Brazilian food processing company BRF S.A has signed a memorandum of understanding (MoU) with Saudi Arabia's Public Investment Fund (PIF) to set up a joint venture in the kingdom with an investment of $350 million.

The JV will focus on processing and promoting the sale of fresh, frozen, and processed products. It will also include a 'halal business hub' in Saudi Arabia, BRF, one of the largest food processing companies in Brazil, said in a filing to the Sao Paulo's B3 bourse on Thursday.

BRF will hold a 70 percent stake in the joint venture with the sovereign wealth fund holding the remaining 30 percent.

The size of the Saudi poultry production is estimated at 910,000 metric tons in 2021, according to the Saudi Ministry of Environment, Water and Agriculture. The kingdom is looking to be fully self-reliant in local production by 2030.

Almarai, Gulf's largest dairy producer, last year announced plans to invest $1.76 billion to expand its poultry segment and double its market share.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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