Saudis Spend $266 Mn on Instant Coffee

Saudi Arabia continues its efforts to encourage local coffee cultivation and production. (Asharq Al-Awsat)
Saudi Arabia continues its efforts to encourage local coffee cultivation and production. (Asharq Al-Awsat)
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Saudis Spend $266 Mn on Instant Coffee

Saudi Arabia continues its efforts to encourage local coffee cultivation and production. (Asharq Al-Awsat)
Saudi Arabia continues its efforts to encourage local coffee cultivation and production. (Asharq Al-Awsat)

Saudis spend over $266 million on instant coffee, as the government attempts to convert 13 provinces in the country into a source of coffee production, according to a new report.

The Saudi Ministry of Environment, Water and Agriculture aims to benefit from the southwestern region, which enjoys an environment capable of cultivating coffee, as a vital source for coffee production, especially Khawlani coffee beans, known for their high quality.

The initiative aims to increase local coffee production to support the national economy in accordance with the objectives of Vision 2030.

The Saudi Press Agency (SPA) reported that farmers in the southwestern region began collecting the Khawlani coffee crop.

Based on recent figures, the local production of Arabica coffee in the Jazan, al-Baha and Asir regions has reached 1,810 tons annually, and about 350 tons of pure coffee.

There are about 2,535 coffee farms boasting 398,000 coffee trees.

The Jazan region is home to more than 1,985 farms containing 340,000 coffee trees that produce about 1,320 tons annually and 785 tons of pure coffee after peeling. The area also hosts an annual festival for its products.

Coffee farms in the Asir region are about 300 and contain 40,000 trees that produce 200 tons of coffee, and 100 tons of pure coffee after peeling.

Baha estates produce 20 tons of pure coffee from over 250 farms that contain 18,000 trees.

The report indicated that the Kingdom is among the world's top coffee consumers. The Saudi market imports about 73,000 tons annually.

The Ministry of Environment, Water and Agriculture has established a coffee research unit at the Agricultural Research Center in the Jazan region.

The unit aims to address issues and concerns of coffee producers, identify obstacles, and provide integrated solutions through seminars about coffee beans and their production.



Gold Edges Up on Softer Dollar; Focus on US Inflation Data

Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Edges Up on Softer Dollar; Focus on US Inflation Data

Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices inched up on Wednesday as the US dollar eased, while investors' focus shifted to key inflation data from the world's biggest economy for cues on the likely scale of a Federal Reserve rate cut next month.
Spot gold rose 0.3% to $2,639.30 per ounce, as of 0523 GMT. Bullion hit an over one-week low on Tuesday.
US gold futures rose 0.7% to $2,639.40.
The dollar index was down 0.1%, boosting gold's appeal for holders of other currencies. The greenback fell to a near one-week low on Tuesday.
"Gold has been fluctuating alongside dollar volatility. However, in the Asian session, the price movement has been marginal," said Kyle Rodda, financial market analyst at Capital.com.
"In the long run, I think Trump's trade war may be positive for gold because of higher debt loads and a touch of dedollarization," Rodda said.
Investors digested a handful of economic data on Tuesday indicating the economy remained on solid footing.
Traders will now closely monitor core PCE figures, initial jobless claims and GDP (first revision), set for release later in the day.
Markets currently see a 63% chance of a 25-basis-point rate cut by the Fed in December, as per the CME group's FedWatch tool.
Trump's appointments and policies that pressure the Fed, increase deficits, escalate tariffs, or raise concerns about US financial sustainability could collectively support gold prices, said Daan Struyven, co-head of global commodities research at Goldman Sachs.
Elsewhere, China's net gold imports via Hong Kong in October fell from September and were down 43% from the previous year, data showed.
On the geopolitical front, US-France brokered ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday.
Spot silver edged 0.2% higher to $30.47 per ounce, platinum fell 0.1% to $926.74 and palladium added 0.3% to $980.55