New Saudi company leases Asia land for rice

As Saudi Arabian investors accelerate efforts to farm land overseas, a group of leading businessmen said on Saturday that they were launching an agricultural company to grow rice under contract with growers in Asia.

The Far East Agricultural Investment Co, an SR100m ($26.6m) investment vehicle, has already arranged leases in Cambodia, Vietnam, Pakistan and the Philippines for aromatic and long grain basmati rice, both intended to export to Saudi Arabia at market prices, said Mohammed Abdulla al-Rajhi, chairman of the new company. The first harvest of rice, about 60,000 tons, is due to arrive to Saudi Arabia early next year, he said.

“We will start with rice, but we will expand to cover all other strategic foods the kingdom needs,” Mr Rajhi told Financial Times. Mr Rajhi, who also heads the Tabuk Agricultural Development Company, said that the new company would grow tropical fruits and contract land suitable for wheat and corn in central Asia.