Saudi Arabia’s PIF sets up company to promote Ajwa dates

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Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched a company to foster the growth and development of the kingdom’s date industry.

The new company, Al Madinah Heritage Company (MHC), will play a key role in improving the quality and​ production capacity of Ajwa dates in the Madinah region. The fund said the launch of MHC is expected to support the further development of Saudi Arabia’s food and agriculture sector while driving the diversification of the economy.

MHC will focus on promoting and distributing Ajwa dates both within Saudi Arabia and internationally in addition to other date varieties to meet growing global demand. “The company will seek to increase the production and quality of Ajwa dates and will enhance the promotion and distribution of its products, helping to expand the reach of Ajwa dates,” PIF said in a statement.

#PIF has announced the establishment of #AlMadinahHeritage Company (MHC). The new company will play a key role in enhancing the production of Ajwa dates in the Madinah region.

Learn more: https://t.co/j8zBaRZDIO pic.twitter.com/PgKJkbcuEa

— Public Investment Fund (@PIF_en) July 23, 2023

It will also contribute to the wider development of sustainable agriculture in Saudi Arabia’s Madinah region through the adoption of the latest agricultural technologies.

“Saudi Arabia is one of the world’s most prominent producers and exporters of dates and its products have always been of the highest quality, catering to wide consumer demand,” said Majed Al-Assaf, head of Consumer Goods and Retail in the MENA Investments Division at PIF.

Al-Assaf said the date industry is a key component of the kingdom’s food and agriculture sector and has an important role to play in the realisation of Vision 2​030.

Ajwa dates are widely considered among the finest dates in the world, due to their high nutritional value and significant health benefits and a rich source of fibre, protein antioxidants and other nutritious factors. Similarly, they have a religious and cultural value in the Muslim world and for visitors to the Madinah region.

MHC joins PIF’s sprawling portfolio

Meanwhile, PIF has launched 85 companies in 13 strategic sectors while creating more than half a million direct and indirect jobs. The $700bn sovereign wealth fund has been creating companies across a wide range of industries as it takes on an increasingly assertive role in diversifying the domestic economy away from oil.

Last week, PIF launched Sawani Company, to advance the growth of the country’s camel farming industry and actively contribute to its sustainable development. The fund unveiled the Pharmaceutical Investment Company (Lifera) in June to boost Saudi Arabia’s biopharma growth, strengthen national resilience and advance the kingdom’s position as a global pharma manufacturing hub.

PIF also invested in the National Unified Procurement Company, one of the biggest providers of medical procurement, storage and distribution services for medicines to the Saudi healthcare sector. The investment is aimed at boosting the local supply chain of medicines.

Other companies that were created in the recent past include the Saudi Coffee Company, the Halal Products Development Company and the Saudi Agricultural Investment and Livestock Production Company. PIF also owns stakes in tech companies such as ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Read: How GCC wealth funds are fuelling growth and prosperity