Afaq Food Company Limited, a leading Saudi food company, announced the signing of a strategic partnership agreement with Bidfood Limited, a leading global food supply and distribution services group. This agreement represents a pivotal step in Afaq Food's growth and expansion strategy, aimed at strengthening its presence in local and regional markets.
Background and context of the partnership in light of the growth of the Saudi market
This alliance comes at a time when the food and beverage sector in Saudi Arabia is experiencing rapid growth, driven by the goals of Vision 2030, which focuses on diversifying the economy, enhancing local content, and supporting national industries. The food service sector, which includes hotels, restaurants, and catering companies (HoReCa), is also booming thanks to the expansion of tourism and entertainment projects. In this context, local companies like Afaq Food are striving to meet the increasing demand for high-quality, locally produced products, while global companies like Bidfood are seeking strong local partners to expand their operations and cater to the tastes of consumers in the region.
Details of the agreement and its strategic objectives
According to a company statement published on the Saudi Stock Exchange (Tadawul) website, the agreement aims to enable both parties to collaborate in supporting the marketing and distribution of Afaq Food products within the food service sector in the Kingdom and the GCC countries. The agreement was officially signed on January 30, 2026 (corresponding to 12/08/1447 AH) by the CEO of Afaq Food, Mr. Khadem Sarour, and the CEO of Bidfood, Mr. Hisham Al-Jamil.
Through this partnership, Afaq Food will benefit from Bidfood's extensive logistics capabilities and distribution network, which spans nearly 30 countries worldwide, including all GCC markets. In turn, Bidfood will be able to enrich its product portfolio by adding locally produced products specifically designed to meet the needs of regional markets, thus enhancing its competitiveness.
Expected impact and regional expansion
This partnership is expected to have a tangible positive impact on Afaq Food's financial and operational performance starting in the first half of 2026 and continuing in the medium and long term. It also supports the company's growth strategy by strengthening its presence in the vital food service channel and accelerating its access to neighboring regional markets. Regionally, this collaboration enhances the position of Saudi companies in the Gulf food sector and opens new avenues for exporting national products.
The agreement was implemented during the Gulfood 2026 exhibition, which is one of the largest and most important international platforms in the food and beverage sector, giving this partnership international momentum and reflecting the ambition of both parties to explore scalable growth opportunities by targeting key customer segments and expanding geographically in target markets.
