Saudi Arabia: NADEC Takes Ownership of Al Raie National Livestock in SAR 23.7 Million Deal

The National Agricultural Development Company (NADEC) has signed a share purchase agreement to acquire the remaining 49% stake in Al Raie National Livestock Company from Anaam Saudi for Trading Company, a wholly owned unit of Al Muhaidib Group, raising NADEC’s ownership of the joint venture to 100%. The agreement was disclosed in a filing on the Saudi Exchange (Tadawul).

Deal at a Glance

Background: A 2023 Joint Venture Now Fully Absorbed

Al Raie National Livestock Company was established in 2023 as a joint venture between NADEC and Al Muhaidib Group, with NADEC holding the majority 51% stake from inception. The company was set up to run an intensive livestock farming and breeding operation focused on sheep and goats, alongside meat production, as part of a strategic project based in the Hail region.

The Hail project has been positioned since its launch as a large-scale contributor to Saudi Arabia’s red meat self-sufficiency targets, with a stated goal of reaching an annual output of one million livestock heads. The project secured a SAR 1.1 billion financing agreement from the Agricultural Development Fund in March 2025 to fund breeding facilities, meat processing infrastructure, and supply-chain localization, and its foundation stone was laid the same year as part of a wider SAR 2 billion (approximately $533 million) integrated livestock and meat production initiative.

Because Al Raie is newly established and had not yet commenced full operational activity at the time of the announcement, the company’s disclosed financials are based on its audited 2024 annual statements, with 2025 figures unaudited.

Why NADEC Is Buying Out Its Partner

According to the Tadawul disclosure, the transaction is intended to simplify governance and decision-making within Al Raie by consolidating ownership under a single shareholder, aligning the project more directly with NADEC’s own strategic and operational priorities. NADEC has framed the move as supporting three linked objectives:

• Increasing local red meat production

• Reducing Saudi Arabia’s reliance on imported meat

• Strengthening the long-term sustainability of the livestock sector

These objectives are explicitly tied to Saudi Arabia’s food security strategy and the broader Vision 2030 economic diversification program, which has placed agricultural self-sufficiency — particularly in protein production — among its priority sectors.

Strategic Context: NADEC’s Wider Livestock and Meat Push

The Al Raie buyout is one of several moves NADEC has made in the red meat and livestock space in recent years:

• NADEC previously partnered with Hilton Food Group in March 2025 to establish a separate meat-processing joint venture, expected to begin operations in late 2026 pending approvals.

• The company adopted SAP Signavio in 2024 across 34 business areas to streamline operations and support sustainability goals, including reduced water usage.

• NADEC has also pursued diversification beyond livestock, including a 2023 strategic alliance with Pure Harvest Smart Farms for controlled-environment fresh produce production.

Taken together, the Al Raie transaction extends a pattern of NADEC consolidating and vertically integrating its red meat supply chain — from breeding and farming through processing — at a time when Saudi Arabia continues to invest heavily in reducing food import dependence.

Next Steps

Completion of the transaction remains subject to two conditions specified in the Tadawul filing:

1. Approval from the Agricultural Development Fund for the transaction and the resulting change in ownership structure.

2. Any other regulatory or contractual approvals required to finalize the deal.

NADEC has stated it expects the transaction to have a positive impact on the company by improving project management efficiency and increasing operational flexibility in pursuing Al Raie’s strategic goals.