Riyadh, (Business News Report)|| The Public Investment Fund (PIF) of Saudi Arabia launched the Saudi Coffee Company with a value of 1.2 billion riyals ($320 million), over 10 years.
The PIF said that the goal of establishing the company aims to enable the growth of the food and agricultural sector in the Kingdom.
It stressed that the fund will raise the production capacity of Saudi coffee from 300 to 2,500 tons annually.
“The company will establish an academy specialized in the coffee industry and launch training programs for Saudi talents, entrepreneurs and farmers, in order to enhance the Fund’s efforts to create opportunities for small and emerging companies,” the statement added.
The fund said that the launch of the company comes in line with the fund’s strategy that focuses on developing 13 strategic sectors in the Kingdom, including the food and agriculture sector.
The company will work to support the entire value chain of the local coffee product in partnership with the private sector, starting from the cultivation stage until the product reaches the consumer, taking into account the element of sustainability in all stages of production, distribution and marketing.
This will contribute to raising standards and applying best practices in this field, creating many job opportunities in the sector, and contributing to strengthening the Kingdom’s capabilities to export the finest Saudi coffee beans to global markets.
The coffee sector in the Kingdom has witnessed remarkable growth in recent years, as studies show an annual growth in coffee consumption locally by 4% for the period between 2016 and 2021.
Studies also indicate that it is expected to grow by 5% in the coming years, to produce 28,700 tons by the end of 2026, which provides attractive investment opportunities provided by the sector.
The Saudi Coffee Company also aims to invest 1.2 billion riyals over the next 10 years in the Saudi coffee sector, and contribute to raising the production capacity of Saudi coffee from 300 to 2,500 tons annually.
The latest statistics indicate that the domestic product of the Saudi Khawlani coffee crop is distributed in the mountainous governorates of Jazan, Al Baha and Asir, where the number of coffee farms has reached 2,500 farms, including 400,000 coffee trees.
In order to activate its commitment to raising awareness and knowledge in the food and agricultural sector, the company’s efforts will also focus on localizing knowledge and the latest technologies in the fields of (cultivation, production, roasting, and marketing of coffee) and all related operations in the Kingdom.
The company intends to establish an academy specialized in the coffee industry in several regions in the Kingdom, which will be responsible for training, qualifying and providing many programs for talented Saudi entrepreneurs, entrepreneurs and farmers, with the aim of providing them with all the knowledge and skills to help them establish their own projects and farms.
As well as enhancing the participation and contribution of the people of the region to benefit from the opportunities offered by this sector.