PIF’s Saudi Coffee Co. to construct 30k-sqm coffee production warehouse in Jazan 

PIF’s Saudi Coffee Co. to construct 30k-sqm coffee production warehouse in Jazan 
The new coffee production warehouse will contribute to raising Saudi coffee output from the current 300 tons per year to 2,500 tons by 2032. (Supplied)
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Updated 17 November 2022

PIF’s Saudi Coffee Co. to construct 30k-sqm coffee production warehouse in Jazan 

PIF’s Saudi Coffee Co. to construct 30k-sqm coffee production warehouse in Jazan 

RIYADH: Saudi Coffee Co. has signed an investment deal with the Royal Commission for Jubail and Yanbu to construct a 30,000-square-meter coffee production warehouse in Jazan City for Primary and Downstream Industries as it looks to increase the Kingdom’s domestic coffee output.  

The new coffee production warehouse will contribute to raising Saudi coffee output from the current 300 tons per year to 2,500 tons by 2032 while further developing a more sustainable and localized value chain, according to a statement. 

The Public Investment Fund-backed company intends to invest as much as SR1.2 billion ($319 million) to elevate the Saudi coffee industry and create a stronger connection with global markets. 

In addition to this, SCC’s 2,500 coffee farms will have access to production and distribution networks. 

This comes as RCJY has signed investment and construction agreements worth over SR1 billion with multiple investors in Jazan city including SCC and United Feed Co.. The contracts are for various projects including setting up a coffee factory, and an animal feed plant as well as residential and infrastructure projects, Saudi Press Agency reported. 

SCC plans to open 25 coffee shops globally with a strategic plan comprising five pillars to elevate the coffee production industry in the Kingdom, the firm’s CEO Raja AlHarbi told Arab News on the sidelines of the Future Investment Initiative in Riyadh on Oct. 25. 

He further noted that the company will give adequate training to Saudi youths on agriculture, roasting, grading, and cupping of coffee.   

AlHarbi highlighted that SCC is not competing with other suppliers outside Saudi Arabia as no other companies are producing Jazan beans. 

He pointed out that PIF is supporting the firm to achieve its targets.  

“PIF is targeting to help in the diversification of the Saudi economy. Agriculture and coffee play a major role in this diversification. Coffee is the second biggest product globally after oil. So, imagine one day Saudi Arabia is the major oil producer, and one of the major coffee producers,” he stressed. 

In partnership with the private sector, SCC’S main objective is to guarantee that the national coffee industry is qualified along its entire value chain, from bean all the way to cup. 


UAE signs deal with Israel to reduce tariffs

UAE signs deal with Israel to reduce tariffs
Updated 12 sec ago

UAE signs deal with Israel to reduce tariffs

UAE signs deal with Israel to reduce tariffs

RIYADH: The UAE and Israel have inked a custom cooperation deal to activate the pledge they signed in May 2022 to reduce tariffs on 96 percent of goods traded between the countries. 

The agreement aims to enable mutual assistance in ensuring the proper application of customs laws by accurately assessing customs and other tax fees on exports and imports as well as adjusting customs data. 

The new customs deal will take effect from April 1 and will permit Israeli companies to compete for government tenders in the UAE. 

Mohamed Al Khaja, the UAE’s Ambassador to Israel, and Eli Cohen, the Israeli Minister of Foreign Affairs, signed the agreement between the two countries in the presence of the country’s Prime Minister Benjamin Netanyahu at the Prime Minister’s office in Jerusalem. 

“The Comprehensive Economic Partnership Agreement between the UAE and Israel will serve as a major engine to strengthen economic and commercial ties between the UAE and Israel. We expect the agreement to produce significant mutual economic benefits,” Al Khaja said. 

The comprehensive agreement signed in May aimed to align customs between both countries and is expected to increase bilateral trade to more than $10 billion in the next five years. 

In 2022, the value of bilateral trade between Israel and the UAE grew to more than $2.5 billion –  an increase of more than 100 percent on the $1.2 billion in trade between the two countries in 2021, according to Israeli figures. 

The agreement includes food, medicine, diamonds, jewelry, fertilizers, and chemicals with most duties to be removed immediately and others to be phased out over three to five years. 

The trade deal with the UAE was Israel’s first with an Arab country, which comes at a time of heightened tensions in the region over the actions of Israel’s latest government, which has overseen a dramatic rise in Israeli-Palestinian violence with multiple Israeli incursions into Jenin and Nablus


Egypt signs $335.5m agreement with Japan International Cooperation Agency 

Egypt signs $335.5m agreement with Japan International Cooperation Agency 
Updated 57 sec ago

Egypt signs $335.5m agreement with Japan International Cooperation Agency 

Egypt signs $335.5m agreement with Japan International Cooperation Agency 

DUBAI: Egypt signed a 44 billion Japanese yen ($335.5 million) development financing agreement with Japan International Cooperation Agency, to support Egypt's efforts to achieve comprehensive health coverage, a finance ministry statement said on Tuesday.


Oil Updates — Crude up; Russian oil and gas output to decline this year

Oil Updates — Crude up; Russian oil and gas output to decline this year
Updated 45 min 46 sec ago

Oil Updates — Crude up; Russian oil and gas output to decline this year

Oil Updates — Crude up; Russian oil and gas output to decline this year

RIYADH: Crude prices rose on Tuesday amid rising indications of strengthening demand in China.

Brent crude futures rose 34 cents or 0.44 percent to $78.46 a barrel at 11.30 a.m. Saudi time, while West Texas Intermediate US crude was up 45 cents, or 0.62 percent, to $73.26 a barrel.

China's crude oil imports are expected to rise 6.2 percent in 2023 to 540 million tons, according to an annual forecast by a research unit of China National Petroleum Corp. on Monday.

Russian oil and gas output to decline this year: Energy Minister

Russia’s Energy Minister Nikolay Shulginov said on Tuesday that the country had managed to successfully re-direct its oil exports to new markets, but that oil and gas production was expected to decline in 2023.

Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Tuesday that Russia needed to focus on boosting energy exports to so-called “friendly” countries, as he said Russian oil supplies to India jumped 22-fold last year.

Novak said energy revenues accounted for 42 percent of Russia’s federal budget in 2022 and added the country’s energy industry was sustainable, despite the challenges faced by Western sanctions.

BP, ADNOC offer to buy 50 percent of Israel’s NewMed Energy

BP and Abu Dhabi’s state oil giant on Tuesday made an offer to acquire 50 percent of Israeli offshore natural gas producer NewMed Energy for around $2 billion.

The offer would involve acquiring NewMed’s free-floating shares and taking the company private and would mark Abu Dhabi National Oil Co. and BP’s entry into Israel’s growing energy sector.

ADNOC and BP said they intend to form a new joint venture as part of the deal that will be “focused on gas development in international areas of mutual interest including the East Mediterranean.”

NewMed is the largest stakeholder in the giant Leviathan offshore field, operated by Chevron, which produces 12 billion cubic meters of gas that are supplied to Israel, Egypt and Jordan.

The field’s partners are planning to further expand its production and are also exploring plans for a liquefied natural gas terminal to further boost exports.

The offer is a further sign of the strengthening economic ties between Israel and the UAE since the two countries agreed to normalize ties in 2020.

(With input from Reuters) 


Investments in renewable energies must quadruple to meet climate target: IRENA

Investments in renewable energies must quadruple to meet climate target: IRENA
Updated 28 March 2023

Investments in renewable energies must quadruple to meet climate target: IRENA

Investments in renewable energies must quadruple to meet climate target: IRENA

BERLIN: Global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris climate accord, the International Renewable Energy Agency said on Tuesday.

Investments in renewable energy technologies reached a record of $1.3 trillion last year but that figure must rise to around $5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5 degrees Celsius above pre-industrial levels, IRENA said.

In total, the world needs around $35 trillion for transition technology by 2030, including improving efficiency, electrification, grid expansion and flexibility, IRENA said.

Renewable energy deployment must grow from around 3,000 gigawatts annually today to over 10,000 GW in 2030, IRENA said, adding that more equality is needed in renewable expansion between industrial and developing countries.

New renewable energy projects in China, the EU and the US accounted for two-thirds of installed capacity last year, while Africa accounted for only 1 percent of renewable capacity installed.

"A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation," IRENA' Director General Francesco La Camera said, calling on financial institutions to direct more funds towards energy transition projects with better conditions.

IRENA called for directing planned fossil fuel investments — around $1 trillion of fossil fuel investments per year by 2030 — toward renewable energy technologies and infrastructure.


Closing bell: Saudi stocks close higher for third consecutive day

Closing bell: Saudi stocks close higher for third consecutive day
Updated 27 March 2023

Closing bell: Saudi stocks close higher for third consecutive day

Closing bell: Saudi stocks close higher for third consecutive day

RIYADH: Saudi Arabia’s Tadawul All Share Index rose for the third session in a row on Monday as it went up 4.25 points – 0.04 percent – to 10,463.61, as investors’ confidence grew on encouraging market conditions. 

On Monday, parallel market Nomu also went up, by 16.15 points or 0.908 percent, to close at 19,247.78, while the MSCI Tadawul 30 Index went down by 0.23 percent to 1,420.29. 

The total trading turnover of the benchmark index was SR7 billion ($1.86 billion).

Takween Advanced Industries Co. led the gainers, as its share prices went up 9.95 percent to SR8.62. 

Other top gainers of the day were Al Kathiri Holding Co. and Zain KSA, whose share prices rose 9.89 percent and 7.43 percent respectively. 

SABIC Agri-Nutrients Co. was the worst performer, with its share price dropping 8.61 percent to SR127.40. 

On the earnings front, Arab Sea Information System Co. incurred a net loss of SR10.43 million in 2022, compared to a net profit of SR21.6 million in 2021. Despite the loss reported, the company’s share prices surged by 3.95 percent to SR81.50. 

Another firm that reported losses in 2022 was Sadr Logistics Co. The company reported a net loss of SR7.2 million, versus a net profit of SR3.6 million a year earlier. Even though the firm incurred loss, its share prices rose 2.94 percent to SR35. 

Wafrah for Industry and Development Co. revealed its net profit in 2022 was SR19 million, compared to the SR11 million net loss incurred in 2021. Driven by the rise in profit, its share prices rose by 1.20 percent to SR33.60. 

Meanwhile, Alamar Foods Co. also reported a net profit of SR115.25 million in 2022, down 1.83 percent from 117.40 in 2021. The company’s share prices closed at SR141.00, down 7.11 percent. 

Savola Group's net profit hit SR742.8 million, up 234.75 percent, compared to SR221.9 million in 2021. Driven by the rise in profits, the company’s directors recommended a 6.6 percent dividend payout, or SR0.66 per share, for 2022, according to a Tadawul statement. The company’s share prices were intact on Monday at SR27. 

The net profit of Saudi Networkers Services Co. also surged by 13.99 percent in 2022 to SR32.32 million. As the profit of the company surged, the company’s share prices increased by 1.08 percent to SR56.