Saudi Arabia signs 23 agreements worth $15b at investment forum

Saudi Arabia has signed 23 agreements worth $15 billion dollars at its annual investment forum, Saudi Arabian General Investment Authority (SAGIA) said in a statement.

The Future Investment Initiative conference, which is now in its third year, aims to attract foreign investment into the kingdom.

Agreements include a $120 million investment deal between SAGIA and BRF Brazil Foods and a $700 million investment deal between SAGIA and Modular Middle East, both aimed at developing operations within Saudi Arabia, the statement said.

Brazilian food processor BRF announced an agreement to invest around $120 million to build its first chicken processing plant in Saudi Arabia in a bid to strengthen its position in a key growth market.

The company, the largest food exporter in the Gulf region, has four production facilities in the Middle East, where increasing populations will lift demand for food.

BRF currently serves the Saudi market through eight plants in Brazil and a factory in Abu Dhabi.

Meanwhile the Saudi Arabia is set to invest approximately $59 billion into its food industry by 2021. Leading GCC FMCG importer Truebell, has highlighted Saudi Arabia as a potential region for distribution expansion as the Kingdom looks set to invest approximately $59 billion into its food industry by 2021, according to the Saudi Arabia General Investment Authority (SAGIA).

Truebell announces plans to expand exclusive distribution of key brands in Saudi Arabia during the first quarter of 2020.

At present, Truebell has more than 60 global brands in its portfolio and has started exclusively distributing a number of these popular products to Saudi Arabia with plans to gradually introduce more of these brands to the Kingdom during the first quarter of 2020.

Truebell Divisional Manager, Retail & Food Service, Bhushant J Gandhi said: “Trends have evolved especially over recent years - in line with Saudi Arabia’s changing demographics, increased disposable incomes and maturing food trends - with demand for varied food stuff, organic ingredients and healthy food products expanding well beyond just the most popular and recognisable local Saudi brands - and as a result, Truebell is working to align current and future supplies with this developing trend.”

According to the latest data from Foodex Saudi, around $70 billion worth of food was consumed in the Kingdom during 2018 with total consumption of organic, gourmet and health products expected to top $27 billion by the end of this year.

The Saudi Arabia’s energy-sector manufacturing - industrial activities that are principally related to the energy value-chain - are set for robust growth in the coming decade.

The move will not only add to the Kingdom’s exports but also promotes the job creation among highly-skilled Saudis and strengthening the Small and Medium Enterprises (SME) sector, reports the findings of the first-of-its-kind study on the Saudi industrial and energy manufacturing landscape by GE.

Unveiled at the Future Investment Initiative, the white paper titled ‘Building Saudi Arabia’s Energy Manufacturing Ecosystem: A GE Roadmap’ offers comprehensive insights on the energy-manufacturing landscape, primarily through the views and perceptions of Saudi engineering and manufacturing professionals (most of them Science, Technology, Engineering or Math (STEM)-qualified) and students.

Launching the white paper, Hisham Albahkali, President & CEO of GE - Saudi Arabia and Bahrain, said: “The findings of our first independently commissioned survey offers new insights on the value that energy-sector manufacturing can bring to the Kingdom. With over 80 years of presence in the Kingdom, and our committed investments in building localized manufacturing, we see the sector as a powerful platform to support achieving the wider goals of the Kingdom under Saudi Vision 2030, such as, transferring vital skills and technologies, creating high-value jobs for Saudis, building human capital, supporting a culture of tech entrepreneurship, promoting R&D and innovation, supporting SMEs and increasing exports. This is reiterated by the survey’s participants - the young tech leaders of tomorrow.”

Energy manufacturing is seen as an industry of the future and a shared responsibility between the government and private sector.

Over 74 per cent observed that energy sector manufacturing should be an economic priority for the Kingdom. This aligns with NIDLP’s aims to transform the Kingdom into a leading industrial and logistics powerhouse.

Agencies