RIYADH: Saudi Arabia’s food industry is set for a $20 billion boost by 2035 as the Kingdom opens up to new investments, according to Minister of Industry and Mineral Resources Bandar Alkhorayef.
The poultry, dairy, bakery and sweets sectors will benefit the most from the new funds, as well as the beverages and juices industries, reported the Saudi Press Agency.
The report further noted that these investments would also maximize the value of agricultural produce, bringing in comparative advantages for the Kingdom.
The decision is also in line with the country’s aim to double agricultural exports from $3.7 billion in 2022 to $10.9 billion in 2035, as per the objectives of the National Industry Strategy.
The National Industrial Strategy aims to promote food security and economic diversification measures outlined in the Vision 2030 blueprint.
The minister noted that poultry sector projects such as Almarai Co.’s $1.2 billion plan to expand poultry production and Seara Arabia Food Industries Co.’s $120 million investment were the most important initiatives in developing the sector.
Alkhorayef added that a $133 million canned tuna project which is expected to offer 4,000 new job opportunities in the Kingdom is another major initiative in the food industry.
The minister projected that the sector in the Kingdom is expected to grow from $41 billion in 2019 to $57 billion by 2030, with an estimated annual growth rate of 3 percent.
According to Alkhorayef, this growth in the food industry market will be driven by an increase in consumer spending on food and beverages by 1.4 percent, together with a population growth of 1.73 percent.
Earlier this month, Saudi Agricultural and Livestock Investment Co., owned by the Public Investment Fund and South American firm Marfrig Global Foods SA, committed to buying shares in a potential new offering worth $900 million by BRF SA, Brazil’s biggest poultry producer.
BRF said in a bourse filing that SALIC offered to subscribe to 50 percent of the total offer, or 500 million new shares, Reuters reported.
Marfrig Global Foods SA, which owns 33 percent of BRF, pledged to buy the remaining 250 million shares.
