Balady to Expand Saudi Poultry Sector with $303 Million Investment
Deal News | Feb 05, 2025 | Zawya
Saudi Arabia's Balady company has announced a significant expansion in the kingdom's poultry sector with an investment of 1.14 billion riyals, equivalent to $303 million. This strategic five-year expansion plan is aimed at boosting poultry production across the region. The financing for this ambitious project is to be sourced from the company's surplus cash, loans from the Saudi Agricultural Development Fund, and commercial banks under Sharia Murabaha principles. As part of this plan, Balady intends to construct a new factory, a slaughterhouse, and hatcheries. Established in 2007, Balady has Almunajem Foods as a significant shareholder, holding 40% of the company. The plan signifies a major step towards enhancing the domestic poultry industry, supporting local food security, and reducing dependency on poultry imports.
Sectors
- Agriculture
- Food Production
- Finance
Geography
- Saudi Arabia – The article is centered around Balady's operations and expansion plans in Saudi Arabia, affecting the local poultry sector.
Industry
- Agriculture – The article pertains to the development and expansion within the poultry sector, which is a vital component of the agriculture industry.
- Food Production – Balady's expansion focuses on increasing poultry production, directly tying into the food production industry.
- Finance – The article discusses financial aspects such as securing funds through surplus cash, governmental fund, and Sharia-compliant banking solutions.
Financials
- $303 million – The total investment planned by Balady for its five-year expansion project.
- 1.14 billion riyals – Equivalent to $303 million, representing the same investment in local currency.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Balady | Target company | Company | A Saudi-listed company focusing on poultry production, planning significant expansion in the kingdom. |
| Almunajem Foods | Shareholder | Company | A major shareholder in Balady, holding a 40% stake in the company. |
| Saudi Government Agricultural Development Fund | Financier | Government | Providing financial assistance through loans to support Balady's expansion. |
| Commercial Banks | Financier | Company | Provide financing facilities in the form of Sharia Murabaha for the expansion project. |