Saudis Spend $267 Million on Coffee

The spending of the Saudis on preparing coffee amounted to more than one billion riyals (about $267 million), with an increase of more than 80,000 tons, according to a report by “Sabq” newspaper.

This expenditure ranked the Kingdom as one of the most coffee consuming countries in the world, while the annual quantities of coffee imported to the Saudi market are estimated at about 73,000 tons.

The head of the Jazan Chamber of Saudi Arabia, Counselor Ahmed Abu Hadi, said that according to the latest official statistics, the domestic product of Arabica coffee in the mountainous governorates in the regions of Jazan, Al Baha and Asir amounted to 1,810 tons annually, and about 350 tons of pure coffee after peeling, and the number of coffee farms in them reached 2,535 farms, containing 398,000 coffee trees.

Abu Hadi pointed out that the volume of women’s investment is about 15% of the total market, and it is expected to grow to 32% within a few years, which also provides many job opportunities for young people, and specialized experts expect that by 2025 spending on coffee outside the home will reach about 70 %, with a compound annual growth rate between 18% and 32%.

And he indicated that, according to those economic estimates, the Jazan Chamber has worked on completing the study of establishing a coffee production factory in the Jazan region, with an investment capital estimated at 65.7 million riyals, and a production capacity of 1788 tons annually.

He pointed out that the project’s profitability indicators estimated the ROI at 538%, and the payback period is 3 years, adding that the study of the coffee project represented the 11th investment opportunity that the Chamber had completed its economic study.