The halal industry continues to experience significant growth globally, as awareness of halal products increases. In Indonesia, this sector is a national priority, especially in encouraging MSMEs to obtain halal certification. However, the level of certification among MSMEs is still low, including in Medan City, which has great potential in the development of the halal industry. The research objective is to examine the effect of halal awareness regulations, as well as business prospects on MSME decisions to obtain halal certification in Medan City. This study uses a quantitative approach with primary data sources obtained through distributing questionnaires to 100 respondents. The sampling technique uses a non-probability sampling method with a purposive sampling approach, namely determining the sample based on certain criteria that are relevant to the research objectives. Data analysis was carried out using statistical tests in the form of multiple linear regression to determine the effect of each independent variable on MSME halal certification decisions. The results showed that regulation, halal awareness, and business prospects have a significant effect on MSME halal certification decisions in Medan City, with halal awareness as the dominant factor. This finding implies the importance of the role of education, simplification of regulations, and increasing halal market literacy for business actors, which directly supports the strengthening of the Islamic economy through the application of sharia principles in MSME economic activities, and encourages the creation of a competitive and sustainable halal ecosystem. This study reinforces the importance of applying sharia principles to empower MSMEs through halal certification
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