'Halal economy has a very bright future': US-based economist

Benefits of halal products, services should be touted to the public, says Mohammad Kabir Hassan

ISTANBUL:

The economy around halal products -- those meeting Islamic standards -- has a very bright future, according to a US-based economist.

Most of the "halal economy" is in the finance sector, but the non-financial part should also be expanded, Mohammad Kabir Hassan, an economist at the University of New Orleans, told Anadolu Agency.

It is a $6-trillion worth economy but the majority of it is the Islamic finance -- around $4 trillion. So, we really need to expand the non-financial part of the halal economy.

Halal economy is a bigger concept, covering many areas such as textile, cosmetics, and medical products, he recalled.

Benefits of halal products and services should be advertised to the people, he added.

On Türkiye's position, he said: "Turkish halal economy can be a sort of role model for the rest of the Muslim world."

He also said Türkiye has a very diversified economy, it exports thousands of products to 200 different countries,

Türkiye has a "rich history" and a "very dynamic leader," the economist noted, and said: "Islamic world really lacks leadership, there are not really many leaders like (Turkish President Recep Tayyip) Erdogan."

Mentioning the country's new economic model based on investment, production, employment, and export, he said the model has to be integrated with the concept of Islamic finance and halal economy.

"We need to go to the zero-interest-based financing," he added.

Criticizing the existing old economy policies, he said: "Whenever inflation is up, you increase interest rate. Yes, you bring down inflation, but you also end up with recession."

"And then, you reduce the interest rate again, then the economy goes up, so this is a temporary solution."