German Food Companies Eye Expansion and Investment Opportunities in Saudi Arabia

Six German companies specializing in dairy, honey, and coffee are exploring investment and partnership opportunities in Saudi Arabia, signaling growing economic cooperation between the two nations in the food and beverage sector.

According to Rawabi Basyouni, head of the German Desk for the Western Province at the German-Saudi Liaison Office for Economic Affairs, the firms plan to expand into the Saudi market in the coming phases by establishing local factories for food production and processing. The companies are particularly interested in developing operations in dairy, cheese, honey, jams, and coffee, recognizing the scale of the Saudi market and the quality of local products.

Basyouni’s remarks came during a meeting in Jeddah between the German food sector delegation and representatives of the Jeddah Chamber of Commerce. The event brought together Saudi investors, suppliers, and food industry stakeholders to discuss potential partnerships and commercial collaborations.

Germany is one of Europe’s largest agricultural producers and leads the EU in milk output, producing around 33 million metric tonnes annually, according to the Food and Agriculture Organization of the United Nations. The German dairy market, currently valued at about $30 billion, is projected to grow to $39 billion by 2029, with cheese remaining the fastest-growing segment due to rising demand for premium and specialty varieties.

Fahad Al-Ghamdi, chairman of the Food and Drug Products Committee at the Jeddah Chamber of Commerce, described the discussions as a significant step toward deepening trade and investment links between Saudi Arabia and Germany. “The committee has been coordinating with several German food companies,” Al-Ghamdi said, emphasizing that such meetings pave the way for joint ventures and technology exchange in food manufacturing and processing.

He also highlighted ongoing cooperation in the date industry, citing strong European demand for Saudi dates. Some varieties, he noted, are being used in pharmaceuticals and incorporated into dairy and related products, creating new avenues for product diversification and value-added exports.

Al-Ghamdi added that while Germany’s food market is competitive and highly developed, Saudi Arabia offers a promising and investor-friendly environment for foreign businesses. He expressed optimism that the latest discussions would lead to concrete agreements and long-term partnerships in the food sector.

The initiative aligns with Saudi Arabia’s broader economic diversification goals under Vision 2030, which seek to attract international investment, promote local manufacturing, and enhance the Kingdom’s position as a regional food production hub.