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Investment in new logistics infrastructure, such as large-scale logistics parks, significantly increases the capacity for storing and distributing Halal products. This infrastructure typically includes state-of-the-art facilities with specialized storage options to accommodate various types of Halal goods, including perishable foods, pharmaceuticals, and consumer products. New logistics infrastructure supports rigorous Halal certification and compliance processes. This includes dedicated facilities for segregating Halal from non-Halal products, adhering to hygiene standards, and maintaining records for traceability.
For instance, in November 2022, Agility, a company specializing in supply chain services, infrastructure, and innovation, announced plans to construct a large logistics park near Jeddah. This project is part of a land-concession agreement with Saudi Arabia’s State Properties General Administration (SPGA). Enhanced supply chain efficiency facilitates faster and more reliable distribution of Halal products. This is particularly crucial for perishable items that require strict temperature control.
The globalization of trade and the rise of cross-border e-commerce have broadened market access for Halal products. Businesses can now sell Halal-certified goods to international customers via online platforms, reaching markets that were previously inaccessible. This trend enables Halal product manufacturers and suppliers to tap into a global consumer base, significantly expanding their market reach. With increased access to global markets, there is a heightened demand for efficient Halal logistics solutions that can manage international shipments while adhering to Halal certification requirements.
This includes the need for logistics providers to ensure that Halal products are handled and transported in compliance with various international standards, thus fostering growth in the Halal logistics sector. The expansion of trade relationships creates opportunities for Halal logistics companies to build strategic partnerships and expand their service offerings. By developing expertise in handling cross-border trade and establishing strong relationships with international partners, logistics providers can enhance their competitive edge and capture a larger share of the market.