This agreement comes in line with King Abdullah bin Abdul Aziz’s initiative to encourage agricultural investments abroad and the council’s ongoing efforts to develop and expand the field of agriculture.
Almarai’s ownership of dairies, processing plants and a distribution system makes it more profitable than its peers. The operation’s earnings before interest and taxes margin is at least 30 percent bigger than Danone, Nestle and Savola.
Saudi Arabia has invested around 40 billion riyals in agricultural and livestock projects in the Ukraine, Brazil, Argentina, Canada and Sudan, says chairman of the agricultural investment committee at the Saudi Council of Chambers.
Food investment outside the GCC states needs to be reconsidered under global variables, particularly political and economic ones that may pose a major threat to the Gulf food security, according to the Federation of GCC Chambers.