Saudi Arabia’s sovereign wealth fund launches coffee company to boost food, agriculture sector

Saudi Arabia’s Public Investment Fund announced the launch of Saudi Coffee Co., which aims to turn Saudi coffee beans into a global product.

In a statement, the PIF revealed that the company intends to invest SR1.2 billion ($320 million) over the next 10 years.

The statement added that the launch of Saudi Coffee Co. will play a crucial role in developing sustainable coffee production in the southern Jazan region, home to the world famous Coffea Arabica.

“The launch of the Saudi Coffee Co. aligns with PIF’s strategy, which focuses on developing and enabling 13 promising sectors, including food and agriculture, as part of broader efforts to diversify sources of income for the local economy,” the statement added.

In partnership with the private sector, the Saudi Coffee Co.’s primary goal is to ensure that the national coffee industry is enabled along its entire value chain, from bean to cup.

The company will have a strong focus on achieving sustainability across the production, distribution and marketing aspects of the coffee supply chain, implementing the highest standards and global best practices to empower the national industry’s growth, create jobs and promote the Kingdom’s capabilities to export the highest quality coffee beans to the global market.

The coffee market in Saudi Arabia has grown considerably in recent years, and domestic market statistics demonstrate the attractive opportunity presented by the

coffee sector. Market data shows that coffee consumption in Saudi Arabia grew by about 4 percent per year between 2016 and 2021, and is forecast to increase by a further 5 percent per annum up to 2026, reaching an expected annual consumption of 28,700 tons.

Over the next 10 years, the company intends to invest almost SR1.2 billion ($320 million) in the national coffee industry, with the goal of boosting the country’s production from 300 to 2,500 tons per year.

According to the latest statistics, the national production of Saudi Khawlani coffee beans comes from the mountainous regions of Jazan, Baha and Asir. Across the three regions, there are more than 2,500 coffee plantations with a combined total of about 400,000 coffee trees.

As part of its role to build expertise across the industry, the company will also localize knowledge and introduce the latest technologies across the planting, harvesting, roasting and marketing sides of the coffee industry in Saudi Arabia.