Saudi Arabia has launched its first large-scale dairy industrial cluster in Al-Kharj, Riyadh Province, marking a strategic milestone under the National Industrial Strategy to enhance food security and dairy production capabilities.
Saudi Arabia has launched a significant dairy industrial cluster in Al-Kharj, located about 90 kilometers southeast of Riyadh, as part of its push to become a regional leader in dairy and food manufacturing. The initiative was unveiled during the Saudi Dairy Forum and is a key component of the Kingdom’s broader National Industrial Strategy, which aims to attract investment, drive industrial growth, and strengthen food security.
The 1 million square meter cluster is supported by the Saudi Authority for Industrial Cities and Technology Zones (MODON) and was inaugurated under the patronage of Riyadh Governor Prince Faisal bin Bandar. The project includes advanced manufacturing infrastructure, modern logistics, and fully developed industrial land dedicated to the dairy sector.
Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the event, highlighted the importance of the project, noting that Saudi Arabia’s dairy market reached a size of USD 5.87 billion (SR22 billion) in 2024. Exports stood at USD 1.28 billion (SR4.8 billion), while imports totaled USD 2.37 billion (SR8.9 billion). The market is projected to grow to USD 8.4 billion by 2033, with a CAGR of 3.8% from 2025 onward, according to the IMARC Group.
The Al-Kharj cluster is expected to support the entire dairy value chain, including animal feed, packaging, food additives, and machinery, ensuring end-to-end support for dairy operations. Currently, Al-Kharj contributes over 70% of Saudi Arabia’s total dairy output, playing a vital role in both domestic supply and regional exports.
Alkhorayef emphasized that the project reinforces the Kingdom’s 129% self-sufficiency in dairy production, demonstrating both resilience and room for continued expansion. He expressed gratitude to local leadership, including Al-Kharj Governor Prince Fahd bin Mohammed bin Saad bin Abdulaziz, for supporting the forum and the project launch.
The Saudi Dairy Forum, organized by the Al-Kharj Chamber in collaboration with the National Industrial Development Center, served as a platform for engaging industry leaders, investors, and policymakers on the future of Saudi Arabia’s dairy and food industries.
As the Kingdom continues to diversify its economy beyond oil, the Al-Kharj dairy cluster is a key milestone in Saudi Arabia’s industrial and agricultural transformation.
