– Almarai, the dairy firm in the Middle East, plans to invest over $4.8 billion by 2028 to drive growth and enhance supply chain capabilities and food security.

– The five-year strategy will be financed through the company’s operational cash flows and is supported by Saudi Arabia’s sovereign wealth fund, which owns a 16% stake in Almarai.

– Key elements of the plan include substantial investments in poultry expansion, fortifying core product categories, and developing supply chain and sales capabilities to support local and regional expansion efforts.

Almarai, the largest dairy firm in the Middle East, intends to invest more than $4.8 billion by 2028 as part of a new initiative designed to spur growth. 

The plan, spanning five years, prioritizes enhancements in supply chain capabilities and food security, as reported by various media outlets.

Financed by the company’s operational cash flows, the strategy involves significant investments in supply chain capabilities and technology. 

Saudi Arabia’s sovereign wealth fund, Public Investment Fund, holds approximately 16% ownership in Almarai through one of its subsidiaries.

Almarai, in a statement filed with the bourse, emphasized the importance of investment in the food industry in advancing food security in both the kingdom and the wider region, while also enhancing shareholder value.

Key aspects of the strategy include earmarking nearly 7 billion riyals for poultry expansion, allocating 5 billion riyals to fortify existing core product categories, and dedicating 4 billion riyals to developing supply chain and sales capabilities to support local and regional expansion plans.

In a separate development, Saudi Arabia’s largest food products company, Savola, announced its intention last month to distribute its entire 34.52% stake in Almarai to eligible shareholders.

Almarai underscored the alignment of its strategy with Saudi Arabia’s Vision 2030 economic transformation plan, which seeks to diversify the economy beyond oil by fostering sectors like tourism and industry, bolstering the private sector, and generating employment opportunities.