Saudi’s Balady Poultry Company signs US$304 million land lease deals for poultry expansion
Company leases two land plots in Wadi Al-Dawasir for 19 years to build new poultry farms
SAUDI ARABIA – Balady Poultry Company is advancing its expansion strategy after signing two land lease agreements worth around US$304 million (SAR 1.14 billion) with Saudi Arabia’s Ministry of Environment, Water and Agriculture.
The leases span 19 years, with an option for renewal, and will support the establishment of large-scale poultry farms in Wadi Al-Dawasir.
In a disclosure to the Saudi Exchange, the company said the two land plots cover about 27.70 million square meters and 23 million square meters, respectively.
Balady Poultry secured the first site at an annual rent of approximately US$59,300 (SAR 222,619) and the second at around US$50,700 (SAR 190,274).
The company plans to use the land to produce broiler chickens, dedicating part of the barns to raising larger-weight birds to meet market demand.
It also intends to construct poultry and meat farms that meet international standards and specifications to cater to both current and future operational requirements.
Balady Poultry said the investment aims to improve production quality, enhance efficiency rates, and strengthen biosecurity applications across its operations.
The new sites are expected to help the company double its poultry production volume and expand its product range to attract a wider consumer segment.
Part of an ongoing expansion strategy
The land lease deals align with Balady Poultry’s previously announced plan to expand its poultry business through major investments exceeding US$304 million (SAR 1.14 billion).
The company expects the projects to deliver strong financial returns once operations begin, contributing positively to its overall performance in the coming years.
It also noted that developing these new farms will support its broader goal of achieving self-sufficiency in poultry production and meeting the Kingdom’s growing food security targets.
Balady Poultry’s move reflects a wider trend among Saudi agribusiness firms investing in large-scale production facilities to meet rising domestic demand for chicken products.
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