Saudi Arabia has earned a Guinness World Record title for the largest food park in the world by area with the new Jeddah Food Cluster, reported the Saudi Press Agency (SPA).
The newly-launched food cluster extends over a total area of 11 million square meters, and will play a vital role in advancing Saudi Arabia’s economic growth and food security goals under Vision 2030, by boosting Jeddah’s investment environment and labor market.
Jeddah Food Cluster
Inaugurated on November 24, 2024, the Jeddah Food Cluster aims to bolster industrial productivity through its modern infrastructure and strategic investments. It is part of a larger industrial network in the Makkah Region, which hosts more than 2,000 industrial plants that cover sectors such as food production, pharmaceuticals, metals, and chemicals.
Under the patronage of His Royal Highness Prince Khalid Al-Faisal, Advisor to the Custodian of the Two Holy Mosques, Governor of Makkah Region, and in the presence of his Deputy, His Royal Highness Prince Saud bin Mishaal bin Abdulaziz.
His Excellency the Minister of Industry… pic.twitter.com/3m9QMvrqqI
— مدن | MODON (@modon_ksa) November 24, 2024
The Saudi Authority for Industrial Cities and Technology Zones (MODON) said that the new food plant aims to attract SAR 20bn in domestic and foreign investments, in addition to creating 43,000 jobs by 2035.
So far, the Jeddah Food Cluster includes 124 operational factories across 10 industrial sectors, with investments worth SAR 4.4bn. According to Arab News, these factories will produce about 4 million tons of goods each year, creating jobs for around 7,000 workers.
Robust Supply Chain
The new food plant includes 76 ready-to-use factories that operate in line with Saudi Food and Drug Authority standards. Furthermore, it houses a central laboratory designed to ensure food quality and safety. It also involves shared cold and dry storage facilities spanning over 134,000 square meters.
The integration of services and suppliers in one location plays a key role in creating an efficient and sustainable supply chain, contributing to reducing operational costs by 5-12%.
Economic Significance
During the inauguration ceremony, the Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, highlighted the importance of the Jeddah Food Cluster in advancing the Kingdom’s sustainable economic growth. He said: “Through this cluster, we aim to leverage the ministry’s capabilities to serve Jeddah, the Kingdom’s economic hub, and a prime investment destination.”
Moreover, Al-Khorayef underscored the significance of fostering links among manufacturers, suppliers and service providers to strengthen innovation and competitiveness. He also highlighted the project’s pivotal role in new jobs for Saudi youth.
Future Prospects
The Jeddah Food Cluster will have a significant economic impact, enhancing Saudi Arabia’s food security and boosting national exports. Over the next decade, the Jeddah Food Cluster is expected to support national exports by SAR 8bn. It is also projected to contribute SAR 7bn to the GDP through investments in key enablers.
Moreover, the large food plant will create thousands of job opportunities, especially in the industrial and logistics sectors. This helps in advancing the objectives of the Kingdom’s National Industrial Strategy, as well as the National Industrial Development and Logistics Program, which aim to support economic diversification plans and sustainable growth under Vision 2030.
Food Security in Saudi Arabia
The new food plant is part of Saudi Arabia’s efforts to enhance its food security and position itself as a global leader in the food industry, by achieving self-sufficiency in several products and boosting exports to other countries. The Kingdom has already made significant strides towards these goals by bolstering its food and agriculture sectors.
As a result of multiple initiatives, investments and technological innovations, Saudi Arabia has achieved self-sufficiency in several food products in 2023, such as dates, dairy products and table eggs, with a capacity to export these items. This remarkable progress aligns with the broader objectives of the National Industrial Strategy, which aims to enhance the Kingdom’s food security and attract domestic and foreign investment in the food sector.
