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Saudi Coffee Company and NADEC Join Forces to Boost Local Coffee Production

Prime Highlights

  • A PIF-backed Saudi Coffee Company enters into deal with National Agricultural Development Company (NADEC).
  • Deal is for the establishment of local cultivation of coffee beans and farm stability.

Key Fact

  • Saudi aims to grow 10 million coffee plants by 2030.
  • The agreement comes under the Vision 2030 goal of localisation of the big economic sectors.

Key Background

Saudi Arabia’s Public Investment Fund (PIF) wholly-owned Saudi Coffee Company signed a memorandum of understanding (MoU) agreement with National Agricultural Development Company (NADEC) for production and development of native coffee and native coffee cultivation. The venture is in sync with the Kingdom’s Vision 2030 on agricultural innovation, diversification of economic activity, and sustainability.

Both the two parties to the agreement will cooperate to come up with new farm models, enlarge Saudi coffee bean cultivation, and enhance the worth of the value chain of agriculture. This includes the establishment of smart agricultural techniques and facilities that will help allow coffee growth to take place in areas that can be used as potential in the Kingdom. In addition, the partnership will most probably include the mass planting of Arabica coffee trees, especially in regions such as Jazan, Al-Baha, and Asir — regions of high-quality coffee potential.

Saudi Coffee Company, established by the PIF in 2022, seeks to have ownership of 10 million coffee plants by 2030. The joint venture with NADEC, one of the region’s largest agri-food and food processing companies, is a giant leap towards that. Local production will not just grow, but foreign dependence on coffee will decline and open new rural employment.

This partnership is also a reflection of the overall thrust of Saudi Arabia towards the support of local industries and sustainable development. It aims to make Saudi Arabia a force to be reckoned with in the global specialty coffee industry as an entity. While the market for genuine, locally-produced products is still on the rise, the investment of the Kingdom on its indigenous coffee industry is a reflection of its drive towards preservation of heritage and economic growth.