Nestlé, a Swiss food and beverage manufacturer, says it has signed a memorandum of understanding with the Saudi government on November 24 to invest SR7bn($1.86bn) in the country in the next 10 years.

The company expects that this investment will create 3500 direct and indirect jobs.

The first phase of investment starts with setting up a new manufacturing plant worth SR375m in the country, which is expected to be operational in 2025. 

The facility will produce the company’s instant coffee and infant-nutrition products to supply both the domestic market and export to countries in the Middle East and North Africa region. 

“Saudi Arabia is a sizeable market with major potential for growth,” said Yasser Abdul Malak, CEO at Nestlé Middle East and North Africa. “We look forward to further expanding our presence in the country in ways that align with the Kingdom’s Vision 2030 and create shared value for its people, communities, and our company.” 

Nestlé said its investment will include the establishment of the company’s first regional centre with a research and development programme and business incubator for small and medium-sized companies and start-ups. It will also see the expansion of the Nestlé Centre of Excellence which will provide “capability building and uplift programmes for Saudi talent”.

This article first appeared in the December 2022/January 2023 print edition of fDi Intelligence.