PIF sovereign wealth fund launches Saudi Coffee Company

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Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched the Saudi Coffee Company. The company aims to enable global trade in coffee beans from Saudi Arabia and develop sustainable coffee production practices in the southern region of Jazan, home to the flowering plant of Coffea Arabica.

Over the next ten years, the coffee company intends to invest nearly SAR 1.2 billion in the national coffee industry and increase the country’s production from 300 tons per year to 2,500 tons. per year, according to the Saudi Press Agency (SPA).

The domestic production of Saudi Khawlani coffee beans comes from the mountainous regions of Jazan, Al Baha and Aseer. In the three regions, there are said to be over 2,500 coffee plantations with a combined total of around 400,000 coffee trees.

The coffee market within the kingdom has grown considerably in recent years. Market data shared by the SPA shows that coffee consumption in Saudi Arabia has increased by around 4% per year between 2016 and 2021 and is expected to increase by another 5% per year until 2026, reaching an expected annual consumption. of 28,700 tons.

Saudi Coffee Company will partner with the private sector with the primary aim of ensuring that the national coffee industry is enabled throughout its value chain, from bean to cup. The company will focus on achieving sustainability in the production, distribution and marketing aspects of the coffee supply chain, implementing global best practices in coffee production, creating new jobs in the industry and promoting Saudi Arabia’s capabilities to export the highest quality coffee beans.

The coffee company will also localize knowledge and introduce the latest technologies in the fields of planting, harvesting, roasting and marketing of the coffee industry in the kingdom.

In addition, it will establish a dedicated academy in various locations across the country, where Saudi professionals, entrepreneurs, coffee plantation owners and farmers can receive the training and skills needed to help them start their own business. The academy will also help locals contribute to the growth of the industry and take advantage of the resulting opportunities.

The launch of the Saudi Coffee Company is part of PIF’s diversification strategy which focuses on the development of 13 growth sectors, including food and agriculture.

Read: Video: How Honduran coffee makes the trip to the UAE

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