Six German companies specialising in dairy, honey, and coffee are exploring investment opportunities and commercial partnerships with Kingdom-based investors and suppliers.
“The firms plan to expand into the Saudi market in the coming phases and are working to establish local factories for food production and processing,” stated Rawabi Basyouni, head of the German Desk for the Western Province at the German-Saudi Liaison Office for Economic Affairs, while interacting with Al-Eqtisadiah.
Basyouni noted that the companies are targeting key sectors, including dairy, cheese, honey, jams, and coffee, adding that they recognise the scale of the Saudi market and the high quality of existing domestic products.
The official’s remarks came during a meeting between the German food sector delegation and representatives of the Jeddah Chamber of Commerce, attended by various investors and stakeholders in the food industry.
Germany currently leads the European Union in milk production, with an annual output of approximately 33 million metric tonnes, according to the Food and Agriculture Organisation of the United Nations (FAO).
The European country’s total dairy market is expected to grow from about USD 30 billion in 2024 to around USD 39 billion by 2029, at a compound annual growth rate of nearly 5%.
Fahad Al-Ghamdi, chairman of the Food and Drug Products Committee at the Jeddah Chamber of Commerce, stated, “The committee has been coordinating with several German food companies,” describing the meeting as an important opportunity to strengthen investment prospects between the two countries.
The official further confirmed ongoing cooperation to enhance partnerships between Saudi and German firms in the date industry, noting the strong European demand for the Kingdom’s dates.
Al-Ghamdi added that some date varieties are used in pharmaceuticals, while others are incorporated into dairy and related products.
While the German market has remained competitive and robust, Saudi Arabia offers an attractive environment for foreign investment, and there is optimism that several agreements and deals will be signed between Saudi and German companies in the food sector.