Brazilian Company Enters Chicken Production in Saudi Arabia.
BRF Arabia Holding Company, a joint venture between BRF and the Halal Products Development Company (HPDC) — a wholly-owned subsidiary of the Saudi Public Investment Fund (PIF) — has announced an agreement to purchase 26% of Addoha Poultry Company, one of Saudi Arabia’s leading poultry firms. The transaction is valued at 316.2 million Saudi riyals (approximately $84.3 million).
Of the total amount, 216.2 million Saudi riyals ($57.6 million) will be integrated into the company’s capital.
BRF Arabia Holding Company is 70% owned by BRF, with the remaining 30% held by HPDC.
With this deal, BRF, which has been exporting to the Middle East for 50 years, enters chicken production in Saudi Arabia. “The partnership aims to strengthen the Halal food sector and ensure a consistent supply of high-quality products for local and international consumers,” stated Igor Marti, Vice President of the Halal Market at BRF and Chairman of the Board of BRF Arabia.
“This investment realizes our strategy to make BRF a reference in the animal protein sector in the Saudi market and to be permanently included in the Kingdom’s food security agenda, supported by our own distribution ecosystem and strong brands, along with our factory in Dammam,” said Miguel Gularte, CEO of BRF.
The investment from HPDC is part of Saudi Arabia’s efforts to diversify its economy.
“Our investment in Addoha, in partnership with BRF, emphasizes our ultimate goal of positioning Saudi Arabia as a global leader in the Halal sector and reflects HPDC’s commitment to empowering local participants by enhancing their capabilities and integrating them into the value chain for sustainable growth,” stated Fahad Alnuhait, CEO of HPDC.
BRF generates over $2 billion annually in the Halal markets. The transaction is subject to approval from the Kingdom’s regulatory authorities.
