Saudi Arabia’s wheat flour mills could expand their presence in international markets if government restrictions on wheat procurement are relaxed by 2025. The General Food Security Authority (GFSA), which currently controls wheat purchases, is expected to shift control, allowing private mills to handle imports independently.
This change could position Saudi mills as key players in East Africa and the Gulf Cooperation Council (GCC). Saudi Arabia benefits from its strategic location on the Red Sea and Gulf, access to efficient port infrastructure, and low operating costs due to cheap energy and modern equipment.
The shift also presents challenges; Saudi mills, which have operated in a public sector framework, must adjust to increased competition. The country is investing in technology and global expertise to overcome these gaps, though experts warn that the transition may take time.
This change follows the 2021 privatisation of Saudi Arabia’s flour milling sector, part of the Vision 2030 reforms. In November, the GFSA allowed licensed mills to export flour, marking progress toward global trade. Saudi wheat imports are projected to rise by 2% in 2024-2025, reaching 4.25 million metric tonnes.
Flour mills across the Middle East are closely monitoring the situation, concerned about the impact on their businesses.
