Bangladesh’s ambition to tap into the multi-trillion-dollar global halal market is being undermined by an unresolved dispute between two government agencies over halal certification authority. The ongoing conflict between the Islamic Foundation (IF) and the Bangladesh Standards and Testing Institution (BSTI) has created regulatory uncertainty, forcing exporters to obtain dual certifications, increasing compliance costs and limiting international acceptance of Bangladeshi halal products.
Industry insiders and experts say the parallel halal certification systems operated by IF and BSTI have become a major obstacle to competitiveness, even as global demand for halal food continues to grow rapidly among Muslim and non-Muslim consumers alike. The dispute has triggered calls for urgent government intervention to unify the certification process, secure global recognition and unlock export growth.
The global halal market is currently valued at more than $7 trillion and is projected to reach $10 trillion by 2030, growing at an annual rate of 5.5 percent, according to the American Halal Foundation. Saudi Arabia alone accounts for an estimated $207 billion in Muslim consumer spending. In contrast, Bangladesh’s halal export earnings remain below $1 billion, with shipments worth $988.6 million recorded in the 2024–25 fiscal year, mostly from agro-based products, according to data from the Export Promotion Bureau.
Exporters say that while high production costs, limited product diversification and weak market strategies have slowed growth, the most persistent challenge remains the requirement to obtain halal certification from both IF and BSTI. They argue that this duplication inflates costs, causes delays and weakens credibility in international markets.
Religious Affairs Adviser Dr AFM Khalid Hossain said the government is working to resolve the certification deadlock and will soon hold meetings with advisers and senior officials. He said businesses can obtain certification from any government institution but stressed that halal certification is fundamentally a religious matter and should fall under the jurisdiction of the Islamic Foundation. He added that BSTI’s role is limited to testing product standards and does not extend to Shariah compliance.
Dr Khalid also highlighted the export potential of halal products, saying there is strong global demand for “Made in Bangladesh” halal goods. He noted that halal products are gaining popularity among non-Muslim consumers as they are widely perceived as being safer, healthier and produced under stricter quality controls.
Exporters say they remain caught between two certifying authorities. Md Maidul Islam, chief marketing officer of Akij Food and Beverage Ltd, said Bangladesh has enormous potential in halal agro-products but continues to struggle with bureaucratic hurdles. He said businesses are required to obtain certification from both IF and BSTI, creating unnecessary complications. Akij has been exporting halal products such as spices and biscuits for more than 15 years using certification from the Islamic Foundation, which he said is recognised in significantly more countries than BSTI’s certification.
Maidul added that although IF does not operate its own laboratory, it works with accredited institutions such as BCSIR and collaborates with Malaysia’s JAKIM, giving Bangladeshi exporters wider acceptance in Middle Eastern and European markets. By contrast, he said BSTI’s halal certification has limited international recognition and urged the government to establish a single halal authority aligned with global standards.
Meat exporters have also raised concerns over compliance requirements. Ahmad Asif, chief executive officer of Bengal Meat Processing Industries Ltd, said his company holds halal certifications from both IF and BSTI to meet varying regulatory demands. He said Bengal Meat began exporting halal meat in 2006, initially using certification from Malaysia’s JAKIM, and now supplies beef, mutton and chicken to several international markets, including the Maldives.
Asif said that while demand for premium Bangladeshi beef exists in developed markets, compliance remains the biggest barrier to expansion. He noted that access to the European Union and other advanced markets requires internationally recognised disease-free zones, which Bangladesh currently lacks.
PRAN Group Managing Director Eleash Mridha said the company obtained halal certification from IF in 2015 and from BSTI in 2023, after receiving JAKIM certification in 2010 to enter the Malaysian market. He said PRAN currently exports around $40 million worth of halal-certified products annually, including beverages, snacks, confectionery, frozen foods and culinary items, with Malaysia remaining its largest halal market.
Mridha warned that the absence of mutual recognition agreements with major halal authorities continues to be a serious bottleneck. He said Bangladesh lacks agreements with bodies such as Malaysia’s JAKIM, Indonesia’s MUI and China’s Halal Authority, resulting in repeated audits that make certification processes costly and time-consuming.
The Islamic Foundation has defended its role, saying it has been issuing halal certification since 2007. IF Deputy Director for Halal Certification Dr Md Abu Saleh Patoari said that as of January 1, 2026, the foundation had certified 276 companies, including 66 exporters shipping about 600 halal products to 45 countries. He said IF already has recognition from JAKIM and has completed 90 percent of the process to be enlisted with Saudi authorities, a move that could significantly boost exports.
Patoari alleged that BSTI officials now compel businesses to obtain BSTI halal certification when they approach the agency for standard testing. He said halal certification is a religious matter and falls outside BSTI’s mandate. He added that IF and BSTI worked jointly until 2022, after which BSTI began issuing its own halal certificates. While IF currently relies on external laboratories such as BCSIR, he said plans are under way to establish its own testing facilities.
BSTI, however, maintains that it is strengthening Bangladesh’s halal infrastructure. Industries Adviser Adilur Rahman Khan inaugurated the National Halal Laboratory at BSTI in July 2025, describing it as a timely step to enhance export potential. BSTI Deputy Director for Halal Certification SM Abu Sayed said the institution has issued 202 halal certificates to 25 companies and now has advanced testing facilities, including PCR machines capable of detecting porcine derivatives.
Despite being a Muslim-majority country, Bangladesh lags behind several non-Muslim nations in halal exports. Major exporters include Brazil, India, the United States, China, Thailand and Australia, with Brazil alone exporting halal meat worth more than $5 billion annually. Experts say that capturing even 2 to 3 percent of the global halal market could significantly boost Bangladesh’s economy, particularly as the country prepares for its post-LDC transition.
Prof Dr Mohd Ma’Sum Billah, senior professor of finance at King Abdul Aziz University in Saudi Arabia, said Bangladesh’s large Muslim population gives it a natural advantage in halal trade. He said the country could emerge as a halal trading hub, especially for meat, poultry, fish, gelatin and fruit-based products. He recommended a unified national halal policy under government oversight, led by the Ministry of Religious Affairs, with the Islamic Foundation ensuring Shariah compliance in coordination with scientific testing authorities.