Halal Products Development Company (HPDC) and the Islamic Development Bank (IsDB) have entered into a Memorandum of Understanding (MoU) to foster collaboration and opportunities in the halal sector. The agreement aims to promote and amplify the halal industries in the Kingdom of Saudi Arabia and across the 57 member countries of the IsDB Group.
The MoU was signed by Dr. Mansur Muhtar, IsDB Vice President Operations, and Mr. Fahad Al-Nuhait, CEO of HPDC. As per the terms of the agreement, IsDB and HPDC will explore investment prospects in key halal subsectors, including food, pharmaceuticals, and cosmetics. They will also work together to develop a robust ecosystem for high-quality halal products within Saudi Arabia. Additionally, the MoU establishes a framework for joint analysis of successful halal ecosystem models, halal markets, and industry solutions.
Dr. Muhammad Al Jasser, IsDB President and Group Chairman, expressed the significance of the MoU, stating that it would foster meaningful connections within the dynamic halal industry. IsDB aims to support both established and emerging organizations through initiatives such as incubation programs and halal parks, thereby benefiting the halal ecosystem in Saudi Arabia.
HPDC, a subsidiary of the Public Investment Fund, focuses on localizing the halal production industry in Saudi Arabia, enhancing regional capabilities, and facilitating global opportunities for halal product exports. Through capital investment and services aimed at empowering investors and small and medium enterprises (SMEs), HPDC strives to create an attractive commercial environment and harness the potential of the Kingdom’s halal industry.
Mr. Fawaz Al-Harbi, Chairman of HPDC’s Board of Directors, praised the signing of the MoU, emphasizing its significant contribution to the domestic and global halal ecosystem. He reiterated HPDC’s commitment to investing in halal industry players, supporting innovation, growth, and consistent development to establish Saudi Arabia as a renowned hub for halal products.
Mr. Fahad Al-Nuhait added that the collaboration with IsDB leverages the bank’s expertise in Islamic finance and commerce, creating value for partners, businesses, and investors. The agreement also aligns with the goals of Vision 2030 by diversifying and developing Saudi Arabia’s base economy.
The signing of the MoU coincided with the 2023 IsDB Group Private Sector Forum, where HPDC served as a main sponsor.