In Islam, the extension of religious regulation and certification to new product types and economic sectors—“halalization”—has become widespread. There are now Islamic mortgages, halal ports, halal refrigerators, halal blockchain, and shariah-compliant cryptocurrencies. Yet classical secularization theory says religious authority cannot regulate modern economic activity. So what explains halalization? I point to an elective affinity between fiqh (Islamic jurisprudence) and twenty-first-century markets. Contemporary fiqh offers widely respected religious jurists who issue fatwas certifying products. Entrepreneurs empanel the jurists on certification boards, allowing fiqh to function as a regime of voluntary regulation layered atop secular state law instead of conflicting with it. Indeed, secular liberal markets provide ideal conditions for halalization and religious meaning-making through consumption. Case studies of Islamic finance and halal logistics show how entrepreneurs assuage consumers’ religious anxieties—and generate new ones—in the context of globalization and liberalization in secular markets.
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Ryan Calder (2020) studied this question.
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