The Middle East’s biggest dairy firm Almarai plans to spend over 18 billion riyals ($4.8 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 per cent 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.
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 seven billion Saudi riyals will be earmarked for poultry expansion, five billion riyals to bolster existing core product categories, while four billion riyals will be allocated to developing supply chain and sales capabilities for local and regional expansion plans.
Saudi Arabia’s largest food products company Savola said last month it planned to distribute its entire 34.52 per centa stake in Almarai to its eligible shareholders.