Almunajem’s Balady Poultry Trading Co. to invest US$304M in poultry operations, expansion plan
SAUDI ARABIA – Balady Poultry Trading Co. is rolling out a five-year expansion strategy from 2025 to 2029, committing US$304 million to grow its poultry operations, according to a statement on Tadawul.
The company is setting up a new slaughterhouse and a poultry meat processing factory capable of handling 500,000 birds daily.
As part of the plan, Balady will also construct 600 broiler chicken coops and establish two hatcheries, each with an annual production capacity of 100 million chicks.
Funding for the expansion will come from the company’s cash reserves, along with financing from the Saudi Agricultural Development Fund and commercial banks through Sharia-compliant Murabaha loans.
The initiative is aimed at increasing poultry production capacity to address growing demand, enhance food security, and align with national economic goals.
Additionally, the company expects the investment to drive financial returns for its shareholders.
Balady, founded in 2007, has Saudi-listed Almunajem Foods as a key stakeholder, holding 40% of its shares.
With this investment, Balady plans to increase its annual poultry output by 200 million birds, according to Arabian Gulf Business Insight.
Competitor Tanmiah launches expansion project
Meanwhile, Tanmiah Food Company is also investing in poultry production through its subsidiary, Agricultural Development Company (ADC).
In January 2025, ADC signed a contract worth US$43.95 million with China’s Chengdu Design & Research Institute to build 100 broiler houses.
The deal covers construction work, infrastructure setup, and installation of equipment needed for the broiler facilities.
Tanmiah aims to develop modern poultry farms in Saudi Arabia, incorporating automation and Industry 4.0 technologies on land owned by ADC.
The expansion is expected to support the company’s future ventures in primary processing as part of its broader growth strategy.
Construction is set to begin this month and is scheduled for completion by December 2026. Commercial operations are planned to commence in January 2027.
Tanmiah has structured the project financing through a long-term deferred payment plan, according to its statement.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
