Malaysia is promoting its rigorous halal certification process—recognized by more than 47 countries—to the cash-rich and diversification-driven Gulf nations.

Malaysian businesses are setting their sights on expanding into Gulf countries, where a growing Muslim population is demanding a wider range of halal products—from pet food to cosmetics—and is willing to pay a premium to trusted suppliers.

As a Muslim-majority country, Malaysia is a global leader in halal products, backed by a stringent certification system recognized by dozens of Muslim countries and institutions around the world.

The Gulf Cooperation Council (GCC), comprising oil-rich nations Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, is seeking closer trade alliances with Southeast Asia. With U.S. trade restrictions limiting access to the region's large consumer base, businesses are looking to deepen their engagement with the Gulf market.

Edwin Suhairi, who runs a cosmetics import-export business between Malaysia and the Middle East, said he hopes ongoing ASEAN-GCC talks will reduce red tape at Gulf ports.

“Demand is still growing. A more streamlined process would be good for business,” he said, adding that Malaysian cosmetic sales in the Middle East have risen amid boycotts of Western brands due to Israel's strikes on Palestinians in Gaza.

On Monday evening, Malaysia and the GCC agreed to begin free trade agreement negotiations—marking a shift in trade patterns accelerated by former U.S. President Donald Trump's punitive trade policies.

Businesses say this also reflects changing consumer tastes and the Gulf region's significant purchasing power. With a combined GDP exceeding $2 trillion, companies see Malaysia's robust halal certification system as a symbol of trust.

Calvin Yee, based in Kuala Lumpur, said his company has been shipping canned and processed foods to the Gulf for over a decade.

“It started off being sold in Asian grocery stores for Asians working in the Middle East, but now more of our products are sold in mainstream supermarkets,” Yee told This Week in Asia.

"All Things Halal"

Rising trust in halal certification—particularly Malaysia's strict scrutiny—has driven growth in the halal food sector and boosted exports.

From January to September last year, Malaysia's halal product exports rose to 45 billion ringgit (US$10.7 billion), up from 39.3 billion ringgit during the same period in 2023.

Ayman Falak Medina, editor of market research group ASEAN Briefing, attributed Malaysia's leadership in the global halal economy to its certification process, recognized in over 47 countries.

He added, “This makes Malaysia a global benchmark for halal certification compliance and allows it to influence internationally adopted standards.”

Elsewhere in Southeast Asia, Indonesia—the world's most populous Muslim-majority nation—exported halal products worth US$42.33 billion in 2023. Buddhist-majority Thailand has also emerged as a major halal exporter, driven by a strong food processing industry and strategic government support, with exports exceeding US$6 billion.

Ho Yisan, a senior fellow at Singapore's Institute of International Affairs, said the focus on “all things halal” offers a vital lifeline to exporters shut out of U.S. markets.

ASEAN and the Gulf collectively account for over 330 million Muslims. In 2023, the ASEAN halal food market was valued at about US$2 trillion and is projected to reach nearly US$5 trillion by 2030.

Malaysia's Trade Minister Tengku Zafrul Aziz said the FTA negotiations with the GCC represent a timely reconfiguration of economic alliances.

“In a world full of uncertainties, it's also a timely opportunity to deepen our cooperation and work together toward inclusive and shared prosperity,” he said.

The signing was witnessed by Malaysian Prime Minister Anwar Ibrahim and Kuwait's Crown Prince Sheikh Sabah Khaled Al-Sabah.

Later on Tuesday, Anwar is set to host the first-ever trilateral summit between ASEAN, the GCC, and China—linking the oil-rich Gulf with China and Southeast Asia's vast supply chain network.

Beyond hydrocarbons, the GCC is investing heavily in economic diversification, infrastructure, and food security.

Mohd Ahmad Sofian Burhan, head of social sciences at Universiti Putra Malaysia, said Southeast Asia is also leading in Islamic finance, with Malaysia boasting a well-developed and regulated ecosystem.

He added that Indonesia is rapidly expanding in Sharia-compliant banking and investment as well.

“The Gulf states have strong demand for these products, and the financial resources to invest in expanding market reach. This creates a natural complementarity between the two regions,” he said.

How Tendata helps B2B Importers and Exporters？

1. Find Big Buyers: Use Tendata to identify big buyers who frequently import a product. These buyers are usually large retailers, wholesalers or brand owners. You can learn about their purchasing habits, purchasing cycles and supplier distribution through their purchasing records.

2. Explore Potential Customers: In addition to existing big buyers, you can also use Tendata to discover some emerging small and medium-sized buyers. These buyers may not have been fully explored by their peers and are your potential customer resources.

3. Get Contact Information: Use Tendata to view detailed information about key decision makers such as purchasers and executives, including their email addresses, LinkedIn and Facebook social accounts, which will help you directly connect with the person responsible for purchasing the product and improve communication efficiency.

>>Know More About Tendata<<