Arla Foods breaks ground on $60m expansion in Bahrain

05/02/2026 02:09 AST

Arla Foods has announced the groundbreaking of its facility expansion in Bahrain, located in the Bahrain International Investment Park, in the presence of senior officials and executive members of Arla's management team from across the region.

Valued at over $60 million, the investment will add 8,000 sq m to Arla's largest production facility outside Europe and will increase its annual production volume by 30%, making Arla one of the largest dairy makers in the region.

The ground-breaking ceremony was attended by a distinguished group of senior officials and industry leaders, including Sameer Nass, Chairman of Bahrain Chamber of Commerce and Industry; Eman Ahmed Al-Doseri, Undersecretary of the Ministry of Industry and Commerce; and Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB). Their participation reflects strong cross-sector collaboration, highlighting Bahrain's integrated ecosystem in supporting investment and growth across the manufacturing sector, said a statement.

The dairy cooperative's expansion of its Bahrain production site will increase the production capacity of the popular spreadable cheese jars sold under the Puck brand while enabling Arla to export to new markets beyond its existing presence in more than 20 countries.

Eman Ahmed Al-Doseri noted: "This $60+ million investment reflects the confidence in Bahrain's ecosystem and its attractiveness to diverse industrial investments. Arla's expansion aligns with the objectives of the Industrial Sector's strategic goals (2022-2026) and serves as a model for advanced and sustainable manufacturing through the adoption of the Fourth Industrial Revolution technologies and environmentally-friendly energy solutions. The project further showcases the success of the government's efforts in attracting value-adding investments within the sector, as well as supporting industrial development initiatives, further strengthening Bahrain's position as a regional hub for food manufacturing."

Kim Villadsen, Senior Vice President Arla Foods MENA, stated: "By expanding our Bahrain facility, Arla is strengthening its regional leadership, increasing production capacity, and advancing sustainable growth, reaffirming our long-term commitment to the families and communities we serve across the MENA region."

Ali Al Mudaifa, Chief of Business Development at Bahrain EDB, commented: "Bahrain's business-friendly ecosystem and its strategic location connecting east and west have been key enablers of Arla Foods' expansion, supporting the company in scaling production and strengthening its ability to serve regional and global markets. This investment underscores the Kingdom's strength as a manufacturing base and reinforces its position as a competitive hub for advanced food production and regional growth."

Since acquiring the Bahrain production site in 2019, Arla Foods has made significant progress in developing local talent, with Bahrainis now accounting for more than half of its workforce. This reflects the company's commitment to investing in national capabilities by supporting skilled employment opportunities and contributing to Bahrain's Manufacturing sector.

Arla Foods received a Golden License at the Gateway Gulf Investment Forum 2025, highlighting the company's continued investment and long-term commitment to the Kingdom. The Golden License, announced in 2023, provides streamlined services to businesses with large-scale investment projects in Bahrain with the aim of supporting investment and boosting job creation.

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