In a strategic move to bolster Saudi Arabia’s cosmetics and personal care industry, the Halal Products Development Co. (HPDC) has announced a significant investment in a prominent Singapore-based fast-moving consumer goods conglomerate. The Public Investment Fund (PIF)-owned company has signed a binding agreement with Believe, a leading player in the halal cosmetics and personal care market.
Believe will relocate its headquarters from Singapore to Saudi Arabia as part of this landmark agreement. This transition will include establishing a state-of-the-art manufacturing facility within the Kingdom. According to the Saudi Press Agency, this new facility will cater to local demand and serve as a central hub for exporting halal products to various global markets.
This initiative aligns seamlessly with Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce its dependency on oil. Fahad Al-Nuhait, CEO of Halal Products Development Co., emphasized the importance of this investment as a pivotal step in developing and localizing the manufacturing of halal cosmetics and personal care products. “Investing in this sector will serve as a major catalyst for raising the efficiency of the industry and supporting research and development efforts both locally and globally,” Al-Nuhait stated.
The relocation of Believe’s headquarters to Saudi Arabia is expected to facilitate the transfer of expertise and resources, significantly enhancing the Kingdom’s capabilities in the halal products sector. Moreover, this move is poised to create numerous direct and indirect job opportunities, contributing to the economic goals outlined in Vision 2030.
Ankit Mahajan, CEO of Believe, highlighted the strategic nature of this partnership. “This collaboration represents a tremendous opportunity to expand our investment scope and boost our manufacturing capabilities. Initially, we will provide contract manufacturing services for local brands, with plans to extend these services to international brands in the future,” Mahajan explained.
In a related development, Halal Products Development Co. signed a strategic cooperation agreement with the Saudi Exports Development Authority in August. This partnership aims to launch the Halal Products Manufacturing Accelerator Program, designed to position Saudi Arabia as a global hub for halal food and cosmetic products. The program underscores the Kingdom’s commitment to accelerating growth in the halal sector, enhancing product quality, and expanding market reach.
The global halal cosmetics market is witnessing robust growth, driven by increasing consumer awareness and demand for products compliant with Islamic standards. According to recent market research, the halal cosmetics market is projected to reach USD 52 billion by 2025, with a compound annual growth rate (CAGR) of 12%. This investment by HPDC and the strategic relocation of Believe’s headquarters place Saudi Arabia in a prime position to capitalize on this burgeoning market.
The investment by Halal Products Development Co. in Believe marks a significant milestone in the Kingdom’s journey to becoming a global leader in the halal cosmetics and personal care industry. By localizing production and leveraging international expertise, Saudi Arabia is poised to set new standards in the halal products market. This move not only supports Vision 2030 but also positions the Kingdom as a key player in the global halal economy.
With the new headquarters and manufacturing facility set to boost both local and global supply chains, the future looks promising for Saudi Arabia’s halal products sector. This strategic partnership between HPDC and Believe is a testament to the Kingdom’s commitment to innovation, quality, and economic diversification.
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