By Brazil Stock Guide – BRF S.A. and its controlling shareholder Marfrig Global Foods S.A. (B3: MBRF3) have deepened their partnership with Saudi Arabia’s Public Investment Fund (PIF), launching a multi-protein venture called Sadia Halal that both sides say will become the world’s largest halal poultry producer. The transaction, valued at US$ 2.07 billion, consolidates all of Marfrig’s and BRF’s production facilities, distribution centers, and commercial offices across Saudi Arabia, the UAE, Qatar, Kuwait, and Oman into a single regional platform.
The deal merges Marfrig’s industrial and operational know-how with the institutional and financial reach of PIF, via its subsidiary Halal Products Development Company (HPDC), creating what executives describe as a unique global business model in the halal industry. It marks a key step in unlocking value in a fast-growing protein market flush with capital, while setting the stage for a potential IPO from 2027, subject to regulatory and market conditions.
Under the agreement, BRF will contribute its assets in Saudi Arabia and the UAE, its distribution arms across the Gulf, and its direct-export business to MENA clients. The new structure will also incorporate BRF’s processed-food plant and innovation center under construction in Jeddah, along with its stake in Addoha Poultry Company, a local chilled-chicken producer in Dammam. These operations generated US$ 2.1 billion in net sales and US$ 230 million in EBITDA in the twelve months to June, reflecting a 9× multiple and accounting for about 7.3% of Marfrig’s consolidated revenue.
At closing, expected in 1Q 2026 pending antitrust approvals, HPDC will hold 10% of Sadia Halal, with plans to raise its stake to 30% and the right to reach 40% through equal primary and secondary capital injections. HPDC CEO Fahad AlNuhait said the move aligns with Saudi Arabia’s Vision 2030 plan to diversify its economy and position the kingdom as a global halal hub, accelerating sustainable transformation across the region.
According to people familiar with the matter, a BRF delegation is currently in China exploring potential agreements with local partners to package Chinese-sourced chicken breast under the Sadia brand for export. Though unconfirmed, the initiative would mark a new step in BRF’s Asian integration strategy, complementing its Middle East presence and reinforcing the global scope of the Sadia Halal project.
The Sadia brand already leads the Gulf Cooperation Council (GCC) countries with a 36.2% market share, executing about 111,000 monthly deliveries to 17,000 points of sale across the region. “This agreement consolidates BRF’s leadership in high-value markets and advances our strategic presence in the MENA region,” said José Ignacio Scoseria Rey, CFO and Investor Relations Officer of Marfrig and BRF.
Marfrig Chairman Marcos Molina called the deal a way to permanently embed the company within Saudi Arabia’s food-security agenda, while Fábio Mariano, Marfrig’s Vice President for the halal market and CEO of Sadia Halal, said the partnership “expands our regional footprint and strengthens our complementary portfolio, including beef under the Sadia Bassi brand.” BRF’s Brazilian plants remain outside the transaction but will supply the new venture under a 10-year renewable supply contract, priced at cost plus 5%.
Sadia Halal will adopt global ESG and governance standards, positioning itself as a benchmark for halal-certified protein and a key contributor to global food security. The company aims to become a long-term multi-protein platform spanning poultry, beef, and processed foods, with ambitions to serve both Muslim and non-Muslim markets drawn by the halal sector’s rigorous quality and ethical standards.
The halal food industry now exceeds US$ 2 trillion annually, led by animal protein. Consumption of halal foods is projected to surpass US$ 1.5 trillion by 2027, fueled by a Muslim population of over 1.9 billion people, growing at twice the pace of the global average — a demographic tailwind the new venture is eager to capture.
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