SAUDI ARABIA – Saudi Authority for Industrial Cities and Technology Zones (Modon) has several agreements and memorandums of understanding (MoUs) that will facilitate billions of dollars being invested in localizing the food and beverage industry in Saudi Arabia.
While revealing the increase of food factories to 1,171 factories with total areas of approximately 10 million m2 by the end of 2022, Modon noted an investment of up to SR1 billion and SR69 million will be channeled into new projects.
The localization project is part of Modon’s strategy to enable the industry and contribute to increasing local content in vital sectors to diversify the bases of the national economy and localize 85% of the total demand in the food market in Saudi Arabia.
It also aligns with the objectives of the National Industry Strategy and the initiatives mandated in the National Industrial Development and Logistics Program (NIDLP) ” to contribute to Saudi Arabia’s food security in line with Saudi Vision 2030.
To achieve its plans, the authority signed an agreement with Alshaya Group and IFCCO to establish “Food clusters” in form of new industrial land in Dammam Second Industrial City.
Since 2001, Modon has been developing integrated services industrial lands; currently overseeing 36 industrial cities across Saudi Arabia with more than 5,000 producing factories under construction, as well as complexes and private industrial cities.
MODON will allocate a piece of land with an area of 25,000 square meters for long-term use in the second industrial area in Jeddah to Siniora Food Industries Company to build a 140 million Saudi riyals (US$37million) factory to produce all types of cold cuts and frozen meat at a cost of
This will strengthen Siniora’s strategic plan and its efforts to expand into regional and international markets.
Speaking about the agreement, Siniora CEO Majdi Al-Sharif said that with more than a century of experience in the food industry, Siniora aims to share its expertise with the Kingdom of Saudi Arabia by creating more than 200 job opportunities.
Modon has also signed an agreement with the Kuwaiti Danish Dairy Company (KDD) to invest SR375 million in establishing a factory with an area of 100,000 m2 in Sudair City for industry and businesses.
In addition, it signed an agreement with Jordan Valley Food Industrial Co. “AlBayrouty” to establish a factory in Jeddah Second Industrial City on an area of 15,000 m2 and investments of approximately SR50 million to produce grains and legumes.
The Saudi Authority is also in agreement with the Dose Café company to allocate the company a ready factory with an area of 1,500m2 in Sudair City for Industry and Businesses to invest SR4 million in food and beverages production.
Furthermore, it signed a tri-party agreement with Indeal and Foodics platforms to boost supply chains in the food industry sector by providing technical linkage services between food manufacturers in “Modon” industrial cities and the catering and hospitality chain in Saudi Arabia.
Recently, Modon signed agreements with several specialized companies including Seara Arabian Food Industries, the investment arm in the Middle East and North Africa of the Brazilian Group JBS, the largest company globally for manufacturing meat products and derivatives.
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