First Mills gains approval to export flour, eyes regional and global markets

SAUDI ARABIA –  First Milling Company (First Mills), a market-leading milling firm in Saudi Arabia, has announced that it received approval from the General Food Security Authority (GFSA) to export flour to regional and international markets.

The announcement, made through a statement to Tadawul, highlights a strategic milestone for the Saudi-listed company, signaling its ambitions to expand its footprint beyond the domestic market.

The approval aligns with a recent decision by the GFSA board of directors, which allows licensed flour milling companies in Saudi Arabia to engage in export activities under specific guidelines.

These requirements are aimed at ensuring exports do not compromise local food security or disrupt the domestic supply chain. GFSA will also collect a payment equivalent to the government subsidy on wheat and flour derivatives that are exported, per the provisions of the Flour Milling Law of 2018.

First Mills confirmed receipt of the export guidelines, which were issued through the Matahin platform, a service launched by GFSA to streamline export processes for milling companies.

According to First Mills, this export approval is a key step in solidifying its position as a reliable supplier of high-quality, innovative flour products in the global marketplace. The company emphasized its focus on creating value for its shareholders by pursuing opportunities that enhance profitability and market reach.

The company also reiterated its commitment to transparency and maintaining open communication with shareholders and the broader investment community regarding its progress and strategic initiatives.

Saudi Arabia’s Flour Milling Law, enacted in 2018, is central to the regulation of the kingdom’s flour production and export activities.

The law restricts the export of wheat, flour, and subsidized derivatives unless explicit approval is granted by the GFSA. The framework ensures that local market needs remain a priority and safeguards the country’s food security amidst efforts to reduce reliance on imports.

Over recent years, Saudi Arabia has undergone significant changes in its flour milling industry. In 2020, the sector was fully privatized, with four major milling companies, including First Mills, sold to private investors.

This privatization aimed to enhance efficiency, attract investment, and drive innovation in a critical sector for the kingdom’s food security strategy.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.