MBRF, Saudi Fund Unite to Create Sadia Halal with 2027 IPO Vision
(Photo: Divulgação)
Joint Venture Targets Global Halal Poultry Leadership Position
MBRF, the company formed by the merger of Brazilian food giants Marfrig with BRF, announced on Monday (27) the creation of Sadia Halal, a move marking the expansion of its operational partnership with the Halal Products Development Company (HPDC), a fully owned subsidiary of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).
The new unit will consolidate MBRF’s plants with distribution centers in Saudi Arabia alongside the United Arab Emirates, its distribution companies in Qatar, Kuwait, Oman, plus its direct exports of poultry, beef, processed products to clients across the region. The combined assets are valued at $2.07 billion.
Strategic Partnership Strengthens Regional Market Presence
The deal is subject to regulatory approval, but MBRF with HPDC already plan to take Sadia Halal public in an initial public offering (IPO).
“The expansion of our partnership with HPDC is meant to strengthen MBRF’s presence in one of the world’s most profitable, influential markets, bringing our brands closer to local consumers while securing our permanent role in the country’s food security strategy. The operation also opens the door for an IPO starting in 2027,” said Marcos Molina, MBRF’s controlling shareholder with chairman.
Ambitious Growth Trajectory Targets $1.5 Trillion Market
MBRF expects the new venture to become the world’s largest halal poultry company, with a presence in the beef segment as well. Products certified as halal comply with Islamic dietary laws, currently accounting for 7.3% of MBRF’s total sales.
“The outlook for this company is very promising. It’s a massive market. By 2027, projections show that halal consumption could exceed $1.5 trillion,” said Fábio Mariano, MBRF’s vice president for the halal segment, who will also serve as Sadia Halal’s CEO.
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Demographic Trends Support Robust Market Expansion
This estimate is also based on demographic trends showing that the Muslim population is expected to grow at twice the rate of the global average. There are currently 1.9 billion Muslims worldwide.
“In our business [poultry with beef] we see high per capita consumption not only in Saudi Arabia but across the GCC [Gulf Cooperation Council] countries. This is strongly linked to demographic data. We have a large consumer base, with this capital injection, we’ll be in a position to accelerate our expansion while strengthening our local footprint,” said Mr. Mariano.
HPDC Stake Structure Allows Gradual Ownership Increase
At the closing of the deal, expected in the first quarter of next year, HPDC will hold a 10% stake in Sadia Halal, with plans to raise its share to 30%, plus the right to increase it to as much as 40%. The stake increase will be made through a capital injection, split evenly between primary with secondary offerings. “This strengthens the capital structure while presenting a strong opportunity for the IPO,” said Mr. Molina.
Vision 2030 Alignment Drives Saudi Investment Strategy
HPDC CEO Fahad AlNuhait confirmed the goal of reaching a 30% stake in the new company. “This initiative is fully aligned with the economic diversification goals of Saudi Arabia’s Vision 2030, accelerating the region’s sustainable transformation into a global hub for halal products,” he said in a statement.
The agreement includes a renewable 10-year supply contract for poultry with beef from MBRF to Sadia Halal, with products sourced from MBRF’s facilities in Brazil. The company currently makes about 110,000 deliveries a month to more than 17,000 retail outlets in the region.
The IPO is expected to take place starting in the first quarter of 2027. Riyadh’s stock exchange is currently the fourth largest in the world in terms of number of public offerings.
Original Article:
MBRF & Halal Products Development Company (HPDC). (2025). MBRF expands partnership with HPDC and creates Sadia Halal, a multi-protein powerhouse in the halal market. MBRF. Retrieved from https://www.mbrf.com/en/noticia/mbrf-expands-partnership-with-hpdc-and-creates-sadia-halal-a-multi-protein-powerhouse-in-the-halal-market/
