Arla Foods Invests Over USD 60 Million to Expand Bahrain Dairy Facility

Strengthening its largest production site outside Europe and boosting regional leadership

Arla Foods has announced a major expansion of its Bahrain production facility, located in the Bahrain International Investment Park, with a total investment exceeding USD 60 million (50.9 million Euro). The expansion will add 8,000 sqm to the site, increase annual production by 30%, and further solidify Arla’s position as one of the largest dairy producers in the MENA region.

The groundbreaking ceremony was attended by senior officials and industry leaders, including HE Sameer Nass, Chairman of the Bahrain Chamber of Commerce and Industry; HE Eman Ahmed Al-Doseri, Undersecretary of the Ministry of Industry and Commerce; and Mr. Ali Al Mudaifa, Chief of Business Development at the Bahrain Economic Development Board (Bahrain EDB). Their participation highlights Bahrain’s strong ecosystem supporting industrial investment and growth.

The investment will primarily increase the production of Puck® spreadable cheese jars and enable Arla to expand exports beyond its current presence in more than 20 countries.

Her Excellency Eman Ahmed Al-Doseri commented, “This investment reflects confidence in Bahrain’s business ecosystem and its appeal for diverse industrial projects. Arla’s expansion supports the strategic goals of Bahrain’s Industrial Sector (2022–2026) and serves as a model for advanced and sustainable manufacturing, using modern technologies and eco-friendly energy solutions. It also demonstrates the government’s success in attracting high-value investments and promoting industrial growth, strengthening Bahrain’s position as a regional hub for food production.”

Kim Villadsen, Senior Vice President of Arla Foods MENA, said, “Expanding our Bahrain facility allows Arla to strengthen regional leadership, increase production, and promote sustainable growth. It reflects our long-term commitment to the families and communities we serve across the MENA region.”

Ali Al Mudaifa added, “Bahrain’s strategic location and business-friendly ecosystem have been key to supporting Arla Foods’ growth. This investment reinforces the Kingdom as a competitive hub for advanced food manufacturing and regional economic development.”

Since acquiring the Bahrain facility in 2019, Arla Foods has invested in developing local talent, with Bahrainis now making up over half of its workforce. The company’s long-term commitment to the Kingdom was recognized with a Golden License at the Gateway Gulf Investment Forum 2025, which provides streamlined services to large-scale investors and supports job creation.