The agreement aims to raise awareness and increase investment in Saudi Arabia’s halal industry.
JEDDAH, Kingdom of Saudi Arabia: – Halal Products Development Company (HPDC) has signed a Memorandum of Understanding with the Islamic Development Bank (IsDB).
Under the terms of the agreement, the two organizations will collaborate to promote and amplify opportunities within the Kingdom of Saudi Arabia’s halal sector and the halal industries of IsDB Group’s 57 member countries.
The agreement between the two parties was signed by IsDB Vice President Operations, Dr. Mansur Muhtar, and Mr. Fahad Al-Nuhait, Chief Executive Officer of HPDC.
According to the MoU, IsDB and HPDC will explore investment opportunities in key halal subsectors together such as food, pharmaceuticals, and cosmetics, as well as jointly helping to ensure that an ecosystem for high-quality halal products is being developed within the Kingdom of Saudi Arabia. In addition, the MoU establishes means for the two parties to jointly analyze data regarding successful halal ecosystem models, halal markets, and the valuable solutions available within the industry.
IsDB President and Group Chairman, His Excellency Dr. Muhammad Al Jasser, affirmed: “Our MoU with HPDC is a supportive measure which will allow us to create meaningful, lucrative connections within the rapidly evolving halal industry. By supporting established organizations, as well as newer ones, through initiatives such as incubation programs and halal parks, we are confident in our ability to greatly benefit the Kingdom of Saudi Arabia’s halal ecosystem.”
“We look forward to exchanging leading industry practices and methodologies in order to contribute to the Islamic financial sector and support innovation within the halal industry.”
A subsidiary of the Public Investment Fund, HPDC aims to localize the halal production industry in the Kingdom of Saudi Arabia, strengthen the sector’s capabilities regionally, and open opportunities for exporting halal products worldwide. Through capital investment and services aimed at empowering investors and SMEs, HPDC seeks to create an attractive commercial environment to capitalize on the potential within the Kingdom’s halal industry.
Mr. Fawaz Al-Harbi, Chairman of the Board of Directors for HPDC, applauded the MoU’s signing, stating: “We are proud to sign this MoU with IsDB which has enabled us to make a tremendous contribution to the halal ecosystem on a domestic scale as well as a global one. Driven by a mission to promote the Kingdom of Saudi Arabia as a world-renowned hub for halal products, our partnership with IsDB is an embodiment of our commitment to investing in halal industry players and supporting innovation, growth, and consistent development.”
Commenting further on the MoU, Mr. Fahad Al-Nuhait said: “By leveraging IsDB’s expertise regarding Islamic finance and commerce, we are in an advantageous position to create value for our partners, businesses, and investors. In addition, this agreement will significantly increase both the development and diversification of the Kingdom of Saudi Arabia’s base economy in line with the aims and objectives of Vision 2030.”
The signing of the MoU coincides with the 2023 IsDB Group Private Sector Forum taking place in Jeddah from May 11th to May 13th of which HPDC is a main sponsor.