The total assets of Islamic finance institutions, commonly known as participation finance in Türkiye, doubled in the last year and reached TL 1.1 trillion ($59 billion) as of September 2022, Treasury and Finance Minister Nureddin Nebati said Thursday as Istanbul hosts a major summit expected to add to the metropolis’ goals of achieving fair share in multitrillion-dollar world halal market.

The participation finance ecosystem, interest-free banking system, "which has a history of nearly 40 years in our country, has now become one of the most valuable elements of our financial services sector," Nebati said at the opening of the summit.

The 8th World Halal Summit and 9th Organisation of Islamic Cooperation (OIC) Halal Expo commenced in Istanbul with officials delving into measures to further expand the burgeoning global market for halal products.

Nearly 500 exhibitors from 40 countries are to take part in the four-day events showcasing a variety of products and services conforming to Islamic guidelines, known as halal.

The events are expected to draw some 40,000 visitors, including around 9,000 people from across the world.

The two major gatherings, considered the most important cooperation platforms for the halal market, aim to make Türkiye the hub of a flourishing sector already worth more than $7 trillion.

In a message read out at the opening ceremony, President Recep Tayyip Erdoğan hailed the halal market's growing international prominence.

He said its reach extends well beyond just Muslims to every person seeking quality products and services.

"The halal market, which has gained importance in the global competitive environment, has become a sector preferred not only by Muslims but also by all consumer groups with its clean, healthy, reliable products and services," Erdoğan said.

The president noted that in order for Türkiye to become the central country in the halal economy, develop halal trade and make new markets accessible, he hopes the expo to be productive.

Nebati, meanwhile, further expressed his appreciation for the opportunity to participate in the event that makes significant contributions to the development of the halal industry all over the world and stands out as the largest "halal organization" in the global arena.

He explained that the halal industry has moved beyond just food to command a significant position in areas such as finance, textiles, cosmetics, medicine, tourism and logistics, noting that the concept of halal covers healthy, hygienic and high-quality processes at every stage from the production of the products to the delivery to the consumer.

Excluding Islamic finance, the halal economy has grown to $2.1 trillion, he said.

Halal food remains the top component with $1.3 trillion, followed by textiles ($295 billion), media ($231 billion) and tourism ($102 billion), he added.

He said the importance of certified halal products is increasing by the day, particularly for Muslims, who make up about a quarter of the world's population.

"We expect the volume of trade with halal certificates to increase with the implementation of the Standards and Metrology Institute for Islamic Countries (SMIIC), contributions of OIC member states and the application of a harmonized accreditation system," said Nebati.

In the field of Islamic finance, he said the sector had grown to $3.1 trillion in 2021 and is expected to hit $3.4 trillion this year.

In Türkiye's banking sector, the share of participation in financial services has expanded to 8.5% from 5% in just the past five years, on pace for the target of 15%, the minister added.

Halal tourism

Türkiye also holds a particularly important place in halal tourism as one of the most developed Muslim countries in that field, Nebati said.

Nebati, explaining that they are carrying out studies and making necessary arrangements to enable venture capital investment funds (GSYF) or venture capital investment trusts (GSYO) to invest in halal parks, said that they are widely providing halal tourism services that can best meet all the needs and expectations of Muslim tourists visiting Türkiye.

Emre Ete, a member of the World Halal Summit council, also said at the opening that the sector's significance is a vehicle of economic growth and solidarity in the Muslim world.

"We will continue to work to increase the ability and solidarity of Muslims to act together for rights and equality in the face of injustice and oppression, to support each other in the economic context, to grow the $4 trillion halal sector and to increase awareness on the halal market," he said.

Ihsan Övüt, general secretary of the SMIIC, emphasized the stringent focus on quality in the halal market.

He said 17 technical teams of the SMIIC are engaged in efforts on local and regional standards according to the industry's needs.

"Standards are the common language that we are working on to make our lives easier," he said.