The first Halal Food Index was launched at Kuala Lumpur this week aiming to align the halal food industry with the Islamic finance sector.

Initiated by Thomson Reuters and IdealRatings, the SAMI Halal Food Index comprises 200 companies listed in Muslim-majority countries with a total market capitalisation of over US$100 billion.

A total of 95 companies in the index are Malaysian companies with market capitalisation of US$53 billion, while others are from Saudi Arabia, Turkey, Indonesia and Nigeria.

"Previously, we only invested in a company by buying the products that they sell, but now we can invest in the company by buying shares in the company, a way that will help halal producers to grow their business," said Rushdi Siddiqui, Global Head Islamic Finance Thomson Reuters USA.

Currently, he said 80 per cent of the halal food products were produced by non-Muslim countries and consumed by most of the Muslim countries.