Finance

Saudi’s investment fund gets taste of halal food market

August 9, 2023

Saudi halal — 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.