Agthia Group, a leading food and beverage company, has approved a greenfield investment of AED90 million ($24.5 million) for the construction of a manufacturing facility for Nabil, one of Agthia’s protein brands, in Jeddah.

CAPEX spending is expected to start in the coming months, with first sales from the new facility expected in the second half (H2) 2023, reported Emirates News Agency WAM.

The project, which is in response to strong demand from local customers, will further strengthen Agthia’s footprint in the KSA – the Gulf’s largest and one of the fastest growing consumer markets, and support the company’s strategy of becoming one of the leaders in the Mena consumer packaged goods sector.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: "Agthia’s greenfield investment in the Kingdom of Saudi Arabia would enable significant progress towards our long-term profitability target and our commitment to deliver on our growth strategy to become a regional leader by 2025".

Alan Smith, Chief Executive Officer of Agthia Group, said: "Nabil Foods has a well-established business in KSA. This investment will allow us to further drive the growth of our protein vertical while offering the right product quality compliant with local regulations. The site design will also give us the capacity and flexibility to meet future market growth potential and will eliminate any future replacement cost in case of expansions."