Saudi Arabia’s Public Investment Fund has announced the launch of the Halal Products Development Company.
Launched on Monday, it will invest in localising the kingdom’s production industry and increase the efficiency of the ecosystem locally, with plans to export to global markets as well.
The company will enable local players – including small and medium-sized enterprises – to grow and expand across global Halal markets, and will develop the Halal production industry in Saudi Arabia through partnerships with key local and international players to enrich the ecosystem locally and contribute to job creation.
HPDC aims to localise knowledge, technology, and innovation for the development of Halal products, including foods, cosmetics, and pharmaceuticals. The company also aims to promote investment and economic opportunities for the industry by introducing various services, including specialised advisory.
The company will also enable PIF and its portfolio companies to access a variety of collaboration and investment opportunities across global Halal markets.
The launch of the company aligns with PIF’s strategy, which focuses on developing and enabling the capabilities of key sectors – including consumer goods and retail, and food and agriculture – to improve the trade balance, localise and develop the industry, and contribute to the diversification of the economy and growth of non-oil GDP, underscoring the objectives of Saudi Arabia’s Vision 2030.
The halal food market in the Middle East was valued at $130 billion in 2017, projecting a CAGR of 10.5 per cent during the forecast period from 2018 to 2025. Regionally, Saudi Arabia and the UAE are the most lucrative markets for halal food.
According to a study by Coherent Market Insights, the Mena halal food market was valued at $133.9bn in 2017 and is expected to witness a CAGR of 10.4 per cent, in terms of revenue, from 2018 to 2025, to reach $ 291.3bn.
The Middle East’s halal cosmetics market is anticipated to grow at a CAGR of more than 10 per cent from 2021 to 2026. The exponentially expanding e-commerce platforms, significantly increasing Muslim population, and mounting inclination of consumers towards natural and effective cosmetic products is driving this growth.
