Al Munif Trading, Industry, Agriculture and Contracting Company, one of the leading companies in the Saudi market, announced the signing of a preliminary “non-binding” memorandum of understanding with the Turkish company Uniba Agriculture, Industry and Trade, in a strategic step aimed at strengthening the manufacturing sector in the Kingdom.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that this memorandum paves the way for a feasibility study to establish a specialized fertilizer production plant with a flexible production capacity ranging from 15,000 to 100,000 tons annually. It noted that the project will be implemented through the establishment of a new joint Saudi-Turkish company, which will enhance the exchange of expertise and technology transfer between the two countries.
General context and objectives of Vision 2030
This step comes within the context of the major economic transformations taking place in the Kingdom of Saudi Arabia, specifically as part of the objectives of Vision 2030, which aims to diversify national income sources and reduce dependence on oil. Developing the industrial sector, particularly industries related to food security, is a fundamental pillar of this vision. Establishing a local fertilizer plant directly contributes to supporting the agricultural sector, enhancing self-sufficiency in essential agricultural inputs, and strengthening local supply chains to address any global challenges that might affect the import of these vital materials.
Investment cost and technical details
According to the statement, the estimated investment cost of the project ranges between SAR 22.5 million and SAR 112.5 million. The final cost and the type of fertilizer to be produced will depend on the results of technical and economic studies to be conducted by both parties. The studies and initial stages, leading up to commercial operation, are expected to take approximately 18 months from the date of completion of all necessary approvals and procedures.
The importance and expected impact of the project
This project holds strategic importance on several levels. Locally , the new factory will enhance the Kingdom's food security capabilities, create new job opportunities, and support local farmers by providing high-quality products at competitive prices. Regionally , this partnership solidifies Saudi Arabia's position as a leading industrial hub in the region and opens new horizons for economic cooperation between the Kingdom and Turkey. Internationally , the project reflects the attractiveness of Saudi Arabia's investment environment and its ability to attract global partnerships and expertise, thus contributing to sustainable development. The company stated that the memorandum of understanding is valid for 180 days and is renewable by mutual agreement.
