Arla Foods invests over $60 million in Bahrain dairy expansion

Arla Foods announced the groundbreaking of its facility expansion in the Kingdom of 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 (€50.9 million), it will add 8,000 square metres 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 group of senior officials and industry leaders, including HE Sameer Nass, chairman of Bahrain Chamber of Commerce and Industry; HE 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).

The investment will increase the production capacity of the 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, the company says.

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.”

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. 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.