BRF and HPDC announce new food plant in Jeddah, Saudi Arabia
BRF, one of the world's largest food companies and owner of the Sadia, Perdigão, Qualy and Banvit brands, and the Halal Products Development Company (HPDC), a wholly-owned subsidiary of the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, announced today (21) the start of construction of a processed food factory in Jeddah, Saudi Arabia's second largest city. Carried through their joint venture, BRF Arabia Holding Company, the investment is worth approximately US$ 160 million.
"The investment represents another consistent advance in our global presence strategy and strengthens our operations in a highly strategic market for the Company, as well as consolidates our partnership with the Kingdom of Saudi Arabia in its food safety agenda", said Marcos Molina, Controlling Shareholder and Chairman of the Boards of Directors of Marfrig and BRF.
While Fahad Alnuhait, CEO of HPDC, stated: "This new facility represents a major step forward in our strategy to build integrated halal manufacturing ecosystems. In partnership with BRF, this investment reflects our continued efforts to advance Saudi Arabia’s position in the global halal economy. The plant will not only meet growing domestic demand for further processed products but also reduce the Kingdom’s reliance on imported goods by offering high-quality, locally manufactured alternatives. It directly supports HPDC’s broader mandate to develop the halal ecosystem and position the Kingdom as the global hub for halal products. Moreover, it aligns with our commitment to strengthen local manufacturing capabilities, drive self-sufficiency, and create high-value job opportunities, contributing meaningfully to the sustainability and economic diversification goals of Vision 2030".
With a production capacity of approximately 40,000 tons per year, the new cutting-edge facility will be dedicated to processed foods. Initially, production will be mainly destined for the Saudi market, with the possibility of exporting to other countries in the region. Scheduled to begin operations in mid-2026, the plant has been designed to allow for future expansion, doubling the initial capacity. The new operation will be BRF's seventh production unit in the Middle East and the third in Saudi Arabia.
The operation is expected to generate more than 500 direct jobs in the region and will initially use raw materials from Brazil. The investment schedule is planned for 2025 and 2026, with disbursements of approximately US$ 63 million in 2025 and US$ 98 million in 2026.
The announcement comes just a few months after BRF made its official debut in halal chicken production in Saudi Arabia with the acquisition of 26% of Addoha Poultry Company, a renowned company in the Saudi Kingdom. "Investments in new production units strengthen our presence and competitive edge in the region, allowing us to expand our offer of value-added products to meet the growing demand from consumers in the halal market", says Igor Marti, Vice President for the Halal Market at BRF.
"This new plant reinforces our presence and structure in the Kingdom, where we already have a factory in Dammam, in addition to our own distribution ecosystem. Jeddah is the second largest city in Saudi Arabia and its strategic location allows for better access to the consumer market and business partners. We are very attentive to the opportunities in the country", says Marquinhos Molina, CEO of BRF Arabia.
BRF has been present in the Middle East for over 50 years and is the market leader with the Sadia brand. The company exports to more than 14 countries in the region and has a processed food factory in Dammam, as well as its own distribution ecosystem.
The new operation, in Jeddah, also contributes directly to Saudi Arabia's efforts to achieve the economic diversification objectives set out in Vision 2030, a long-term strategic plan, as well as supporting the government's goal of positioning the country as a global center for halal products.
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