PIF subsidiary invests in Singapore halal cosmetics firm in localization push
Halal Products Development Company (HPDC) has invested in Singapore-based Believe to enhance the halal industry ecosystem in Saudi Arabia and localize cosmetics and personal care production capabilities.
The subsidiary of Saudi Arabia’s Public Investment Fund (PIF) has signed a binding agreement to invest in the halal cosmetics and personal care company to provide Shariah-compliant products domestically and globally.
This investment aims to relocate Believe's headquarters from Singapore to Saudi to serve as a central hub for exporting its products worldwide, the company said in a statement.
Believe owns five brands and sells its products – all of which bear halal certification - in several global markets. The company recently expanded into Gulf countries, with the goal to further develop its business in the region.
HPDC aims to establish a factory in Saudi to manufacture the company's brands to localize cosmetics and personal care production capabilities.
It also plans to offer contract manufacturing services for local brands initially and later extending to global brands.
“Our partnership with Believe represents a strategic opportunity to localize and transfer the company's expertise and resources to Saudi Arabia and provide high-quality products to local and global consumers,” said HPDC CEO Fahad Al Nuhait.
The investment aims to “empower local companies, especially small and medium-sized enterprises" by providing other value-added services alongside contract manufacturing.
These include innovative formulas, product and brand design, sourcing appropriate raw materials, manufacturing and packaging, as well as building quality Saudi brands and exporting them to global markets.
The cosmetics and personal care industry was worth approximately $352 billion in 2022, of which the halal cosmetics and personal care segment accounted for about $70 billion, owned to factors such as a growing Muslim population, rising disposable income levels and increasing awareness among non-Muslim consumers regarding product ingredients.
