, colour and taste. The raw materials used by the company all have excellent quality and stability. The substances in the premixes are dosed individually to the customer’s specifications and no longer have to be weighed in separately. The premixes are also available in Halal (certified by Islamic Food Council of Europe or IFCE) and Kosher quality. Close cooperation with customers SternVitamin cooperates very closely with its customers’ development departments to realise ideas for new products.

At the modern Applications Technology Centre in Ahrensburg, near Hamburg, the production process and the end product are first simulated, and then prepared for marketing together with the customer. “A premix may go through several stages of development before it is finally ready for production or the market,” explained Budnick. “The formulation is finely tuned to ensure optimum results in respect of the colour, flavour and mouth feel of the end product.”

But even when developing classic premixes that only contain the basic ingredients for energy drinks, the vitamin and mineral specialists go into every detail carefully. “We take a close look at the product parameters and the process by which the end product is made. Then, we can tell which of these factors may have a reducing effect on the individual ingredients,” she added. “That makes it possible to calculate any loss of effect caused by the manufacturing process or storage of the end products and compensate for it with

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Asia •• CCM inks MOU with British Dispensary

suitable overdosing. In this way we ensure that the substances advertised as functional really do stay effective until the end of the product’s shelf-life.” The premixes themselves are protected against damaging and reducing influences too: quality packaging materials help to maintain the activity of the ingredients until they are used. Reaching new target groups As cult products, energy drinks are much in demand among younger consumers; but for some time, they have been finding their way into other target groups as energy boosters. There is a call for new, innovative product concepts that meet consumers’ wishes in respect of health and lifestyle as well as maintaining performance. Market research shows that there is great potential here for attracting new buyers. Children, for example, are a conceivable target group for special caffeinefree products. According to surveys, women and elderly people favour health-promoting lifestyle drinks with natural ingredients like plant extracts. SternVitamin’s

development team helps beverage manufacturers realize creative ideas for new products. As an owner-managed enterprise, SternVitamin is able to respond fast and flexibly to customers’ individual wishes. To ensure personal contact, the company is represented around the globe, either with branches of its own or through competent local partners. Energy for further segments The energy drinks sector continues to offer good value-added potential from which other segments can benefit. One possibility is “energy shots” based on fruit juice or fruit nectar, filled in handy little bottles and placed on the refrigerated shelves. Isotonic drinks for athletes, with additional energy ingredients, might be another new opening for the relevant industries. And energy sweets or chewing-gum are a quick, inconspicuous way of replenishing energy and attentiveness during a meeting. “And when it’s not a case of boosting energy, we are pleased to help our customers develop products for relaxing and chilling out,” said Budnick.

CCM Siam Ltd (CCMS) and Upha Pharmaceuticals Manufacturing (M) Sdn. Bhd. (UPHA), both subsidiaries of Chemical Company of Malaysia Berhad (CCM) have formed a strategic alliance with The British Dispensary Co. Ltd (BD), a pharmaceutical company based in Thailand to explore opportunities to grow CCM’s pharmaceuticals business in Thailand. Under the MOU, CCMS will utilise BD’s established marketing and distribution network in Thailand to offer CCM’s innovative and quality products to the Thai pharmaceutical industry, whilst UPHA will provide its technical services and manufacturing expertise to manufacture BD’s pharmaceutical products for the Thai market. CCM Berhad Group Managing Director, Dato’ Dr Mohd Hashim Tajudin said, “The agreement would enable CCM’s Pharmaceuticals Division to expand into the lucrative Thai pharmaceutical market by leveraging on BD’s capabilities and position in the market. Soon, the Thai consumers will have access to CCM’s pharmaceutical products. The MOU with BD will accelerate our knowledge and insights of the Thai pharmaceutical market and its evolving trends. We are also

excited with the contract manufacturing opportunity with BD, as it strongly underscores CCM’s pharmaceutical technical and manufacturing capabilities, and helps to fill up available plant capacities.” Dato’ Dr Mohd Hashim hailed the signing of the MOU as a step forward towards advancing CCM’s technical know-how to meet the growing overseas market potential, commencing with Thailand. UPHA, CCM’s wholly-owned subsidiary, is located in Bangi, Selangor, and manufactures a wide range of pharmaceutical products for CCM’s Pharmaceuticals Division. Its plants are not only accredited to the Malaysian MOH cGMP standards, but are also Australian TGA approved. Most of the products manufactured are also Halal-certified. CCMS is CCM’s subsidiary based in Thailand and represents CCM’s three core businesses in Thailand. The company trades in pharmaceuticals, chemicals and fertiliser products. The company is located in Bangkok, Thailand, and operates a branch office in Hadyai, South Thailand. CCM is listed on the main board of Bursa Malaysia and is a key player in the fertilisers, chemicals and pharmaceuticals industry. The Halal Journal | May+June 2010 |

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fastrack

Asia •• Tun Musa Hitam receives international honour as the World Islamic Economic Forum (WIEF) Foundation Chairman Chairman of the World Islamic Economic Forum (WIEF) Foundation and former Deputy PM of Malaysia Tun Musa Hitam was awarded the prestigious Prix de la Fondation (Foundation’s Award) at the Gala Dinner of The Crans Montana Forum on Africa, in Brussels last night. Established in 1989, the Prix de la Fondation recognises men and women from all over the world who are committed to social responsibility. Previous winners include US President Barack Obama, HRH Sheika Sabeeka bint Ibrahim Al

Khalifa, the Queen of Bahrain, the President and First Lady of Mozambique and the Prime Ministers of Turkey and Luxembourg. Tun Musa, in his capacity as the Chairman of the World Islamic Economic Forum (WIEF) Foundation, received the award for his contribution in bringing together the rich and poor nations through business. The WIEF is dedicated to building bridges through business between the Muslim and non-Muslim world. Tun Musa said, “The fact that I am receiving this award after merely six years of the WIEF’s existence is a huge

encouragement for us to continue our endeavour.” The Crans Montana Forum applauded Tun Musa’s achievements in awarding the prize: “As Chairman of WIEF, we honour Tun Musa’s exceptional ability to connect worlds that people are traditionally inclined to reject.” “We live in a world where only two per cent of the population controls 50 per cent of the world’s wealth, while 50 per cent of the population owns barely one per cent of that wealth. This is something we cannot solve

by humanitarian aid alone. The only way to save impoverished communities is to give them the gift of life, the education and tools to start their own businesses and the godgiven ability to think and create for the society that they live in,” he said. Tun Musa accepted the award alongside other award winners who included Mr. Donald Kaberuka, President of the African Development Bank, and Mr. Ahmed Mohamed Ali, President of the Islamic Development Bank. Tun Musa is also the Chairman of Sime

Hon Tun Musa Hitam accepting the Prix de La Fondation 2010 award from Dr. Abdulaziz Othman Altwaijri, Director General, ISESCO - Islamic Educational, Scientific & Cultural Organization. Looking on is Amb. Jean-Paul Carteron, Chairman and Founder of the Crans Montana Forum.

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Darby, the world’s largest producer of sustainable palm oil – and Yayasan Sime Darby, which promotes the human quest for learning, knowledge, meaning, goodwill and understanding, particularly in countries in which Sime Darby has business interests. The honour for Tun Musa comes as the 6th World Islamic Economic Forum returns to Kuala Lumpur, Malaysia, this year, following successful Forums held in Islamabad, Kuwait and Jakarta. It will be held at the Kuala Lumpur Convention Centre from 18 to 20 May 2010.

JAKIM approved Halal Journal 2010 def outlines.indd 1

Bearing the theme ‘Gearing for Economic Resurgence’, the 6th WIEF will be officially opened by the Hon. Dato’ Sri Najib Tun Abdul Razak, Prime Minister of Malaysia and Patron of the WIEF Foundation. The Forum is expected to bring together some 2,000 participants comprising world leaders and members of the global business community. People keen to engage and contribute in dialogue with captains of industry and regional experts at the 6th World Islamic Economic Forum are invited to register at www.6thwief.org.

Hon Tun Musa Hitam giving his acceptance speech at the award ceremony for the Prix de la Fondation 2010 award at the Crans Montana Forum on Africa, Brussels.

Volys Star nv, Oudstrijderslaan 11 - 8860 Lendelede - Belgium - Tel. + 32 51 33 50 30 - Fax + 32 51 31 48 15 e-mail: sales.export@volysstar.be 5/18/2010 10:22:04 AM

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country in focus

The colourful world of Kazakhstan Words by Dayana Nordin

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he Republic of Kazakhstan is the ninth largest country in the world. Located in Central Asia, this land-locked country borders China, Kyrgyzstan, Russia,Turkmenistan and Uzbekistan. Kazakhstan’s vast land ranges from the deserts, semi-deserts and forests to snow-capped mountains, and the country is mostly steppe land with hilly plains and plateaus. The native Kazakhs are a mix of Turkic and Mongol nomadic tribes who migrated into the region in the 13th century. In the 18th century, they were conquered by Russia, and Kazakhstan later became a Soviet Republic in 1936. Upon the dissolution of the Soviet Union, Kazakhstan declared its independence in 1991, the last Soviet republic to do so. Following its independence, there have been significant reforms to the Soviet-style economy and political monopoly on power. Nursultan Nazarbayev, who came to power in 1989 and eventually became President in 1991, helped progress the nation towards developing a market economy. Since 2000, Kazakhstan has enjoyed significant economic growth and is now considered to be the dominant state in Central Asia; partly due to its large oil, gas and mineral reserves as well as its liberalised economy that encourages western investment. Not without problems, the country struggles with economic challenges such as poverty, unemployment, inflation and corruption. The Halal Journal | May+June 2010 |

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In addition, the people of Kazakhstan also have to live with the aftermath of Soviet-era nuclear testing and toxic waste dumping and pollution. Economy The country’s rapid growth since the turn of the century is due to its booming energy sector, economic reform, good harvests and increased foreign investment. According to the World Bank report for 2008, Kazakhstan’s GDP (Gross Domestic Product) was at USD132.23 billion with GNI (Gross National Income) per capita at USD6,140. In 2007, the GDP growth rate was at 8.9 per cent. However, due to the global financial crisis and declines in oil and metal prices, it reduced to 3.2 per cent the following year. Also, rapid increases in global commodity prices helped push inflation rates as high as 20 per cent in 2008. Kazakhstan’s greatest concern right now is recovering from its own recession. In 2000, Kazakhstan was the first former Soviet republic to repay all of its debt to the International Monetary Fund (IMF), seven years ahead of schedule due to its strong macroeconomic

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01 A double-header: two locomotives working together, at Almaty Station No. 2, Almaty 02 & 03 View of Astana the capital city 04 Almaty cathedral 05 Manjali Mosque in Atyrau 06 Memorial Building in Alma Ata Photos courtesy of: NATO website (02, 03, 04, 05, 07, 08), Aaina A-Ridtz (06), Ian Beeby (01).

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performance and financial health. In addition, the change in becoming a market economy under US trade law in 2002, by the US Department of Commerce, recognised substantive market economy reforms in the areas of wage rate determination, currency convertibility, openness to foreign investment, and government control over the means of production and allocation of resources. The country has embarked upon an industrial policy designed to diversify the economy away from overdependence on the oil sector by developing its manufacturing potential. The policy changed the corporate tax code to favour domestic industry as a means to reduce the influence of foreign investment and foreign personnel. The leading economic sector is oil and gas. In 2007, production of oil and gas condensate in Kazakhstan amounted to 67.2 million tonnes; 60.2 million tonnes of that were exported. In addition, natural gas production in Kazakhstan in 2007 amounted to 16.6 billion cubic metres. Kazakhstan holds about four billion tonnes of

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proven recoverable oil reserves and three trillion cubic metres of gas. Kazakhstan’s oil exports were valued at USD17.4 billion in 2005, representing over 70 per cent of overall exports. Industry analysts deem that planned expansion of oil production, together with the development of new fields, will allow the country to produce as much as three million barrels per day by 2015, lifting Kazakhstan into the ranks of the world’s top 10 oil-producing nations. Agriculture accounted for approximately 6.4 per cent of Kazakhstan’s GDP in 2009. Grain and livestock are the most important agricultural commodities. Agricultural land occupies more than 220 million hectares, about 68 per cent of

which consists of hay land and pasture. Chief livestock products are dairy goods, leather, meat, and wool. The country’s major crops include barley, wheat, cotton, and rice. Kazakhstan is the seventh largest producer of wheat in the world, and wheat is the leading agricultural commodity in Kazakhstan’s export trade; 15-17 million tonnes of wheat are harvested per year. The country also has one of the largest uranium, chromium, lead, zinc and copper reserves. Other exports include diamond, machinery and chemicals. In response to the global crisis, Kazakhstan had devalued its currency, took control of the country’s top banks and pumped billions in state money into the economy The Halal Journal | May+June 2010 |

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country in focus 07

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07 The Palace of Independence, Astana 08 View of Astana

to get it back on track. Kazakhstan’s economy in the coming years is reported to grow steadily, though at quite a moderate pace. Population According to the preliminary results of the 2009 national census, the population of Kazakhstan reached 16.4 million and the World Bank states its growth rate at approximately 1.2 per cent in 2008. The nation is made up of various ethnics; about 60 per cent Kazakh, 30 per cent Russian, and the Ukrainian, Uzbek, German, Tatar, Uyghur account for the rest. Majority of Kazakhstan’s diverse population is achieved through Stalin’s deportation of Ukranians, Koreans, Kurds, Chechens and Meskhetian Turks who had previously settled in Russia, and Russian migration during Khrushchev era. These multiethnic groups are generally living in harmony. Though more than 64 per cent of the population speaks Kazakh, also referred to as the ‘state’ language, almost all Kazakhstanis speak Russian; it has been declared the ‘official’ language and is used routinely in business. English is also very widely spoken, especially among the youth. Kazakhstan’s practice of freedom of religious beliefs after decades of religious suppression by the Soviet Union led to an increase of religious activity in the country. Hundreds of mosques, churches, synagogues and other religious structures were built in the span of a few short years. The largest religion in the country is Islam; with approximately 65 per cent of the population, or 10.5 million, being Muslims. This is followed by Russian Orthodox for about 30 per cent of the population, and Roman Catholic, Protestant and The Halal Journal | May+June 2010 |

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others make up five per cent. Prior to Russian colonisation, the Kazakhs had a highly developed culture based on their nomadic pastoral economy. Livestock has always been central to the Kazakh’s traditional lifestyle and their practices and customs relate in some way to it. Kazakhstanis are also very passionate about horse riding and are still famed for their horse riding skills and unique equestrian sports. Moreover, Kazakhstan is also a formidable force in the world of sports. The country has produced champions in boxing, skiing, gymnastics, cycling, martial arts, wrestling, triathlon, equestrian and water polo among others. Islam in Kazakhstan The 65 per cent of Kazakh Muslims are historically Sunni Muslims of the Hanafi School. Other Islamic groups such as Shafii sunni, Shi’a, Sufi and Ahmadi account for less than one per cent of the population. The southern region bordering Uzbekistan has the highest concentration of self-identified practicing Muslims in the country. Islam first came to Kazakhstan during the eighth

century when the Arabs arrived in Central Asia through the southern portions of Turkestan. Gradually, it spread northwards and in the fourteenth century, the Golden Horde (Mongol khanate) propagated Islam amongst the Kazakhs and other Central Asian tribes. During the Russian rule, Islam was initially encouraged to flourish as Muslim clerics were invited to the region to preach to the Kazakhs. However, Russian policy gradually changed towards weakening Islam through various methods. Furthermore, Muslim institutions survived only in areas where Kazakhs significantly outnumbered non-Muslims due to everyday Muslim practices during the Soviet period. Since its independence, religious activities have increased significantly. The 1990s saw the acceleration of construction of mosques and religious schools, with financial aid coming in from Saudi Arabia, Egypt and Turkey. In 1991, there were already 170 mosques operating in Kazakhstan and half of them were newly built. Now there are more than 2,300 mosques in Kazakhstan and they are affiliated with the Spiritual Association hj of Muslims of Kazakhstan. .

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islamic finance

Islamic and Conventional Finance

Similar yet different!

Words by Omer Khan & Ken Owens

W

ith USD35 billion in assets across 555 worldwide funds, the Islamic fund industry has become a well-established niche within the global financial services sector. Going forward, this industry is expected to go from strength to strength, with the Muslim population accounting for 20-25 per cent of the world’s population; surprisingly, the percentage of overall global financial assets that are Shariah-compliant is less than one per cent. This percentage is expected to reach double figures over the coming years. Although majority of the Islamic fund assets are located within the Middle East, given the exceptional growth of this industry, Western countries and conglomerates have been competing to get a chunk of this booming business as it expands across the globe. One of the main questions surrounding this new niche market is how different it is to conventional finance. Islamic finance is actually not hugely different. The main differentiator is that Islamic funds must avoid some conventional elements and principles, which are outlined below. Islamic finance, unlike conventional finance, must be distinctive in its contractual and transactional features to render it different from conventional finance, although ultimately both may achieve the same economic benefits. The Islamic/ Shariah element is viewed very much as an overlay, comparable to a fund established with a ‘socially responsible’ investment ethos. Factors Differentiating Islamic Finance and Conventional Finance

Appointment of a Shariah board It is imperative that all the activities of an Islamic fund are Shariah-compliant, at all times, and in order to ensure that this is being done, an independent Shariah advisory or supervisory board is required to overlook Islamic funds. The Shariah board is required to approve The Halal Journal | May+June 2010 |

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of potential investments as well as carry on continual internal reviews to ensure the systems and processes comply with, and have successfully implemented, recommendations from the board. The Shariah board should consist of experts on matters of Islamic law and practice. The Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI) has stated that a Shariah board should consist of at least three Shariah scholars. The board is also empowered to issue fatwas which are religious rulings issued after an examination of fund rules and investments made by a fund which in effect certifies that the fund is “Shariah-

compliant”. The fatwa is an important precondition in order for a fund to be marketed to prospective investors as Shariahcompliant. The Shariah board’s role is purely advisory; it has no discretionary powers whatsoever. Interest-free transactions Islamic finance is interest-free, meaning that all financial businesses and activities must be free from any element of interest. Interest can arise when there is an exchange of two similar items in unequal quantities. Islamic funds must eliminate all interest, an Islamic fund may not invest in any interest-bearing instruments and may not sell short. It is often unavoidable that some of the income generated by the

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Islamic finance is interest-free, meaning that all financial businesses and activities must be free from any element of interest.

uncertainty might lead to disputes caused by an unjustified term in the contract arising from misrepresentation and fraud. Gambling is seen as an action that always enriches one party at the expense of the other. Requirement for an underlying asset Islamic finance requires that all financial business based on sale or lease must have an underlying asset. The absence of an underlying asset will render the contract void. This is in contrast to conventional financial business where the asset element is not a necessary requirement. Its importance lies only in terms of collateral security in the sense that the asset purchased using the loan money may be used as security in favour of the Islamic financial institutions (IFI). Profit and loss sharing Profit and loss sharing is possible in some Islamic financial activities. Profits will be shared between the IFI and its customers on a pre-agreed profitsharing ratio. In the case of a loss, the loss will be borne by the IFI under a Mudarabah contract or by both parties proportionately in the case of a Musharakah contract.

underlying companies in which an Islamic fund invests will include some form of interest. In this situation the fund must be ‘purified’. The amounts purified should, under Islamic principles, be donated to charity. There are a number of different ways to purify ‘tainted’ income such as: • The ‘tainted’ income can be deducted prior to distribution of dividends. • Investors can be informed of the amount that should be deducted from their dividends to achieve a Shariah-compliant return. Prohibited goods or services Islamic funds must not invest in companies which deal in goods or services deemed Haram

or prohibited under Shariah law. These prohibited goods and services include, among others, non-Halal food such as pork, animals not slaughtered according to Islamic principles, alcohol, entertainment and pornography, tobacco-related products and weapons. The prohibition applies to all companies which form part of the chain of activities dealing with these good and services, such as the marketing, advertising, selling, distribution, packaging, and so on. The avoidance of uncertainty or gambling All transactions made by Islamic funds must be free from elements of uncertainty and gambling. This is because

Custody of assets and cash management Although the custodian of a Shariah compliant fund does not itself need to operate along the lines of an Islamic bank it must service the Shariah compliant fund without violating any Shariah principles. The prohibition of interest will prevent a fund lending or borrowing on interest and arrangements need to be put in place with the custodian to deal with overdrafts in a Shariah compliant manner. The custodian will also need to ensure that the assets of the Shariah fund are held in custody in compliance with Shariah principles. Types of Islamic funds

Shariah equity funds Shariah equity funds are specialised funds that are mandated only to make investments in Shariah-compliant shares. These are the most popular type of Islamic funds. Shariah equity funds can either invest in companies which are Shariah-compliant or, in the case of an Exchange Traded Fund (ETF), the equity fund can invest in equities which mirror a Shariah index, for example, the Dow Jones Islamic Market Index. The former requires active, day-to-day management from the fund manager, whereas the latter has a more passive strategy whereby the tracking fund The Halal Journal | May+June 2010 |

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islamic finance

will replicate the performance of the index. The primary difference between Islamic equity funds and their conventional counterparts relates to the nature of the business of the underlying company invested into. Shariahcompliant funds can only invest in companies which do not engage in activities which are contradictory to the principals of Shariah. From a structuring perspective, Islamic equity funds, as is the case with conventional funds, can either be UCITS or non-UCITS. The major advantage of a UCITS fund is that it benefits from an EU-wide “passport” which means any fund which has been authorised in one EU member state can be sold in any other EU member state without the need for additional authorisation. Because of the requirement to comply with a common European standard, UCITS are regarded globally as very well regulated funds with robust risk management procedures and a strong emphasis on investor protection.

The Halal Journal | May+June 2010 |

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Figure 1: DJIM World Index vs. MSCI World index 20.00% D J I M Wo rl d

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Shariah fixed-income funds A fixed-income fund is structured to cater for investors who are risk averse and who wish to avoid the fluctuations of the stock market. The fund only invests in Shariah approved fixedincome securities such as Sukuk and Islamic bonds (securities arising from the securitisation of pure Islamic receivables, arising from contracts such as murabahah, ijarah, istisna’, and so on). Fixed-income investments promise specific payments at predetermined times. The profit rate attached with the payment depends on the credit worthiness of the institution issuing the security. Depending on the jurisdiction, Islamic fixedincome funds may invest in Islamic Sukuks that are available and acceptable globally or Islamic bonds which are widely offered in Malaysia. A Shariah fixed-income instrument, by definition, must only invest in instruments that promise to give a fixed return. Equities are not fixed-income instruments. The development of Islamic fixed-income markets is, therefore, imperative to increase liquidity within the Sukuk/ Islamic Bond market. Recent regulatory changes have been made in Ireland to further facilitate Islamic finance transactions. Under the Finance Bill 2010, which applies from 1 January 2010, the Irish Ministry of Finance has introduced further amendments to facilitate Islamic finance transactions in Ireland, especially the origination and issuance of Sukuks. Essentially, the Bill proposes to introduce new legislation that will facilitate Sukuk transactions by extending to this form of financing the relieving

The demand for Islamic funds is set to increase significantly as Islamic and non-Islamic investors become more aware of potential rewards from investing in such funds.

DAT E

provisions which currently apply to conventional financing. The proposed legislation clarifies that the Sukuk certificate should be considered a security and confirms that the investment return on that certificate should be treated as interest on a security for the purposes of the Taxes Act (subject to restrictions). In addition, it confirms that the Sukuk issuer will be entitled to a deduction in respect of the coupon paid as though it was a conventional

interest payment. The Bill also introduces amendments to the Stamp Acts to ensure that no stamp duty will arise on the issue, transfer or redemption of a Sukuk certificate. Amendments have also been proposed to the VAT Act to exempt from VAT specified financial transactions specifically Islamic finance transactions where those transactions correspond to financial services transactions as listed in the VAT Act.

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Islamic Exchange Traded Fund (ETF) An Islamic ETF, as is the case with a conventional ETF, is an open-ended fund which can be traded on a daily basis. ETFs are structured to mirror the return of an index in a particular market or sector such as the FTSE 100 or the Dow Jones Index. The only requirement for Islamic ETF is that the underlying shares for any selected indices must be Shariah-compliant. An investor in an Islamic ETF is effectively investing into a basket of shares which the underlying index comprises of. An Islamic ETF called Easy ETF Dow Jones Islamic Market (DJIM) Titans 100, which is based on DJIM, is a good example of this product. ETFs have high transparency, low costs, high liquidity and high risk diversification. They are also tax efficient and require no minimum investment, other than the market price of one share. It is hardly surprising then with all the above benefits that the demand for Shariahcompliant ETFs has grown significantly. Some of the largest global providers of ETFs are expanding their range of ETFs and actively pursuing Islamic markets and investors. iShares, Daiwa and db-xtrackers have all launched Shariah compliant ETFs as Muslim investors look to invest in these types of products without any exposure to alcohol, tobacco and other Haram items. Islamic Real Estate Investment Trusts (IREIT) IREITs represent an investment in a portfolio of real estate assets which can either be in the form of a direct investment in property or investing in the

equity of property-related companies. By structuring IREITs, asset managers are opening opportunities for retail investors to own a stake in a portfolio of highpriced prime properties. As for shares, the IREITs may invest in companies that are property related, however, the underlying properties must be used for Shariah compliant purposes. Investors in IREITs benefit from both rental income and capital appreciation. Islamic leasing funds Islamic lease funds invest in assets that generate lease rental payments, for example, investing in aircraft, hospitals, shipping vessels and manufacturing concerns. These underlying assets are then leased to a third party and rental income generated under the lease is then distributed to investors in the fund. However, unlike IREITs, leasing funds do not enjoy capital appreciation on their leasing assets as the assets depreciate over time, unlike properties or real estate. The leasing funds do, however, have the opportunity to sell their assets for a residual fee upon the completion of the contracted lease. Performance of Shariah funds vs. conventional funds The Dow Jones Islamic Market (DJIM) World index has consistently out-performed the MSCI World index, which is highlighted in Figure 1. Due to the very nature of Islamic funds, in order to remain Shariah-compliant, they must not invest in companies that engage in activities which are contradictory to the principals of Shariah. In addition to this prohibition,

Islamic funds must adhere to certain financial ratios, which affectively mean that they must avoid investing in highly leveraged companies. Shariah-compliant funds have proved their resilience by their comfortable performance during the recent credit crisis, whilst the conventional markets were suffering huge losses. Primarily due to the avoidance of the interestbased financial services sector, one of the worsthit sectors during the crisis, and a preference for investing in Telecommunications, Real Estate, Energy, Commodities, Utilities and Health Care, Shariah funds successfully resisted the credit crisis and were able to show consistent performance. The rising price of crude oil was a blessing for Islamic funds which have a tendency of being heavily invested in that particular sector. Conclusion

Looking to the future, the success of Islamic finance is set to continue. Islamic investment funds are outperforming their peers as already mentioned. In fact, the Dow Jones World Islamic Index has outperformed the conventional index (the Dow Jones World Index Price Return) consistently over the last 10 years. The demand for Islamic funds is set to increase significantly as Islamic and non-Islamic investors become more aware of potential rewards from investing in such funds. The good news is that Islamic funds are not hugely different structurally to conventional funds and for the most part the main difference is that the assets in which they invest in must be Shariah-compliant. The Islamic/ Shariah element is viewed very much as an overlay, which is why the popular Shariah equity funds can be structured under the hugely successful UCITS framework which allows for worldwide distribution of these types of funds. With this expected continued growth of Islamic finance, leading fund centres, such as Ireland, will seek to capitalise on this growing demand by expanding as servicing centres for both conventional and Shariah funds alike. In order to be successful in this growing market, managers and administrators will need to familiarise themselves with the Shariah principles and previously mentioned differences between Shariah and conventional funds. hj footnote: 1. Source: Thomson Reuters Data 2. Undertakings for collective investment in transferable securities (UCITS) 3. Value-added Tax ( VAT ) *Note about the authors: Omer Khan is the Manager of the Islamic UCITS Funds – Asset Management at PricewaterhouseCoopers (PwC) Ireland. Ken Owens is an Audit Partner with the Asset Management Group, PwC Ireland. The Halal Journal | May+June 2010 |

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islamic finance update Compiled by Zaahira Muhammad

on this booming area of finance. The government wants Australia to become a finance hub for almost one billion Muslims in the Asia-Pacific region. Banking systems that comply with Islamic beliefs are a multibillion-dollar worldwide industry. While such banks are common in Indonesia and Malaysia, they remain on the fringe of Australia’s finance sector. That may be about to change. The government has released a report that details how Australia’s well-regulated economic system could cater to the Islamic market. Trade Minister, Simon Crean, says expanding Islamic banking would help Australia become a dominant player in regional financing. One of Australia’s biggest banks, Westpac, is preparing to boost its Islamic banking services by offering a commodity-trading facility for overseas investors. Islamic finance cooperatives have also been steadily growing in Australia. A government survey found that many of Australia’s 365,000 Muslims would use Islamic banking services if they were more accessible. Major international banks have also been exploring the opportunities that the Sharia model offers.

ISLAMIC BANKING TO GROW, UNICREDIT SAYS Italy’s biggest bank, UniCredit, has called Islamic banks “the fastest growing segment in Turkish banking,” according to Bloomberg. In Turkey, such banks are known as “participation banks.” Participation bank Albaraka Türk’s shares were rated “buy” and Asya Katılım Bankası’s “hold” in new coverage at UniCredit. The Italian lender set a price estimate of 4.5 Turkish Liras for Bank Asya and 3.04 liras for Albaraka Türk, a unit of Bahrain-based Albaraka Banking Group, analysts including Ercan Uysal wrote in an e-mailed report Thursday. The banks are its top picks, UniCredit said. Between August 2008 and 8 January 2010, the credit volume of Turkish participation banks grew 9.7 per cent, according to a 27 January story by business daily Referans. In the same period, the credit volume of private banks contracted one per cent, while that of public banks expanded 25 per cent, a reflection of global concerns about the health of private banking. In the same period, the share of participation banks in overall credit volume rose to 3.9 per cent, from 3.8 per cent. Participation banks, which had 148 branches in Turkey at the end of 2002, had 558 branches as of the end of 2009. In another note, UniCredit rated the Turkish investment bank Türkiye Sınai Kalkınma Bankası, or TSKB, “hold” in new coverage, with a price estimate of 2.12 liras. “With its stable and niche business model, TSKB is an attractive defensive banking play,” it said. Şekerbank was rated “sell” in new coverage on “low profitability,” UniCredit said. Investors should also sell shares in Turk Ekonomi Bankası, the Turkish unit of BNP Paribas, UniCredit said. A merger between TEB, as the bank is known, and fellow group unit Fortis Bank may hurt profitability, it added.

|SOURCE: VOANEWS.COM, 15 FEBRUARY 2010

HSBC AMANAH NAMED BEST INTERNATIONAL ISLAMIC BANK BY EUROMONEY The Euromoney awards are widely considered to be the most high profile accolades in the Islamic Finance calendar and annually recognise outstanding performance, quality, service, and innovation in the sector. In addition to being awarded the title of Best International Islamic Bank, Euromoney also named HSBC Amanah Best Sukuk House for the leading role it continues to play in Islamic debt capital markets. During 2009, HSBC Amanah increased its operations in Saudi Arabia, through SABB, UAE, and Malaysia, while expanding in the key growth territories of Indonesia, Qatar and Bahrain. The business launched HSBC Amanah Premier, the world’s first international

|SOURCE: HÜRRIYET, 5 FEBRUARY 2010

AUSTRALIA EYES ISLAMIC FINANCE GROWTH The Australian government plans to attract Islamic banks after publishing its first report The Halal Journal | May+June 2010 |

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Islamic premium banking service and led activity in the Islamic debt capital markets, structuring and lead managing many of 2009’s landmark transactions. Mukhtar Hussain, Global CEO of HSBC Amanah, said, “Over the last 12 months, HSBC Amanah has firmly cemented its status as the premier cross-border provider of Shariah-compliant financial services. With the global reach of the HSBC Group at its disposal, there is no other bank that can match HSBC Amanah’s cross-border capabilities in either the Shariah compliant retail or wholesale sectors. We are delighted to receive this award from Euromoney in recognition of that fact.” |SOURCE: AME INFO, 14 FEBRUARY 2010

ISLAMIC FINANCE MARKET RECOVERING -- SABAEK The Islamic finance market seems to be recovering from the global economic crisis that hit it last year, despite continuing challenges that face the financial sector around the world, said Sabaek Leasing and Investment Company, on Sunday. In a report, Sabaek said that total assets of the top 500 Islamic banks rose to USD822 billion in 2009, compared to USD639 billion in 2006, at a growth rate of 28.6 per cent. It also said that the Islamic ‘Sukuk’ market continued to grow last year, despite difficulties, saying that between 2003 and 2007 Sukuk issuance increased 47 per cent, adding that 2009 was considered a year of growth comeback for the Sukuk industry compared to 2008. Sabaek noted that Standard and Poor’s reported that in 2009, Sukuk issuance amounted to USD23.3 billion, compared to USD15.5 billion in 2008, recording a growth of 34 percent. This makes 2009 the second largest Sukuk issuance year, coming after 2007 when issuance amounted to USD34.3 billion. With this, the Islamic Sukuk market has exceeded USD110 billion, and if the rest of the Islamic finance tools are factored in, the Islamic finance market will exceed the USD one trillion barriers, it said. |SOURCE: KUWAIT NEWS AGENCY, 14 FEBRUARY 2010

KU ORGANISES SEMINAR ON ISLAMIC BANKING Islamic principles provide us every opportunity to live a peaceful social life; Islamic Banking is one of those blessings that are brought to us by the new era of technology and banking. Islamic banking gives us facilities similar to the conventional banking but it never leaves the sphere of Islamic law and principles. The problem is that we lack the psyche that probes inquiry into such matters. These notions were expressed by the Vice Chancellor of Karachi University (KU), Prof Dr Pirzada Qasim Raza Siddiqui, while presiding over a seminar – organised by University of Karachi in collaboration with United Chartered Bank, USA at a local hotel – entitled “Islamic Banking: A Global Necessity” on 13 February 2010. The VC encouraged linkages between Islamic Banks worldwide and the Universities of Pakistan. Asif Aslam, (CEO) United Chartered Bank USA, declared that in the last decade, Islamic finance has enjoyed robust growth rates of 15-20 per cent per year. “Other speakers highlighted the benefits of Islamic Banking, which includes an additional check and balance, because of which they were able to survive the recent global recession,” he said. It was also told that Islamic banking was trying to convert challenges into business opportunities with Islamic (ethical) finance. |SOURCE: THE NATION PAKISTAN, 15 FEBRUARY 2010

UAE CENTRAL BANK URGED TO HELP LENDERS RAISE LIQUIDITY UAE banks are in need of further liquidity injections by the Central Bank or easing of pressure by the regulator to reduce their loans-to-deposits ratios in order to spur lending, a senior banker said. Tirad Mahmoud, Chief Executive Officer of Abu Dhabi Islamic Bank (ADIB), the country’s second-largest Shariah-compliant lender, said banks have no option but to raise deposit rates to attract customers which has led to higher lending rates and

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islamic finance update

a consequent drop in lending activity. “The Central Bank has guaranteed all deposits,” Mahmoud told Gulf News. “So why do we pay 4 per cent [on deposits]: because we have to in order to meet the regulatory requirement.” Mahmoud is the second prominent banking executive this month to call on the Central Bank to release more funds into the system. In early February, Noor Islamic Bank CEO, Hussain Al Qemzi, said banks need an additional Dh20 billion to Dh25 billion to resume normal lending. Loan growth in the UAE slumped in 2009 to 2.4 per cent despite Dh70 billion in injections by the Central Bank to counter the effects of the global financial downturn, including the drying up of liquidity. Lending had grown by more than 30 per cent annually in the previous four years, according to Central Bank data. |SOURCE: GULFNEWS.COM, 17 FEBRUARY 2010

TAKAFUL IKHLAS NAMED BEST TAKAFUL PROVIDER AT EUROMONEY AWARDS CEREMONY Takaful Ikhlas Sdn Bhd was named the “Best Takaful Provider” at the recent Euromoney Islamic Finance Awards 2010. Organised by financial magazine, Euromoney, the awards ceremony was held at the Landmark Hotel in London. Takaful Ikhlas President and Chief Executive Officer, Datuk Syed Moheed Syed Kamarulzaman, said, “The award reflects the company’s commitment towards strengthening its status as the leading provider of financial protection services based on Islamic principles and values.” The Euromoney Islamic Finance Awards is seen as the highest appreciation on the Islamic financial calendar and an annual recognition for outstanding performance, quality and services as well as innovation in the sector concerned. Takaful Ikhlas is a subsidiary of MNRB Holdings Bhd, an investment holdings company, listed on the main board of Bursa Malaysia. Its main shareholder is Permodalan Nasional Bhd. |SOURCE: BERNAMA, 23 FEBRUARY 2010

GCC MULLS OVER UAE PROPOSAL ON DEFINITION OF TAKAFUL INSURANCE The meeting of Unified law “system” for the supervision and control of insurance business in Cooperation Council for the Arab States of the Gulf (GCC) countries started today at the headquarters of GCC General Secretariat. The meeting is discussing a number of issues concerning supervision and control over the insurance business in GCC countries, which include a proposal submitted by the United Arab Emirates on the definition of Takaful insurance “Islamic Insurance”. |SOURCE: EMIRATES NEWS AGENCY, 23 FEBRUARY 2010

EMIRATES ISLAMIC BANK HAD A SIGNIFICANT PRESENCE AT THE 2010 NATIONAL CAREER EXHIBITION SHARJAH Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the UAE, participated in the National Career Exhibition Sharjah which is dedicated exclusively to the promotion of Emiratization in banking and financial sector in the country. The 2010 edition of the exhibition was under the patronage of H.H Sheikh Dr. Sultan Bin Mohamed Al Qassimi, member of the Supreme council and Ruler of Sharjah, and which is held at the Sharjah Expo Centre from 24 to 26 February 2010. Mr. Omar Al Gaizi, Human Resources Manager at Emirates Islamic Bank, commented on the event saying: “Our participation in this event is to yet again reinforce our commitment towards the development of the upcoming UAE nationals. The bank is expanding and we have intensified our presence at leading fairs such as this, as we are looking to handpick the best national candidates available to support our growth. This event is dedicated to the financial and banking sector and thus serves as a perfect platform for EIB to recruit the best candidates to support its growth plans.” National Career Exhibition Sharjah has grown to establish itself as a mustattend career show with public

and private sector employers showcasing current and future employment and staffing needs with a strong focus on Emiratisation. With the presence of such luminaries like Emirates Islamic Bank and many other leading organisations adding to the scope and size of the event, it is clear that the future of nationalisation is in good hands. |SOURCE: AL BAWABA, 24 FEBRUARY 2010

DEUTSCHE BANK GETS MALAYSIAN ISLAMIC BANK LICENCE Deutsche Bank has received an international Islamic banking licence from Malaysia’s central bank, the investment bank said. The licence allows banks to conduct non-ringgit Islamic banking services. Malaysia is recognised as Asia’s main Islamic finance hub but most of its Shariah banking business is conducted in the local ringgit currency. The central bank wants to encourage more foreign investment and will award two new Islamic banking licences to foreign firms to set up banks with paid-up capital of at least USD1 billion. |SOURCE: REUTERS, 1 MARCH 2010

EXPERTS GATHER TO FIND SOLUTIONS TO ISLAMIC BANKING & FINANCE ISSUES Some 20 papers that will revolve around the theme, “Contemporary challenges of Islamic finance: towards realising the goal of Shariah”, will be presented during the two-day International Conference on Islamic Finance. According to Unissa Rector Dr Haji Serbini bin Haji Matahir, the main objective of the conference is to consolidate and find solutions on issues of Islamic banking and finance “based on the fundamental Shariah principles and maqasid al-Shari’ah”. One of the challenges faced by the Islamic banking and financial institutions is developing products and services approved by Shariah or legitimate from the Shariah perspective. Dr Haji Serbini hopes that the conference can “positively contribute to the development of a more

globally harmonised Islamic banking and finance industry that would better serve the Muslim Ummah”. The conference, which was officiated by Minister of Finance II, Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, yesterday, will conclude today. Among the papers that will be presented today are “The Bruneian Perspective towards Islamic Banking System in Brunei” by Azme Haji Matali, and “The Shariah Process in Product Approval in Islamic Banking & Capital Market” by Dr Ahcene Lahsasna. |SOURCE: BRUDIRECT, 2 MARCH 2010

KUWAIT’S BANKING ‘MARKET’ HEADS IN ISLAMIC DIRECTION Kuwait banking market is heading on a more Islamic oriented direction with many banks transforming their operations to Shariah-compliant, said Chairman of the Board for Kuwait International Bank (KIB), Abdulwahab Al-Wazzan. Speaking to the press on the sidelines of the opening of KIB’s new branch in Farwaniya, Al-Wazzan said that banks in Kuwait were looking to develop the country’s status as a financial spot in the region, revealing that more foreign banks are interested in the local operations. On the Islamic banking contribution to the real estate market, the official called for revising laws considering the banks funding to this sector which needs more contribution. KIB’s Islamic products are making a statement within the banking market with more banks considering the conversion into the Islamic banking method, affirmed Al-Wazzan. |SOURCE: ARAB TIMES, 19 MARCH 2010

The Halal Journal | May+June 2010 |

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May+June 2010

Of the various arguments against Halal, the key concerns raised were: 1) Halal is discriminatory, 2) Halal slaughter is barbarous, and 3) Halal poses a threat of Islamisation.

Lest we forget

Words by Amri Sofi

Jihad, social discrimination, barbarism & Islamisation

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As a Malaysian and Muslim,

the occurrences of March 2010 shall for some time remain entrenched in my memory. Firstly, the unveiling of Malaysia’s New Economic Model (NEM) by the government is a historical event that symbolises the government’s unmoving stance towards a more inclusive approach to nation building. In a multi-racial society with people of various religious faiths, the NEM is perceived to be an encompassing policy that addresses the needs of all Malaysians regardless of religious beliefs, race, gender, age and upbringing. Whether or not the old New Economic Policy (NEP) had failed as a collectivist approach remains debatable. However it would be fair to say the “new” approach by our government is timely and is in tandem with our 1Malaysia mantra. On a more worldly stage, 15 years after the massacre of 8,000 Bosnian Muslims at Srebrenica, the Serbian government had finally apologised for their role in the atrocities that had divided the Balkans since the war first broke out in 1992. The apology had received polarised responses, as many accuse the declaration as flaccid and question the sincerity of the gesture. Some Bosnian Muslims feel that whilst the apology is appropriate, however the Belgrade government fell short of admitting the incident at Srebrenica as genocide. In addition to this, many Bosnian Serbs are of the opinion that Bosnia themselves have yet to apologise for the killings of Croats and Serbs. Others are of the opinion that the resolution, which was narrowly approved by two votes, was the Serb government’s way of “fixing” their image in the eyes of their European neighbours. Serbia’s inclusion into the European Union could perhaps be the much required antidote to their financial woes. Regardless of the accusations and rumours that have yet to stale, many of the Europeans and even Bosnian Muslims alike feel that the sizzle will eventually fizzle out as many believe it to be part and parcel of the “struggle” towards reconciliation. Another incident that had caught my attention recently and undoubtedly many Muslims alike was a speech that was delivered in Great Britain’s House of Lords in March. As I read through the transcript of the speech I found that it was filled with passion and I imagined it was delivered with gusto. Spurred by his captivating speech, I had decided to research on the influential Dutch native. What I found most “riveting” about his occasional rants, was the messenger’s “Wilder” understanding of Islam. What is even more disturbing is that his party’s victory in Almere, The Halal Journal | May+June 2010 |

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Netherlands in March is proof that many have been enthralled by his views. The release of his latest movie Fitna, is one of many antics of the public figure. Many, including Dutch citizens, (Muslims and nonMuslims) are appalled by his comments and I for one find the filmmaker cum Dutch MP’s fallacious views on Jihad and Halal dangerously misleading. Jihad: Debunking the myths The term Jihad, post-September 11 attacks, have wrongfully been sensationalised to mean Holy War. Whilst the definition is correct, however, the narrow understanding of the Islamic term by many links the concept with violent actions and uncivilised connotations. The Arabic word Jihad has various translations. To name a few – “to struggle”, “battle”, “exert”, “to strive”. In Islam, Jihad is described as an internal, individual, spiritual struggle toward self-improvement, moral cleansing and intellectual effort in the name of Allah. In considering the definition and true meaning of the Islamic term, Muslims face Jihad in every aspect of our lives on a daily basis; each with varying degrees. This transcends itself throughout every facet of our lives from our roles in the office, social circles and our roles at home. A Muslim and nonMuslim American professor of Islamic Studies explained Jihad as the following: An “effort against evil in the self and every manifestation of evil in society” - Ibrahim Abu-Rabi, Hartford Seminary; “Being a better student, a better colleague, a better business partner. Above all, to

control one’s anger” - Bruce Lawrence, Duke University. When we consider the views of the professors and take the time to understand the true meaning of Jihad, we come to appreciate that it is not an immoral and confrontational concept. However, it is a practice that is evident in all religions, in that it embodies positivity, spiritual and self development. The greatest Jihad is not fought through forceful actions but the battle begins in our hearts. Negativities surrounding Halal I, along with many other Muslims (not all), may have

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just escaped the guillotine for not having considered the impact of Halal on our nonMuslim friends. With questions like “Is Halal perceived as anti-Christian?”, “Does Halal compromise on food quality?”, or even “Is Halal viewed as a means to Islamicise consumers?” racing through my mind, I embarked on a quest to understand the perceptions of non-Muslims out there. From conversations, research papers and sifting through various blogs, I came to learn that many (not all) do not place Halal in a good light. Of the various arguments against Halal, the key concerns raised were: 1) Halal is discriminatory, 2) Halal slaughter is barbarous, and 3) Halal poses a threat of Islamisation.

To the educated, illtreatment based on prejudice are akin to the apartheid, racism, sexism or disallowing an individual the freedom to practice their religious beliefs.

Halal does NOT discriminate In February this year, news of a fast food chain’s decision to go Halal spread like wildfire throughout France. The fast food chain known as Quick had decided to remove bacon hamburger off their menu at eight out of 350 branches, replacing it with smoked turkey. This was their move to cater to the burgeoning Muslim market. Of the eight outlets selected for the Halal transformation, the one located in Roubaix of Northern France made the headlines. The opening of the “Halal only” burgers outlet sparked a political storm prior to the French elections in March, mainly on the grounds of discrimination towards non-Muslims. As expected, the tension surrounding the recent escapade had eventually lost its zeal. It is now business as usual on the French front, and on a positive note, the outlet is flourishing with increased sales. This incident is one of many that had made the news in France over the last decade.

Halal in Islam is described simply as “that which is permissible in Islam”. As we turn our attention to the Halal food industry, all that is permissible for Muslims are also allowed to be consumed by followers of other faiths. Like the Jews, Muslims are not allowed to consume pork and pork-based products. Would the situation have been any different say if Quick had decided to instead, of implementing a “Halal only” menu, introduced a “vegetarian only” menu? I wonder if such a move would have equally sparked outcries of discrimination. Similarly, it would not be fair to describe Kosher as discrimination even though the manner to which the Jews slaughter animals are almost identical to the Islamic method of slaughter. To the educated, ill-treatment based on prejudice are akin to the apartheid, racism, sexism or disallowing an individual the freedom to practice their religious beliefs. For instance, banning the Christians from wearing their emblem of Christianity or even making it legal to criminalise religious diversity are scrupulous grounds for a call of discrimination. I have yet to come across a religion that makes it mandatory for their followers to consume pork or pork-based products. It is interesting to note the reactions of politicians and oppositions of Halal when food organisations decide to venture into the Halal business. Should we listen closely to their arguments and their views, and decipher their encrypted messages as all they’re trying to say is “we love bacon because it tastes good”. After all, introducing a “Halal only” menu, as seen through the consumers’ eyes, is doing away with bacon and replacing it with beef bacon. In the case of Quick, replacing it with smoked turkey slices. Such a move is anything but discriminating. Halal slaughter is NOT inhumane Over in the UK recently, KFC’s decision to turn 74 of its outlets Halal had exasperated many of the non-Muslims. With this news some groups have set up internet petitions opposing KFC’s move to “make a group of consumers happy”. After surfing numerous websites and scouring through hundreds of comments posted in reaction to KFC’s decision, I found that the key concern by majority of the non-Muslims revolve around the issue of Halal slaughter. To many non-Muslims, Zabihah (ritual slaughter of animals under Islamic laws) referred to as ritual slaughter in Europe, is claimed to be inhumane, primarily because the animals are not stunned prior to slaughter. Many NGOs have called for both Zabihah and Shechita (ritual slaughter of animals under Jewish dietary The Halal Journal | May+June 2010 |

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laws) to be banned due to the suffering inflicted on animals. The study conducted in Germany led by Professor Wilhelm Shulze from the University of Hanover found that the act of ritual slaughter did not cause suffering to animals. The study conducted in 1978 involved monitoring the condition of the heart and brain of the slaughtered animals through the use of Electroencephalography (EEG) and Electrocardiography (ECG) recordings. The EEG is used to monitor the brain function, while the ECG is used to monitor the heart during the ritual slaughter. Zabihah and Shechita involve making a swift, deep incision in the neck region of the animal with a very sharp knife, cutting the jugular veins, trachea, carotid arteries and oesophagus, but leaving the spinal cord of the animal intact. After the incision was made, the EEG showed no changes for the first three seconds indicating that the animal did not feel any pain. The next three seconds that followed recorded a condition of deepsleep like consciousness brought about from the large draining of blood from the animal’s body. This was followed by a zero reading on the EEG which demonstrates that there is no trace of pain even though the animal’s heart remained beating. The haemorrhaging of the brain from severe blood loss induces anoxia due to lack of oxygen in brain cells, thus acting as a pain killer. Many may mistakenly assume the animal to be suffering when the animal’s body experiences convulsion. This is attributed to the reflex reaction of the animal’s spinal cord. To the naked eye, many onlookers may perceive this as the animal suffering in pain. However scientists who have a deeper understanding of The Halal Journal | May+June 2010 |

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the heart and brain condition of the slaughtered animal may tell you otherwise. Another study conducted in 1964 by a European scholar Spoerri arrived at a similar conclusion. It was reported that ritual slaughter caused no more pain than slaughter of animals which have undergone electric, gas or captive bolt stunning. In Islam, the Prophet Muhammad (peace be upon him, p.b.u.h.) teaches us to treat animals with kindness. Just as much as humans have their rights, animals were also given theirs. When slaughtering an animal, it is mandatory for the slaughterer to ensure that it is done swiftly and inflicts minimal pain. As reiterated in Ibn Rushd’s book entitled “Bidayat al Mujtahid (V1 / P433)”: “If you slaughter, then slaughter in the best way. One should sharpen his edge and comfort gently his animal.” Ultimately, while there may be many who oppose ritual slaughter and feel strongly against the method due to its perceived “barbarous” nature, there is no evidence to prove that ritual slaughter is in fact more painful and induces greater suffering to the animal than if the animal were to be pre-stunned. Hazel Hassan Hisham, in her article entitled “Challenge No. 2 for Muslim Scientists: Stunning” published in the September/ October 2007 edition of The Halal Journal said, “Given the importance of religious slaughter to Muslim consumers, it is important that scientists must be absolutely objective when evaluating these practices from an animal welfare standpoint. It seems that evaluation of religious slaughter is an area where many have lost scientific objectivity.”

Halal does NOT pose a threat of Islamisation Islamisation is described as a process of a society’s conversion to Islam. It baffles me as to how one can entertain the notion that a religious obligation – Halal, which has been proven to be consumable by all, is claimed until today by many as a means for Muslims to Islamicise the world. It is just as unfair to claim that Kosher is a means for the Jews to “Jewisise” their consumers. Muslims are allowed to consume Kosher food; in fact, Muslims are even encouraged to consume Kosher food should Halal food not be available. Perhaps it is not Islamisation but Islamophobia that is the overriding problem prevalent within the cross-over (non-Muslim) segment. Even though Halal today is not foreign to non-Muslims, it is however not a significant element in countries that do not have a sizeable Muslim community. The biggest battle faced by Halal food businesses in such societies is in fact assuring the cross-over market that, Halal food is safe for their consumption and does not in any way compromise on their religious beliefs. At the core of the Halal is the concept of Halalan Tayibban, which means good and wholesome when translated. Today, Halal is synonymous with taglines like healthy eating, ethical business conduct, cruelty-free animal and hygienic. Halal food consumption is no longer exclusive for Muslims. After the outbreak of Mad Cow Disease in the 1990s and Food and Mouth Disease in 2000, more non-Muslims find that Halal is inclusive and have accepted it to be the healthier and safer option. With Mad Cow Disease, it was found that the infected cows had been fed with bones and remains of cows that had been infected from

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The existing disjointed views towards Halal are not new, and judging from the growth of Halal businesses globally, the disparities are gradually diminishing.

consuming bone meal made from infected pigs and sheep. In addition to giving animals infected food, providing the cows with feed made from other cows is akin to cannibalism and hence prohibited in Islam. The key to preventing Foot and Mouth Disease in cows is dependent on how the animals were kept. Animals should be kept in sanitary conditions and open conditions which has access to sunlight. Heat and sunlight helps kill the virus. After much investigation it was found that the cows were kept in conditions that were unsanitary and were hardly allowed to roam in open land thus having limited access to sunlight. When the late Caliph (Muslim ruler) Umar ibn Al-Khattab noticed a man dragging a sheep by its leg to be slaughtered, he remarked, “Woe to you! Lead it to its death in a decent manner.” The key message here is that we should spare animals from unnecessary suffering. Hence feeding animals with infected feed and keeping them in unsanitary conditions that contribute to their suffering is prohibited in Islam. Another health aspect of Halal is the bleeding of the

animal through Zabihah. With Zabihah, after the incision is made the animal is allowed to bleed to death. The bleeding allows toxins to flow out of the body of the animal. It is this process of the slaughter that helps prevent the spread of diseases, thus, rendering the meat to be safer for consumption. Of course, the bleeding may not be able to rid off all types of diseases, but it has been proven to help prevent the spread of many diseases. Health and safety are some of the many factors that have attracted the cross-over markets to consume Halal food. When we consider the growth in Halal food businesses globally, it would not be accurate to say that Islamisation is on the rise. Rather, it is the benefits of Halal products that are gaining greater recognition and appeal. According to KasehDia, the global Halal food industry is poised to reach USD661.6 billion by end of 2010 – a growth from USD634.6 billion in 2009. With companies like Carrefour and McDonald’s making a mark within the Halal food business, many companies have joined the foray of this burgeoning industry. With the Halal meat industry dominated by non-Muslim countries such as Brazil, Australia, New Zealand and India, gone are the days when Halal was strictly viewed as a spiritual mystic Islamic concept. It is today a necessity that is available on the shelves of convenience stores and menus of eateries around the world. Halal is inclusive Many may claim that Halal is a way for companies to make greater profits, and the escalating growth of the Halal industry is mainly attributed to the rise in the Muslim population. While there is some truth to this, one would find it hard to believe that companies would

ignore the demand of five billion consumers for the sake of satisfying the needs of approximately two billion Muslims. With this in mind, perhaps it is fair to say that Halal is inclusive and has finally been accepted as a universal concept. The existing disjointed views towards Halal are not new, and judging from the growth of Halal businesses globally, the disparities are gradually diminishing. It is very comforting to note that we have many non-Muslim friends that support Halal and after much persistence and patience, the world has become more tolerant towards the Islamic way of life. As a Malaysian living in a multi-racial society where diversity is tolerated and appreciated, it is evident that collectivism is the only fulcrum for real progress. Disagreements are part and parcel of the process that should be welcomed and is integral for positive change. After all, the great success of the global Halal industry as it stands today could not have materialised if not for the increasing involvement and cooperation of the many non-Muslim-owned businesses and non-Muslim consumers worldwide.

hj

References: Introduction Serbia apologises for Srebrenica massacre http://www.telegraph.co.uk/news/worldnews/europe/ serbia/7540003/Serbia-apologises-for-Srebrenica-massacre.html Serbia apologises for Srebrenica massacre but MPs deny still refuse to call it genocide http://www.dailymail.co.uk/news/worldnews/article-1262519/ Serbia-apologises-Srebrenica-massacre-MPs-deny-genocide.html Speech House of Lords, London, Friday the 5th of March 2010 http://www.geertwilders.nl/index.php?option=com_c ontent&task=view&id=1662&Itemid=1 The Bravest Man in Europe http://atlasshrugs2000.typepad.com/atlas_ shrugs/2008/09/the-bravest-man.html Jihad What is Jihad? http://www.danielpipes.org/990/what-is-jihad Inner Jihad: Striving toward harmony. By Dr Shahid Athar http://muslim-canada.org/jihadshahid.html Halal does NOT discriminate French fast food chain Quick sparks Halal burger appeal http://news.bbc.co.uk/2/hi/8524056.stm Middle-class Muslims fuel French Halal boom http://www.guardian.co.uk/world/2010/apr/05/france-muslims-halal-boom Halal slaughter is not barbarous UK: Christians, Muslims upset at KFC Halal http://www.allah.eu/about-islam/uk-christians-muslims-upset-at-kfc-halal.html Slaughtering the Halal way http://www.themuslimwoman.com/hertongue/HalalWay.htm Animal rights in Islam http://islam.thetruecall.com/modules.php?name=News&file=article&sid=296 Challenge No. 02 for Muslim Scientists: Stunning. By Hazel Hassan Hisham. The Halal Journal Sept/Oct 2007 Australian Muslims Adamant That NO STUNNING is More Humane. By Shahirah Elaiza Wan Hassan. The Halal Journal Sept/Oct 2007 Halal does not pose a threat of Islamisation Consumers increasingly perceive kosher and Halal food as safer http://www.scientistlive.com/European-Food-Scientist/Ingredients/ Consumers_increasingly_perceive_kosher_and_halal_food_as_safer/17798/ Mad Cow and Foot-and-Mouth Disease. By Karima Burns http://www.islamonline.net/servlet/Satellite?c=Article_C&cid=115796 2449665&pagename=Zone-English-HealthScience%2FHSELayout The Halal Journal: Market Intelligence Series #1. European Halal Food Market Report. Pg 6. The Lawful and The Prohibited in Islam (Al-Halal wal Haram fil Islam). By Yusuf al-Qaradawi. Pg 58. The Halal Journal | May+June 2010 |

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Umrah : My Spiritual Journey Umrah in Islamic terminology is not just visiting the Ka’aba, it also encompasses the tawaf (circumambulation around the Ka’aba seven times), sa’i (which is walking between the hills of Safa and Marwah seven times), and finally the tahallul (cutting of the hair). This series of ritual acts is symbolic to represent the lives of Prophet Ibrahim a.s. and Hajar.

rior to my umrah experience, I had heard many tales of the beauty of Makkah and Medina, their rich history and also the feeling of serenity people often experience during their pilgrimage. My parents have been there twice in the past decade and both my elder sisters did their umrah in 1999. I had been longing to experience it for myself, and thus, was really excited when my parents announced that the four of us, including my brother, would be making the trip to the holy cities. At one point, the trip almost did not happen as the tour agency we first appointed messed up our booking and cancelled on us one month before we were scheduled to depart. March is our desired travel period as the weather would be less hot, and Alhamdulillah, we managed to find another tour agency in time to join a package and group that was leaving within our desired dates. A week before our scheduled trip, the tour agency gave us a briefing on what to expect, introduced us to our ustaz (who is also our tour guide) and went through the itinerary with us. As a first timer, this briefing was The Halal Journal | May+June 2010 |

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indeed helpful to prepare me for the trip. When 15 March came along, I was all packed and ready to go. Armed with my luggage filled with two weeks of clothing, a dark blue mini stroller and sling bag provided by the tour agency, as well as the handy umrah guidebook that throughout the trip never left my side, I waited with my family for the taxi we had booked to arrive. It was 9am and we had already done our solat musafir, read the necessary verses and said our prayers to begin our umrah. At the airport, we were introduced to our other guide and the rest of the jemaah. Including my family and me, there were 26 in our group. I could see many other agencies with their jemaah milling about the departure floor. They too had custom-made strollers and sling bags that identified their

Words & Photos By Dayana Nordin

tour companies, some in blue/ yellow, some in orange, some in purple, some in black, and no tour had the same colour so as to be easily differentiated in crowds. Eventually, I realised that they were all on the same plane as we were and we would later see them occasionally in the holy cities. After much waiting, we said our goodbyes to the families we were leaving behind and boarded the Saudi Arabian Airlines headed for Medina, the second holiest city in Islam. We landed eight hours later. Although I hardly slept on the plane, I was feeling more and more energised and excited to explore this country I had only heard and read about all my life. The journey from the airport to the city did not take long. En route, I was thrilled to view old Saudi Arabian architecture mixed

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with the new. The moment I caught a glimpse of Masjid Al Nabawi in between the tall buildings, I was awestruck. The lights, the minarets, the marble tiles covering almost every inch of the majestic building almost brought a tear to my eye. The mosque is also known as the Prophet’s Mosque, as it is the final resting place of Prophet Muhammad (pbuh), and it was said that Medina is his favourite place. Surrounding the mosque were new buildings housing various hotels and shops. Our hotel was conveniently located two blocks away from the mosque, called Al Sofraa Al Huda. Throughout my stay in Medina, I enjoyed the city’s peaceful atmosphere and clean surroundings. The mosque itself is a wonder to be in. My parents both gave me an account of what the mosque used to look like back in the late 80s and early 2000 when they visited. It sounded as though the mosque grew bigger and grander with each expansion, incorporating facilities and amenities for the comfort of its visitors with air conditioning, bigger washrooms, parking and automated canopies that provide shade for the pilgrims outside. Inside, the marble floors were carpeted and everyone is welcomed to read the hundreds of thousands of Qur’ans stacked on the shelves of the marble pillars

throughout the mosque. The older and newer sections of the mosque were quite distinct; the older has more colourful decorations and smaller pillars. On our second day, we were taken to al Raudah al Nabawiyah, where Muhammad’s tomb is located. If seen from the outside, a noticeable green dome marks the location of the tomb. The Raudah is actually quite a small area on the women’s side and it can only accommodate probably a hundred pilgrims or so at one time. Furthermore, it is only accessible during certain hours in the day so naturally, the place was packed when we got there. Even though there were obvious big banners hung all around requesting for calm and patience in four different languages, the women were pushing and shoving trying

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to get to the front. In addition, there were mosque staffs garbed in all-black standing on stools shouting for order in Arabic and Indonesian. What I thought would be a pleasant experience, turned into a scramble to find a small space to pray. A few of us from the group made a small protective ring so that we can take turns praying without being trampled. Even amidst the disorder, I managed to find some tranquility as I prayed. The March crowd in Medinah was quite big. Most of the pilgrims I noticed and met were either from Malaysia, Indonesia, Turkey or Egypt. My mother and I enjoyed The Halal Journal | May+June 2010 |

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talking to fellow pilgrims in the mosque about their hometown and experiences, and we even compared travel packages. While in Medina, we were also given many tours to various historical sites such as Quba’ Mosque, which is the first mosque of Islam; Qiblatain Mosque; Mount Uhud, where the famous Battle of Uhud was fought; and a couple of date farms where we got to taste various types of dates. One other place that we visited was the recently discovered Magnet Valley, an area where motorized vehicles are able to run without the accelerator being pressed. That was quite a different tour and very fascinating. Our bus started slow at first but it reached the speed of 120mph before the bus driver had to slow it down for fear of our safety. Our last day in Medina was on a Friday. I was told that the locals were not permitted to enter the mosque on other days except Friday in order to allow the pilgrims liberty to do the umrah. Needless to say, Masjidil Nabawi was full to capacity that day for Friday prayers. It was quite a sight. Soon after that, we made our way to Makkah. Prior to checking out, we had all changed into our umrah attire; us ladies wore our usual ‘telekong’ (prayer garment for women) over our clothes but the men wore something different than their usual clothes; unhemmed sheets belted at the waist. The bus ride to Makkah took seven hours. Ahead of arriving, we had done our miqat at a place called Bir Ali, which is not far from Medina. This is where we assumed our ihram and recited our niat. For the rest of the way, we recited the talbiyah, words to signify a response to the The Halal Journal | May+June 2010 |

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summons of Allah the Almighty. Makkah was a different experience to Medina. Mountains surrounded the city and to reach the city centre, the bus had to go through a circuit of tunnels and small roads as the areas got denser and denser. It was nearly ten o’clock at night when we arrived and the city was still bustling with activity, a contrast to Medina’s quiet nights. The Masjidil Haram is hard to miss. Its marbled walls stood out against the black sky and lights lit up its entire structure. Not long after we checked in, our Ustaz led us to the mosque to begin our first umrah. As I entered Masjidil Haram for the first time, I consciously took the first step with my right foot and recited the doa. And with that, I was in Allah’s house! It was an amazing feeling to finally be in the sacred mosque, the place I have been facing to offer all my prayers to Allah (swt). As we got closer to the Ka’aba, I kept my eyes peeled onto my guidebook, reading the doa and preparing myself for the tawaf.

When I looked up, I saw it. The Ka’aba. Right in front of me and in the middle of Masjidil Haram. Since it was nearly midnight, the crowd was not so big. This also meant that we managed to get quite close to the Hajar al Aswad and were not pushed around. I kept close to my family and the group as we circled around the Ka’aba for the tawaf. After completing the tawaf, we offered a prayer at Hijir Ismail and took a drink of cool zam zam water from the taps. While waiting for everyone to complete their solat, some of us rested on the steps at the edges of the court. I just sat there, staring at the Ka’aba, taking in all the sights and the sounds. It just felt remarkable to be there. Subsequently, we made our way towards Safa and continued with sa’i. After walking back and forth from the hills of Safa and Marwah seven times, we then ended the sa’i with the tahallul, cutting of a few strands of hair. With this action, my first ever umrah is complete. It was 3am at the time and we were all exhausted

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tourism

leisure

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05

01 Hotel 02 Quran printing in Makkah 03 Magnet Valley 04 Busy shopping street 05 Friday prayer at Nabawi mosque 06 Qiblatain mosque

but also happy with contentment. Throughout our eight-night stay in Makkah, my family and I managed to complete another two umrahs, both also done at night. The second time, our miqat was at Al Hudaibiah and the third at Tan’im. We were also fortunate enough to solat in the Multazam one time. For the rest of the week, my family and I spent most of our time in the mosque. Our favourite spot to pray was on the second floor, where the women’s praying area was right next to the men’s. This was quite different to Masjid al Nabawi, where we always go to the mosque separately as the praying areas for men and women were far apart. However, similar to Masjid al Nabawi, the Quran was accessible all around the mosque and in various translated versions. In addition, Masjidil Haram gets packed on Fridays as well.

06

The city of Makkah al Mukarramah seem to never sleep; the construction of new buildings circling Masjidil Haram goes on 24 hours a day (except on Fridays) and shops open until the wee hours of the morning. You can also see pilgrims entering and leaving the mosque all through the day and night. Our hotel, Al Nadwa, is conveniently located two blocks from the mosque and shops lined the streets right in front of and around the hotel, selling anything and everything from clothes, scarves and toys to food and hand-held massage devices. Although the weather is quite warm with dusty winds in Makkah, the tall buildings shade our way and block the dust coming from the construction sites nearby. The construction projects going on in Makkah were unbelievable. The buildings were massive and the tallest structure being built looked as if to compete with the Burj. The next few years will be quite exciting for Makkah, as the face of the city will slowly turn into

a modern and well-developed metropolis with the capacity to hold even more pilgrims than ever before. The historical sites that we managed to visit while in Makkah were the birth place of Prophet Muhammad (pbuh); the mountains of Nur, Tsaur and Rahmah/ Arafat; Ma’ala, the resting place of Saidatina Khadijah Khuwalid; Mina, one of the places to visit during Hajj; the Museum of the Two Holy Mosques, where we viewed old pictures of the Ka’aba and many historical artifacts; Quran printing house, where only men may enter (they also received a Quran each on their way out); Jinn Mosque and Abu Hurairah Mosque, sadly, both these mosques will be demolished in the coming months. At first, I thought two weeks was more than enough for umrah but when it came time to leave, I felt that it was undeniably too short. On our last day, we performed the farewell tawaf or tawaf Wida’. Ihram was not required for this and neither were niat or Sa’i. After completing the solat tawaf Wida’, it was time for zuhr. I prayed and prayed to Allah (swt) for the chance to come back again for umrah and hajj in the near future. Then, with a heavy heart, I walked out of Allah’s house. This experience has eradicated the doubts that I had felt, strengthened my faith in Islam as well as changed me for the better. I felt truly blessed for having given this opportunity. I hope to come again in the next few years and see the new face of Makkah, Insya Allah! hj

The Halal Journal | May+June 2010 |

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browsing

art & literature

Film Director: Andrea Kalin Genre: Documentary Film Producer: Andrea Kalin/ Unity Productions Foundation • Synopsis & photos extracted from the film’s official website

Prince Among Slaves The dramatic true story of an African Prince enslaved in the American South Prince Among Slaves is the dramatic true story of an African Prince enslaved in the American South. The film is narrated by Mos Def with reenactments directed by Bill Duke. This film follows the journey and faith of 26-year old Abdul-Rahman Ibrahima Sori, heir to the throne of one of the largest kingdoms in Africa, whose life is changed in a split second. In 1788, Abdul-Rahman is captured during a regional conflict and sold to English slavers for a few muskets and some rum and endures an eightmonth-long brutal Middle Passage from West Africa to the shores of America. Abdul-Rahman is ultimately purchased by a struggling Mississippi farmer named Thomas Foster, who hoped that the strong African would help establish his farm. AbdulRahman promptly escaped, but after several weeks alone in the Mississippi swamps, he decided to come back and accept his fate. He applies his leadership abilities and knowledge about crops, such as cotton, to help Foster eventually become one of the wealthiest men in Mississippi. In the meantime, Abdul-Rahman married an American-born enslaved woman, and together they had nine children. Abdul-Rahman never wavered in his belief that his rightful destiny was freedom. So it seemed a gift of fate when at a crossroads market twenty years into his enslavement, there appeared before him an Irish ship’s surgeon whose life had been saved by

Abdul-Rahman’s father many years before. This was the one white man in America who owed Abdul-Rahman an enormous debt. But the bonds of slavery proved too strong. There were numerous attempts by Doctor Cox to purchase Abdul-Rahman’s freedom, but Foster stayed firm, refusing to sell the man he called Prince, at any price. Two more decades, a meeting with a local printer who had a friend in the U.S. Embassy in Morocco resulted in an exchange of letters between the Sultan of Morocco and then President John Quincy Adams. Because Abdul-Rahman wrote and spoke Arabic both leaders mistakenly believed that he was Moroccan. In a diplomatic exchange, President Adams agreed to do what he could to gain Abdul-Rahman free passage to Morocco. The President appealed directly to Foster to let Abdul-Rahman go. Reluctantly, Foster agreed, but did not grant Abdul-Rahman his freedom, nor did he grant the freedom of his family. Abdul-Rahman was to remain technically a slave, and was to leave Mississippi alone. Defying the edict that he return immediately to Africa, AbdulRahman set out on a quest to raise enough money to purchase his family’s freedom. He succeeded early with his wife. But the price for his children and grandchildren seemed nearly out of reach. Nevertheless, he persevered giving lectures and soliciting donations. When

photography + photojournalism

goodstuff

he finally met personally with President Adams and corrected the error that he was not Moroccan, Adams declined to pay any money to help free his family. Sickness and the growing threat that he might be returned to Foster forced Abdul-Rahman to leave the U.S. without his children. In Africa, he continued to press for their freedom, but died only four months after his return, unable to see his quest realized. Ultimately, two of his children were freed with the money he had raised, but the rest remained in bondage in the U.S. Recently, his African and American descendents were reunited at a reunion on the grounds of the plantation where he was enslaved, finally fulfilling his dream. Prince Among Slaves paints a vivid picture of the extraordinary times in which this remarkable man lived, interweaving the universal themes of bondage and deliverance, privation and perseverance, to tell a story of survival of the human spirit about a person who endured the humiliation of slavery without ever losing his dignity or his hope for freedom. For more information about the film, log on to http://www.upf. tv/upf06/Films/PrinceAmongSlaves/tabid/77/Default.aspx.

WWW.MODESTKINI.COM By Zaahira Muhammad

Modestkini.com features high quality swimwear for people who are looking for modest, stylish swimwear. There’s a selection of modest swimwear to choose from: Full Cover Swimsuits, Semi-Cover Swimsuits, Plus-Size Swimsuits, and Swimsuits for little girls as well as Men’s Swim shorts – all available in different colours and sizes suitable for everyone’s needs. This UK-based site also features Care Instructions for customers, which is great for those who want their swimwear to last longer! Payments by credit cards and PayPal are accepted through this site. The user-friendly interface makes it a pleasant shopping experience through this site. Let’s shop with Modestkini.com today! The Halal Journal | May+June 2010 |

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browsing

Entwining poetry & music

Liza Garza: Recording for Delas “Change of Atmosphere” - Photo taken from www.myspace.com/lizagarza

Liza Garza’s Album ‘BloomBeautiful’ - Photo taken from www.lizagarza.wordpress.com

Liza Garza

art & literature

photography + photojournalism

goodstuff

Book Title: Music and Singing Author: Imam Abu Hamid al Tusi al Ghazali Translator: Duncan Black MacDonald Publisher: The Other Press, Islamic Book Trust (2009) ISBN: 9789675062230

Are music and singing allowed in Islam? If the answer is a definite yes or no, then why has the question of its lawfulness become the subject of debate among Muslim scholars for centuries? In this treatise translated from the eighteenth book of Imam Ghazali’s Ihya Ulum al-Din, readers get an insight into the pros and cons of the controversy and be guided by the greatest authority of traditional Islam, none other than Imam al-Ghazali. For al-Ghazali, it is important to have true knowledge to reap the benefit of music. Those who have no sufficient knowledge of God and His attributes, he writes, are liable to apply what they hear both to what is allowable and what is not allowable.

Perfectly groomed hair with SAFI Men

Emmy Award-nominated Liza Garza is a rare soul. An HBO Def poet and vocalist, Liza possesses the uncommon ability to keep listeners captivated while provoking social change and action in the community. “You Never Know Until I Spoke”, her first book of poetry, was published in 2005, followed by the release of her debut album ‘BloomBeautiful’ in October 2006. Gracefully infused with the spirit of hip-hop and a tapestry of poems and ballads reminiscent of Mexican folk tunes, ‘BloomBeautiful’ brilliantly displays Liza’s diversity through song and spoken word. Liza has shared the stage with several respected musicians and luminaries including Stevie Wonder, Roberta Flack, Amir Sulaiman, and Jill Scott, and was a featured poet on HBO’s “Russell Simmons Presents Def Poetry”. Possessing a degree in Performance Activism from the University of Michigan, Liza spends the balance of her time speaking on topics related to women, hip-hop and culture of colleges, universities and conferences. Liza is passionate about building new community and a space to document the voice of the unrepresented. For more information, log on to www.lizagarza. com or www.lizagarza.wordpress.com. **Note: Biography extracted from Liza Garza’s official website.

Forget about shampooing your hair and running a comb through it. SAFI Men has just revolutionised men’s hair care by relaunching its range of products tailored to provide all men with a great looking head of hair. SAFI Men’s hair care range is a line of quality grooming products that keep hair sleek and styled all day long, while nourishing and protecting hair from the roots. SAFI Men unveiled SAFI’s new and improved formula in men’s hair care containing multivitamins and a UV protector, while upholding SAFI as a leader in the Halal-compliant, Muslim personal care segment. “SAFI Men is especially formulated for young, suburban Malay men,” says Agnes Yap, Assistant Product Manager at UNZA Malaysia. “SAFI users can feel secure in the knowledge that we only use the purest, traditional ingredients in our products.” SAFI’s hair cream for men is available in two variants – regular and medicated. Both contain multivitamins and a UV shield to nourish and protect hair from the roots and promote healthy hair growth. The hair creams also contain a conditioning agent for easy styling and hair that looks perfectly groomed all day long. The medicated cream also includes ZPT, an active ingredient used to combat dandruff. Both variants contain menthol for a cooling sensation upon application. SAFI’s hair gel for men is also available in two variants – effective hold and extreme hold. The improved holding power in both variants achieves a smooth finish and keeps hair sleek and stylish all day. Both gels contain menthol, multivitamins, a UV shield and a conditioning agent. “We would like to avail our products to a wider market by giving men the option of choosing hair cream or hair gel,” says Yap. “SAFI Men is now more appealing, thanks to its new and improved formula and its refreshing image.” Both SAFI hair cream variants are available in 75g and 125g jars priced at RM3.60 and RM5.00 respectively. The regular hair cream is available in a 150g tube at RM5.50. SAFI’s hair gel variants are only available in 125g tubes retailing at RM5.00. SAFI Men is now available nationwide at leading pharmacies, hypermarkets and supermarkets in Malaysia. The Halal Journal | May+June 2010 |

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browsing

art & literature

photography + photojournalism

goodstuff

Photography, artwork & graphic design:

Exploring visual & spiritual traditions of Islam

ydney-born designer and digital artist Peter Gould founded Azaan to explore his passion for contemporary graphic design, art, photography and the rich visual and spiritual traditions of Islam. Since embracing Islam in 2002, his travels and studies throughout the Muslim world have inspired a unique cultural fusion that is reactive to a world of misunderstanding. Peter’s work has reached many audiences locally and abroad through exhibitions, appearances, graphic design projects and collaborations with other artists. Highlights include exhibitions in the United The Halal Journal | May+June 2010 |

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States, Malaysia, Australia and Singapore, as well as events in Europe and the Middle East. He has won several design awards such as the ISNA 2009 branding competition. He has collaborated with many prominent Muslim Creatives including Chinese calligrapher Haji Noor Deen, UK street artist Mohammed Ali, and designer, Abdullateef Whiteman, and houses a permanent collection

of his photography at Zaytuna Institute in Berkeley, California. Peter’s portfolio includes his photography, artwork, and his graphic and web design studio, which services a broad range of clients locally and internationally. He also owns and runs the awardwinning commercial design studio Creative Cubed. For more information, visit www.azaan.com.au.

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BROWSING

art & literature

photography + photojournalism

goodstuff

Only natural... A butterfly on a bed of fresh red hibiscus. by 贸morfi zo铆

Photos below: Vibrant atmosphere of a Muslim fashion market in Ramadhan. by Faizal Ortho

The Halal Journal | May+June 2010 |

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art & literature

photography + photojournalism

goodstuff

Burgers are everywhere. Burgers have been among the most popular food in the world. In Asia, burgers are not only found in cities and towns, but have also reached rural areas. In Asian Muslim countries such as Malaysia, Brunei and Indonesia, Halal burgers and hotdogs are made popular by the establishment of international and local burger franchise. In Malaysia, local burger chains such as Ramly Burger are not the only player. In most rural areas in Malaysia, burgers are also on the menu in restaurants and smaller food outlets (warung). Some even offer burgers for breakfast. The photo shows a local boy preparing a burger at a warung, where burgers are as popular as the local dishes. by Mark Piet

A shepherd dog belonging to a Muslim farmer taking a day out in the sun. by Mark Piet

The Halal Journal | May+June 2010 |

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parting words

Starting more than 60 years ago as a small chicken slaughterhouse, Belgium based Volys Star is now one of the poultry industry’s pioneers in Europe, producing products with the highest added-value and of the finest quality. It realised its first major innovation by developing cooked products from poultry meat such as cold cuts, breaded products and meal components, which until then had only been made from pork meat. As a true believer in this new industry, Volys Star had at that time been converted from a chicken slaughterhouse into a poultry meat processor and started rearing and slaughtering turkeys instead of chickens as turkeys had more meat on them to be used as raw material for the meat processing business. Koen De Praetere, General Manager of Volys Star, talks about Volys Star’s transition to Halal and shares the challenges faced with The Halal Journal.

Volys Star & Halal: on innovation, challenges and solutions did not grow up with the Halal concept; we had to learn it. In the beginning, it was difficult as there was nothing much to start with in Europe. Fortunately, we ran into Mr. Abdalhamid Evans who showed us one of the earlier versions of The Halal Journal – “a new magazine about Halal” at the time. From there, we learned there were Halal Knowledge Centres, although far away from Europe. We then attended the World Halal Forum and learned a lot; but more importantly, we got to know many people who were willing to help us understand more about Halal. Although it took us a few years to figure out how things worked, we gradually built in all new knowledge into our processes, making us more and more confident to reach out for non-European Halal markets. So, we must thank everybody we met at various places and events for helping us get this far. Another challenge was to become a Halal Dedicated Operation, within our European environment. Within the EU, a lot of non-Halal ingredients are used, which we had to replace with their Halal counterparts. This took quite a lot of effort but we are proud we have managed to do so. The absence of Halal Certificates’ recognition was another challenge. Instead of having one certification body, we are forced to work with several

How, when and why did Volys Star decide to have the Halal certification mark and did it impact the business in any way? Some 20 years ago, Volys Star was approached by Muslims wanting to buy our poultry-based non-pork cold cuts, which were then unique in the European Market. After learning the basic requirements of Halal Production, we adapted our processes and entered the Halal Market, where we enjoyed success with our line of Halal Premium Products. For Halal Certification, we approached SFCVH (Société Française de Contrôle de Viande Halal), a partner of the Mosque of Paris, France, as it was the choice of our customers. As Halal Certification is not regulated in Europe, choosing a Halal Certification Body usually end up in a nowin situation, as there will always be people criticising one’s choice of certifier. Therefore, Volys Star’s main strategy has always been to invite our customers to see for themselves how we work. After all, it is our customers who have to feel comfortable that we are doing the right job. What were the challenges faced being Halal and how were these challenges overcome? The main challenge was to understand Halal. As a non-Muslim company, we The Halal Journal | May+June 2010 |

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“We believe a key element in the Halal market is consumers’ trust in whether a product really is Halal or not; we do not want our consumers to even raise this question for our products.”

bodies, depending on the country we want to export to. This only makes things more complicated and more expensive, or sometimes even makes export impossible altogether.

the European markets – with no uniform Halal Certification System – the JAKIM certificate is a clear proof to everybody we are serious when it comes to Halal.

Recently Halal-certified by JAKIM, do you feel that Volys Star can gain more confidence on its products and has it changed anything? Getting certified by JAKIM was very important to Volys Star because it was the first time we were audited by an official body specialised in Halal audits, as there are no such bodies in Europe. By being JAKIM-certified, we are more confident that we are on the right track, that we do indeed understand something about Halal, and that we are not compromising on the trust that our customers have in Volys Star, the latter being very important to us. JAKIM’s approval also made us more confident to more actively explore the Asian market as we can also meet their Halal expectations. But also for

What are Volys Star’s plans now? As Halal markets are moving and becoming more visible in our daily life (with or without some commotion), we believe we are prepared for these changes; but we also want to stick to our company’s values – next to delivering high quality products, we always want to deliver what we promise. We believe a key element in the Halal market is consumers’ trust in whether a product really is Halal or not; we do not want our consumers to even raise this question for our products. That is why we have gone a long way in understanding and implementing Halal. And this is what we will continue to do also in the future. hj

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GLOBAL HALAL UNITY IHI Alliance is an international non-profit organisation created to uphold the integrity of the Halal market concept in global trade through recognition, collaboration and membership. Our mission is to propagate the benefits of Halal and elevate it as the standard of choice. Through our strategic partnership with the Islamic Chamber of Commerce & Industry (ICCI), we seek to assemble world class experts, leading industry figures and stakeholders across the whole industry supply chain to harmonise the global Halal industry. We invite companies, organisations and individuals to join as IHI Alliance members and be a part of an initiative to build a stronger and robust global Halal industry. For membership details including benefits, categories and fees, please log on to

www.ihialliance.org or email info@ihialliance.org

INTERNATIONAL HALAL INTEGRITY ALLIANCE LTD (LG05848)

16-2, JALAN 27/70A, DESA SRI HARTAMAS, 50480 KUALA LUMPUR, MALAYSIA T +6 03 2300 1344 F +6 03 2300 1312 A PARTNER OF THE ISLAMIC CHAMBER OF COMMERCE & INDUSTRY (ICCI)

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