Nestlé is set to establish its first food manufacturing facility in Saudi Arabia, having recently signed a contract to commit to the project. According to the Saudi Press Agency, the state-sponsored news source announced on September 15 that Nestlé will utilize a 117,000 square meter site in Jeddah’s Third Industrial City.
When the facility opens next year, its primary focus will be on developing infant nutrition products. The company has earmarked an initial investment of SAR270 million ($72 million) for this venture.
This announcement fulfills a commitment made by Nestlé, known for its KitKat confectionery and Maggi sauces, back in late 2022. At that time, the company pledged to invest SAR7 billion in Saudi Arabia over a decade, which includes the establishment of this manufacturing site. Nestlé characterized this initiative as a strategic move to expand its longstanding business in the region.
The plans align with Saudi Arabia’s Vision 2030 strategy, aimed at bolstering local food production as a means to enhance food security. The announcement also elaborated that the project is projected to create hundreds of direct and indirect jobs during its initial phase, with an anticipated annual production capacity of 15,000 tons.
In recent years, Saudi Arabia has excelled in attracting foreign investment. For instance, data released by the Saudi Central Bank indicated that foreign direct investment (FDI) inflows increased by 29.1% in the third quarter of 2023 compared to the previous quarter, amounting to SAR7.99 billion.
In a related development, Pladis, a UK-based snacking major, has also announced plans to establish a regional headquarters in the Kingdom, underscoring the growing trend of international companies investing in the food and beverage industry in Saudi Arabia.
