Saudi SWF Moves Food and Ag Shares in Portfolio to SALIC

Posted on 03/25/2021


Saudi Arabia’s Public Investment Fund (PIF) ransferred its shares in Almarai (16.32% stake), the National Agricultural Development Company SJSC (NADEC; 20.00% stake); and the Saudi Fisheries Company SJSC (Alasmak; 39.99% stake) to the Saudi Agricultural and Livestock Investment Company (SALIC), a wholly-owned subsidiary of PIF. The transfer of ownership has been approved by all the relevant stakeholders. The stakes are estimated to be worth around US$ 2.7 billion.

The consolidation move increase efficiencies. The transfer is envisaged to enable SALIC’s mission as PIF’s investment arm in the food and agriculture sector, stimulate growth in the sector, and leverage synergies within PIF’s portfolio. SALIC has extensive experience in managing food and agriculture investments, which contributes to food security in the Kingdom.

According to the press release, “The announcement of the transfer comes in line with PIF’s Strategy 2021-2025, which focuses on unlocking the capabilities of promising non-oil sectors to enhance the Kingdom’s efforts to diversify revenue sources, including in the food and agriculture sector. The Fund and its subsidiaries aim to contribute SAR 1.2 trillion to non-oil GDP cumulatively, by the end of 2025, through growth opportunities for strategic and vital sectors in the Kingdom.”

Saudi Fisheries Co. (SFC) is a Saudi Arabian-based company engaged in developing investment prospects in fishing and aquaculture, along with the manufacturing and sale of seafood, locally and internationally. NADEC was established by Royal Decree in 1981 in order to lessen Saudi Arabia’s dependence on agricultural imports.

India

SALIC has 29% controlling interest in LT Foods subsidiary Daawat Foods. SALIC is keen on increasing invesments in the Indian agricultural landscape. In September 2020, SALIC had increased its stake in Brazilian meat company Minerva Foods to 33.83% from 25.5%.

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