Arla Foods has announced an investment of more than $60 million to expand its dairy manufacturing facility in Bahrain, increasing production capacity by 30% as it strengthens its position in the Middle East and North Africa (MENA) region.
The expansion will add 8,000 square metres to Arla’s site at the Bahrain International Investment Park, making it the cooperative’s largest production facility outside Europe. Once completed, the move will position Arla among the region’s largest dairy manufacturers by output.
Focus on Puck and Regional Demand
The investment is primarily aimed at scaling up production of Arla’s Puck-branded spreadable cheese, a flagship product widely consumed across the Gulf and broader MENA markets.
The additional capacity will also allow the company to expand exports beyond its existing footprint of over 20 countries. Arla has been steadily growing its regional manufacturing base as dairy demand in the Middle East continues to outpace more mature European markets, supported by population growth, urbanisation and rising consumption of value-added dairy products.
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“By expanding our Bahrain facility, Arla is strengthening its regional leadership, increasing production capacity, and advancing sustainable growth,” said Kim Villadsen, Senior Vice President for Arla Foods MENA. He described Bahrain as a long-term manufacturing hub for the company’s regional operations.
Strategic Location and Industrial Push
Arla acquired the Bahrain facility in 2019, and it now serves as a key production hub supplying Gulf Cooperation Council (GCC) markets as well as parts of Asia and Africa. Bahrain’s strategic location and strong trade connectivity have made it an attractive base for food manufacturers looking to serve multiple export markets from a single site.
Government officials said the expansion aligns with Bahrain’s industrial strategy to attract high-value manufacturing investments and position the kingdom as a regional food production hub.
The project will incorporate automation and energy-efficient technologies, according to the Ministry of Industry and Commerce, supporting both productivity and sustainability goals.
Workforce and Investment Incentives
Arla stated that more than half of the workforce at the Bahrain facility now comprises Bahraini nationals, reflecting efforts to localise skilled roles as operations scale up.
The investment follows Arla’s receipt of Bahrain’s ‘Golden License,’ a programme designed to fast-track incentives and services for companies making large-scale, job-creating investments in the country.
With the latest expansion, Arla is reinforcing Bahrain’s role as a strategic export platform while deepening its commitment to long-term growth in the MENA dairy market.
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