Entaj signs MoU with Al Tayeb to distribute Saudi poultry across GCC

SAUDI ARABIA – Entaj, a poultry producer operating in Saudi Arabia, has signed a memorandum of understanding with Al Tayeb to expand the distribution of Saudi-produced poultry products across Gulf Cooperation Council markets, according to information released on 1 February 2026.

The agreement establishes a framework under which Al Tayeb, a supplier to Lulu Group’s regional retail network, will handle the distribution of Entaj’s poultry products outside the Saudi market, starting with selected GCC countries.

The arrangement focuses on increasing the availability of poultry produced in Saudi Arabia across the region while supporting the development of regional supply chains linked to local production.

Entaj said the collaboration aligns with Saudi Arabia’s Vision 2030 objectives, particularly those related to food security, supply chain localisation, and the development of halal food production within the Kingdom.

Production background

Entaj has operated as part of ARASCO Foods since 2004 and reports an annual poultry production capacity of more than 90 million birds from its Saudi facilities.

The company stated that after its initial market entry, it completed an early expansion phase that raised output to 60 million birds per year, before later operational upgrades increased capacity to current levels.

Entaj is implementing an investment programme to double production capacity to approximately 185 million birds annually, with expansion work already underway at its facilities.

The MoU with Al Tayeb comes at a time when Saudi Arabia’s poultry sector is experiencing additional investment activity from multiple producers.

Wider sector activity

In January, Naqi Water Company disclosed that it had signed an addendum to an existing construction contract to expand its poultry housing project, committing approximately US$0.99 million excluding value-added tax.

According to a filing on the Saudi Exchange, the additional investment will fund the construction of two new poultry production houses, which the company expects will increase the project’s output capacity by 50%.

Naqi Water said the revised scope of work includes infrastructure development, structural construction, and preparation of buildings required for the new poultry facilities.

The company clarified that the announced amount relates only to construction costs, adding that any further financial commitments linked to the expansion would be disclosed separately in line with market regulations.

Naqi Water also stated that the expansion decision followed internal reviews of its growth plans and was influenced by rising demand within the domestic poultry market.

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