PIF seeks global footing as it launches Saudi Coffee Co. with $320m investment

PIF seeks global footing as it launches Saudi Coffee Co. with $320m investment
The statement added that the launch of Saudi Coffee Co. will play a crucial role in developing sustainable coffee production in the southern Jazan region, home to the world-famous Coffea Arabica. (Shutterstock)
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Updated 15 May 2022

PIF seeks global footing as it launches Saudi Coffee Co. with $320m investment

PIF seeks global footing as it launches Saudi Coffee Co. with $320m investment
  • The launch of the Saudi Coffee Co. comes at a time when Saudi Arabia is showing considerable growth in the coffee market

RIYADH: Saudi Arabia’s sovereign wealth fund announced the launch of Saudi Coffee Co., aimed at turning Saudi coffee beans into a global product, PIF said in a statement.

In the statement the Public Investment Fund revealed that the company intends to invest SR1.2 billion ($320 million) in the next 10 years.

The statement added that the launch of Saudi Coffee Co. will play a crucial 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,” the statement added.

The launch of the Saudi Coffee Co. comes at a time when Saudi Arabia is showing considerable growth in the coffee market.

Citing a Euromonitor International report, PIF revealed that coffee consumption in Saudi Arabia grew by approximately 4 percent a year between 2016 and 2021 and is forecast to increase by a further 5 percent per annum up to 2026, reaching an expected annual consumption of 28,700 tons.

 


KPMG joins Saudi Arabia’s Digital Cooperation Organization as observer

KPMG joins Saudi Arabia’s Digital Cooperation Organization as observer
Updated 13 sec ago

KPMG joins Saudi Arabia’s Digital Cooperation Organization as observer

KPMG joins Saudi Arabia’s Digital Cooperation Organization as observer

RIYADH: KPMG has become the first professional services organization to join Saudi Arabia’s Digital Cooperation Organization as an official observer.

DCO is an intergovernmental organization established to enable digital prosperity. In a tweet, DCO wrote that KPMG will work together with the organization to inclusive digital economy growth and ensure digital prosperity for all.

A report published in ITP noted that KPMG’s association with DCO will involve operations in digital taxation, cross-border data flows, digital transformation and e-governance.

“KPMG is the first professional services observer of the DCO, with international expertise and a vital knowledge partner as we continue our mission to enable digital prosperity for all,” said Hassan Nasser, DCO vice president of international affairs.

 


AMAALA megaproject receives 3 bids for multi-utilities infrastructure contract: MEED

AMAALA megaproject receives 3 bids for multi-utilities infrastructure contract: MEED
Updated 30 min 49 sec ago

AMAALA megaproject receives 3 bids for multi-utilities infrastructure contract: MEED

AMAALA megaproject receives 3 bids for multi-utilities infrastructure contract: MEED

RIYADH: Saudi Arabia’s AMAALA megaproject has received three bids for a contract to develop multi-utilities infrastructure for its 4,155 square kilometers tourism scheme, MEED reported, citing industry sources. 

The companies which submitted the bids are ACWA Power, Alfanar, and the UAE-French consortium Masdar/EDF, the report added. 

The scope of the project includes a 146-megawatt solar power plant, and a seawater reverse osmosis plant with a peak capacity of 58,000 cubic meters a day, along with a sewage treatment plant with a capacity of 7,250 cm/d and power and water transmission networks. 

The energy component of the package comprises multiple substations and a centralized battery energy storage system. It will also have a solar photovoltaic power plant. 

AMAALA issued the tender for the contract in January, and it was extended multiple times. 

The complete package is expected to enter commercial operations by June 2024, the report further noted. 


TASI starts flat as investors assess the lower oil prices and higher inflation: Opening bell

TASI starts flat as investors assess the lower oil prices and higher inflation: Opening bell
Updated 16 August 2022

TASI starts flat as investors assess the lower oil prices and higher inflation: Opening bell

TASI starts flat as investors assess the lower oil prices and higher inflation: Opening bell

RIYADH: Saudi Arabia's benchmark index started Tuesday’s trading session flat as more earnings reports came out; investors tried to assess the impact of rising inflation and weaker oil prices on the index.

As of 10:06 a.m. Saudi time, the Tadawul All Share Index and the parallel market Nomu opened at 12,542 and 22,111, respectively.

In the energy market, Brent crude fell to $94.20 a barrel, while US West Texas Intermediate declined to $88.82 a barrel, as of 10:12 a.m. Saudi time.

The country's biggest lender Saudi National Bank increased 0.28 percent, while the Kingdom’s largest valued bank Al Rajhi added 0.11 percent.

Saudi Aramco lost 0.87 percent, despite achieving its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion), a 90 percent jump over analysts' expectations.

Dallah Healthcare Co. edged up 0.17 percent, after posting a 52 percent gain in profit during the first half of 2022, reaching SR152 million.

KEIR International rose 1.92 percent, after it partnered with US-based Quadratics Development to deploy its eco-friendly building system and technology in Saudi Arabia

Qassim Cement Co. dropped 2.08 percent, after reporting a 73 percent decline in first-half profits to SR54 million.

Al-Etihad Cooperative Insurance Co. shed 2.76 percent after its profits dropped 93 percent to SR2 million in the first half.

Abo Moati for Bookstores Co rose 1.63 percent, following a 125 percent profit surge to SR4.3 million for the second quarter of 2022.

Saudi Industrial Development Co. edged down 1.60 percent, after its losses widened by 88 percent to SR11 million during the first half.

Al Kathiri Holding Co. declined 1.35 percent, after it turned into losses of SR5.5 million in the first half of 2022.


Commodities Update — Gold ekes out gains; Corn, soybean down; Copper up; Five more grain ships leave Ukrainian port; 

Commodities Update — Gold ekes out gains; Corn, soybean down; Copper up; Five more grain ships leave Ukrainian port; 
Updated 16 August 2022

Commodities Update — Gold ekes out gains; Corn, soybean down; Copper up; Five more grain ships leave Ukrainian port; 

Commodities Update — Gold ekes out gains; Corn, soybean down; Copper up; Five more grain ships leave Ukrainian port; 

RIYADH: Gold prices edged higher on Tuesday, supported by a dip in US bond yields, although a stronger dollar and concerns over further rate hikes by the Federal Reserve kept gains in check.

Spot gold was up 0.1 percent at $1,781.40 per ounce, as of 0241 GMT.

US gold futures eased 0.1 percent to $1,796.70.

Silver slips

Spot silver slipped 0.3 percent to $20.20 per ounce, while platinum fell 0.1 percent to $932.01. 

Palladium was up 0.1 percent at $2,148.76.

Corn down, wheat up

Chicago soybean and corn futures lost more ground on Tuesday, with expectations of crop-friendly US weather conditions and declining demand in top importer China weighing on the market.

Wheat ticked higher after two sessions of losses.

The most-active soybean contract on the Chicago Board of Trade lost 0.7 percent to $14.02-1/4 a bushel, as of 0309 GMT.

Corn gave up 0.3 percent to $6.26-1/4 a bushel, while wheat added 0.8 percent to $8.07-1/2 a bushel.

Copper rises

Copper rose on Tuesday, tracking upbeat sentiment in the US markets on prospects that the Federal Reserve can achieve a soft landing for the economy, but gains were limited as weak China data clouded the demand outlook in the biggest consumer.

Three-month copper on the London Metal Exchange was up 0.8 percent at $8,040 a ton, as of 0307 GMT, having dropped 2.8 percent in the previous session, the steepest daily decline in a month.

The most-traded September copper contract on the Shanghai Futures Exchange climbed 0.6 percent to $9,180.38 a ton.

Turkey says five more grain ships leave Ukrainian ports

Five more ships have left Ukrainian ports carrying corn and wheat, three from Chornomorsk and two from Pivdennyi, under an UN-brokered grain export deal, Turkey’s defense ministry said on Tuesday.

It added that four more ships bound for Ukraine were to be inspected on Tuesday by the joint co-ordination center, set up by Russia, Turkey, Ukraine and the UN in Istanbul.

One of the ships leaving on Tuesday was the Brave Commander, carrying the first cargo of humanitarian food aid bound for Africa from Ukraine since Russia’s invasion, Refinitiv Eikon data showed.

(With input from Reuters)


Saudi PIF buys shares in Alphabet, Zoom and Microsoft in US shopping spree

Saudi PIF buys shares in Alphabet, Zoom and Microsoft in US shopping spree
Updated 16 August 2022

Saudi PIF buys shares in Alphabet, Zoom and Microsoft in US shopping spree

Saudi PIF buys shares in Alphabet, Zoom and Microsoft in US shopping spree

RIYADH: Saudi Arabia’s Public Investment Fund bought shares in Alphabet, Zoom Video and Microsoft as part of a wider pick of US stocks, bringing the sovereign wealth fund’s second-quarter investments to about $40.8 billion.

The PIF acquired 213,000 class A shares in Alphabet, 4.7 million class A shares in Zoom and 1.8 million shares in Microsoft, a US Securities and Exchange Commission filing showed.

It also acquired shares in JPMorgan and BlackRock, buying 3.9 million shares and 741,693 shares respectively.

The fund bought 6.3 million shares in Starbucks, and added other stocks including Adobe Systems, Advanced Micro Devices, Salesforce, Home Depot, Costco, Freeport-McMoRan, Datadog and NextEra Energy.

The PIF, which manages $620 billion in assets, is at the center of Saudi Arabia’s plans to transform the economy by creating new sectors and diversifying revenues away from oil.

The PIF is pursuing a two-pronged strategy, building an international portfolio of investments while also investing locally in projects that will help to reduce Saudi Arabia’s reliance on oil.

Apart from these firms, Saudi Arabia’s PIF is also the majority stakeholder in Lucid Motors, headquartered in California. Currently, PIF owns more than 60 percent share in the electric vehicle manufacturer.

In the first quarter of this year, PIF reduced its ownership of US equities by 22 percent to $43.6 billion, against the $55.9 billion it held a quarter earlier.

A filing by the US Securities and Exchange Commission by the end of the first quarter suggested that PIF cut its stake in three companies which includes Visa Inc., Plug Power, and Walmart.

PIF, however, increased its holdings in Take-Two Interactive, PayPal, Alibaba, and Farfetch Ltd.

Data released by the Sovereign Wealth Fund Institute, in April, had revealed that PIF is currently in the fifth spot among the largest sovereign funds in the world with assets valued at $620 billion. 

(With inputs from Reuters)