The Middle East's biggest dairy firm, Almarai, plans to spend over 18 billion riyals (€4.41 billion) through 2028 under a new plan aimed at boosting growth while focusing on areas including supply chain capabilities and food security.
Saudi Arabia's sovereign wealth fund, Public Investment Fund, owns a stake of around 16% in the firm through one of its subsidiaries.
Almarai said its strategy aligned with Saudi Arabia's economic transformation plan, Vision 2030, which aims to diversify the economy away from oil by developing sectors such as tourism and industry, expand the private sector and create jobs.
"Investment in the food industry contributes to achieving food security in the kingdom and the region while adding value to shareholders," Almarai said in a bourse filing.
Five-Year Plan
The five-year plan, which envisions investments in areas including supply chain capabilities and technology, will be funded through the firm's operational cash flows.
Under the strategy, nearly 7 billion riyals (€1.71 billion) will be earmarked for poultry expansion, 5 billion (€1.22 billion) riyals to bolster existing core product categories, while 4 billion (€980 million) riyals will be allocated to developing supply chain and sales capabilities for local and regional expansion plans.
Almarai produces around four million liters of milk per day, averaging about 40 liters per cow per day, which is roughly double the European average. Additionally, the company boasts the largest food and beverages fleet in the Middle East, with more than 9,000 vehicles in its fleet.
Saudi Arabia's largest food products company Savola last month it planned to distribute its entire 34.52% stake in Almarai to its eligible shareholders.
Additional reporting by ESM
