Saudi Arabia: Food Processing Ingredients
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The Saudi food processing sector has rapidly grown in recent years, thanks to various government subsidies to food companies, rising per capita income, and major demographic and socio-economic changes in Saudi Arabia. These factors have led to a huge increase in the number of food processing facilities, from 460 firms in 2002 to 732 firms in 2012. Attractive investment conditions have lured major multinational corporations into entering the Saudi market and establish production facilities. Most Saudi food manufacturers depend on imports to secure their needs of food ingredient and raw materials. In 2012, Saudi Arabia imported about $4.1 billion worth of food ingredients and bulk
commodities for further processing. The U.S. suppliers provide about 10 percent of Saudi Arabia’s food processing inputs. Saudi Arabia currently exports a significant part of its processed food production. Saudi food exports were estimated at $2.7 billion in 2012, and continue to rise.
