São Paulo – Brazilian company BRF said on Thursday (13) that it signed a memorandum of understanding with Saudi Arabia’s sovereign fund Public Investment Fund.
BRF said the MOU is non-binding and aims to create a joint venture to produce and sell fresh, frozen and processed poultry products in Saudi Arabia.
BRF will hold a 70% stake in the joint venture, while the Arab fund will have the remaining 30%. It will also include a halal business hub. The MOU requires a USD 350 million investment. BRF said the move reinforces its commitment with its strategy and Vision 2030, particularly with food security in the Gulf region. The Vision 2030 plan was created by the Saudi government and includes the diversification of the economy.
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Last year eleven Saudi Arabia banned poultry from eleven Brazilian processing plants. The Gulf country has worked to foster its local poultry production, and BRF has prepared to invest more locally. The Brazilian company announced in 2020 the purchase of Joody Al Sharqiya Food Production Factory, a company that develops food processing activities based in Damman, Saudi Arabia.
Translated by Guilherme Miranda
