Cairo – Egypt’s TBS Holding, owner of the popular “TBS” bakery and food-service chain, announced plans to inject between US$70 million and US$80 million into the Saudi Arabian market over the next three years, as part of its regional growth strategy. The announcement came from co-founder Sameh El‑Sadat during the 2nd Cairo Economic Forum.
El-Sadat said the first major investment will be a fully integrated bakery plant in Riyadh, with an initial outlay of approximately US$15 million, expected to begin operations within 12 months. The plant is intended to serve as a hub to supply the Gulf Cooperation Council (GCC) region with TBS-branded baked goods and pastries.
In parallel, TBS has entered into a strategic partnership with Saudi-based Shahia Investments to facilitate its entry into the Kingdom and enhance its production, distribution and supply-chain capabilities. The Saudi partner will help leverage its regional network to support TBS’s expansion.
One key facet of the plan: TBS intends to supply approximately 60% of the new plant’s output to the Saudi operations of international coffee-and-donut chain Dunkin’, which currently operates some 900 branches across Saudi Arabia. The reported arrangement signals significant volume and institutional scale for the bakery investment.
The move underscores Saudi Arabia’s attractiveness for regional F&B investors, backed by favourable regulatory regimes and robust consumer demand for premium bakery products. TBS joins a broader wave of non-oil Egyptian enterprises looking to leverage the Kingdom’s economic transformation agenda.
Industry analysts noted that TBS, originally founded in Egypt in 2008 and operating multiple bakery stores across the country, already has regional ambition; this Saudi investment marks a watershed in its transition from domestic food-service player to GCC-scale manufacturer and exporter.
However, the plan also carries execution risk: establishing a large-scale manufacturing facility within one year — meeting supply-chain, localisation and workforce targets — will require close coordination with Saudi authorities and the local partner. Details remain to be seen on land allocation, incentives, and how much of the capacity will eventually serve export markets within the GCC.
TBS’s Saudi expansion may also support Egypt’s broader economic strategy by generating foreign-currency inflows and strengthening Egyptian-Saudi commercial ties. With investment flows increasing between the two countries, the bakery sector’s move may become emblematic of “manufacture in Egypt, distribute in GCC” models gaining traction.
