Saudi Arabia's Almarai to invest $108m in seafood business and poultry supply chain

Saudi Arabia's Almarai, the Middle East's largest dairy company, plans to invest 405 million Saudi riyals ($108m) to drive its expansion into the seafood business and to secure poultry supplies as part of the kingdom's focus on food security.

The dairy company's board of directors approved an initial investment of 252m riyals into the seafood processing business, which Almarai will finance from operating cash flows, the company said in a filing to the Tadawul stock exchange on Tuesday.

The investment plan will expand Almarai's product range and contribute to the kingdom's “food security agenda as per vision 2030", the company said.

The expected time frame of the seafood investment is 24 months from the date of final regulatory approval.

Saudi Arabia has been increasingly focused on bolstering its food security through investments in local manufacturing and agricultural technology start-ups.

The Russia-Ukraine crisis has led to an increase in the prices of basic commodities, particularly in countries that depend on the two nations for their supplies.

Jadwa Investments has revised Saudi Arabia's inflation rate for 2022 to 2.4 per cent, from 1.7 per cent previously, due to the global rise in food prices.

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