By Gerelyn Terzo, Global AgInvesting Media
A new venture investor is emerging on the global agribusiness scene, poised to reshape agricultural investments and improve food security across the Middle East and beyond. Saudi investment firm Aram Palms Company and Cordiant Group, which specializes in ag value chains, are partnering to strengthen ag investment in the Gulf Cooperation Council (GCC) region. The investment duo plans to establish the Cordiant Aram Palms Middle East Private Equity Company, a joint venture anchored in Riyadh, Saudi Arabia, poised to become a powerful catalyst for change in the region’s food system over the coming years.
This strategic alliance will play into each firm’s strengths. Aram Palms is poised drive local fundraising efforts, secure crucial regulatory approvals, cultivate strategic partnerships and unlock vital market access within the region. Cordiant Group, on its part, will draw upon its deep well of investment management expertise, spearheading international fundraising initiatives and source deals while also overseeing both portfolio management and execution.
This alliance aligns squarely with Saudi Vision 2030, directly propelling the Kingdom’s ambitious goals. Through the PE company, the firms will choose deals that align with their mission to bolster food security, broaden the region’s economic base beyond conventional energy and strengthen Saudi Arabia’s standing in worldwide agricultural markets and trade.
Image Courtesy of LinkedIn
The venture will target investments into permanent crop equity funds and critical cold-chain infrastructure projects, throughout Saudi Arabia and the wider Gulf Cooperation Council (GCC) region but also on a global scale. The overarching ambition is to establish a robust, end-to-end cold chain, focused on the GCC, ensuring efficient and sustainable movement of agricultural products, marking a powerful step towards a more integrated and resilient global food system.
The new partnership between Saudi Arabia’s Aram Palms Company and Cordiant Group tackles several critical, long-standing challenges facing the food supply chain in Saudi Arabia and the wider GCC region.
Due to an arid climate, GCC nations, including Saudi Arabia, contend with only a small amount of arable land and water access, making them highly dependent on food imports, with the exception of one fruit – dates – its most successful domestic crop. Some GCC nations import up to a whopping 90 percent of their food supply, including essential items like rice and cereals. At the current pace, Saudi Arabia is at risk of relying on imports for 100 percent of its food. As a result, the region is highly vulnerable to global market shocks, ranging from price volatility to disruptions in disjointed supply chains, resulting in an urgent need for improved food security actions.
Of the new venture, His Royal Highness Prince Saud bin Abdulaziz bin Abdullah Al Saud, Chairman of Aram Palms, said, “This strategic partnership represents a significant milestone for agricultural investments for the region. By joining forces with Cordiant Group, we position Saudi Arabia as a key player in the global fresh fruit value chain, ensuring long-term sustainability and food security.”
Cordian Group CEO and Head of Agriculture Value Chain Cédric Garnier-Landurie commented, “This partnership strategically aligns Cordiant’s global agricultural expertise with the Kingdom’s ambitious Vision 2030, creating sustainable economic and social value in the GCC. We believe the GCC and the specifically the Kingdom Saudi Arabia are entering an important decade of long term real economic growth phase, with growing diversified demographics.”
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