Saudi Arabia expands with 1 million square-foot major dairy cluster in Al-Kharj

SAUDI ARABIA – The Ministry of Industry and Mineral Resources has launched a major dairy industrial cluster in Al-Kharj, reinforcing its ambition to become the region’s leading hub for dairy production and food manufacturing.

Announced during the Saudi Dairy Forum in Al-Kharj, the initiative is a strategic component of the country’s broader National Industrial Strategy.

The new cluster is part of a broader initiative by the Saudi Authority for Industrial Cities and Technology Zones to establish specialised food industry hubs throughout the Kingdom.

The project is expected to foster synergies across the value chain, including animal feed, food additives, packaging, and machinery manufacturing.

Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the forum, underscored the project’s role in attracting high-value investments and enhancing the Kingdom’s food security.

“This project aligns with the goals of the National Industrial Strategy to position Saudi Arabia as a regional hub for food industries,” Alkhorayef stated.

He said it will offer investors access to fully developed industrial land, modern facilities, storage solutions, and a comprehensive support system.

The minister noted that Saudi Arabia has achieved 129 per cent self-sufficiency in dairy production, underscoring the sector’s resilience and capacity for growth.

Al-Kharj alone contributes over 70 per cent of the Kingdom’s total dairy output, supplying both local and regional markets.

He revealed that the dairy sector reached a market size of US$5.87 billion in 2024, with exports totalling SR4.8 billion and imports at SR8.9 billion.

According to the IMARC Group, the market is projected to grow to US$8.4 billion by 2033, with a compound annual growth rate of 3.8 per cent from 2025 to 2033.

The Saudi Dairy Forum, hosted by the Al-Kharj Chamber in cooperation with the National Industrial Development Centre, brought together industry leaders, policymakers, and agricultural stakeholders.

These included the launch of new dairy companies, partnerships between startups and logistics firms, and support services for production lines, training, and qualification.

Abdulaziz Al-Sharif, Chairman of the Forum’s Supreme Committee, highlighted the Saudi Dairy Forum’s role in fostering collaboration to further develop the Kingdom’s dairy sector, which boasts over 129 percent self-sufficiency, US$5.87 billion in investments, and US$1.28 billion in exports, underscoring the trust in Saudi dairy products both domestically and internationally.

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