AL-AMANAH Islamic Investment Bank of the Philippines is setting up a P1-billion credit pool for micro, small and medium enterprises (MSMEs) and farmers to widen access to financing and support the growth of the country’s halal industry.
Al-Amanah, a subsidiary of state-owned Development Bank of the Philippines, is the country’s first Islamic bank. It was reorganized and renamed under Republic Act 6848 in 1990 to provide banking and investment services based on Islamic principles, which prohibit interest and emphasize risk-sharing and asset-backed transactions.
Al-Amanah chairman and CEO Amenah Pangandaman told The Manila Times on Monday that the funds would come from the bank’s capital and joint credit programs with government partners.
These include the Department of Trade and Industry, Department of Agriculture, Cooperative Development Authority, and the Bangsamoro Autonomous Region in Muslim Mindanao government.
The financing commitment will be deployed through 2027 to help MSMEs and farmers strengthen their operations and tap opportunities in the global halal market.
MSMEs account for 99.5 percent of Philippine business establishments and about 63 percent of employment, making them central to government efforts to expand halal production and create jobs.
Pangandaman said the bank’s existing credit line would be enhanced to incorporate sustainable financing and gender-inclusive policies. Al-Amanah is also working with development partners on more accessible credit options targeted for launch in the fourth quarter.
The bank aims to finance businesses across the halal value chain, including production, certification, facility upgrades, logistics and expansion.
“We have the demand, the workers and a huge market, but without financing, it will be difficult to move halal beyond its niche-market image,” Pangandaman said.
Many small businesses struggle to enter the halal market because of the cost of certification and the need to upgrade facilities and production systems, Pangandaman noted.
Financing, she said, should extend beyond production because businesses also need capital for certification, logistics, expansion and, eventually, exports.
She acknowledged that halal certification could be complex and costly, particularly for MSMEs. Authorities should make the process more accessible and easier to understand without weakening standards, she added.
The global halal industry is projected to expand to $10 trillion by 2030 from an estimated $4 trillion, driven by the growing Muslim population and increasing demand for products associated with quality, safety and ethical standards.
Under the Philippine Halal Industry Development Strategic Plan, the government aims to draw P230 billion in investments by 2028, double the number of halal-certified products and services to 6,000 and create 120,000 jobs.
The country, however, continues to rely heavily on imported halal products. Imports have exceeded $100 million in recent years, underscoring the opportunity for local producers to meet domestic demand and eventually expand into export markets.
Pangandaman said the country should not allow financing and certification constraints to keep businesses on the sidelines.
“Halal is more than a dietary restriction based on faith,” she said. “It is an opportunity to advance economic development and inclusivity.”
