Abu Dhabi-based food and beverage company Agthia is expanding further in Saudi Arabia with a greenfield investment worth $24.5 million that will be used to set up a manufacturing unit in the kingdom.
According to the company’s statement to the Abu Dhabi Securities Exchange, where its shares are traded, Agthia’s capital expenditure spending on its new unit in the Red Sea port city of Jeddah is expected to start in the coming months, with sales expected to commence in the second half of 2023.
“Agthia’s greenfield investment in the Kingdom of Saudi Arabia would enable significant progress towards our long-term profitability target and our commitment to deliver on our growth strategy to become a regional leader by 2025,” says Group Chief Investment Officer Khalifa Sultan Al Suwaidi.
Owned by one of the region’s largest holding company, Abu Dhabi based ADQ, Agthia is transforming its operations under a new five-year growth strategy in its push to become the region’s top food and beverage company in the next three years. The company completed a number of acquisitions last year to expand its operations in the MENA region including the world’s largest date processing and packaging company Al Foah; Kuwait’s Al Faysal Bakery & Sweets; Jordan’s Nabil Foods; Egypt-based meat processor Ismailia Investments, better known as Atyab; and snack maker BMB Group.
“This investment will allow us to further drive the growth of our protein vertical while offering the right product quality compliant with local regulations,” says CEO at Agthia Group PJSC Alan Smith. “The site design will also give us the capacity and flexibility to meet future market growth potential and will eliminate any future replacement cost in case of expansions,” adds Smith.
Agthia manufactures, distributes, and markets a range of food and beverage products, including popular regional brands such as Al Ain Water and Al Foah dates.
