GII takes minority stake in Hotpack Global to fund Saudi plant expansion, international growth

SAUDI ARABIA  – GII has completed a minority investment in Hotpack Global to fund higher output from new production lines, a plant in Al Kharj, Saudi Arabia, and international expansion for the food packaging producer.

Strategic Value of the Saudi Plant

Saudi Arabia is the largest economy in the Gulf, with a young population and growing demand for packaged food, takeaway containers, and food service disposables. 

Importing packaging from China or Europe adds weeks to lead times and exposes buyers to shipping delays. 

A local manufacturing facility in Al Kharj positions Hotpack to serve Saudi customers with shorter delivery windows, lower freight costs, and the ability to customise orders without long-distance coordination. 

The plant is supported by long-term supply deals with major clients and is expected to raise the company’s manufacturing capacity in Saudi Arabia.

A Regional Packaging Powerhouse

Hotpack’s product portfolio spans plastic containers, paper cups, aluminium foil containers, and biodegradable alternatives, allowing it to serve fast-food chains, restaurants, hotels, and food manufacturers from a single supplier. 

For a fast-food operator, sourcing cups, clamshells, straws, and wrappers from one vendor reduces procurement complexity and ensures consistent quality across packaging lines.

Abdul Jebbar, Hotpack Global founder and managing director, explained that this partnership marks an important milestone in Hotpack’s journey.

He noted that over the past three decades the company has built a business deeply rooted in the region but increasingly global in its reach, and that GII’s investment gives Hotpack the momentum to accelerate its next phase of growth, expanding manufacturing capacity, entering new markets, and continuing the shift towards sustainable packaging.

Shari’ah-Compliant Investment

GII co-founders and co-CEOs Mohammed Alhassan and Pankaj Gupta stated that the completion of GII’s investment in Hotpack is the company’s latest deal, as its group of companies marks its 12th anniversary of successful Shari’ah-compliant investments across the GCC and beyond. 

The investment structure avoids interest (riba) and speculative uncertainty (gharar), aligning with Islamic finance principles.

When Local Production Changes the Equation

A food packaging plant in Al Kharj is not just a factory, it is a supply chain decision. For Saudi restaurants and food manufacturers, Hotpack’s local capacity turns weeks-long lead times into days. 

The investment is not about capacity, it is about proximity.

Hotpack was established in 1995 and is based in Dubai, UAE, operating across 12 countries with offerings across plastics, paper, aluminium, and other sustainable materials. 

The company serves over 25,000 customers in more than 100 countries through 25 factories, 47 warehouses, and 35 sales centres worldwide. 

The Saudi project is linked to Vision 2030 goals including the development of local manufacturing, domestic production of essential consumer goods, supply chain stability, and industrial jobs.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE