Nestle will invest $1.9 billion (SAR 7 billion) over the decade to boost food security in Saudi Arabia amid soaring food prices worldwide, the kingdom’s Ministry of Investment of Saudi Arabia (MISA) announced on its official Twitter account. The global food giant and MISA signed a memorandum of understanding to this effect Wednesday.
The agreement would include establishing a manufacturing site in Saudi Arabia and a research and development center.
Nestle will also set up a business incubator and a program targeted to local talents, according to the ministry.
The deal aims to enhance Saudi Arabia’s food security, which aligns with the goals of Saudi Vision 2030. It is also expected to create jobs and improve local businesses, according to MISA.
Nestle, which held the top spot as the world’s largest food and beverage company on Forbes 2022 Global 2000 list, will invest an initial $99.8 million (SAR 375 million) in Saudi Arabia. Saudi Arabia ranked sixth among Arab countries and 44th globally in the Food Security Index for Q2 2022, published by Deep Knowledge Analytics. The kingdom is well behind its Gulf peers, the UAE, Qatar, Bahrain, and Oman.
Saudi Arabia, however, is working on improving its agricultural sector as outlined in the Saudi Vision 2030 by strengthening industries that support food systems, improving agricultural productivity, and enhancing research and innovation capabilities.
In late October, the Saudi sovereign wealth fund, Public Investment Fund, launched a new entity, Halal Products Development Company, to localize the production and development of halal products, including food items.
