Saudi Aramco and the Saudi Coffee Company Launch Strategic Partnership to Enhance Local Coffee Industry and Propel It to Global Markets
Saudi Aramco and the Saudi Coffee Company, a subsidiary of the Public Investment Fund, have signed a memorandum of understanding to develop coffee production and the Saudi coffee industry, marking the beginning of a new phase of sustainable development for this vital national sector. This agreement aims to enhance Saudi coffee production and make Saudi coffee a competitive national brand.
The agreement was signed by Khalid Al-Zamel, Acting Vice President of Public Affairs at Saudi Aramco, and Fahad Al-Nahit, Chairman of the Saudi Coffee Company. The agreement includes expanding support for the coffee industry and training farmers in the Jazan and Asir regions, in addition to enhancing the initiatives previously launched by Saudi Aramco.
Under the memorandum, the Saudi Coffee Company will support the entire value chain of the coffee product and provide consultations necessary to operate the Coffee Development Center in Al-Dayer Governorate, which is being established in collaboration with the Authority for the Development and Reconstruction of Mountainous Regions in Jazan. This center will play a vital role in serving the farmers of the region and expanding the marketing of coffee locally and exporting it to international markets.
Khalid Al-Zamel emphasized that the cooperation with the Saudi Coffee Company represents an important step in Saudi Aramco’s citizenship initiatives, which continue to support small industries. He pointed to Saudi Aramco’s program launched in 2016 to train coffee farmers on sustainable farming methods in the Jazan region, focusing on improving production and marketing.
Saudi Aramco also supports small projects and sustainable initiatives that enhance national identity, such as supporting beekeepers, fishermen, date production, textile industries, and other crafts that contribute to preserving cultural heritage and providing a decent living for beneficiaries, thereby contributing to the community’s development.
The Saudi Coffee Company, launched by the Public Investment Fund in May 2022, aims to increase Saudi coffee production and establish Saudi Arabia as a major home for Arabica coffee, the most renowned globally, by enhancing local production technologies and providing necessary training for farmers. The company seeks to develop Saudi coffee production, market it globally, and support young entrepreneurs in the local coffee industry.
Recent Support for Saudi Arabia’s Coffee Sector:
The coffee sector in Saudi Arabia is experiencing significant growth, with sector investments increasing considerably in recent years. According to recent reports, the Saudi coffee market size is expected to reach 3.8 billion Saudi Riyals by 2025, with a compound annual growth rate of 6.2%. These investments include opening numerous specialty coffee shops and cafes, importing the best coffee beans from around the world, and enhancing local production of Saudi coffee.
New Initiatives:
Among the new initiatives, efforts are focused on organizing coffee festivals and exhibitions to raise awareness of the industry’s importance and promote local consumption. Farmers are also encouraged to improve crop quality and adopt sustainable farming practices, which contribute to increased productivity and enhanced quality.
Saudi Arabia’s Position in the Global Coffee Market:
Saudi Arabia aims to strengthen its position in the global coffee market by improving the quality of locally produced coffee and increasing its export to international markets. These steps will help make Saudi coffee a strong competitor in global markets, boosting the national economy and providing new job opportunities for Saudi youth.
Kingdom’s Interest in the Coffee Sector:
In 2023, Saudi Arabia announced the designation of that year as the “Year of Saudi Coffee,” a move aimed at highlighting the importance of this industry and supporting it nationally and globally. Additionally, the Kingdom renamed Arabic coffee to Saudi coffee, in an initiative aimed at enhancing national identity and promoting the Saudi product. These efforts reflect the great interest of the wise leadership in developing the coffee sector and making it a part of the Kingdom’s cultural and economic identity.
Thanks to these initiatives and strategic partnerships, the future of the coffee industry in Saudi Arabia looks bright and full of promising opportunities for sustainable development and growth.
