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Dried fruits
This project aims to establish a dried fruit production facility in Saudi Arabia to meet the growing demand for these healthy and nutritious products in the local market. The project involves the drying and packaging of carefully selected fruits, which contributes to preserving the quality and nutritional value of the product.
Study content
Demand analysis
Health and nutritional benefits: Dried fruits are increasingly popular due to their health benefits, as they contain high amounts of potassium, vitamins such as vitamin A and vitamin C, as well as fiber and antioxidants that help prevent chronic diseases such as cancer, heart disease, and diabetes.
Multiple uses in the food industry: Dried fruits are widely used in the dairy, bakery, and confectionery industries due to their ability to enhance the flavor and nutritional value of products.
Increase in income and population growth: Continued population growth and increasing disposable income are expected to support the continued growth of the Saudi dried fruit market. These factors increase the purchasing power of consumers and promote the consumption of dried fruit products as a healthy choice.
Food and industrial sector: Saudi Arabia’s food industry is expected to continue to grow, driving demand for natural and healthy food ingredients such as dried fruits.
Rationale forchoosing the project
Increased consumption of dried fruits:
With the growing interest in healthy foods and low-calorie snacks, the demand for dried fruits has increased significantly, making the project a promising opportunity.
Strong local and international market:
Dried fruits are popular in many international markets, such as the Middle East and Europe, making it easy to export the product and increase the project’s revenue.
Utilization of local fruits:
The project can benefit from local fruits that are grown in the Kingdom, which guarantees the quality of the product and reduces transportation and storage costs.
Reducing waste in agricultural products:
The dried fruits project can contribute to reducing agricultural losses resulting from fruits that are not sold in the fresh market due to oversupply or low prices.
Increase the value of local production:
The project will contribute to strengthening local industries and increasing the added value of agricultural products, which will help grow the national economy and create new job opportunities.
Financial indicators
Capital: SAR 15 million.
Rate of return: 25% per annum.
Expected annual return: SAR 3.75 million (25% of capital).
Payback period: Approximately 4 years.
Expected annual revenue: SAR 20 million (depending on selling prices and production volume).
Profitability ratio: 15-20% per year.
Investment advantages
High return on investment:
With lower production costs compared to fresh produce, dried fruits can generate a high profit margin, making the business attractive to investors.
Short capital cycle:
Due to the constant demand for dried fruits, the business cycle can be short, allowing for quick and continuous revenue generation.
Expanded export opportunities:
The presence of large export markets for dried products opens up many opportunities to expand production and sales, increasing profits.
Product diversification:
The project can expand to include a wide range of dried fruits, allowing investors to capitalize on the diversity of markets and increase consumer demand.
Supporting sustainable development:
The project promotes sustainable development by reducing agricultural losses and enhancing the ability to effectively use local resources.
Features of the project
Increasing demand for dried fruits:
There is an increasing demand for dried fruits in local and international markets due to their health benefits and multiple uses in snacks and desserts.
Added value to the product:
Converting fresh fruits into dried ones increases their shelf life and allows them to be distributed throughout the year, providing better opportunities for sale in the local and international market.
Improved nutritional value:
Dried fruits retain their nutritional value including vitamins and minerals, making them a healthier option for consumers, especially with the growing interest in healthier foods.
Product variety:
Production can be expanded to include various types of dried fruits, enabling expansion into different markets to meet diverse consumer preferences.
Supporting food security:
Providing a sustainable and healthy food product helps enhance food security by improving the utilization of seasonal fruits.
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