Arabfields, Adel Serai, Economic Analyst, Oran — Qatar-based Baladna Q.P.S.C., the country’s leading dairy and beverage producer, has taken a significant step toward transforming itself from a national food security success story into a major player in the Middle East, North Africa (MENA), and beyond. On November 19, 2025, the company’s Board of Directors announced a proposal for a 24% capital increase through a rights issue, aimed at strengthening its financial foundation and accelerating aggressive international expansion plans.

This move comes on the heels of record-breaking financial performance in the first nine months of 2025 and follows a recent 7.1% capital hike via bonus shares approved earlier in November. The rights issue, which remains subject to regulatory approvals and shareholder endorsement at an upcoming Extraordinary General Meeting (EGM), underscores Baladna’s confidence in its scalable business model and its strategy dubbed “From Qatar to the World.”

Strong Momentum at Home Drives Overseas Push

Baladna has long been celebrated in Qatar for achieving near-total self-sufficiency in fresh dairy products following the 2017 Gulf blockade, when the company rapidly scaled up from zero to becoming the nation’s dominant producer. Today, it operates one of the world’s largest integrated dairy farms on a single site, with modern processing facilities and a growing portfolio that includes juices, water, and other beverages.

The company’s operational resilience was on full display in its latest results. For the first nine months of 2025, Baladna reported revenue of QR 941 million (approximately USD 254 million), marking a solid 10% year-on-year increase. Even more impressive was the bottom-line growth: net profit surged 170% to QR 381 million, reflecting improved efficiencies, higher sales volumes, and favorable market conditions in its core Qatari market.

Group CEO Marek Warzywoda highlighted this performance in his statement accompanying the announcement:

“We’ve built a resilient business model anchored in food security, operational efficiency, and disciplined execution. Baladna delivered record 9M 2025 operational and financial performance, and this proposed capital increase represents a strategic step to scale our international footprint and build long-term value. Our ambition is to transform Baladna from a national Qatari champion into a regional powerhouse, to become one of the top dairy and beverage producers in the MENA and international markets.”

The CEO’s vision is backed by ambitious targets: Baladna aims to grow its EBITDA from a 2024 baseline of around QR 400 million to QR 1.4 billion (USD 384 million) by 2030, a 3.5-fold increase, driven primarily by overseas projects, ongoing cost discipline, and product innovation.

Flagship International Projects Already Underway

The fresh capital from the rights issue is explicitly intended to support a pipeline of high-impact expansion initiatives in underserved markets where dairy demand far outstrips local supply.

The crown jewel is Baladna’s massive venture in Algeria, described as one of the largest vertically integrated dairy projects globally. With a total planned investment of USD 3.5 billion, the project covers 117,000 hectares of leased farmland and will eventually house 240,000 Holstein cows. At full capacity, it is projected to produce up to 1.7 billion liters of milk and 198,000 tons of milk powder annually. Baladna holds a controlling 51% stake alongside Algeria’s National Investment Fund (49%), and construction is already progressing after key agreements were signed and initial funding transferred.

Closer to home regionally, Baladna’s Board recently greenlit a USD 250 million investment in Syria for a fully integrated industrial complex. The facility will encompass dairy production, juice manufacturing, plastic packaging, and water treatment, positioning the company as a first-mover in a market with substantial reconstruction needs and limited domestic capacity.

Beyond these two cornerstone deals, Baladna is actively scouting opportunities in Africa, where rapid population growth and urbanization are creating strong demand for affordable, high-quality dairy and beverages. The company’s farm-to-shelf platform, proven in the harsh Qatari desert environment, is seen as highly replicable in similar climates and market gaps across the continent.

What the Rights Issue Means for Shareholders and the Market

While full details, including the exact issue size in Qatari riyals, number of new shares, subscription price, eligibility record date, and precise allocation of proceeds, will only be disclosed after board finalization and regulatory clearance, the structure as a rights issue is shareholder-friendly by design. Existing investors will have the pre-emptive right to subscribe for new shares in proportion to their holdings, helping them maintain their ownership percentage without dilution if they participate.

This approach also signals management’s belief that the stock is attractively valued for a growth story of this magnitude. Coming shortly after the bonus share distribution, the combined effect could enhance liquidity and broaden the investor base on the Qatar Stock Exchange (ticker: BLDN).

A Strategic Inflection Point for MENA Dairy

Baladna’s announcement arrives at a time when food security remains a top priority for governments across the Arab world and broader emerging markets. Climate challenges, supply-chain vulnerabilities exposed by recent global events, and rising populations are driving massive investments in local production capacity.

By leveraging its Qatari origins, where it turned an existential crisis into a thriving vertically integrated operation, Baladna is positioning itself as the partner of choice for nations seeking turnkey solutions to dairy and beverage self-sufficiency.

If the rights issue is approved and successfully executed, 2026 and beyond could mark the beginning of Baladna’s transformation from Qatar’s dairy champion to a genuine pan-regional leader, delivering both strong returns for investors and tangible contributions to food security in some of the world’s most strategic markets.

As Marek Warzywoda concluded, the company is not just growing, it is strategically scaling a proven model to create lasting value far beyond its home borders. For shareholders and observers alike, the coming EGM will be a pivotal moment to watch.