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JEDDAH: ��������’s cocoa and chocolate manufacturing sector is seeing growing entrepreneurial interest, with the number of active commercial registrations reaching 3,532 by the end of June.

A report by the Ministry of Commerce revealed that the Riyadh region topped the list with 1,490 active commercial registrations, followed by the Makkah region with 909 and the Eastern Province with 416. Al-Qassim and Madinah ranked fourth and fifth with 213 and 149 filings, respectively.

The chocolate manufacturing landscape in the Kingdom has evolved considerably, establishing itself as the largest producer among Gulf Cooperation Council countries, according to a release by Mordor Intelligence, a market research firm specializing in data-driven industry insights.

“The industry has shown remarkable progress in adopting advanced manufacturing technologies and sustainable practices, particularly in response to increasing consumer demand for premium chocolate products,” the release highlighted.

The analysis, published in May, indicates that �������� had over 1,000 chocolate-producing facilities in 2023, with Riyadh accounting for around 35 percent of these production sites.

It also notes that the country’s chocolate market is segmented by confectionery variants — dark, milk, and white chocolate — and by distribution channels, including convenience stores, online retail, supermarkets, and others.

The report highlighted that this strong manufacturing base enables the country to produce around 50 percent of its chocolate domestically, thereby reducing reliance on imports while maintaining high-quality standards.

The firm estimates the Saudi chocolate market size at $1.23 billion in 2025 and projects it to reach $1.53 billion by the end of the decade, growing at a compound annual growth rate of 4.5 percent during the forecast period from 2025 to 2030.

“The �������� chocolate market is experiencing significant transformation driven by changing consumer demographics and preferences. With over half the population under 25 years old as of 2023, the market is heavily influenced by younger consumers who are increasingly health-conscious yet maintain strong chocolate consumption patterns,” the Mordor Intelligence study stated.

It added that this demographic shift has led to interesting consumption patterns, with “studies showing that two-thirds of Saudi children consume chocolate twice daily in 2023.”

The firm believes that consumer spending patterns in the Kingdom’s chocolate market reflect the country’s growing affluence and changing preferences.

“In 2023, the annual chocolate expenditure per person in �������� reached $41, significantly higher than the Middle Eastern average of $4. This high per capita spending is particularly noteworthy given that over 66 percent of consumers in �������� claimed they were willing to pay more for quality products in 2022,” the analysis said.

The study noted that the trend toward premiumization has prompted chocolate manufacturers in the Kingdom to introduce more sophisticated product lines and innovative flavor combinations.

According to Mordor Intelligence’s global chocolate market analysis, the industry is experiencing a notable shift in consumption patterns, particularly in established markets where sophisticated consumer preferences are driving product innovation.

“Europe stands as a testament to this trend, processing 35 percent of the world’s cacao and accounting for 45 percent of global chocolate consumption in 2022. Switzerland leads this consumption pattern with an impressive chocolate consumption per capita of 11 kg in 2022, setting benchmarks for premium chocolate consumption globally,” the firm said in its release.

It added that this high consumption rate has encouraged manufacturers to expand their premium product lines and experiment with new flavors and formulations.

The company further reported that global chocolate demand is rising, driven by increased per capita consumption and a strong gifting culture. It added that Europe leads consumption, accounting for nearly 48 percent of the market, with the UK and Switzerland having the highest per capita rates.

JEDDAH: �������� and Kuwait have taken a significant step toward strengthening regional collaboration on artificial intelligence governance and innovation by forming a strategic partnership focused on advancing standards, research, and responsible development in the Artificial Intelligence of Things.

The Kingdom’s Artificial Intelligence Governance Association, which operates under the technical supervision of the Saudi Data and Artificial Intelligence Authority, has signed a memorandum of understanding with Kuwait’s Association of Artificial Intelligence of Things.

The agreement is aimed at enhancing cooperation on AI governance standards, promoting knowledge exchange, supporting scientific research, and driving innovation in the emerging AIoT sector.

A report by Boston Consulting Group published in April highlighted the Gulf region’s strategic prioritization of AI, noting that all GCC nations have launched national strategies to foster economic diversification and digital transformation.

The memorandum was signed by AIGA Chairwoman Dhabia bint Ahmed Al-Buainain and Sheikh Mohammed bin Ahmed Al-Sabah.

In a post on X, Al-Buainain said: “The agreement stems from a shared vision to enhance regional cooperation in artificial intelligence and its governance, and to build strategic partnerships that advance responsible and innovative AI policies and applications across the Gulf states.”

According to the BCG report, the UAE and �������� are leading in infrastructure development and adoption, while Oman and Kuwait are working to expand their capabilities through global partnerships. However, the study pointed out that despite significant state-led investments, challenges remain in private sector funding, research output, and talent development, which hinder the region's ability to fully harness AI’s potential.

As reported by the Saudi Press Agency, the agreement marks AIGA’s first international memorandum of understanding, underscoring its intention to play a broader regional role in the responsible governance of advanced technologies.

The partnership highlights both associations’ commitment to supporting regional initiatives, strengthening governance frameworks, and fostering the exchange of expertise. It also aligns with national and regional objectives to develop knowledge-based economies fueled by emerging technologies.

In a statement, AIGA described the memorandum as a strategic move to deepen regional cooperation in AI governance. The signing ceremony was attended by senior officials from both organizations, along with representatives from SDAIA and AIGA.

Sheikh Mohammed bin Ahmed Al-Sabah, chairman of AAIOT, welcomed the agreement and described it as a “promising opportunity to exchange experiences and develop joint projects that serve the interests of our communities.”

He also emphasized that the deal supports efforts in both countries to advance AI capabilities according to the highest ethical and organizational standards.

AIGA underscored the importance of the memorandum, stating: “This agreement is particularly significant as it is the first international memorandum of understanding signed by the Artificial Intelligence Governance Association outside the Kingdom, representing a step toward expanding cooperation in the field of governance of responsible advanced technologies.”

The association added that the partnership aims to create new avenues for collaboration in setting AI governance standards, promoting research, and encouraging innovation in AIoT — all contributing to a more sustainable and ethically driven technological future.