Saudi Experts Suggest Int’l Production Center Focusing on Coffee as a National Wealth

The first international “Saudi Coffee Sustainability Forum” in Jazan to discuss the value chain of Saudi coffee (Asharq Al-Awsat)
The first international “Saudi Coffee Sustainability Forum” in Jazan to discuss the value chain of Saudi coffee (Asharq Al-Awsat)
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Saudi Experts Suggest Int’l Production Center Focusing on Coffee as a National Wealth

The first international “Saudi Coffee Sustainability Forum” in Jazan to discuss the value chain of Saudi coffee (Asharq Al-Awsat)
The first international “Saudi Coffee Sustainability Forum” in Jazan to discuss the value chain of Saudi coffee (Asharq Al-Awsat)

Saudi Arabia needs to focus on the quality of production and agriculture of coffee beans and increase its research if it wants to compete in the global market, concluded an international gathering.

Under the patronage of Governor of Jazan Prince Mohammad bin Nasser bin Abdulaziz, organized by the Ministry of Culture, Saudi Arabia hosted the first international forum to examine the benefit of coffee as national wealth, explore available investment opportunities, and discuss financing options and the role of this activity in the domestic product.

The Ministry of Culture organized the international “Saudi Coffee Sustainability Forum” in Jazan between Oct. 1 and 2 to discuss the value chain of Saudi coffee and relevant economic, social, and environmental aspects of sustainability.

It provides an overview of the local economy and presents practical papers and in-depth research that discuss aspects related to agriculture, production, and sustainable international practices for growing coffee beans.

- Government cooperation

Expert in agricultural economics, Mohammad al-Qunaibet, stressed the importance of the cooperation of authorities such as the Ministry of Culture and the Jazan Mountain Development Authority in scientific research to obtain high results that will lead to the sustainability and development of the sector.

According to Qunaibet, a scientific study revealed that the average costs are dedicated to preparing land and equipment, with about 79 percent, while the rest goes to variable expenses, including labor, irrigation water, and harvesting.

The expert pointed out that the world produces 10 million tons of coffee beans, three of which are made by Brazil, while Saudi Arabia produces 650 tons.

Saudi competition must be based on high quality and a “very luxurious” product to compete and market globally, said Qunaibet.

- Funding

The head of the development impact department at the Agricultural Development Fund, Bandar al-Rabiah, stated that the farm funding program amounts to $800,000 for farms in rural areas, pointing out that this year the funding recorded a leap, bringing the total value of approved financing to $3.2 million in Jazan alone.

Rabiah called for intensifying the efforts of the relevant authorities to increase cultural awareness of coffee to push funding to higher levels.

- Increased prices

For his part, Karl Weinhold, a researcher in rural development and the coffee economy, explained that coffee is currently experiencing price risks due to environmental changes and climatic conditions, pushing prices to rise globally.

Weinhold pointed out that many local farmers in the coffee industry around the world have been suffering from low income and poverty recently, explaining that it is possible to find diversified sequential paths.

He demanded that small coffee farmers must be aware that working collectively ensures the continuity of their businesses and industries.

- Economics of coffee

Furthermore, a professor of economics at the College of Business Administration at King Faisal University, Hassan Hajooj, stated that the coffee sector could become an economic tributary, provided that authorities take advantage of the geographical location of the Kingdom between the coffee-growing regions in Asia and Asia.

The Kingdom is one of the largest importers and consumers of coffee, ranking eighth in the world.

Hajooj added that Saudi consumption increased 100 percent in 2019, which means an increasing consumption trend in the Kingdom.

The Ministry of Commerce issued 7,300 commercial records, 2020 for cafes, which is an indicator of the contribution of coffee to economic activity.

The Kingdom’s annual spending on coffee consumption amounted to $346 million, said Hajooj, while the market value of restaurants and cafes is estimated at a compound annual rate of 8 percent.

The professor estimated that the linear forecast for the value of the Saudi coffee import bill would rise to $425 million until 2023, noting that the coffee sector accounted for about 0.86 percent of Saudi Arabia’s gross domestic product in 2020 and that that figure was set to rise to 6.18 percent over the next five years.

- Global Trends

Hajooj added that the current global trends prove the increased demand for coffee consumption, especially with the change in the behavioral pattern of consumption in China and India.

- Global Center

The expert called for Saudi Arabia to adopt a global center in coffee production within the framework of the 10th National Development Plan aimed at making the Kingdom a global logistics hub and supporting Vision 2030.

He explained that the Kingdom could become a global center for the coffee industry through the location of Jazan, especially with the export ports between Asia and Africa.

Turkey, the UAE, and Malaysia are among the largest exporters to the Kingdom, and they are all non-producing countries but reproduce and export.

- Complex and Museum

Director of the Jazan Mountain Development Authority Dhafer al-Fahad explained that authorities continue to develop crops suitable for the climate of the mountainous governorates and coffee seedlings.

He added that 900,000 coffee seedlings would be distributed for research in the coming years.

The Authority established a statistical database for all coffee growers in Jazan that is updated periodically. It has also founded the Saudi Coffee Center in cooperation with Saudi Aramco.

In addition, it created an automated nursery to increase the production capacity of coffee seedlings to 800,000 annually.

Fahad announced the Culinary Arts Commission intended to establish the Saudi Coffee Museum in partnership with the Ministry of Culture and that the Kingdom had joined the World Coffee Organization.



Stocks Slide as Oil Climbs on Mideast Flareup

FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016.  REUTERS/Richard Carson/File Photo
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo
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Stocks Slide as Oil Climbs on Mideast Flareup

FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016.  REUTERS/Richard Carson/File Photo
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo

Oil prices rose Wednesday on fresh concerns about Middle East supplies following a warning that Iran appeared to be stepping up attacks in the Strait of Hormuz, weighing on stock markets.

Crude futures had steadied Tuesday, helping Wall Street to fresh highs, with a large amount of the support coming from a rush back into the AI trade that saw chip titan Nvidia push towards a $6-trillion market value.

But Wall Street stocks pulled back at the opening bell, with a rise in bond yields on US government bonds to fresh 24-year highs as investors worried about inflation and interest rates.

"Rising Treasury yields and oil prices are creating renewed pressure after stocks received some relief from both fronts to start the week," said analysts at Briefing.com.

"In Europe, where there is a lower representation of AI-related names, investors are taking a more cautious stance," noted Russ Mould, investment director at AJ Bell.

"Oil prices remain above $100 a barrel and the inflation risks are clear to see," he added.

Figures have shown Tehran increasing strikes on tankers in the crucial Strait of Hormuz.

UK Maritime Trade Operations on Tuesday said there had been nine attacks this month, representing half of the September total in the waterway and the Gulf combined.

However US Secretary of State Marco Rubio said Wednesday that Iran has "lost complete control" of the Strait of Hormuz.

"There's almost as much oil flowing out now as there was before this conflict began," he told reporters during a visit to Athens.

Chris Weston, head of research at broker Pepperstone, said "reports of increased flows across the (Mideast) region have offered some downside pressure on crude, but this has been offset by varying reports around the scale of attacks on vessels moving through the Strait".

"For now, the market remains highly sensitive to headlines and geopolitical risk," he added.

Indian stocks slipped and the rupee steadied Wednesday as the Indian central bank hiked interest rates for the first time in more than three years.

The euro fell heavily versus the dollar for a second time this week as worries about France's high debt levels spook bond markets.

Marine Le Pen, frontrunner in the race to be France's next president, said Tuesday she would implement 140 billion euros ($157 billion) in cost savings by 2032 if elected next year, warning that without change France was "heading towards default" on its debt.

The pledge "has helped ease bond yields" in France even if "pushing through that level of cuts... would be a hugely difficult task", said Susannah Streeter, chief investment strategist at Wealth Club.


Saudi Arabia Prepares New Pathways for Its Companies to Enter the Syrian Market

Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
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Saudi Arabia Prepares New Pathways for Its Companies to Enter the Syrian Market

Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)

Asharq Al-Awsat has learned that the Saudi-Syrian Business Council is currently working on around three new pathways that are still being developed as part of an institutional framework aimed at facilitating the entry of Saudi companies into the Syrian market and paving the way for new sector-specific projects in the coming stages.

Saudi-Syrian economic relations have developed since last year, following the arrival in Damascus of a high-level Saudi delegation led by then Investment Minister Khalid Al-Falih. The delegation included more than 130 businesspeople and investors, reflecting the scale of official and economic interest in strengthening trade and investment ties between the two countries.

The visit saw the signing of more than 47 agreements and memorandums of understanding across 11 vital sectors, with total investments exceeding $6.4 billion. They covered real estate, infrastructure, telecommunications and information technology, industry, and other sectors.

Coordination with the “Syrian Sovereign Fund”

According to the information, a mechanism has been established to coordinate with the Syrian Investment Authority to form a joint team to study the development of land and sea logistics corridors. This would include facilitating direct access for exports and temporary admission procedures for equipment used to carry out projects.

In parallel, the Federation of Saudi Chambers has opened a direct channel with the Syrian sovereign fund to follow up on investment opportunities available to the Saudi private sector and support communication with relevant authorities in the Syrian market.

The council was established as Syria prepares for a new phase of reconstruction and development, creating opportunities for the Saudi private sector to participate in investment projects and various economic sectors, drawing on its financing and investment capabilities and its experience in project development.

Since its establishment, the council has begun preparing an action plan for 2025-2030 aimed at strengthening sustainable economic cooperation between Saudi Arabia and Syria, highlighting investment opportunities, supporting strategic partnerships, and facilitating trade and logistics procedures for Saudi companies' exports.

The plan focuses on enabling the Saudi private sector to benefit from reconstruction and development opportunities in Syria by supporting exports, simplifying procedures, and strengthening regulatory frameworks that provide a more favorable environment for investors. It focuses on sectors including infrastructure, trade and export development, real estate development, tourism, industry, and food security.

New Investments

In this context, Mohammed bin Abdullah Abu Nayyan, chairman of the Saudi-Syrian Business Council, said the council includes a number of senior Saudi officials and investors with international business activities, strengthening its ability to support trade and investment relations between the two countries and achieve its objectives.

The Saudi-Syrian Business Council delegation visited the Syrian capital, Damascus, last August, with the participation of 180 Saudi businesspeople. It held joint meetings and more than 15 meetings with government officials, in addition to eight sector-focused meetings and workshops addressing investment opportunities, challenges, and areas of cooperation.

During the visit, the delegation announced the “Sham View” project by Saudi real estate development and investment company Tharaa, with investments exceeding $1 billion. It also launched construction work on the Narcissus Damascus Hotel, owned by Saudi hotel and resort group Boudl.


Iraq Central Bank Devalues Dinar after Mideast War Hurts Oil Exports

An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
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Iraq Central Bank Devalues Dinar after Mideast War Hurts Oil Exports

An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)

Iraq's central bank devalued the dinar currency against the dollar on Wednesday, with the country facing a deepening crisis brought on by the Middle East war.

Crude oil sales account for nearly 90 percent of Iraq's revenue but its exports have been hurt by the outbreak in February of the conflict between Iran and the United States, which choked off the Strait of Hormuz shipping route.

Consumer prices have also risen, while Iraq's foreign currency reserves have fallen by around $20 billion.

The central bank said in a statement late Tuesday that based on a government decision, "it had decided to adopt... a selling price of the US dollar to the public of 1,520 dinars.”

The rate had been fixed at 1,320 dinars since February 2023.

The bank instructed financial institutions to "stop using the previous rate and adopt the new rate as of the start of the business day on October 7,” AFP reported.

Iraq relies heavily on foreign currency generated by oil sales to finance imports, stabilize the dinar, and pay the salaries of public sector employees and retirees.