Brazilian food company JBS has acquired two food processing facilities in the Middle East, one in the United Arab Emirates (UAE) and another in Saudi Arabia.
The company also announced the creation of its own distribution network in both countries and Kuwait and appointed executive Mr. Mohamed Mahrous as the CEO for the region.
According to the company, the announcements are part of its strategy to expand its presence in the manufacturing and distribution of prepared foods, making it a reference in the Halal market, which is suitable for Arabs.
Mr. Mahrous has experience leading significant businesses in the food sector in the Middle East. JBS has a complete portfolio of quality products to become a global hub for halal products in the Middle East and North Africa (MENA) region, the company said in a statement.
The acquisitions are part of JBS’s plan to double its total MENA sales in five years. The brand’s repositioning will also include changes to the packaging layout, a larger diversification of products offered in the premium, mainstream, and plant-based lines, as well as the brand’s entry into new sales channels and digital platforms.
The latest acquisitions adhere to Islamic Law. The MEA halal food and beverage market is projected to witness a CAGR of 5.81 percent, during the forecast period (2021-2026). Many global companies have also established their footprints in the region due to the high demand for halal products. In January, BRF SA, a JBS rival in Brazil’s chicken and processed food market, launched a joint venture with PIF, the Saudi Arabia’s sovereign wealth fund.