In a significant development in Jeddah, Kingdom of Saudi Arabia, the Halal Products Development Company (HPDC) and the Islamic Development Bank (IsDB) have embarked on a strategic alliance, as underpinned by a freshly signed Memorandum of Understanding (MoU). This alliance is a step forward in fostering mutual growth and development in the region’s halal sector.
The collaboration marks a pivotal step in galvanizing the halal industry within Saudi Arabia as well as across the 57 member countries of the IsDB Group. The MoU was formally signed by Dr. Mansur Muhtar, Vice President of Operations at the IsDB, and Mr. Fahad Al-Nuhait, the Chief Executive Officer of the HPDC.
Under the newly inked agreement, the IsDB and HPDC will join forces to delve into potential investment opportunities in key halal subsectors, such as food, pharmaceuticals, and cosmetics. Moreover, the two organizations will strive together to cultivate an ecosystem for the production and promotion of high-quality halal products within the Kingdom of Saudi Arabia.
Beyond investment, the MoU establishes a framework for collaborative analysis and research. It sets the stage for the two parties to jointly explore successful halal ecosystem models, assess emerging trends in halal markets, and evaluate the most valuable and effective solutions available within the industry.
IsDB’s President and Group Chairman, His Excellency Dr. Muhammad Al Jasser, endorsed the MoU. He shared his optimism that this supportive measure would foster meaningful, lucrative connections within the swiftly evolving halal industry. He also highlighted the bank’s commitment to supporting both well-established and emerging organizations through initiatives like incubation programs and halal parks, thereby enhancing the overall halal ecosystem in Saudi Arabia.
HPDC, a subsidiary of the Public Investment Fund, is firmly committed to localizing the halal production industry within the Kingdom of Saudi Arabia, strengthening the sector’s capabilities at a regional level, and catalyzing opportunities for exporting halal products on a global scale. Through its capital investment and empowerment services for investors and small and medium-sized enterprises (SMEs), HPDC is working to create a commercially attractive environment to unlock the latent potential within the Kingdom’s halal industry.
Upon the MoU’s signing, Mr. Fawaz Al-Harbi, Chairman of the Board of Directors for HPDC, expressed his pride and approval. He reiterated that the MoU enabled them to contribute significantly to the halal ecosystem domestically and globally, and it represents their commitment to investing in halal industry players to support innovation, growth, and ongoing development.
HPDC’s CEO, Mr. Fahad Al-Nuhait, underscored the strategic value of this alliance, emphasizing how leveraging IsDB’s vast knowledge in Islamic finance and commerce will position them favorably to create value for their partners, businesses, and investors. He also pointed out that the agreement would greatly contribute to the development and diversification of the Kingdom of Saudi Arabia’s base economy, in line with the ambitions outlined in Vision 2030.
The timing of the MoU signing is also noteworthy as it coincides with the 2023 IsDB Group Private Sector Forum in Jeddah, an event that sees HPDC as a main sponsor. The forum will likely serve as a significant platform for the newly formed alliance to showcase its objectives and potential impact on the halal industry.
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