Saudi Modon has launched the world’s largest food cluster in Jeddah to boost food security and exports.
Spanning 11 million square meters, the food cluster aims to attract SAR 20 billion in investments and create 43,000 jobs by 2035.
It is also projected to contribute SAR 8 billion to exports, SAR 7 billion to GDP, and reduce operational costs by up to 12%.
Introducing the Jeddah Food Cluster
For years, Saudi Arabia, like many of its neighboring countries, has heavily relied on imported food products to meet the needs of its growing population. This dependency posed potential risks to food security and represented a significant economic outflow.
Thus, the Jeddah Food Cluster conception was made and marks a pivotal moment in Saudi Arabia’s journey toward food security and economic diversification.
The opening ceremony on November 24, led by Prince Saud bin Mishal, deputy governor of Makkah, was held under the patronage of Prince Khaled Al-Faisal, governor of Makkah. Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other high-ranking officials also attended.
World’s Largest Food Cluster
The Jeddah Food Cluster has earned its name in history by securing a prestigious Guinness World Record for being the largest food cluster globally.
Spanning an awe-inspiring 11 million square meters, the cluster’s sheer size sets it apart from any other food-related industrial development in the world. To put this into perspective, the cluster covers an area equivalent to over 1,500 football fields.
The record-breaking dimensions of the Jeddah Food Cluster offer several advantages:
- Scalability: The expansive area allows for future growth and expansion, ensuring that the cluster can adapt to changing market demands and technological advancements.
- Diversity: The vast space accommodates a wide variety of food-related industries, fostering a comprehensive ecosystem that covers every aspect of the food value chain.
- Efficiency: The large-scale layout enables the implementation of advanced logistics systems, reducing transportation costs and improving overall operational efficiency.
- Sustainability: The ample space allows for the integration of green spaces, renewable energy installations, and other environmentally friendly features, aligning with Saudi Arabia’s sustainability goals.
Jeddah Food Cluster’s Investment Targets
The Jeddah Food Cluster is not just an impressive feat of infrastructure; it’s a carefully crafted economic catalyst designed to propel Saudi Arabia’s food sector into a new era of growth and prosperity.
The Saudi Authority for Industrial Cities and Technology Zones has set ambitious investment targets for this mega-project, aiming to attract a staggering SAR 20 billion (approximately $5.32 billion) in investments by 2035.
This substantial investment target reflects the Kingdom’s confidence in the cluster’s potential to transform the food industry landscape.
The influx of capital is expected to come from diverse sources, including domestic investors, international food conglomerates, and innovative startups looking to leverage the cluster’s state-of-the-art facilities.
Jeddah Food Cluster’s Economic Impact
The economic impact of the Jeddah Food Cluster is projected to be far-reaching and multifaceted:
- Job Creation: One of the most significant benefits of the cluster is its potential to generate employment opportunities. MODON estimates that the project will create around 43,000 jobs by 2035. These positions will span various skill levels and sectors, from food production and processing to research and development, logistics, and management.
- GDP Contribution: Over the next decade, the Jeddah Food Cluster is expected to add SAR 7 billion to Saudi Arabia’s GDP. This substantial contribution underscores the project’s role as a key economic growth and diversification driver.
- Export Boost: The cluster aims to enhance Saudi Arabia’s food export capabilities significantly. Projections indicate that it could contribute SAR 8 billion to national exports over the next ten years. This increase in exports will improve the Kingdom’s trade balance and establish Saudi Arabia as a major player in the global food market.
- Operational Cost Reduction: By integrating services and optimizing supply chains, the cluster is designed to reduce operational costs for businesses by 5-12%. This efficiency gain will enhance Saudi food products’ competitiveness in domestic and international markets.
- Attracting Foreign Direct Investment: The world-class facilities and strategic location of the Jeddah Food Cluster are expected to attract significant foreign direct investment, further boosting the Kingdom’s economy and fostering international partnerships.
The ambitious investment targets and projected economic impact of the Jeddah Food Cluster align closely with Saudi Arabia’s Vision 2030 goals of economic diversification and reduced reliance on oil revenues.
Facilities at Jeddah Food Cluster
The Jeddah Food Cluster boasts a comprehensive and cutting-edge infrastructure designed to meet the diverse needs of the food industry. This state-of-the-art complex has a wide array of facilities catering to every aspect of food production, processing, storage, and distribution.
- Production Units:
- The cluster features 76 ready-to-use factories that adhere to the stringent standards set by the Saudi Food and Drug Authority.
- These units are designed to accommodate various food production processes, from basic food processing to advanced manufacturing of value-added products.
- The factories are equipped with modern machinery and technology, ensuring high efficiency and product quality.
- Storage Facilities:
- A vast network of cold and dry storage facilities, covering over 134,000 square meters, ensures proper preservation of raw materials and finished products.
- The cold storage units are equipped with advanced temperature control systems, catering to different food types and their specific storage requirements.
- Dry storage areas are designed to maintain optimal humidity levels, protecting non-perishable goods from environmental factors.
- Logistics Hub:
- A centralized logistics center facilitates the smooth movement of goods within and outside the cluster.
- Advanced tracking systems and inventory management tools ensure efficient supply chain operations.
- The hub is strategically located to provide easy access to major transportation routes, including seaports and airports.
- Research and Development Center:
- A dedicated R&D facility promotes innovation in food technology and product development.
- State-of-the-art laboratories enable food testing, quality control, and new product formulation.
- Collaboration spaces encourage partnerships between industry players and academic institutions.
- Central Laboratory:
- A comprehensive central laboratory ensures food safety and quality across all stages of production.
- Equipped with advanced analytical instruments, the lab conducts thorough testing for contaminants, nutritional content, and compliance with international food standards.
- Shared Services Center:
- A one-stop shop for administrative and support services, streamlining operations for businesses within the cluster.
- Services include HR support, IT infrastructure, legal assistance, and financial advisory.
Enhancing Food Security
One of the primary objectives of the Jeddah Food Cluster is to bolster Saudi Arabia’s food security and self-sufficiency significantly.
In an era of global uncertainties and supply chain disruptions, the Kingdom recognizes the critical importance of reducing its dependence on food imports and strengthening its domestic food production capabilities.
The cluster serves as a cornerstone in this strategic initiative, offering a multifaceted approach to enhancing food security, including Increased Domestic Production, Diversification of Food Sources, Advanced Food Processing and Preservation, and Research and Innovation in Agriculture.
Collaboration and Partnerships
The success of the Jeddah Food Cluster hinges not only on its state-of-the-art facilities and innovative technologies but also on the power of collaboration and strategic partnerships.
By fostering a collaborative ecosystem, the cluster creates synergies that drive innovation, enhance productivity and open new markets.
Reshaping Food Production Landscape
The establishment of the world’s largest food cluster in Jeddah represents a monumental leap forward for Saudi Arabia’s food industry and economy.
This visionary project, spearheaded by Saudi Modon, not only sets new global standards for food production and distribution but also aligns perfectly with the Kingdom’s ambitious Vision 2030 goals.
More Jeddah Upcoming Projects
Nestle’s First Manufacturing Plant
Nestle, the world’s largest food and beverage company, is set to launch its first manufacturing plant in Saudi Arabia, situated in the city of Jeddah.
The $72 million facility will be located in Jeddah’s Third Industrial City and is expected to open in 2025.
Covering more than 117,000 square meters, the plant aims to strengthen food security, increase local production, and serve the Middle Eastern and North African markets.
Specializing in children’s food and using advanced technology, the site will produce 15,000 tonnes of food annually and generate hundreds of direct and indirect jobs.
Maersk Logistics Park Jeddah
Maersk, the global shipping leader, has launched the largest, Maersk Logistics Park in the Middle East at Jeddah Islamic Port, in collaboration with Saudi Arabia’s General Ports Authority.
The park’s purpose is to boost economic growth in the Kingdom and enhance international trade with countries worldwide.
Covering more than 225,000 square meters, the facility will source up to 70% of its energy from solar power, highlighting Maersk’s commitment to sustainability.
Jeddah Tower
Saudi Arabia’s Kingdom Holding has restarted work on the highly anticipated Jeddah Tower, set to become the tallest building in the world at over 1,000 meters, surpassing the Burj Khalifa in Dubai.
Designed by Adrian Smith + Gordon Gill Architecture, this $1.9 billion landmark will showcase a sleek three-petal aerodynamic design, along with a Four Seasons Hotel, upscale apartments, and dining venues.
The Jeddah Tower project is expected to take around 42 months to complete, with its anticipated completion date set for mid-2028, Insha’Allah.
Trump Tower Jeddah
Dar Global and the United States Trump Organization have revealed plans to introduce a Trump Tower in Jeddah, Saudi Arabia.
This venture will be the first partnership between the Trump Organization and Saudi Arabia, with the goal to combine luxury living with Jeddah’s rich cultural heritage.
This collaboration aims to elevate the standards of luxury living in Jeddah and attract foreign investors to Saudi Arabia.
MARAFY Waterfront Project
ROSHN, a real estate developer under the ownership of the Public Investment Fund (PIF), has recently initiated the MARAFY Waterfront project in Jeddah by laying the foundation stone.
The highly awaited MARAFY development is set to include an 11km artificial canal, establishing a direct connection to the Red Sea.
The waterside districts of MARAFY are expected to be seamlessly linked to one another and the broader Jeddah community through water taxis, ferries, and a dedicated metro station.
Additionally, there are plans for a direct canal link from MARAFY to Jeddah’s King Abdul Aziz International Airport.
Jeddah Central Destination
The new Jeddah Central Destination, aimed towards elevating Jeddah into a global tourist hotspot, has moved closer to realization. The Jeddah Central Development Company has recently awarded $3.2 billion in contracts for the inaugural development phase.
Spanning an expansive 5.7 million square kilometers, this iconic destination is poised to showcase a world-class stadium, an oceanarium, beach resorts, 2,700 hotel rooms, shopping malls, restaurants, and 17,000 housing units.
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