Skip to content Skip to Search
Skip navigation

Saudi’s investment fund gets taste of halal food market

By Andrew Hammond
Saudi halal Reuters/Ahmed Yosri
The agreement supports Saudi companies targeting the global halal market, as well as encourages local consumers to buy Saudi
  • PIF ups support for halal food
  • Vision 2030 plan to grow non-oil economy
  • Saudi faces competition from global halal companies 

Saudi Arabia’s Public Investment Fund aims to increase the kingdom’s share in the global halal food market, currently worth at least $2 trillion. 

Halal Products Development Company, a PIF subsidiary launched in October 2022, signed an agreement with the Saudi Exports Development Authority to support companies targeting the halal market, as well as encourage local consumers to buy Saudi. 

Data gathering site Statista estimates the halal market worldwide will rise to be worth $2.8 trillion in 2025, covering the food, pharmaceuticals, cosmetics, fashion, travel and entertainment sectors. 

As the birthplace of Islam, Saudi Arabia pitches itself as the world’s leading Muslim country, but Saudi firms face competition from halal operators in Europe and Southeast Asia. 

The Public Authority for Food and Medicine launched a campaign in 2021 to establish the “Saudi halal” label as an international quality standard, giving certificates of approval to food products, cosmetics and medicines.

It estimates the global market for halal foods as growing at 6 percent a year.  

PIF has also launched a women’s health and lifestyle company called Kayanee (My Being) to stimulate an improvement in the health profile of Saudi women, and SRJ Sports Investments Co. for organising major international sports events inside the kingdom.  

In July, PIF established the Al Madinah Heritage Company to develop the Saudi food and agriculture industry, including the global marketing of Ajwa dates from the Madinah region, in an effort to raise its share of a global dates market of $15 billion in 2023. 

The sovereign wealth fund reported earlier this week that assets hit $594 billion during 2022, despite a $16 billion loss for the year driven by a fall in the fair value of investments in SoftBank Vision Fund and a market downturn in the technology sector.

The Saudi government plans for non-oil exports to cover 50 percent of GDP as part of its Vision 2030 programme to diversify its economy.

Latest articles

Workers at Egypt's Zohr gas facility. It is unclear if the drop in output is due to technical issues or lack of investment

Egypt plans to restore full gas output in 2025

Egypt plans to restore its natural gas production to normal levels by June 2025, the prime minister has said.  The country has become a net importer of fuel amid declining domestic output and increasing energy demand.  Falling output from Zohr – Egypt’s largest natural gas field developed by Eni of Italy – led to daily […]

Saudi petrochemical

Second-half slide expected for Saudi petrochemical industry

With higher shipping and logistic rates and stable prices of raw materials, Saudi petrochemical producers are likely to report lower earnings in the second half of the year, an expert has said. The companies reported margin peaks in the second quarter of the year, but they are likely to face pressures on profit margins in […]

G42 Nvidia

G42 links with Nvidia to launch climate tech lab

The UAE-based artificial intelligence company G42 has formed a partnership with Nvidia, the US computer chip giant, to set up a climate tech laboratory in Abu Dhabi, aimed at better predicting the weather using AI. In what is Nvidia’s first partnership with the UAE company, the lab will “serve as a hub for research and […]

Alshaya Group, one of the Gulf’s largest franchise owners, is expected to resume discussions about Starbucks next year if the situation improves

Kuwait’s Alshaya delays Starbucks franchise stake sale

Kuwait’s Alshaya Group is “not in a hurry” to sell a stake in its Starbucks regional franchise due to the ongoing geopolitical unrest and boycotts, which is affecting its valuation, according to a news report. Discussions are expected to resume next year “if the situation improves”, Reuters reported, citing informed sources. The company, one of […]