Downstreaming has emerged as a crucial tactic for increasing economic value and community welfare in the halal industry. However, there are some obstacles to halal industry downstreaming, including as small business owners' restricted access to funding, technology, halal certification, and marketing networks. Consequently, disadvantaged communities have not reaped the full economic benefits. The purpose of this article is to examine, via the lens of Islamic law, the idea of halal industry downstreaming as a means of improving the economics of poor communities. In order to investigate Islamic wealth distribution principles, economic fairness, and maqāṣid al-sharī‘ah, this study employs a qualitative methodology and a literature review technique. The results suggest that by boosting microbusinesses, enhancing product value addition, and creating more job possibilities, the downstreaming of the halal industry which is founded on Islamic principles can promote economic equality. In conclusion, incorporating Islamic legal concepts into the downstream halal industry could serve as a model for inclusive economic development that aims to improve social welfare and reduce poverty.
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