The global halal economy is fast approaching a value of $8 trillion, yet Iran’s share remains negligible despite its strong production base and Muslim-majority population. While non-Muslim countries such as Malaysia, Thailand, and Brazil have become key players in halal food and related industries, Iran has yet to establish an international brand identity or a unified certification system that would enable it to benefit from this expanding market.
Over the past decade, rising Muslim populations, higher food safety standards, and growing consumer awareness have fueled the worldwide demand for halal goods. This demand now extends beyond food to pharmaceuticals, cosmetics, tourism, and finance. Although Iran possesses natural and agricultural advantages and lies geographically at the crossroads of Muslim markets in West Asia, the Caucasus, and Central Asia, its export performance in halal products remains weak. According to trade officials, Iran accounts for less than one percent of global halal trade, even though its domestic production capacity could support a far greater share.
Analysts identify several structural reasons for this underperformance. The most immediate problem is the fragmentation of Iran’s halal certification process. Multiple agencies—including the National Standards Organization, the Food and Drug Administration, and the Ministry of Industry’s research centers—each issue their own “halal” labels, creating confusion among producers and importers. In contrast, Malaysia and the UAE have built internationally recognized certification bodies that underpin their export credibility. The absence of a unified Iranian standard undermines foreign trust and limits access to key destination markets.
Broader constraints also weigh heavily on the sector. Sanctions have restricted international engagement, constrained export payments, and discouraged foreign investment. At home, weak marketing, inadequate packaging, limited logistics infrastructure, and inconsistent quality control prevent Iranian firms from meeting global expectations. As a result, Iran’s presence in the halal economy is largely “physical but ineffective”: it produces qualifying goods but lacks visibility, distribution networks, and branding power to compete internationally.
Essential Steps
Industry experts argue that three steps are essential for change. First, the government must consolidate halal certification under a single recognized authority to ensure transparency and international compatibility. Second, exporters need better infrastructure, including specialized logistics, product design, and participation in regional distribution networks. Third, closer engagement with neighboring and Muslim-majority countries could open new markets and facilitate trade partnerships. The private sector, especially chambers of commerce, should lead these initiatives while government intervention is minimized.
As Masoud Bakhtiari of the Iranian Chamber of Commerce notes, many non-Muslim nations have turned halal compliance into an export advantage by adopting and marketing Islamic standards. Iran, despite its demographic and cultural strengths, has not done the same because of limited international engagement and excessive bureaucracy. He argues that freeing trade from administrative and political restrictions would allow Iranian businesses to compete on equal terms.
Ultimately, Iran’s missed opportunities in the halal economy highlight a broader challenge: translating domestic potential into sustainable global competitiveness. The path forward depends on institutional coordination, private-sector empowerment, and strategic diplomacy. With coherent policy and credible certification, Iran could move from being an underrepresented producer to a visible participant in one of the world’s fastest-growing economic arenas.
