Halal products seen helping address Saudi Arabia trade imbalance

RIYADH, SAUDI ARABIA — The government is seeking to capture a share of the multi-trillion dollar market for halal products — those prepared in accordance with Islamic law — in order to narrow its trade imbalance with Saudi Arabia, the Philippines’ 17th largest trading partner.

In an interview on Sunday, Imelda M. Panolong, Philippine Consul General to Jeddah, said that trade between the two countries is “obviously in favor” of Saudi Arabia, citing the Philippines’ large imports of oil and petroleum products from the kingdom.

In order to “somehow tilt” trade to a healthier balance, Ms. Panolong said the country must learn to penetrate the “emerging” and “developing” halal market.

“Now if we can tap into this, the Saudi government can help us develop our halal industry, which is already dead,” Ms. Panolong explained in the interview, the transcript of which was shared by Malacañang to journalists covering President Rodrigo R. Duterte’s state visit here.

“And aside from that, Saudi can also help in the capacity- building when it comes to halal certification bodies,” she added.

“But we do not have to limit ourselves to this because when you talk about halal, it’s not just foods but it is also cosmetics; it’s also garments, and it’s also services provided with halal components.”

In 2016 Philippine exports to Saudi Arabia grew by 4.34% to $82.46 million. However, the country’s imports from the kingdom dropped by 43.46%, largely due to depressed oil prices.

Crude, petroleum oils and oils obtained from bituminous minerals are the Philippines’ top imports from Saudi Arabia, accounting for 91.07% of the total with a value of $1.95 billion.

Ties between the two countries were formally established on Oct. 20, 1969.

Mr. Duterte, who is on a seven- day state visit to the Middle East during the week of Easter, hopes to tap the investment potential of Saudi Arabia, Bahrain and Qatar.

He will meet with his counterparts there to discuss possible cooperation in the areas of labor, tourism, halal food security, Islamic banking and energy.

He is also poised to sign agreements on agriculture, air services, culture, and health. —