It is planned to develop the direction of «halal mortgage» in Russia

The issue of introducing «halal mortgages» in Russia was discussed within the framework of the International Business Week-2020 (IBW) in Ufa. «Halal» or permitted mortgage means financing for the purchase of real estate according to Sharia law-the loan is imposed not by interest, but by a margin, which is determined between the cost of the product and the price of its sale.

«Halal mortgages and Islamic banks are becoming popular in Russia. The Central Bank of Russia is already considering the possibility of their implementation. Now a special commission has been set up there to study this issue and work out the appropriate amendments to the Russian legislation», said Rasul Botashev, a State Duma deputy and a member of the State Duma Committee on International Affairs.

The Halal economy is one of the fastest-growing in the world. According to 2019 data, the turnover of halal products exceeded US$2.2 trillion. And it is projected that the growth to reach $ 3 trillion by the end of 2024. Russian President Vladimir Putin has instructed to increase the export of Russian halal products from $20 billion to $45 billion by 2024.

«The halal theme is not only about food but also about lifestyle. The development of this business depends on the trust of consumers, so it must be conducted taking into account spiritual and moral values», said the Supreme Mufti Sheikh-ul-Islam Talgat Tadzhuddin, the Chairman of the Central Spiritual Administration of Muslims of Russia.

The development of the halal industry can bring tangible economic benefits for both the Republic of Bashkortostan and the Russian Federation. In this regard, Halal Industry Development Center has been established under the Spiritual Administration of Muslims of the Republic of Bashkortostan. HIDC is a partner of the «Association of Halal Industry of Kazakhstan», an accredited international certification body in the JAKIM system. Thus, the certificate obtained jointly in the HIDC and AHIK allows the export of products of Russian manufacturers to the markets of Central and Central Asia, Southeast Asia, the Middle East, the Persian Gulf, Africa, parts of Europe, etc., where an international Halal certificate is required. The task of the Center is to control the entire production cycle of halal products following international standards.

«Halal products are used not only by Muslims, but people of other faiths also trust the halal segment because it is a proven and high-quality product», added Ainur Hazrat Birgalin, the Chairman of the Spiritual Administration of Muslims of the Republic of Bashkortostan.

Based on the Chamber of Commerce and Industry of Bashkortostan, there is a certification center for the «Halal» standard. Halal certification is a documented confirmation of the guarantee of high quality and environmental friendliness of goods or services in accordance with the requirements of the norms of Islam. Passing the certification increases the loyalty of consumers to products and services, increases the reputation of the manufacturer, and allows you to enter international markets.

«Now Russia is on the initial path of development of the halal industry, so the prospects are obvious. CCI of the Republic of Bashkortostan actively develops relations with the Islamic world», said the President of CCI RB Timur Khakimov.

Halal products are defined as a point of development in the Republic of Bashkortostan. The Government of the Republic has approved a roadmap for promoting the halal industry to international markets since July of this year. About 1000 enterprises in the Republic of Bashkortostan can export their products under the «Halal» brand.

«It is considered that the certificate closes the market, puts barriers, but in our opinion if you get a Halal certificate, new markets will open up for you. Now the republic has formed a sufficient pool of state support. Halal producers who have received the certificate can compensate their expenses by 80%», said Ildus Khalitov, the Director of the Export Support Center of the Republic of Bashkortostan.

Besides, the Republic of Bashkortostan focuses on the development of e-commerce. Products of Bashkortostan are placed on 10 international world platforms. They present more than 20 thousand products labeled «Halal».

The International Business Week-2020 (IBW) is held in a dual format-online and offline from December 8 to 11 in Ufa, Republic of Bashkortostan. The VI Forum of small and medium-sized businesses of the regions of the SCO and BRICS member countries is being held On December 8.