Almarai invest over $4.8bn in five-year plan

Almarai, the Middle East’s largest dairy processor, aims to invest more than 18 billion riyals (€4.41 billion) by 2028 as part of a new strategy aimed at boosting growth and providing special inputs such as material supply and food safety first

Public Investment Fund, Saudi Arabia’s sovereign wealth fund, owns about 16% of the company through one of its subsidiaries

Almarai said his plan is in line with Saudi Arabia's Vision 2030, a comprehensive economic reform plan designed to diversify the economy beyond oil by developing sectors such as tourism and infrastructure, boosting private sector expansion, and enhancing employment opportunities

"Investments in the food industry contribute to food security at the national and regional levels and generate returns for shareholders," Almaray said in a regulatory filing

The company’s five-year plan, funded primarily through operating cash flow, focuses on increasing supply chain capacity, leveraging technology, and expanding into new markets.

As part of this strategy, nearly 7 billion riyals (€1.71 billion) will be allocated for poultry expansion, 5 billion riyals (€1.22 billion) to strengthen existing core product lines, and 4 billion riyals (€980 million) to enhance supply chain and sales capabilities for local and regional expansion initiatives.

Almarai currently produces approximately four million litres of milk daily, with an average of about 40 litres per cow per day, significantly exceeding the European average. Moreover, the company operates the largest food and beverage fleet in the Middle East, comprising over 9,000 vehicles.

Saudi Arabia's leading food products company, Savola, announced last month its intention to distribute its entire 34.52% stake in Almarai to eligible shareholders.

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