South Korean bakery giant SPC Group's flagship bakery chain Paris Baguette will make its first inroad into the Middle Eastern and African market as a part of its efforts to tap into the global halal food market worth some $2 trillion in value, said SPC Group, Monday.

SPC Group said it signed a memorandum of understanding with a United Arab Emirates-based conglomerate Galadari Brothers Group on Sunday to establish a joint venture by 2024. Galadari Brothers Group currently operates businesses in diverse sectors internationally, including media, automobile, travel and food and beverage business.

"The halal market is a market of great strategic importance to Paris Baguette's global business, and we will accelerate expansion of our business overseas by closely cooperating and initiating bold investments with Galadari Brothers Group,” said SPC Group President Hur Jin-soo.

Under the deal, which was inked during SPC’s participation in the delegation accompanying President Yoon Suk Yeol’s state visit to the Middle East, Paris Baguette will foray into 12 countries in the Middle Eastern and African market. The countries under consideration so far include Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain.

"We are happy to be working jointly with Paris Baguette, which is already successfully operated in the United States, Europe and Southeast Asia. We expect Galadari Brothers Groups’ operational capabilities, market influence and Paris Baguette's excellent products and global brand power to create synergy,” said Mohammed Galadari, CEO of Galadari Brothers Group, during the signing ceremony for the memorandum.

SPC Group will supply products to the Paris Baguette outlets in the new markets by producing necessary goods from its Malaysia Johor Bahru Plant, SPC Group's halal-certified production base scheduled for completion next year.

In June last year, SPC set up a joint venture with Malaysian food company Berjaya Food, in a bid to use Malaysia as a strategic production and logistics base for the Southeast Asian and Middle Eastern market. Once the construction of the factory is complete, the 12,900-square-meter facility will allow for efficient transport of SPC’s goods, according to the company.

Starting with China in 2004, Paris Baguette has steadily expanded its business by entering the global market and has established its presence in 10 countries including the United States, France, the United Kingdom, Canada, Singapore, Vietnam, Cambodia, Indonesia and Malaysia.

Paris Baguette, which recently opened its 500th global outlet on Sunday in Singapore, saw its global sales exceed 600 billion won ($443 million) last year, seeing some 39 percent on-year increase compared to 430 billion won in annual sales posted in 2021, according to SPC Group.

• ·Labor unions slam government efforts to attract more foreign workers
• ·Looming election has Yoon advocating harder for everyday South Koreans
• ·尹 대통령, 사우디 국방장관 만나 “국방·방산 협력 심화”
• ·Samsung Biologics to offer solutions for Kurma Partners' portfolio firms
• ·Hillstate Gayang flats in Daejeon to go on sale
• ·Opposition leader returns to party duties, calls for Cabinet overhaul
• ·Korea reports 7 more cases of lumpy skin disease, total now at 17
• ·Eugene Group wins bid to acquire news channel YTN
• ·정부, GP 복원 계획…김태효 "北 무장에 가만히 있으면 안된다"
• ·Paris Baguette to expand into Middle East, Africa
• ·Samsung, Hyundai ink first EV battery deal
• ·[Korea Beyond Korea] Berlin, Europe's Korean Studies hub, nurtures next
• ·S. Korea's Busan making last
• ·Monk sentenced to 18 months for assaulting woman who refused sex
• ·Exhibition at holy site highlights Catholic presence in Korea
• ·Over 40% of manufacturers say they need more foreign workers