Saudi Arabia's food industry: A path to economic growth

Country: Saudi Arabia
Saudi Arabia's food industry: A path to economic growth
05 April 2024

The food and agriculture sector in Saudi Arabia is experiencing significant growth and expansion, playing a crucial role in the country's economic development agenda. With a contribution of approximately 100 billion Saudi Riyals ($26.6 billion) to the GDP in 2022, it stands as a cornerstone of economic progress.

Aligned with the National Industrial Strategy, which aims for food security and holistic economic development, Saudi Arabia anticipates attracting $20 billion in investments in the food industry by 2035.

Saudi Arabia has made remarkable progress in ensuring food security, particularly in the animal protein sector. The Kingdom has achieved self-sufficiency levels exceeding 100% in dairy products and table eggs, leading the region. The poultry and red meat sectors also show significant progress, with self-sufficiency levels of 68% and 60% respectively. However, there's room for improvement in the fish sector, where the self-sufficiency ratio stood at 48% in 2022.

Both the government and private sector have unveiled ambitious investment plans to bolster the food industry. Initiatives include strategic acquisitions by the Saudi Agricultural and Livestock Investment Company (SALIC), such as stakes in Minerva Foods and the National Aquaculture Group (NAQUA). Additionally, Al Marai, a leading food and beverage company in the GCC region, plans to invest SAR 1.2 billion in hatchery production facilities and diversify into the seafood category.

Frost & Sullivan is actively involved in supporting the growth of the local food industry through various services, including feasibility studies, strategy development, and investor outreach. By collaborating with industry stakeholders and regulatory bodies, Frost & Sullivan aims to contribute to the realization of Vision 2030 goals, driving sustainable economic development and prosperity in Saudi Arabia.

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