Almarai looks to expand in North Africa and Iraq, downplays Savola exit plans

Dairy giant Almarai is looking to expand in North Africa and Iraq as it looks to diversify outside of the Kingdom, its Chairman Prince Naif bin Sultan Al Kabeer told Al Arabiya in an interview (watch: runtime: 7:18). “A promising market for us is North Africa, it is among the markets we are currently assessing to enter, along with the market in Iraq,” he said, without specifying which North African markets the dairy manufacturer would be looking to tap. Outside of the GCC, Almarai currently operates Egypt (under the Beyti brand) and Jordan.

The Almarai chairman distanced the company from Savola’s decision last month to offload its full 34.5% stake in Almarai to existing shareholders. “We have nothing to do with Savola’s decision. Savola is a fraternal company, but Almarai is not concerned in any way. We’re focused on our [planned] expansion for now…,” he said. Savola is the dairy producer’s biggest shareholder, followed by the Public Investment Fund (PIF), which holds a 16% stake through one of its units.

BACKGROUND- Almarai unveiled earlier this week a five-year strategic plan seeing it pour SAR 18 bn to help maximize sales. It plans to ramp up investment in supply chain, development, sustainability, operational efficiency, and technology.