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News 46

Cargill entering Saudi Arabia through sweetener j.v.

COBHAM, U.K. - Cargill and Arasco have agreed to create a new starches and sweeteners joint venture in the Kingdom of Saudi Arabia. The joint venture company will acquire Arasco's existing corn milling facility in Al Kharj and will produce starch based products primarily for the Gulf Cooperation Council (GCC) countries of Saudi Arabia, United Arab Emirates, Kuwait, Oman, Qatar, Bahrain, as well as Yemen, Iraq and Jordan. It will be Cargill's first operations in Saudi Arabia.

Once the agreement is finalized, Cargill will hold a 20% stake in the joint venture, while Arasco will have an 80% stake and management control.

"The Middle East region represents the highest growth area for the food and drink industry in the world," said Frank van Lierde, executive vice-president of Cargill. "The rapidly changing demographics in the region and the growth of consumer choice means that this joint venture will be well placed to help our customers meet this rapidly developing market.

"By partnering with Arasco and combining the strengths of both our companies, this joint venture will not only help us create enhanced solutions for our customers but most importantly local solutions," continued van Lierde.

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