Naqi Water expands poultry housing project as Saudi poultry investments accelerate
Saudi poultry sector continues to attract large-scale domestic and foreign investment
SAUDI ARABIA – Naqi Water Company has signed an addendum to an existing construction contract to expand its poultry housing project, committing about US$0.99 million (SAR 3.7 million), excluding value-added tax, to build two additional production houses.
The company disclosed on the Saudi Exchange that the added facilities are expected to raise the project’s output capacity by 50 percent, aligning with its internal expansion plans and operational targets.
According to the filing, the revised scope covers construction and preparation works, including infrastructure, structures, and buildings required for the two new poultry houses.
Naqi Water said the announced costs relate solely to construction activities, adding that other financial obligations associated with the expansion will be disclosed separately, as required by market regulations.
The company also stated that the decision reflects ongoing internal reviews of its growth strategy and responds to increased demand within the local poultry market.
Broader industry expansion
Naqi Water’s announcement comes amid a series of expansion moves across Saudi Arabia’s poultry sector, driven by food security goals and rising domestic consumption.
Earlier, JBS, the world’s largest meat producer, said it would invest US$85 million to expand its poultry operations in Saudi Arabia as part of a plan to position the Kingdom as a hub for halal food production and exports.
Separately, Tanmiah Food Company disclosed that its wholly owned subsidiary, Agricultural Development Company, had entered into a contract with Chengdu Design and Research Institute to develop 100 poultry broiler farms across the country.
Under that agreement, the subsidiary is responsible for infrastructure preparation, construction of farm buildings, and installation of equipment for broiler operations.
Tanmiah said construction is scheduled to start in January, with project execution continuing through December 2026 and commercial operations expected to begin in early 2027.
Land leases and processing investments
In another development, Balady Poultry Company announced the signing of two long-term land lease agreements with the Ministry of Environment, Water, and Agriculture to support new large-scale poultry farms in Wadi Al-Dawasir.
The leases, valued at about US$304 million (SAR 1.14 billion), cover two plots measuring approximately 27.7 million and 23 million square meters and run for 19 years with an option to renew.
Balady secured the first site at an annual rent of around US$59,300 (SAR 222,619) and the second at about US$50,700 (SAR 190,274).
The company said the investments will also support upgrades at its facilities in Jeddah and Dammam, as well as a partnership with Entaj to introduce new poultry processing lines for whole chickens and cuts, produced to halal and international standards.
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