Sovereign wealth fund PIF launches Saudi Coffee Company to boost the Kingdom’s food and agriculture sector

Published on 05/15/2022


Saudi Arabia’s Public Investment Fund (PIF) has announced the launch of the Saudi Coffee Company. The company was established to enable the coffee bean from Saudi Arabia to become a global commodity in the future and will play a vital role in the development of sustainable coffee production in the southern region of Jazan, home to the famous Coffea Arabica. The launch of the Saudi Coffee Company is part of PIF’s strategy, which focuses on developing and empowering 13 sectors, including food and agriculture, as part of broader efforts to diversify sources of income for the local economy. In partnership with the private sector, the main objective of the Saudi Coffee Company is to ensure that the national coffee industry is enabled throughout its value chain, from bean to cup.

Market
The coffee market in Saudi Arabia has grown significantly in recent years, and domestic market statistics demonstrate the attractive opportunity the coffee sector presents. Market data 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, according to 2022 data from Euromonitor International.

Plans
Over the next ten years, Saudi Coffee Company intends to invest nearly SAR 1.2 billion in the national coffee industry, with the aim of increasing the country’s production from 300 tons per year to 2 500 tons per year. According to the latest statistics, 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 over 2,500 coffee plantations with a combined total of around 400,000 coffee trees.

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