Sovereign wealth fund PIF launches Saudi Coffee Company

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

Over the next ten years, the coffee company intends to invest nearly SAR1.2bn in the national coffee industry, and boost the country’s production from 300 tons per year to 2,500 tons per year, according to state run Saudi Press Agency (SPA).

The national production of the Saudi Khawlani coffee beans comes from the mountainous regions of Jazan, Al Baha, and Aseer. Across the three regions, there are reportedly 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 SPA shows that coffee consumption in Saudi Arabia grew by approximately 4 per cent a year between 2016 and 2021 and is forecast to increase by a further 5 per cent per annum up to 2026, reaching an expected annual consumption of 28,700 tons.

#PIF announces the launch of the @SaudiCoffeeCo, which will enable Saudi Arabia’s Food and Agriculture sector by developing sustainable coffee production in the southern Jazan region, home to the world-famous Coffee Arabica.

For more information: https://t.co/qZSta5srzW pic.twitter.com/2417GRe1vi

— Public Investment Fund (@PIF_en) May 15, 2022

Saudi Coffee Company will partner with the private sector with a primary goal to ensure that the national coffee industry is enabled along its entire value chain, from bean to cup. The company will focus on achieving sustainability across the production, distribution, and marketing aspects of the coffee supply chain, implementing global best practices in coffee production, create new jobs within the industry and promote Saudi’s capabilities to export highest-quality coffee beans.

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

Also, it will establish a dedicated academy in various locations in the country, where Saudi professionals, entrepreneurs, coffee plantation owners, and farmers can receive the required training and skillsets to help them start their own businesses. The academy will also help locals in the region to contribute to the industry’s growth and take advantage of the resulting opportunities.

The launch of the Saudi Coffee Company comes against the backdrop of PIF’s diversification strategy that focuses on developing 13 promising sectors, including food and agriculture.

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