Halal is a growing sector with major potential in Japan.
One spur has been the Japanese government’s 2013 waiving of visa requirements for tourists from Malaysia, and an extension from 15 to 30 days of the maximum stay for multiple-entry visas for Indonesian travellers.
Another factor is the Tokyo 2020 Olympics, which is expected to see Muslim visitor numbers increase both in the run up to and during the world’s biggest sporting event.
In addition, the 2015 Tokyo meeting of the World Islamic Economic Forum Foundation and the Alliance Forum Foundation voiced support for the growth of the halal food industry in Japan. At the meeting, the Malaysian prime minister Najib Razak signed an agreement with Japan’s prime minister Shinzo Abe to extend cooperation between the two countries for the halal food industry.
“This agreement has increased the number of manufacturers and imports of halal-based food in Japan,” says Arushi Thakur, a food and beverages senior analyst at the London-based market research company Technavio.
The long-time resident foreign Islamic population of Japan as well as Japanese Muslims is another reason for the growth of the sector.
Although making up only a tiny proportion of the country’s 126 million-plus residents, the numbers are growing.
Toshio Endo, a director of the 500-member, Tokyo-based Japan Muslim Association (JMA), says that although there are no firm data for the number of Muslims in the country, “We estimate the Muslim population of Japan at about 150,000 people, 10 per cent of which is made up of Japanese.”
Seventy mosques dot the country, most of them in Tokyo and the big cities of Fukuoka, Kyoto, Kobe, Osaka, Nagoya, Sapporo and Sendai, Mr Endo says.
Keigo Nakagawa, a researcher and consultant for the Tokyo-based Japan Halal Business Association (JHBA), with 152 member companies, says there are no exact figures for halal establishments in the country, either. However, there are approximately 500 restaurants, 100 hotels and 50 bento (Japanese “lunchbox”) stores serving halal cuisine, he says.
“Besides halal certified businesses, there are a large number of establishments that serve halal food, such as Indian, Turkish and sushi restaurants,” he adds.
One such is Leziz Kebab, a Turkish kebab restaurant chain, the third outlet of which opened in July in Tokyo. The owner, Mirza Arpa, says the new store is not yet halal certified but the ingredients it uses are. “I am presently negotiating for halal certification,” he says.
Shigeru Ishii, a public relations director for the Japan Foodservice Association, grouping 420 companies totalling 73,000 outlets, says his organisation does not have a firm grasp on the numbers of halal eateries in Japan but adds, “We think the number is increasing, as there are more and more Muslim tourists.”
Consumers can also buy halal food in grocers stores. Holy Heart, a small shop in Tokyo that opened in 2013, sells halal products including beef, lamb and mutton from Australia, New Zealand and other countries. The owner Mohammed Shamsu Ddoha says his store is certified by both the Islamic Centre Japan and the Japan Islamic Trust (Jit).
“We have customers from all over the world, including a lot of non-Muslims,” Mr Ddoha says.
The two-storey supermarket Nisshin World Delicatessen in Tokyo sells halal-certified products, including beef and lamb. “We started selling halal products 10 years ago, as we are near several embassies and started getting requests for them by foreigners,” says the general manager Tsukasa Muramoto.
Japan’s two major airlines, Japan Airlines (JAL) and All Nippon Airways (ANA) have been serving halal meals for years, since 1986 in the case of the latter, says the ANA information officer Maho Ito says. She says ANA now serves about 4,500 halal meals a year.
JAL, meanwhile, started offering halal meals in 1961 for its flights leaving Jakarta. The airline now serves an average of 3,500 meals a year and carries a total passenger population of about 4.7 million, says the company cabin service group director Mr Hironori Tsunashima.
Since June, all halal meals served on the airline’s international flights departing from Japan have received the Jit seal, Mr Tsunashima says.
And, being Japan, technology also plays a part in the halal sector.
Launched in 2013, a free app called HalalMinds, available on iPhone, iPad and Android, allows consumers who cannot read Japanese but can read English to check more than half of all Japanese supermarket products to see if they are labelled halal. Users scan the barcode of their chosen product to see an English translation of its ingredients and an alert as to whether the food is halal, haram or syubhat – status unclear.
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Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Top New Zealand cop on policing the virtual world
New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.
The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.
Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.
“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.
"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."
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He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
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Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
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