Coffee

PIF Launches the Saudi Coffee Company to Further Enable Saudi Arabia’s Food & Agriculture Sector

• - Saudi Coffee Company intends to invest SAR 1.2 billion over 10 years to develop the national coffee industry and boost production capacity from 300 to 2,500 tons annually

• - The company plans to establish a dedicated academy to train local talents, entrepreneurs, coffee plantation owners, and farmers as part of PIF’s focus on creating opportunities for small businesses and start-ups

• - The launch of the Saudi Coffee Company is in line with PIF’s strategy, which focuses on 13 priority sectors, including food and agriculture

RIYADH, 15/May/2022. – The Public Investment Fund (PIF) today announced the launch of the Saudi Coffee Company. The company has been established to enable Saudi Arabia’s coffee bean to be a global product in the future, and will play a vital role in developing sustainable coffee production in the southern Jazan region, home to the world-famous Coffea Arabica.

The launch of the Saudi Coffee Company 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.

In partnership with the private sector, the Saudi Coffee Company’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 new jobs, and promote Saudi Arabia’s capabilities to export the highest-quality coffee beans to the global markets.

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 approximately 4% a year between 2016 and 2021 and is forecast to increase by a further 5% per annum up to 2026, reaching an expected annual consumption of 28,700 tons*.

Over the next ten years, the company intends to invest nearly SAR 1.2 billion in the national coffee industry, with the goal of boosting the country’s production from 300 tons per year to 2,500 tons per year. According to the latest statistics, 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 more than 2,500 coffee plantations with a combined total of around 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. With these goals in mind, the company plans to establish a dedicated academy in various locations in the country, where Saudi Arabian professionals, entrepreneurs, coffee plantation owners, and farmers can receive the training and knowledge they need 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 opportunities this creates.

*Source: Euromonitor International, (2022). Coffee in Saudi Arabia.

Frequently asked question

What is Saudi Coffee Company? What does it do?

The Saudi Coffee Company is a Public Investment Fund company. It aspires to lead in the production, development and promotion of local coffee in Saudi Arabia and the world, in partnership with the private sector and enriching economy diversity efforts.

What does the Public Investment Fund aspire with establishing SCC?

The launch of the Saudi Coffee Company 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.

What will SCC add to the coffee sector in the Kingdom?

SCC aims to play a major role in promoting sustainable agriculture in the Jazan region in the south of the Kingdom, as it is the main home of the world's most famous Coffea Arabica.

There are many coffee companies in the kingdom. What makes SCC so special?

SCC aims to play a major role in promoting sustainable agriculture in the Jazan region in the south of the Kingdom, as it is the main home of the world's most famous Coffea Arabica. It will also work on transferring technology and knowledge in the (cultivation, roasting, marketing and selling of coffee), and all related operations to the Kingdom, in order to strengthen the local product’s international position.

SCC will be supported and financed by the Public Investment Fund, which will provide it with greater market influence. Isn’t this going to affect other similar companies?

SCC’s endeavors are focused on enhancing the entire value chain of the local coffee product, starting at the point where the seeds are planted into the soil, all the way to the consumer’s cup of coffee. This will contribute to empowering the coffee sector in the Kingdom in general. Also, SCC will participate in empowering idea owners and entrepreneurs in the local coffee market and will work in partnership with Saudi small and medium-sized companies looking for growth and expansion opportunities to help them explore the prospects of the sector and take advantage of available opportunities.

To what extent will SCC invest in developing the national coffee sector?

SCC is looking to invest about SR 1.2 billion over the next ten years in the national coffee sector. SCC aspires that its farms’ produce will grow from 300 to reach 2,500 tons per year.

How will SCC contribute to activating the national coffee sector? And what will the company offer in terms of nationalization?

SCC intends to empower Saudi small and medium-sized companies looking for growth and expansion opportunities to help them explore the prospects of the sector and take advantage of available opportunities.

How will SCC develop national talents in the national coffee sector?

SCC will establish an academy specialized in the coffee industry, in several regions in the Kingdom, responsible for training and qualification and providing programs for Saudi talents, entrepreneurs and farmers in order to provide them with all the knowledge and skills to help them establish their own projects and farms, and to enhance the participation and contribution of the people of the region to take advantage of available opportunities.

What are your expectations for SCC’s contribution to the local labor market?

SCC aspires to provide around many direct and indirect job opportunities for Saudi youth in the national coffee sector and other related sectors, in addition to empowering talents, farmers and entrepreneurs.

What is the expected volume of SCC’s contribution in the Coffea Arabica industry?

We look forward, by the grace of Allah, to raising the production of Coffea Arabica in the Jazan region from 300 to 2500 tons annually.

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