Swiss food and beverage company Nestle has signed an agreement to establish its first manufacturing plant in Saudi Arabia.
The new facility will be located on a 117,000sqm site in Jeddah’s third industrial city.
The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, announced the agreement, which was formalised in the presence of Saudi Arabia’s Industry and Mineral Resources Minister Bandar Al Khorayef, who also serves as MODON’s chairman.
The signing ceremony, held yesterday in Jeddah, was also attended by Majed Al Argoubi, chief executive of MODON, and Robert Helou, CEO of Nestle Saudi Arabia, according to the Saudi Press Agency.
Slated to open in 2025, the plant represents an initial investment of 270 million riyals ($72m). The project is set to enhance local production capabilities, contribute to sustainable food security in the kingdom, and meet local demand while enabling exports to other Middle Eastern and North African markets.
The initiative aligns with Saudi Arabia’s broader efforts to improve food security by diversifying and localising food sources and reducing import dependency. In support of the National Industrial Strategy, MODON is advancing the food sector through the development of industry clusters in Jeddah’s second and third industrial cities, aimed at strengthening supply chains and boosting exports.
With an initial production target of 15,000 tonnes annually, the plant is expected to foster growth in the region’s food manufacturing industry.
The project is expected to create hundreds of jobs and will include a central warehouse, an industrial services building, an advanced laboratory and an administrative office.
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