Saudi Arabia’s Public Investment Fund (PIF) wants to invest $320 million in the growth of the country’s arabica green coffee company, with the objective of becoming a global player in coffee exports.
Big Investment in Green Coffee Company
According to the PIF, Saudi Arabia’s sovereign wealth fund, which is estimated to have assets of Arab Saudi Investment $600 billion, the investment’s goal is to increase the country’s green coffee production from 300 tons per year to 2,500 tons per year.
According to the International Coffee Organization’s most recent publicly accessible numbers, such output would place Saudi Arabia somewhere between 40 and 45 in terms of national coffee production internationally, just ahead of Nigeria and Ghana and just behind Timor-Leste.
Coffee Beans Company Collaboration
According to the official Saudi Press Agency, the investment includes the establishment of a new Saudi Coffee Company, which will collaborate with the private sector to boost coffee production in the southern Jazan region.
Saudi Arabia’s coffee production is mostly ascribed to three southern and western regions: Jazan, Al-Baha, and Asir, where the PIF estimates that there are presently 2,500 small coffee farms with roughly 400,000 grown coffee plants.
Coffee exports from the oil-rich country have mostly been intended for other Middle Eastern countries in recent years. According to the USDA’s Foreign Agriculture Service, Saudi Arabia has overtaken Germany, Japan, and the United States as the top buyer of Ethiopian coffee.
According to the PIF, the new Saudi Coffee Company would be involved in coffee industry growth from seed to cup.
According to the Saudi Press Agency, “as part of its role in building expertise across the industry, the company will also localize knowledge and bring the latest technology across the planting, harvesting, roasting, and marketing aspects of the coffee industry in Saudi Arabia.” “With these goals in mind, the company plans to open a dedicated academy in several places around Saudi Arabia, where Saudi Arabian professionals, entrepreneurs, coffee plantation owners, and farmers may obtain the training and information they need to launch their own enterprises.” The institution will also assist residents in the region in contributing to the growth of the business and taking advantage of the opportunities that this brings.”
Target Saudi Arabia about Arabica
Saudi Arabia remains a burgeoning arabica consumer market, with an expected annual growth rate of 4% between 2016 and 2021. According to Euromonitor International, domestic demand would grow by 5% per year until 2026, reaching an expected annual consumption of about 28,700 tons of coffee, more than ten times the target volume for the new production investment.