In 1977, when Almarai started delivering fresh milk across Riyadh, digital meant a ledger book and a telephone. Fast-forward to 2025 and the same company, now the largest integrated dairy brand in the world, is betting billions of riyals on something invisible: software. Not new barns, not new trucks—though those are still important—but on cloud servers, ERP systems, and dashboards that promise to keep milk, juice, poultry, and bakery products flowing smoothly across the Gulf.
For most of us, Almarai is just the familiar blue-and-green carton in the fridge. But behind that carton is a supply chain stretching from farms to factories to 200,000 retail outlets. Running it all on outdated systems is like trying to steer a jet with paper maps. In 2025, Almarai decided it was time for a cockpit upgrade: SAP’s RISE cloud ERP platform, hosted on Google Cloud.
Why Almarai made the leap now
Saudi Arabia’s economy is in the middle of a transformation of its own. Vision 2030 calls for digitalization, efficiency, and global competitiveness. For Almarai, this isn’t optional. Demand is growing, product lines are diversifying, and regional competition is heating up. The company announced a SAR 18 billion (≈USD 4.8 billion) five-year investment plan—and a significant slice of that is earmarked for digital systems.
Dr. Faisal Al-Nasser, Almarai’s CIO, put it plainly: “If we don’t have real-time visibility, we’re flying blind. We need to know what’s happening in our farms, plants, and trucks this minute—not tomorrow.” The choice of SAP’s RISE package with Google Cloud wasn’t just about shiny technology; it was about staying alive and agile in a sector where delays or mistakes can mean spoiled products and lost trust.
What exactly they’re deploying
At the center is SAP S/4HANA, the latest version of SAP’s flagship enterprise resource planning (ERP) software. Unlike the clunky on-premise systems of the past, this one runs in the cloud. That means:
- All core functions—finance, supply chain, sales, production—live on one integrated platform.
- Automatic updates instead of costly, years-long upgrade cycles.
- Analytics dashboards that show live data: inventory levels, truck routes, energy use, and sales trends.
- Built-in scalability: adding new factories or markets no longer requires months of IT build-out.
Almarai is also migrating its customer-facing systems—sales, CRM, and service portals—to the cloud. Imagine a supermarket in Jeddah placing an order and the system instantly checking production schedules, delivery trucks, and payment terms. That’s the level of synchronization they’re aiming for.
Counting the costs: how much does a digital core really cost?
Almarai doesn’t publish line-item budgets for software, but we can make educated estimates based on global benchmarks and industry whispers. Here’s how it might break down over five years:
1. Licenses and subscriptions
RISE with SAP is sold as a subscription. For an enterprise with tens of thousands of users, the annual cost could easily hit USD 25–50 million. This covers the ERP software, core hosting, and standard support.
2. Cloud infrastructure
Running mission-critical workloads on Google Cloud—storage, compute, bandwidth—adds another USD 10–20 million per year. High availability across multiple regions and compliance with Saudi data rules aren’t cheap, but they’re non-negotiable.
3. Implementation and consulting
Here’s where the real money goes. Migrating decades of data, integrating with legacy systems, customizing workflows, and training thousands of staff requires armies of consultants. One-time costs could land anywhere between USD 50–100 million.
4. Training and change management
You can’t just flip a switch and expect thousands of employees—from farm technicians to sales reps—to adopt new systems overnight. Dedicated training programs, digital literacy upgrades, and ongoing support may cost another USD 5–10 million.
5. Ongoing optimization
Post-launch, Almarai will keep tweaking, adding AI modules, and integrating new analytics tools. Think another USD 5–10 million per year.
Total estimated spend over 5 years: USD 400–600 million (SAR 1.5–2.25 billion). Not pocket change—but when you’re safeguarding an SAR 18 billion expansion, it’s a rational investment.
Why it matters beyond IT
It’s easy to dismiss ERP projects as IT housekeeping. But for Almarai, this is about speed and trust. A dairy giant can’t afford stock-outs in supermarkets or spoiled goods from late deliveries. With real-time systems:
- Truck breakdowns can be rerouted instantly.
- Inventory mismatches are flagged before shelves go empty.
- Financial controllers see the same numbers as factory managers and sales leads.
For Saudi Arabia as a whole, Almarai’s project is a case study in what Vision 2030 looks like in practice: a traditional industry modernizing at scale, not just tech startups in Riyadh towers.
The human side of digital transformation
Technology is easy to buy; culture is hard to change. One of the biggest lessons from global ERP rollouts is that systems fail when people don’t use them correctly. Almarai knows this. That’s why training is baked into the project, and why managers are expected to model the change.
For workers, this means less paper shuffling and more reliance on tablets, apps, and dashboards. For managers, it means more accountability—because the data is live and transparent. As one Almarai project lead said off-record: “You can’t hide in spreadsheets anymore.”
Lessons for other Saudi businesses
If you’re running a growing company in the Kingdom, you might look at Almarai’s hundreds of millions in tech spend and think: “That’s not for us.” But the principles scale down:
- Cloud beats on-premise: Even for SMEs, cloud systems reduce headaches and make scaling easier.
- Plan for people, not just tech: Train your staff and prepare for resistance. Change management is as important as licenses.
- Budget realistically: The first year is always pricier than expected. Build buffer funds.
- Measure value, not just cost: Even a 1% gain in efficiency pays back fast in sectors with thin margins.
- Think compliance: Data localization and SAMA rules aren’t optional. Pick providers that respect Saudi regulations.
Future possibilities: AI, automation, and beyond
Once the ERP core is in place, Almarai can add advanced tools. Imagine AI models predicting demand for laban during Ramadan, or machine learning spotting early signs of equipment failure in a dairy plant. Cloud systems make these add-ons plug-and-play, instead of massive IT projects.
There’s also the opportunity for regional expansion. If Almarai acquires or partners with companies in neighboring GCC countries, plugging them into the same digital backbone will be far easier.
Frequently asked questions
Why SAP and not another ERP?
SAP dominates in food and FMCG industries. Its modules for supply chain, finance, and production are mature, and global consultants know how to deploy it at scale.
Isn’t cloud risky for sensitive data?
Data sovereignty is a hot topic, but Google Cloud now has regional hosting and partnerships in Saudi Arabia. This addresses most compliance concerns.
Will jobs be cut?
Automation often means fewer clerical roles. But most companies, including Almarai, aim to reskill staff into analytics, customer support, or digital operations instead of layoffs.
How soon will ROI show up?
Global benchmarks suggest 2–4 years for ERP payback. For Almarai, with its massive scale, even tiny efficiency gains add up quickly.
Final takeaway
Almarai’s 2025 digital transformation isn’t about chasing buzzwords. It’s about survival, efficiency, and staying ahead in a competitive food market. By shifting its backbone systems to SAP’s RISE on Google Cloud, the company is effectively rewiring how milk moves from cow to carton to consumer. The costs are enormous—but so are the stakes.
For Saudi businesses watching from the sidelines, the lesson is simple: digital isn’t optional anymore. Whether your company is worth millions or billions, cloud systems, real-time data, and ERP integration are quickly becoming the price of admission. The sooner you plan, the smoother the ride.
Call to action: Don’t wait for a crisis to modernize. Start small if you must—a cloud-based accounting system, a digital CRM, or real-time analytics for sales. Learn from Almarai’s bold bet: in the long run, the cost of not transforming is far higher than the cost of change.
