Saudi Arabia Boosts Food Production with SR232 Million Investment Deals
Saudi Arabia is set to increase its production of chocolate, yogurt, and fish after the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed investment deals worth SR232 million ($61.8 million). The organization awarded seven contracts covering 99,400 sq. meters, primarily benefiting the Kingdom’s food and beverage sector. The agreements fall in line with the objectives of the National Industrial Strategy and Saudi Vision 2030, aimed at achieving food security for the Kingdom and attracting investment projects worth $20 billion into the sector by 2035.
Increased Production of Milk and Fresh Yogurt
One of the new investment deals is an agreement worth SR140 million for the production of milk and fresh yogurt on industrial land on an area of 27,400 sq. meters in the Third Industrial City in Jeddah. The deal is expected to boost the Kingdom’s dairy industry, which is currently dominated by imports. The investment will enable local production of milk and yogurt, reducing the country’s reliance on imports and increasing its self-sufficiency.
Localization of Fish Preservation Industry
Another SR10 million contract was sealed allocating 11,051 sq. meters in the Third Industrial City in Jeddah to localize the fish preservation industry and fish products. A separate SR11.8 million deal was signed for an area of 7,400 sq. meters to preserve fish and fish products by drying, smoking, and salting. These investments will help to reduce the country’s reliance on imported fish products and increase its self-sufficiency in this sector.
Manufacture of Cocoa, Chocolate, and Sweets Products
An area of 25,027 sq. meters has been allocated in the Second Industrial City in Qassim for an investment of SR22 million for the manufacture of cocoa, chocolate, and sweets products. This investment will help to boost the Kingdom’s confectionery industry, which is currently dominated by imports. The investment will enable local production of these products, reducing the country’s reliance on imports and increasing its self-sufficiency.
Manufacture of Food Boxes, Medicines, Perfumes, and Dishes
There was also an agreement worth SR40 million to allocate an area of 16,500 sq. meters for the manufacture of food boxes, medicines, perfumes, dishes, among other things in Sudair City for Industry and Business. This investment will help to boost the Kingdom’s manufacturing industry, which is currently dominated by imports. The investment will enable local production of these products, reducing the country’s reliance on imports and increasing its self-sufficiency.
Increased Food Factories
MODON revealed that the number of food factories in Saudi Arabia will increase to 1,171 factories with total areas of approximately 10 million sq. meters by the end of 2022. This increase in food factories is expected to boost the Kingdom’s food production and increase its self-sufficiency in this sector.
Conclusion
Saudi Arabia is taking steps to increase its food production and reduce its reliance on imports. The investment deals signed by MODON will help to boost the Kingdom’s food and beverage sector and increase its self-sufficiency in various sectors, including dairy, fish preservation, confectionery, and manufacturing. These investments are in line with the objectives of the National Industrial Strategy and Saudi Vision 2030, aimed at achieving food security for the Kingdom and attracting investment projects worth $20 billion into the sector by 2035.