Category: Middle-east-poultry

Al-Watania Poultry Acquisition Battle: An In-Depth Analysis of Bidding Dynamics in the Middle East

By Poultry Business News
March 27, 2025

In a move that has captured the attention of industry insiders and global investors alike, Saudi Arabia’s largest poultry processor—Al-Watania Poultry—is reportedly at the center of an acquisition battle. Recent reports indicate that major players, including Brazil’s JBS SA, domestic heavyweight Almarai, and regional competitor Tanmiah Food Company, allegedly along with a consortium led by Ukraine-based agri-tech firm MHP, are actively submitting bids for a full takeover of the Qassim-headquartered company

Background and Strategic Significance

Founded in 1977 by Sheikh Suleiman Al Rajhi, Al-Watania Poultry has grown into a vertically integrated operation with a daily processing capacity of over one million chickens and 1.5 million eggs. With a market share estimated at around 30% in Saudi Arabia and an even larger footprint across the region, the company’s potential sale is dismissed by many the Middle East’s poultry industry.

The move comes amid Saudi Arabia’s Vision 2030 objectives, which focus on bolstering local food production and attracting strategic foreign investments.

Key Bidders and Their Proposals

According to recent news reports—sourced from Bloomberg and echoed in publications like Valor International and Food Business Middle East—several bidders have expressed interest:

• JBS SA: The Brazilian meat giant has submitted a non-binding offer. Industry sources suggest that this bid is part of JBS’s broader strategy to expand its Middle Eastern operations. By diversifying its global footprint, and producing locally in Saudi Arabia, they are guaranteed a renowned Halal product certificate that opens many markets.
• Almarai: A formidable local competitor, Almarai is known for its aggressive expansion strategies. Its bid reflects a commitment to strengthening its position in the poultry segment, which complements its extensive food and beverage portfolio.
• Tanmiah Food Company: Also based in Saudi Arabia, Tanmiah’s entry into the bidding process underscores the value placed on acquiring a well-integrated and highly productive asset like Al-Watania.
• MHP Consortium: Led by a Ukraine-based agritech firm, this bid highlights the growing international interest in the region’s poultry market. The involvement of MHP, which has previously attracted minority investments from Saudi state-backed groups, signals the strategic appeal of Al-Watania’s operational scale.

Comparison with Peer Reporting and Fact-Checking

A review of recent articles reveals consistent details across multiple reputable sources:

• Valor International’s Analysis: Reports detail that Al-Watania’s complex asset structure and operational inefficiencies could pose challenges to any potential buyer. This aspect was emphasized as a critical consideration for investors who would need to implement restructuring measures post-acquisition.
• Food Business Middle East & Bloomberg: These outlets report similar bidding dynamics, highlighting that while JBS’s bid has been described as more conservative, Almarai’s proposal is notably aggressive. Both sources concur that the eventual outcome remains uncertain, as negotiations are still in early stages and bidders may withdraw as due diligence progresses
• Just Food and Trendtype: Older reports corroborate the ongoing interest in a sale, with previous advisories by BSF Capital to explore the deal—estimates suggesting a potential valuation in the billions of SAR. These insights, while dating back a few months, align with the current bidding landscape and strategic imperatives discussed by all parties.

Fact-checking across these sources confirms that the reported figures—such as production capacity, market share, and the strategic rationale behind the bids—are consistent and have been repeatedly verified by multiple industry outlets.

Analysis and Industry Implications

The acquisition process for Al-Watania Poultry is a microcosm of broader trends within the Middle Eastern food processing sector. For international players like JBS, the bid represents an opportunity to deepen their presence in a market with robust demand driven by both domestic consumption and regional export potential. For local giants like Almarai and Tanmiah, the move is as much about consolidating market leadership as it is about future-proofing operations in an increasingly competitive landscape.

The challenges are significant, however. As industry insiders note, the operational complexity of Al-Watania demands not only a significant capital outlay but also expertise in managing and modernizing integrated production facilities. Investors will need to balance the strategic benefits against the costs and risks associated with restructuring an established but cumbersome asset.

Moreover, the company aligns with Saudi Arabia’s Vision 2030—a national initiative aimed at enhancing food security and reducing reliance on imports. Any successful acquisition could spur further investments in technology and operational efficiencies, ultimately benefiting the entire regional poultry supply chain.

Conclusion

The bidding war for Al-Watania Poultry underscores a pivotal moment in the Middle Eastern poultry industry. As global and regional players aim for control of this key asset, the deal—if it goes through—could redefine competitive dynamics, drive operational improvements, and enhance food security in a market undergoing rapid transformation. With all eyes on the unfolding negotiations, industry stakeholders and investors alike will be closely monitoring each development.

For Poultry Business News, this story represents a significant case study in how strategic acquisitions can reshape entire sectors and set new benchmarks for operational excellence in the global food supply chain.

Saudi-Brazilian Partnership Fuels US$150M Investment to Boost Poultry Production

By Poultry Business News

In a decisive move aimed at strengthening national food security and advancing economic diversification, Saudi Arabia’s Food Development Company has signed a strategic partnership with Brazilian poultry producer Vibra Agroindustrial S.A. This landmark agreement, valued at over US$150 million, marks a pivotal step in bolstering the Kingdom’s local poultry production and processing capabilities, establishing a strong Saudi-Brazilian relationship.

Driving Food Security and Self-Sufficiency

The investment is set against the backdrop of Saudi Arabia’s ambitious Vision 2030 agenda, which places food security and domestic self-sufficiency at the forefront of national priorities. By channeling significant capital into its poultry processing infrastructure, the partnership is designed to reduce reliance on imported poultry products and enhance local production capacity. According to the agreement, the first phase will see Vibra Agroindustrial S.A. invest in expanding the Food Development Company’s processing plants, with a focus on using locally sourced chickens to ensure high quality and sustainability throughout the supply chain.

Expanding Processing Capabilities and Operational Efficiency

The initiative focuses on a dual-phase strategy. In the initial phase, Vibra’s investment will directly support the construction of a state-of-the-art on-farm processing facility, dedicated to scaling up poultry production and processing operations. This expansion will not only increase output but also improve operational efficiencies by modernizing processing lines and integrating advanced technologies. The strategic injection of US$150 million will drive efficiency improvements, helping to standardize product quality while ensuring that production meets both domestic and international halal standards.

Strategic Benefits for the Regional Poultry Sector

This investment is a clear testament to the region’s confidence in modernizing the poultry industry through cross-border collaboration. The partnership is expected to create a ripple effect across the Middle Eastern poultry sector by:

• Enhancing product quality and safety through state-of-the-art processing facilities.
• Accelerating the adoption of sustainable practices that reduce waste and optimize resource use.
• Strengthening supply chains, which will enable the Kingdom to respond swiftly to market demands while achieving higher levels of self-sufficiency.
• Bolstering international partnerships, thus positioning Saudi Arabia as a critical hub in the global halal food market.

A Promising Outlook for Future Growth

The positive implications of this deal extend beyond immediate production enhancements. With Vibra Agroindustrial S.A.’s established global expertise and proven track record, the partnership promises to inject much-needed innovation and technical know-how into the region’s poultry processing sector. Industry experts believe this strategic move will significantly contribute to the Kingdom’s goal of attaining high levels of self-sufficiency in poultry products, and in turn, stimulate overall economic growth by supporting ancillary industries such as feed production, logistics, and agricultural technology.

As the first phase of the project rolls out, market stakeholders are optimistic about the potential for further expansion and integration of cutting-edge technologies across the supply chain, with a worldwide export market ahead. This bold investment not only underscores Saudi Arabia’s commitment to food security but also sets a benchmark for international cooperation in the agri-food sector.

With this US$150 million partnership, Saudi Arabia is poised to solidify its leadership in the Middle Eastern poultry market, paving the way for a more resilient, sustainable, and globally competitive food industry.

For more updates on this transformative initiative and other industry developments, stay tuned to Poultry Business News.

Egypt’s Poultry Industry: A Data-Driven Outlook on Growth and Challenges

By Poultry Business News

Egypt’s poultry sector continues to evolve as a cornerstone of national food security and a major contributor to the economy. Recent forecasts project an impressive upward trend in production—with estimates suggesting an increase from roughly 1.7–1.8 million metric tons in 2023 to approximately 1.9 million metric tons by 2028. This growth, averaging an annual rate of around 2.1%, is corroborated by multiple studies and industry reports.

Cross-Referenced Data and Industry Projections

• ReportLinker Forecasts: According to a ReportLinker study, Egypt’s poultry production is expected to grow from about 1.7 million metric tons in 2023 to nearly 1.9 million metric tons by 2028, reflecting steady long-term growth.
  reportlinker.com
• Statista Insights: A recent Statista report estimates that in 2023, chicken meat production in Egypt reached approximately 1.8 million metric tons. The historical data provided shows a consistent upward trajectory over the past decade, supporting the projected figures for future growth.
  statista.com
• Industry Commentary: An article from Arab Finance confirms that industry leaders and market analyses anticipate production to hit around 1.9 million metric tons by 2028. This is further supported by commentary from local stakeholders who highlight the resilience and evolving production practices within the sector.
  arabfinance.com
• USDA & FAS Data: Additional insights from the USDA Foreign Agricultural Service (FAS) highlight broader trends in global chicken meat production and trade. Although primarily focused on export and import dynamics, these reports also lend credibility to Egypt’s domestic production trends in light of rising global demand for poultry products.
  fas.usda.gov

Key Growth Drivers

Several factors contribute to the robust outlook for Egypt’s poultry industry:

1. Rising Domestic Demand: With a growing population and evolving dietary preferences, local demand for affordable protein sources is on the rise. This dynamic incentivizes producers to increase output.
2. Advancements in Production Practices: Modernization of farming techniques, improved genetics, and enhanced biosecurity measures have collectively improved productivity and reduced losses from disease outbreaks.
3. Government Initiatives: Efforts to achieve self-sufficiency in poultry production—coupled with supportive policies and investment in infrastructure—create a sudden more favorable environment for sustained growth.
4. Post-Pandemic Tourism Recovery: The resurgence of the tourism sector has increased demand for poultry products in hospitality and food service industries.​
5. Investment in Hospitality: Gulf countries are channeling substantial investments into tourism and hospitality sectors, further boosting poultry consumption.

Challenges on the Horizon

Despite these positive trends, the sector is not without its challenges:

• Feed Price Volatility: Fluctuations in global feed prices, compounded by geopolitical factors and currency instability, can significantly affect production costs and profitability.
• Competitive Imports: The influx of frozen poultry imports, particularly from major suppliers like Brazil, has exerted price pressures on local producers. This dynamic, reported by several local industry experts, continues to test the competitiveness of domestic operations.
• Currency devaluation: Small-scale and large operations have been significantly hampered by inconsistent returns-on-investments, impacting overall production efficiency.

Conclusion

Egypt’s poultry industry is poised for steady growth as production gradually increases toward the 1.9 million metric ton mark by 2028. This positive outlook is supported by multiple studies—from ReportLinker and Statista to insights from Arab Finance and USDA reports—underscoring the sector’s resilience and strategic importance to national food security. However, stakeholders must address challenges such as feed cost volatility and competitive imported products to ensure that this growth is sustainable over the long term.

For more detailed insights and regular updates on Egypt’s evolving poultry landscape, stay tuned to Poultry Business News.

Agrena 2024, Coopermaq, Brazil,unveiled a new range of advanced hatchery equipment that offers unmatched performance and efficiency

Cairo, Egypt – Amidst a climate of escalating costs and geopolitical uncertainty in Europe, Isotek Egypt has emerged as a game-changer at Agrena 2024 in Cairo. As the official agent for Coopermaq Brazil in the Middle East, the company unveiled a new range of advanced hatchery equipment that offers unmatched performance and efficiency—as cost-effective alternative to traditional systems.

Recent market trends indicate that European hatchery equipment prices are soaring, driven by surging energy costs, gas shortages, and the economic fallout from EU sanctions on Russia. Even Germany has seen lower-than-expected growth in this sector, placing European manufacturers at a competitive disadvantage in the rapidly evolving Middle Eastern market.

At Agrena 2024, Isotek Egypt captivated industry leaders by presenting Coopermaq’s state-of-the-art solutions that deliver robust, energy-efficient performance. These systems are engineered to optimize hatchability rates, ensure superior chick quality, and significantly reduce operational expenses—a critical advantage in today’s high-cost environment.

“Our presence at Agrena 2024 comes at a crucial time,” said Tariq Abu el khir, Business Development Manager at Isotek Egypt. ““European equipment is becoming increasingly expensive due to geopolitical tensions and the ongoing energy crisis. With Coopermaq’s innovative technology, we offer a compelling alternative that not only meets the operational demands of modern poultry production but also delivers substantial cost savings.”” This is a new phase and transformative moment for the poultry industry in the Middle East.”

Isotek Egypt’s exclusive partnership with Coopermaq provides local poultry producers with access to world-class technology that was developed to excel in demanding conditions. The advanced climate control, precise environmental monitoring, and robust build of these systems ensure that they are ideally suited for the region’s unique challenges. In addition, the complete service and support package offered by Isotek Egypt guarantees that operators can maximize their investment with confidence.

As the Middle East continues to solidify its position as a major hub for poultry production, the shift towards cost-effective, high-performance solutions like those offered by Coopermaq is poised to reshape the industry landscape.

By leveraging Brazil’s leading technology, Isotek Egypt is not just supplying equipment—it’s empowering local businesses to thrive in an increasingly competitive market.

For more information on how Isotek Egypt’s Coopermaq solutions can transform your poultry operations and help you overcome the challenges of rising European costs, visit isotek.nl

Qatar Strengthens Food Security Through Poultry Industry and Strategic Investments: Expert Study

Doha, Qatar – A new academic study conducted by Dr. Houari Benoaie and Dr. Khatima Louati from Belhadj Bouchaib University in Ain Temouchent, Algeria, offers an in-depth analysis of Qatar’s food security strategy. Presented at the international conference “Requirements for Achieving Food Security in the Arab World” at Ibn Khaldoun University, the research highlights how Qatar has emerged as a leader in food security across the Arab world.

Qatar’s Comprehensive Approach to Food Security

According to the study, Qatar has successfully positioned itself among the top 20 countries globally in food security rankings. The researchers attribute this achievement to a series of strategic initiatives, including:

•  The launch of a national food security program in 2008 as a response to the global food crisis.
•  The development of the Qatar National Food Security Strategy (2018-2023) to counter economic blockades and supply chain disruptions.
•  Heavy investment in sustainable agriculture, water management, and renewable energy to enhance domestic food production.

The Role of the Poultry Industry in Achieving Self-Sufficiency

Qatar’s poultry industry plays a vital role in the country’s self-sufficiency goals. The market is projected to grow significantly, reaching an estimated $448.27 million by 2033 from $408.53 million in 2024, driven by increased demand for high-quality, locally produced poultry products.

•  Major local producers, including Qatar Meat Production Co., Freshmeat Factory, and Al Quisaimi Meat Co., have expanded operations to meet rising demand.
•  Despite this growth, import dependence remains a challenge, with Brazil being a key poultry supplier due to Qatar’s limited local feed production.
•  Government initiatives like the “Farm to Fork” program are being implemented to support local food production and reduce reliance on imports.

Hassad Food’s Strategic Investments in Poultry and Agriculture

As part of Qatar’s broader food security plan, Hassad Food, the agricultural investment arm of the Qatar Investment Authority (QIA), has played a crucial role in securing food sources both domestically and internationally.

• The company holds a significant stake in the Arab Qatari Company for Poultry Production (Al-Waha), which produces 16 million chickens and 120 million eggs annually.

• Investments in Aalaf Qatar, which operates large-scale animal feed farms, ensure a steady supply of feed for poultry and livestock, further stabilizing domestic production.

• Internationally, Hassad Food has invested $99 million in Oman’s A’Saffa Foods, one of the leading poultry producers in the GCC, and has stakes in poultry projects in Brazil, a major global exporter.

Expert Recommendations for Sustained Growth

Dr. Benoaie and Dr. Louati’s study suggests that while Qatar has made impressive strides in food security, continued efforts are needed to sustain its progress. Their recommendations include:

• Strengthening food quality control regulations to ensure safety and compliance with international standards.

• Enhancing waste reduction strategies to minimize food losses throughout the supply chain.

• Expanding technological innovations in agriculture and poultry farming to further boost productivity.

Conclusion: A Model for Arab Nations

The research underscores Qatar’s success as a model for Arab nations striving to enhance food security through policy innovation, strategic investments, and global partnerships. By combining government initiatives, private sector growth, and international investments, Qatar is steadily reducing its reliance on imports and securing a sustainable future for its food industry.

Food Security in the Middle East and Gulf Countries: Challenges, Innovations, and Future Trends

Ensuring food security in the Middle East and Gulf countries remains a pressing issue. While some nations struggle with food production due to environmental constraints, others leverage economic strength and innovation to secure stable food supplies.

This article explores the key challenges, innovative solutions, and economic impact of food security in the region.

Food Security Challenges in the Middle East

The Middle East faces significant food security issues due to:

Food Security in the Gulf Cooperation Council (GCC) Countries

Despite importing approximately 85% of their food, GCC nations rank among the most food-secure globally due to their financial strength and strategic import policies. However, this dependency on imports makes them vulnerable to global supply chain disruptions.

Innovative Approaches in the GCC

To reduce reliance on imports and enhance food security, GCC countries are adopting forward-thinking solutions:

• Agricultural Technology (Agritech): Investments in hydroponics, vertical farming, and AI-driven agriculture are increasing domestic food production.

• Strategic International Partnerships: Saudi Arabia’s Agricultural and Livestock Investment Company (SALIC) recently acquired a major stake in Olam Agri, securing vital food supply chains across Asia, Africa, and the Middle East.

• Government Policies & Public-Private Partnerships: Governments are fostering innovation through subsidies, research programs, and collaborations with global agricultural firms and have an extremely positive result, notable in Saudi Arabia with Vision 2030.

The Economic Impact of Food Security Efforts

Boosting food security is not only a humanitarian issue but also an economic opportunity for the Gulf region. Key economic benefits include:

• Growth in Food-security: Increased funding in agricultural innovation is opening new markets and creating jobs.

• Strengthened Global Trade Relations: GCC nations are securing food supply chains through investments in foreign agricultural lands, notably Sudan.

• Sustainable Development: Implementing eco-friendly farming methods reduces long-term environmental risks and enhances economic-sovereignty .

Future Outlook

To ensure long-term food security, Middle Eastern and Gulf nations must continue investing in sustainable agriculture, climate-resilient farming, and strategic international partnerships. By leveraging technology and financial strength, the region can mitigate food supply risks and secure a more stable future.

Final Thoughts

While food security remains a complex challenge, the Gulf region’s proactive investments in technology and strategic planning are paving the way for a more resilient food system. As climate change and global economic shifts continue to impact our food supply chains, innovation and collaboration will be key in securing a prosperous future for the Middle East and GCC nations.

Saudi Arabia Poultry – $5B Investment for Self-Sufficiency

The poultry industry in Saudi Arabia is undergoing a transformative phase, driven by a strategic push for self-sufficiency as part of the Kingdom’s Vision 2030 economic diversification plan. With ambitious investments, government support, and a focus on food security, Saudi Arabia is positioning itself as a regional leader in poultry production, aiming to reduce its reliance on imports and meet growing domestic demand.

This article explores the key developments, challenges, and opportunities in Saudi Arabia’s journey toward complete poultry self-sufficiency, from hatcheries through the worlds most advanced poultry processing plants that operate on high speed with significant results.

A Strategic Vision for Food Security

Saudi Arabia’s poultry sector has long been a cornerstone of its food industry, accounting for the largest share of the Middle East poultry meat market, valued at USD 16.25 billion in 2025, according to Mordor Intelligence. The Kingdom’s focus on self-sufficiency is a response to both economic and geopolitical imperatives. Historically reliant on imports for a significant portion of its poultry needs, Saudi Arabia has made remarkable strides, increasing its self-sufficiency from 45% in 2016 to 68% by 2022, as reported by the Middle East Poultry Expo 2025 organizers. The target now is to reach 80% self-sufficiency by the end of 2025, a goal backed by substantial investments and policy support.

In January 2025, Bloomberg reported that Saudi Arabia is investing $5 billion to boost poultry production, aiming to produce 1.3 million tons of broiler chickens annually. This initiative, spearheaded by the Ministry of Environment, Water, and Agriculture, includes issuing 275 new licenses for broiler and egg production projects. Additionally, the government has allocated subsidies exceeding 665 million riyals to support these efforts, reflecting a commitment to enhancing food security while creating jobs and stimulating economic growth.

Government Support and Industry Growth

The Saudi government’s role in this transformation cannot be overstated. Vision 2030, launched in 2016, emphasizes reducing dependency on oil revenues and strengthening domestic industries, including agriculture. Poultry production has been identified as a priority sector due to its demand as affordable-proteins, significance in trendy food, and alignment with halal dietary requirements—a key factor in the Middle Eastern market. A March 2025 forecast by GlobeNewswire projects the Saudi poultry market to grow to $5.62 billion by 2033, driven by halal certification, cultural alignment, and expanding retail and foodservice sectors.

The Ministry’s efforts are complemented by events like the Middle East Poultry Expo 2025, scheduled for April 14-16 in Riyadh. As the largest B2B poultry event in the region, the expo will host over 300 exhibitors from 40 countries and attract 11,130 visitors, showcasing Saudi Arabia’s leadership in the sector.

The Kingdom contributed 71% of the Middle East’s poultry production in 2022, a testament to its growing dominance, and the expo will serve as a platform to foster innovation, attract investment, and address industry challenges.

Challenges on the Path to Self-Sufficiency

Despite these advancements, Saudi Arabia is on track in achieving its self-sufficiency goals.

Another challenge is the competition in the halal poultry market. While Saudi Arabia is reducing its reliance on imports, countries like Brazil, the world’s largest poultry exporter, continue to supply significant volumes to the region. A Reuters article from July 2024 noted Brazil’s strong demand from Saudi Arabia, with exports averaging 431,400 metric tons monthly through June 2024. Brazil’s competitive pricing and established halal certification processes make it a formidable player, even as Saudi Arabia ramps up domestic production.

Additionally, the high cost of establishing and maintaining modern poultry farms poses a financial challenge. While government subsidies help, the industry must balance cost-efficiency with the adoption of advanced technologies, such as automated hatchery and processing equipment, to remain competitive. Companies like Isotek Egypt, which specialize in such equipment, play a crucial role in supporting this transition by providing innovative solutions tailored to the region’s needs.

Opportunities for Growth and Innovation

The push for self-sufficiency opens numerous opportunities for Saudi Arabia’s poultry industry. The growing domestic market, driven by population growth and rising demand for affordable protein, provides a strong foundation for expansion. Poultry’s lower carbon footprint compared to other meats also aligns with global sustainability trends, making it an attractive option for both consumers and policymakers.

Technological innovation is another key opportunity. The adoption of advanced hatchery and poultry processing equipment can enhance efficiency, reduce waste, and improve product quality. As Isotek Egypt, we are committed to supporting this growth by providing state-of-the-art solutions that meet the unique needs of Middle Eastern poultry producers. From automated systems to biosecurity enhancements, our equipment is designed to help farms scale sustainably while maintaining high standards.

The Middle East Poultry Expo 2025 is a critical platform for showcasing such innovations. With exhibitors presenting the latest in poultry farming technology, Saudi producers can explore new tools to boost productivity and address challenges like disease management. The event also facilitates networking and partnerships and we will be glad to meet you there.

Looking Ahead: A Regional Leader in Poultry Production

Saudi Arabia’s journey toward poultry self-sufficiency is a testament to its strategic vision and resilience. By 2030, the Middle East poultry meat market is expected to reach USD 17.83 billion, with Saudi Arabia leading the charge, according to Mordor Intelligence. The Kingdom’s investments, policy support, and focus on innovation position it to not only meet domestic demand but also emerge as a regional hub for poultry production and trade.

However, achieving and sustaining self-sufficiency will require ongoing efforts to address challenges like avian influenza, market competition, and operational costs. Collaboration between government, industry stakeholders, and technology providers will be essential to ensure long-term success. As Saudi Arabia continues to build a robust and sustainable poultry sector, it sets an example for other nations in the region, demonstrating the power of strategic planning and innovation in achieving food security.

At Isotek Egypt, we are proud to be part of this transformative journey, supporting Saudi Arabia’s poultry industry with cutting-edge equipment and expertise. Together, we can build a future where self-sufficiency is not just a goal but a reality, ensuring food security, is a critical component of economic sovereignty. A steady production of high-quality poultry for generations to come.