Brazilian food processor BRF SA said on Monday it has agreed to form a Saudi joint venture with Halal Products Development Company (HPDC) in a bid to develop the halal meat industry in the Middle East country, reported Reuters.

BRF, which will own up to 70% of the joint venture, said the new company will have a combined investment of $500 million.

The venture will operate in the entire chicken production chain in Saudi Arabia and sell fresh, frozen and processed products, the Brazilian firm added. HPDC is a subsidiary of Saudi Arabia's Public Investment Fund (PIF).