Halal Products Development invests in Believe to enhance halal cosmetics and personal care industry in Saudi Arabia

Halal Products Development Company (HDPC) announced today signing a binding agreement to invest in Believe, a company specialized in halal cosmetics and personal care products. HDPC said that this step reaffirms its commitment to enhancing the halal industry ecosystem in the Kingdom and offering high-quality products that comply with Islamic standards.

 

According to a statement received by Argaam, HDPC added this investment aims to relocate Believe's headquarters from Singapore to Saudi Arabia, establishing it as a main hub for exporting the company's products worldwide. It also aims to localize the cosmetics and personal care industry by setting up a factory in the Kingdom that adheres to the highest global standards. This factory will produce the company's owned brands and offer contract manufacturing services to local brands in the initial phase, eventually expanding to global brands in the future.

 

HDPC affirmed the goal of knowledge sharing and research and development capabilities, and empowering local companies, especially small and medium enterprises, by providing additional value-added services besides contract manufacturing. These services include formulating advanced and innovative compositions, designing products and brands, sourcing suitable raw materials, manufacturing and packaging, and building high-quality Saudi brands for export to global markets.

 

Fahad bin Sulaiman AlNuhait, CEO of Halal Products Development Company, said: “Our investment in this sector is a crucial step that serves as a major driver for developing and localizing the manufacturing of halal cosmetics and personal care, as well as raising the efficiency of the sector. In addition, this investment aims to support research and development efforts to improve the services provided locally and globally."

 

"Our partnership with Believe is a strategic opportunity to localize and transfer the expertise and resources available to the company to Saudi Arabia and provide high-quality products to local and international consumers. This investment will also contribute to achieving Vision 2030 goals through creating direct and indirect job opportunities,” AlNuhait added.

 

Meanwhile, Ankit Mahajan, CEO of Believe, said: “This partnership is a strategic opportunity for us to expand our scope, create manufacturing capabilities, as well as provide high-quality, Shariah-compliant cosmetics and personal care product. Taking Halal Products Development Company as a strategic investor enhances our ability to achieve goals in the region and the world. Our headquarters in Saudi Arabia comes in response to the company's pivotal position in the Islamic world.”

 

The size of the cosmetics and personal care industry reached approximately $352 billion globally in 2022, and Halal Products Development Company's share of cosmetics and personal care products amounts to nearly $70 billion. The sector is expected to witness growth rates exceeding the industry's historical levels.

 

The expected growth of the halal cosmetics and personal care industry can be attributed to several key factors. One of these factors is the significant growth in the Muslim population worldwide, as well as the increasing awareness among non-Muslim consumers regarding the ingredients used in halal cosmetics and the ethical considerations associated with their production.

 

Additionally, the rise in income among consumers has led to increased sales of high-quality products that align with religious and cultural values. Furthermore, government initiatives, especially in predominantly Muslim countries, aimed at supporting the halal industry, including the cosmetics and personal care sector, serve as major drivers for market growth.

 

Believe Co. has been operating in the halal cosmetics and personal care sector since 2020, owning five diverse brands, all certified as halal products. The company sells its products in various global markets and has recently expanded into the Gulf countries. In the future, the company aims to focus on further developing its business in the region, with the presence of a strategic investor in halal product development aiding in achieving its objectives in the region and expanding into global markets.

 

Fully owned by the Public Investment Fund (PIF), HDPC stated that it will continue to pursue its goal of investing in the development and localization of the halal products sector in the Kingdom.

 

HPDC works on enhancing the efficiency of the sector domestically and aims to export to various markets worldwide in the future, supporting the development of knowledge and innovation in this vital sector through localizing knowledge, technology, and innovation to develop halal products, including food, cosmetics, and pharmaceuticals.

 

Additionally, the company aims to unify global efforts and make the Kingdom a global hub for the halal products industry system, leveraging Saudi Arabia's position in the Islamic world.