SABIC Agri-Nutrients, Salic Sign Memorandum to Explore Commercial Opportunities Toward Ensuring Food Security
SABIC Agri-Nutrients Company (SABIC AN) and Saudi Agricultural and Livestock Investment Company (SALIC) have signed a Memorandum of Understanding to jointly explore global commercial and innovation opportunities to help ensure food security and address growing environmental challenges.
Abdulrahman Shamsuddin, CEO, SABIC AN, and Suliaman Abdulrahman AlRumaih, CEO, SALIC, signed the MoU, which sets a general framework of cooperation that includes studying the possibility of joint investment in the agriculture value chain, exploring the potential for international contract farming, and studying opportunities in international distribution targeting key agricultural markets.
Commenting on the MoU, Abdul Rahman Al-Fadhli, Minister of Environment, Water and Agriculture, and Chairman of (SALIC), said that the world is increasingly giving top priority to food security and preservation, especially after the pandemic. The fertilizer industry is a key strategic factor in agricultural production. Being rich in natural resources, the Kingdom seeks to be one of the largest exporters of fertilizers in the world, he said. This memorandum, he added, is part of the integration of local and international investments. SALIC’s geographically diverse investments in agriculture provides the appropriate channels for marketing and exporting Saudi fertilizers to different countries. This will contribute significantly to sustaining agricultural production in those countries, and goes in line with the realization of the Kingdom’s food security strategy, he said.
Yousef Al-Benyan, SABIC AN Chairman, said that the MoU seeks to maximize and drive collaboration between the two companies. “SABIC AN is constantly looking to improve efficiencies through realization of synergies with leading companies and maintaining a competitive edge in global markets. Toward this direction, our MoU with SALIC will jointly identify, prioritize and execute opportunities in the area of agri-nutrients, where our expertise is helping farmers produce higher yields and is playing a vital role in providing secure, reliable food sources.”
The MoU also covers evaluating the possibility of cooperation in logistics and supply chain costs optimization; developing and testing new agri-nutrient grades and applications; and utilizing best practices, new grades, and digitalization.
SABIC AN, is a global leader in the agri-nutrients industry, manufacturing, distributing and marketing fertilizers and related specialty products. It supplies customers around the world with a wide variety of fertilizers ranging from general to highly specialized, urea, ammonia, MAP, DAP, phosphate-based fertilizers, a comprehensive portfolio of nitrogen-based inorganic products, and specialty solutions.
SALIC is a Saudi joint-stock company owned by the Public Investment Fund. Its investment activities, inside and outside Saudi Arabia, is centered on achieving a food security strategy by establishing subsidiary companies or through national, regional, and international partnerships.