The Swiss food and beverage giant says there is “major potential for growth” in Saudi Arabia and will commence its major investment with a new ready-to-drink coffee manufacturing facility
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Nestlé will invest $100m in a new manufacturing site which will produce ready-to-drink coffee | Photo credit: Nestlé
Nestlé has announced plans to invest SAR 7bn ($1.9bn) in Saudi Arabia over the next decade.
The company will invest an initial SAR 375m ($100m) to build a new manufacturing site in the country, which is expected to become operational in 2025.
The facility will produce Nestlé ready-to-drink (RTD) coffee, which the company said will be the first regionally-manufactured RTD product in Saudi Arabia.
Nestlé will also manufacture infant-nutrition products at the site and distribute domestically and to the wider Middle East and North Africa region.
Nestlé’s investment in Saudi Arabia will also expand the Nestlé Centre of Excellence, which provides ‘uplift programmes for Saudi talent’, and establish the company’s first regional centre which will host a research and development programme.
“Saudi Arabia is a sizeable market with major potential for growth. We look forward to further expanding our presence in the country in ways that align with the Kingdom’s Vision 2030 and create shared value for its people, communities, and our company,” said Yasser Abdul Malak, CEO, Nestlé MENA Region.
Nestlé currently has 12 offices and seven water factories across Saudi Arabia, employing more than 5,000 people. The company anticipates its investments generating 3,500 further employment opportunities in the Kingdom.
The investment follows Nestlé’s announcement in September 2022 to invest Rs 5,000 Cr ($613m) in India by 2025 to grow its product portfolio, establish new production facilities and fund potential new acquisitions.
In October 2022 Nestlé reported its highest sales growth for 14 years, achieving global like-for-like sales growth of 8.5% to reach CHF 69.1bn ($68.9bn).