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MODON Signs Food and Beverage Agreements Worth $285 Million

Saudi Arabia continues to attract investments in the food industry. (Asharq Al-Awsat)
Saudi Arabia continues to attract investments in the food industry. (Asharq Al-Awsat)
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MODON Signs Food and Beverage Agreements Worth $285 Million

Saudi Arabia continues to attract investments in the food industry. (Asharq Al-Awsat)
Saudi Arabia continues to attract investments in the food industry. (Asharq Al-Awsat)

The Saudi Authority for Industrial Cities and Technology Zones (MODON) signed a number of agreements to localize the food and beverage industry in the Kingdom, with total investments amounting to 1.07 billion riyals ($285 million).

The announcement was made on the sidelines of MODON’s participation in the Gulfood exhibition in Dubai, where the authority revealed recent partnerships aimed at localizing the Kingdom’s food and beverage industry in line with Saudi Vision 2030 and the National Industry Strategy.

A statement on Friday said MODON signed an agreement with the Jordan Valley Food Industries, Al-Bayrouty, to establish a factory in the Second Industrial City in Jeddah on an area of 15,000 square meters, with investments worth 50 million Saudi riyals for the production of grains and legumes.

The Authority also signed an agreement with the Kuwaiti Danish Dairy Co. to build a 100,000 square meter factory in Sudair Industrial and Business City near Riyadh to produce a variety of food and beverages.

MODON also signed an agreement with Siniora Food Industries, according to which the Authority will allocate a piece of land with an area of 25,000 square meters for long-term use in the second industrial area in Jeddah for Siniora to build a factory to produce all types of cold cuts and frozen meat. The estimated cost of this investment is about 140 million Saudi riyals, equivalent to USD37 million.

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Saudi Arabia’s PMI Remains in Economic Expansion Zone

King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia’s PMI Remains in Economic Expansion Zone

King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)

The latest Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) showed the Kingdom's PMI stabilized at 55, as a result of another strong improvement in business activity in the non-oil-producing private sector.
The analytical readings issued by the Ministry of Economy and Planning indicate that the index stayed above the fifty-point limit, remaining in the economic expansion zone.
Riyad Bank said on Wednesday that companies had increased their production levels to support sales and projects, despite additional evidence of declining demand expectations. Growth in new orders fell to its weakest level in nearly two and a half years.
Non-oil producing companies recorded the slowest increase in purchases of production inputs in nearly 3 years, as they are looking to ease recent increases in inventory, while job growth has also declined compared to May.
At the same time, other reports noted that customer discounts affected overall selling prices and ran counter to efforts to pass on the strong increase in input prices to customers.
Naif Al-Ghaith, chief economist at Riyad Bank, said: “The PMI for the non-oil economy recorded at 55.0 in June, marking the slowest pace of expansion since January 2022. The new orders component fell compared to the previous month, suggesting a slight moderation in demand growth.”
He added: “However, the growth in non-oil sectors was supported by a strong increase in output levels. Employment numbers also rose, while suppliers’ delivery times continued to improve.”
In an analytical bulletin, the Saudi Ministry of Economy and Planning explained that the production index recorded 61.1 points, supported by the improvement in commercial activity in the non-oil private sector, and that employment indicators continued to rise, driven by the increase in the number of employees and the stability of supply chains.
The Ministry indicated that the optimistic outlook of business owners and investors continued in light of the improvement in market conditions and the rise in demand for goods and services, which in turn reflects positively on the future outlook for the current year.