RIYADH: In a bid to unlock the full potential of Saudi Arabia’s camel dairy industry, the Kingdom’s sovereign wealth fund has launched a new firm to explore opportunities in this sector.
According to a press statement, Sawani Co. will work to enable the growth of the Saudi camel farming industry and contribute to its sustainable development.
The press release further noted that the new firm aims to become a leading producer of camel dairy products, supporting Saudi Arabia’s wider food and agriculture sector and helping to diversify the Kingdom’s economy, in line with the goals outlined in Vision 2030.
“Saudi Arabia has extensive experience and knowledge of the camel dairy industry and enormous potential to expand its operational capabilities and wider ecosystem,” said Majed Al-Assaf, head of consumer goods and retail in the Middle East and North Africa investments division at the Public Investment Fund.
He added: “These factors represent a competitive advantage across the entire supply chain, which, alongside investment, will enable significant growth of the industry, and eventually lead to the export of camel dairy products, which have many nutritional benefits, to regional and global markets.”
According to the press statement from PIF, Sawani Co. will work in partnership with the private sector to boost the production capacity of the camel dairy industry and will also implement a modernized operating system in the sector.
The size of the Saudi camel dairy market hit $256 million in 2022, according to US-based Research and Markets.
According to the firm, the camel dairy market in the Kingdom is expected to reach $353 million by 2028, exhibiting a compound annual growth rate of 5.5 percent during 2022-2028.
PIF has been making strategic investments in the food and agricultural sector over the past few years.
In October 2022, the fund launched Halal Products Development Co. aimed at localizing the halal production industry in the Kingdom.
In May last year, it unveiled Saudi Coffee Co. to promote the Kingdom’s coffee beans as a global product and will invest $320 million in the firm over the next 10 years.