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Arabian Mills’ board approves SAR 461m expansion projects in Riyadh, Hail

Arabian Mills’ board approves SAR 461m expansion projects in Riyadh, Hail
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Riyadh - Mubasher: The board of Arabian Mills for Food Products Company has approved expansion projects at its Riyadh and Hail branches worth a combined value of SAR 461 million.

The plans include building a new flour mill, feed mill, and warehouses in Riyadh, and upgrading the flour mill in Hail, according to a bourse disclosure.

The projects aim to raise daily production capacity by 800 tons of flour and 400 tons of feed in Riyadh, and 150 tons of flour in Hail.

Construction is set to begin in the fourth quarter (Q4) of 2025 for the Hail upgrade and in Q1-26 for the Riyadh projects, subject to regulatory approvals.

The upgrade works at the Hail branch are projected to be completed during Q4-26, while the expansions at the Riyadh facilities are expected to be concluded in Q1-28.

Meanwhile, the financing will come from cash liquidity and Sharia-compliant banking facilities.

The Hail project is expected to impact the financial statements starting from Q1-27, whereas the Riyadh projects’ impact is expected to appear in Q2-28.

No contractors have been appointed yet and further developments will be announced in due course.