Malaysia plans $500m global halal fund
Malaysia-based specialist private equity firm Azka Capital will manage a MYR1.55 billion ($503 million) fund focused on global opportunities in the halal industry. It is expected to acquire companies in the food and agri-business sector and reorient them so they are halal-compliant.
The fund was announced by Abdullah Ahmad Badawi, former prime minister of Malaysia, during a keynote address at the World Halal Week conference in Kuala Lumpur. Malaysia, where 60% of the population is Muslim, is looking to position itself as a gateway to the halal industry.
"The demand for halal products and services is expected to increase with the growth of the Muslim population and increasing awareness of the halal standard," Abdullah said, Malaysia's Bernama national news agency reported. "Now is the right time to put our money where our mouth is, so to speak."
The fund will be raised mainly from investors based in Gulf Cooperation Council countries and Asia, targeting high net worth individuals and institutions. It is looking at a first close of at least RMB310 million. Darhim D. Hashim, an executive director at Azka, said there is already significant interest from the United Arab Emirates, Saudi Arabia and Kuwait.
Azka focuses on halal industry initiatives and works with certifying industry bodies from 55 countries through its strategic partnership with the International Halal Integrity Alliance. Abdullah is chairman of the firm's advisory board.
Global halal sales, which include food, pharmaceuticals and cosmetics, come to about $2.1 trillion per year. In 2012, Malaysia was the largest halal exporter, shipping products worth approximately MYR33.5 billion.
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