Saudi wealth fund sets up Sawani to boost camel dairy industry

Image courtesy: Eric Lafforgue/ Getty Images

Saudi Arabia’s Public Investment Fund (PIF) has launched a new company, Sawani Company, to advance the growth of the country’s camel farming industry and actively contribute to its sustainable development.

Sawani aims to become the biggest producer of camel dairy products to support Saudi Arabia’s wider food and agriculture sector while helping to diversify the economy in line with Vision 2030.

The company will partner with players in the private sector to boost the production capacity of the camel dairy industry. It seeks to elevate the standards of the domestic production ecosystem by modernising operations, improving the localisation of knowledge and investing in the sector’s latest technologies.

“Saudi Arabia has extensive experience and knowledge of the camel dairy industry and enormous potential to expand its operational capabilities and the wider ecosystem,” said Majed Al-Assaf, PIF’s head of Consumer Goods and Retail in the MENA Investments Division.

“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.”​

Saudi Arabia’s wealth fund has invested extensively in the country’s food and agriculture sector to help diversify the economy and support its produce industries. PIF’s investments in the sector include the launch of Saudi Coffee Company and the Halal Products Development Company – to augment growth in the halal products industry.

PIF said Sawani will focus on increasing knowledge of the camel farming industry to preserve it and drive sustainable growth through the introduction of the best scientific practices. It will place sustainability at the centre of all stages of production, distribution and marketing while raising awareness of the health benefits of camel dairy products.

The company will also showcase the unique history and cultural heritage of camel husbandry within Saudi Arabia.

Benefits of camel milk

Meanwhile, camel milk is known for its nutritional benefits, including high amounts of minerals and vitamins such as A, B, E and C. The milk is also rich in calcium, protein and anti-oxidants. It is also considered low in cholesterol and is easy to digest.

Sawani joins PIF’s portfolio

Saudi Arabia’s wealth fund has launched 84 companies in 13 strategic sectors while creating more than half a million direct and indirect jobs.

Last month, the fund unveiled the Pharmaceutical Investment Company (Lifera) to boost Saudi Arabia’s biopharma growth, strengthen national resilience and advance the kingdom’s position as a global pharma manufacturing hub.

PIF also invested in the National Unified Procurement Company, one of the biggest providers of medical procurement, storage and distribution services for medicines to the Saudi healthcare sector. The investment is aimed at boosting the local supply chain of medicines.

Earlier in June, the fund agreed to acquire a 30 per cent stake in Tamimi Markets Company. PIF said the deal aligns with its strategy to enable the private sector and create Saudi national champions.

The wealth fund owns stakes in tech companies including ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Read: How GCC wealth funds are fuelling growth and prosperity