SALIC is increasing its stake in Olam Agri from 35.4% to 80.01% for $1.78 billion to enhance food security and align with Saudi Arabia's Vision 2030 initiative.

Target Overview

The target of this investment deal is Olam Agri, a Singapore-based agribusiness focused on the origination, trading, processing, and logistics of essential soft commodities such as grains, oilseeds, rice, and edible oils. Operating in over 30 countries, Olam Agri plays a pivotal role in Asia’s food and feed supply chains, making it an attractive opportunity for investors. The Saudi Agricultural & Livestock Investment Company (SALIC) seeks to increase its ownership in Olam Agri from 35.4% to 80.01% through a transaction valued at approximately $1.78 billion. This investment aligns with SALIC's strategic goals to enhance food security in Saudi Arabia.

Industry Overview in the UAE

The agribusiness industry in the United Arab Emirates (UAE) is undergoing significant transformation driven by a combination of policy support, investment in technology, and changing consumer preferences. The country has prioritized food security, particularly in light of its heavy reliance on food imports, which accounted for over 80% of its domestic food supply. This has spurred initiatives aimed at advancing local agriculture, enhancing supply chains, and fostering partnerships to ensure a steady food supply.

Additionally, the MENA region has seen increased collaboration between governments, which fosters foreign direct investments (FDI) in agriculture and related sector