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.



Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
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Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir

Lebanon's deeply distressed sovereign dollar bonds hit a fresh two-year high on Tuesday as investors bet that a potential ceasefire with Israel could improve the country's prospects.

The bonds, which are still trading below 10 cents on the dollar, have gained more than 3% this week. The 2031 maturity was biding at 9.3 cents on the dollar, its highest since May 2022, according to Reuters.

"Some investors are mulling if it is a right time to buy, since a ceasefire is the first step needed to at some point in time restructure bonds," said Bruno Gennari, emerging markets strategist with KNG Securities International.

Israel's cabinet is expected to convene on Tuesday to discuss, and likely approve, a US plan for a ceasefire with the Iran-backed Hezbollah, a senior Israeli official said.

Israeli airstrikes, which continued on Tuesday, have decimated Lebanon's infrastructure and killed thousands.

But the counterintuitive rally, the second since Israel began bombing the country in September, was driven by bets that the deal could jolt Lebanon's fractured political system and revive efforts to pull the country out of default.