As ethical finance gains momentum globally, Halal-certified investment products are emerging as a crucial player in the field, offering investors an opportunity to align their portfolios with both religious and ethical principles. While Halal certification has long been associated with food and consumables, its scope has expanded to encompass a wide array of products and services, including finance, manufacturing, and non-consumable goods. This evolution positions Halal certification as a universal benchmark for ethical and socially responsible investments across various sectors.
Halal, meaning “permissible” under Islamic law (Shari’ah), was traditionally applied to consumable goods like food and beverages. Today, however, Halal certification spans multiple industries, covering not only consumables but also non-consumable products and services. In the context of finance, this certification guarantees that investment products, portfolios, and services are free from activities forbidden in Islam, such as interest (Riba), gambling, and involvement in unethical industries like alcohol or arms manufacturing.
Moreover, Halal certification is now increasingly being sought for services and products outside the realm of finance and food. Industries such as manufacturing, pharmaceuticals, logistics, and even real estate are adopting Halal certification, ensuring that their business practices align with Islamic ethics and global standards of social responsibility.
Halal certification has grown to become a global standard not only in Muslim-majority countries but also in regions with diverse populations. This expansion is seen across various sectors:
- Manufacturing of Consumable Products: Halal certification in this area ensures that food, beverages, and pharmaceuticals are produced in accordance with Islamic principles. From sourcing ingredients to the production process, everything must meet strict ethical guidelines.
- Manufacturing of Non-Consumable Products: Halal certification is also applied to non-consumable goods, such as cosmetics, clothing, and household products. In these cases, the materials used and the processes involved must avoid exploitation and harmful practices, aligning with ethical and Shari’ah standards.
- Financial Services: In finance, Halal certification guarantees that investment portfolios, savings products, and even insurance policies (known as Takaful) adhere to the principles of fairness, risk-sharing, and ethical investing. Major financial hubs, from Dubai to London, are embracing Halal finance as a tool for responsible and sustainable growth.
- Logistics and Supply Chain Services: From warehousing to shipping, Halal certification in logistics ensures that the entire supply chain operates under ethical guidelines, minimising environmental impact and ensuring fair labour practices.
Obtaining Halal Certification for Investments, Products, and Services
The Halal certification process is rigorous and demands strict compliance with Shari’ah principles. Whether for a financial product or a consumer service, the certification process follows similar steps designed to ensure adherence to Islamic law:
- Shariah Advisory Consultation
Financial institutions or companies seeking certification must engage with recognised Shari’ah advisory boards. These experts review the structure of the product or service to ensure it is compliant with Islamic law. - Screening and Auditing
For investment products, the screening process involves an audit of all assets and activities to ensure they are free from non-compliant sectors, such as alcohol, gambling, or interest-based finance. In non-consumable manufacturing, this screening may focus on the supply chain, ensuring that materials and practices meet ethical standards. - Issuance of Fatwa and Certification
Once the Shari’ah advisory board confirms compliance, it issues a fatwa, a formal legal ruling certifying that the product or service is Halal. This certification is subject to ongoing reviews to ensure continued compliance over time. - Continuous Monitoring and Compliance
Ongoing Shari’ah audits ensure that financial products and services remain compliant with Islamic principles. For non-financial sectors, this ongoing monitoring ensures that the supply chain, production processes, and business activities continue to meet Halal standards.
In addition to its religious significance, Halal certification is gaining recognition in the global investment community as a standard for ethical finance. Investors looking for socially responsible and sustainable options are increasingly turning to Halal-certified products and services as they ensure transparency, fairness, and avoidance of harm.
This is particularly evident in the growing overlap between Halal finance and ESG (environmental, social, and governance) investing. Both frameworks prioritise ethical business practices, risk-sharing, and long-term value creation. As global interest in responsible finance grows, Halal-certified investments are becoming an attractive option for investors of all faiths who prioritise values-driven investing.
As Halal certification expands into more sectors, it becomes clear that its principles can serve as a universal standard for ethical and sustainable practices across the globe. From manufacturing and consumables to finance and services, Halal-certified products are seen as trustworthy and transparent, offering both financial institutions and corporations a pathway to credibility in a values-conscious market.
For financial institutions, obtaining Halal certification opens doors to new markets, particularly among the global Muslim population of 1.9 billion. It also strengthens relationships with ethical investors who seek to align their wealth generation with values of fairness, transparency, and sustainability.
Halal certification has evolved into more than a religious seal of approval. It has become a global standard for ethical, sustainable, and responsible business practices. Whether in finance, manufacturing, or services, obtaining Halal certification signals a commitment to fairness, ethical principles, and long-term value creation.
As the demand for ethical investing grows, companies and financial institutions worldwide are recognising the importance of Halal certification as a tool to meet the needs of today’s conscientious consumers and investors. From global financial centres to manufacturing hubs, Halal-certified products and services are poised to play a key role in the future of responsible, values-based investing.