Almarai to invest over $4.8 bln under five-year plan - Reuters
Source: The DairyNews
Almarai Unveils Ambitious $4.8 Billion Investment Plan to Drive Growth
Almarai, the Middle East's leading dairy company, has announced plans to invest over 18 billion riyals ($4.8 billion) by 2028, Reuters writes.
Aligned with Saudi Arabia's Vision 2030 economic transformation plan, the investment strategy aims to diversify the economy away from oil by prioritizing sectors like tourism and industry. The plan also seeks to expand the private sector and generate employment opportunities.
With the backing of Saudi Arabia's sovereign wealth fund, the Public Investment Fund, which holds a stake of approximately 16% in the company, Almarai's investment strategy underscores its pivotal role in achieving food security in the kingdom and the wider region, while concurrently delivering value to shareholders.
The comprehensive five-year plan will focus on enhancing supply chain capabilities and leveraging technology to drive efficiencies across operations. A substantial portion of the investment, nearly 7 billion riyals, will be allocated to expanding poultry operations, while an additional 5 billion riyals will bolster existing core product categories. Furthermore, 4 billion riyals will be directed towards developing supply chain and sales capabilities to support local and regional expansion initiatives.
This announcement comes amid strategic shifts in the region's food industry, with Saudi Arabia's largest food products company, Savola, recently revealing plans to distribute its entire 34.52% stake in Almarai to eligible shareholders.
Aligned with Saudi Arabia's Vision 2030 economic transformation plan, the investment strategy aims to diversify the economy away from oil by prioritizing sectors like tourism and industry. The plan also seeks to expand the private sector and generate employment opportunities.
With the backing of Saudi Arabia's sovereign wealth fund, the Public Investment Fund, which holds a stake of approximately 16% in the company, Almarai's investment strategy underscores its pivotal role in achieving food security in the kingdom and the wider region, while concurrently delivering value to shareholders.
The comprehensive five-year plan will focus on enhancing supply chain capabilities and leveraging technology to drive efficiencies across operations. A substantial portion of the investment, nearly 7 billion riyals, will be allocated to expanding poultry operations, while an additional 5 billion riyals will bolster existing core product categories. Furthermore, 4 billion riyals will be directed towards developing supply chain and sales capabilities to support local and regional expansion initiatives.
This announcement comes amid strategic shifts in the region's food industry, with Saudi Arabia's largest food products company, Savola, recently revealing plans to distribute its entire 34.52% stake in Almarai to eligible shareholders.
