Food Products Manufacturing in Saudi Arabia

Food Products Manufacturing in the Kingdom of Saudi Arabia refers to industrial processes aimed at ensuring food security, backed by a robust industrial base. The Kingdom has over 1,500 food manufacturing factories, with investments exceeding SAR88 billion.

The investments in food manufacturing represent around 8 percent of the total industrial sector investments, while food factories make up about 11 percent of all factories in the Kingdom. The number of food products exceeds 1,582, and these factories contribute to providing more than 82,000 jobs.

In 2023, the Kingdom's food exports reached SAR20 billion, with the Saudi Industrial Development Fund offering loans to food factories worth SAR700 million, and the Saudi Export-Import Bank providing more than SAR3 billion to support food exports during the same year.

The demand for Saudi food products has been increasing locally, regionally, and globally, with a growth rate of 61 percent in 2020. Fruit juices, dairy products, concentrated cream, and bakery items like cakes are among the top food exports. The fruit and vegetable preservation and processing factories lead the food manufacturing sector in the Kingdom, with 296 factories, followed by 240 bakery factories.

Local investment dominates the food manufacturing industry, accounting for 90 percent of the total investment, while foreign and joint investments constitute 10 percent. Small and medium-sized enterprises (SMEs) represent 88 percent of the total number of food factories.

Globally, the Kingdom's share in the food manufacturing sector stands at SAR176 billion, with dairy, meat, and poultry being the largest segments. The food market in the Kingdom is expected to grow, reaching SAR214 billion by 2030.

The Ministry of Industry and Mineral Resources is focused on increasing investment in the food manufacturing sector to ensure the Kingdom's food security. Various affiliated bodies have been mobilized to achieve this goal. The Saudi Export Development Authority works on enhancing the export environment by providing programs and incentives for exporters, including compensations covering up to 90 percent of certain export costs and services.

The Saudi Authority for Industrial Cities and Technology Zones 'MODON' plays a key role in localizing food industries through its thirty-six industrial cities, which provide lands and factories equipped with necessary products and services. Additionally, the Royal Commission for Jubail and Yanbu manages four industrial cities equipped with infrastructure for establishing food manufacturing projects. The Industrial Fund provides financial support to local factories, and the Saudi Export-Import Bank aids local exports by offering financial solutions to boost exports.

The Saudi Food and Drug Authority (SFDA) plays a vital role in facilitating trade and ensuring food safety by enforcing legislation and monitoring food products from production to consumption. The SFDA’s food sector performs several tasks, including preparing regulations, technical standards, and specifications for food products; participating in the development and review of food standards at the local, regional, and international levels; assessing the safety and effectiveness of food products before and after they are marketed; and overseeing the enforcement and lifting of bans on food products.

One of the key initiatives by the SFDA is the Taqyeem Program, launched in 2019, which evaluates local food factories to enhance their quality. The program aims to reduce incorrect practices, support non-oil exports, increase competitiveness, and provide consumers with assessment results to build trust.

The SFDA launched the Saudi Halal Center, known as 'Halal,' a major global hub for halal products and food. It aims to ensure that all products marketed worldwide carry the 'Halal' label, positioning the Kingdom as a trusted reference for halal food and products.

'Halal' center provides several services, including issuing halal certifications for establishments and products, recognizing halal certification bodies, conducting studies and research in collaboration with universities and research centers, and establishing training centers for certification bodies.

In continuation of 'Halal' activities, the Public Investment Fund (PIF) launched the Halal Products Development Company in 2022. The company aims to invest in the development and localization of the halal products industry in the Kingdom. It will focus on enhancing the efficiency of the local sector, with plans to export to various global markets in the future, while supporting the growth of knowledge and innovation within this sector.

In 2021, the Saudi Export Development Authority launched the 'Made in Saudi' program, which is part of the National Industrial Development and Logistics Program. This initiative aims to contribute to the objectives of Saudi Vision 2030 by supporting and promoting the food manufacturing sector in the Kingdom. The program seeks to increase Saudi exports from 16 percent to 50 percent of the non-oil gross domestic product (GDP) by 2030, transforming the Kingdom into a leading industrial destination globally and promoting local industries. Additionally, it aims to stimulate investments within the industrial sector to enhance the Kingdom's standing on the global map.

The Ministry of Environment, Water, and Agriculture recorded an increase in self-sufficiency for plant, animal, and fishery products in 2020, contributing to the Kingdom’s food security. Sectors such as dates, vegetables, fruits, citrus, poultry, eggs, fresh milk, and fish played a significant role in this achievement.

By 2021, the Kingdom had reached high levels of self-sufficiency in several food products, including dairy products like milk, 12 percent, table eggs, 116 percent, poultry, 65 percent, fish, 45 percent, and red meat, 42 percent. In the plant and agricultural sector, self-sufficiency rates were also significant, with dates at 111 percent, vegetables at 87 percent, and fruits at 38 percent.