The Food and agriculture sector stands as a cornerstone of economic development in the Kingdom of Saudi Arabia, reaching unprecedented heights in 2022 with a contribution of approximately 100 billion Saudi Riyals (USD 26.6 Billion) to the GDP—the highest in its history.
In alignment with the National Industrial Strategy, which aims to achieve food security and holistic economic development, the Kingdom anticipates attracting US $20 billion in investments in the Food Industry by 2035.
Achieving Self-Sufficiency:
Saudi Arabia has made remarkable strides in ensuring food security, particularly in the Animal Protein sector. With a self-sufficiency level exceeding 100% in dairy products and table eggs—118% and 117% respectively—the Kingdom leads the region in this aspect. The Poultry & Red Meat sector also boasts of self-sufficiency levels of 68% and 60% respectively, indicating substantial progress towards food independence. Despite these achievements, the fish self-sufficiency ratio stood at 48% in 2022, presenting an area with potential for further development.
Investment Initiatives: A Catalyst for Growth
Recognizing the pivotal role of the food industry in ensuring national security, both the Government and Private sector in Saudi Arabia have unveiled ambitious investment plans. For instance:
- Saudi Agricultural and Livestock Investment Company (SALIC) has strategically acquired stakes in key players within the food industry. Notably, it secured a 25% stake in Minerva Foods, one of the largest meat producers in South America, and a 42.4% stake in the National Aquaculture Group “NAQUA”.
- Al Marai, a prominent food and beverage manufacturing and distribution company in the GCC region, is set to invest SAR 1.2 billion in hatchery production facilities in the Al-Jouf region. Furthermore, it aims to diversify its portfolio by venturing into the Seafoods category, reflecting a commitment to innovation and growth.
At Frost & Sullivan, we are deeply committed to nurturing the growth of the local food industry and supporting key players along the entire food chain. Our comprehensive suite of services includes feasibility studies, commercial due diligence, strategy roadmap development, go-to-market strategies, investor outreach, and more. By collaborating with industry stakeholders and regulatory bodies, we aim to facilitate the realization of Vision 2030 goals, driving sustainable economic development and prosperity in Saudi Arabia.
To delve deeper into the intricacies of Saudi Arabia’s thriving food industry and the transformative potential it holds for the nation’s economy, watch the Video for further insights: https://frost.ly/9oo
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