Saudi Arabia’s Public Investment Fund (PIF) has announced the launch of the Halal Products Development Company (HPDC) to localize the production and development of halal products, goods, or items that are permissible under Islamic law.
The launch of HPDC will promote Saudi Arabia as a global halal hub that produces, develops, and innovates halal products ranging from food to cosmetics, and pharmaceuticals, with plans to export to different markets globally.
This will allow local firms, especially small and medium-sized enterprises, to grow and expand across global halal markets and will develop the Saudi halal production industry through partnerships with key local and international players, contributing to job creation.
HPDC will introduce various services, including specialized advisory, to promote investment and economic opportunities, the Saudi wealth fund said in a statement, adding this will also enable PIF and its portfolio companies to access a variety of collaboration and investment opportunities across global halal markets.
According to the PIF, the launch of the new company is aligned with its strategy that focuses on the development of key sectors which include consumer goods and retail, and food and agriculture. The size of the global halal food market is expected to grow from $1.13 trillion in 2021 to $1.3 trillion in 2022 at a compound annual growth rate (CAGR) of 13.8%. In 2026, the market size is expected to grow to $2.2 trillion at a CAGR of 14.6%, according to data from the Business Research Company.
The growth of the halal food industry has been largely due to the rising Muslim population across the globe, which, according to US research firm Pew Research Center is expected to increase by around 2.19 billion by 2030.
With the increasing demand for halal foods, technological advancements are gaining popularity with halal laboratories now actively engaged in the food safety and analysis of products, the Business Research Company study indicated.
In January 2021, Abu Dhabi F&B firm Agthia Group acquired an 80% stake in Nabil Foods, a Jordan-based manufacturer and distributor of a wide range of frozen and chilled 100% halal products, for an undisclosed amount. The acquisition had given Agthia immediate access to new revenue streams and significant cross-selling opportunities to support its growth strategy.
