MODON launches dairy industrial cluster in Al-Kharj

Logo of The Saudi Authority for Industrial Cities and Technology Zones (MODON)

The Saudi Authority for Industrial Cities and Technology Zones (MODON) launched today, April 23, a dairy industrial cluster in the Al-Kharj Industrial City.

Spanning 2 million square meters, the cluster aims to create an integrated production environment supporting food security with world-class standards.

According to MODON, the cluster will feature a sustainable and fully integrated ecosystem, including dairy processing plants, packaging facilities, feed production farms. It will also include dairy farms, maintenance and service companies, as well as feed mills and storage units.

The initiative offers various investment incentives to facilitate business, such as ready-built factories, industrial land, as well as shared cold and dry warehouses.

Bandar Alkhorayef, Minister of Industry and Mineral Resources, said the cluster will provide a comprehensive and sustainable production environment for the dairy industry, contributing to the objectives of the National Industrial Strategy in the food manufacturing sector and reinforcing Saudi Arabia’s position as a regional hub for food industries.

He added that Al-Kharj contributes over 70% of the Kingdom’s dairy production, serving both local and regional markets.

The dairy sector, Alkhorayef added, is a key economic driver and plays a major role across the value chain in areas like feed, additives, industrial and agricultural machinery, and packaging.

In 2024, the agricultural and industrial market for dairy in Saudi Arabia was valued at SAR 22 billion. Dairy exports reached SAR 4.8 billion, while imports totaled SAR 8.9 billion. Accordingly, the Kingdom achieved 129% self-sufficiency in dairy products, the minister said.