Saudi Agricultural and Livestock Investment Company (SALIC) Market Research Report

Background

Overview

The Saudi Agricultural and Livestock Investment Company (SALIC) is a Saudi joint-stock company wholly owned by the Public Investment Fund (PIF). Established by Royal Decree No. M/22 on April 14, 2009, SALIC's primary mission is to enhance Saudi Arabia's food security by investing in agricultural and livestock sectors both domestically and internationally. The company aims to secure essential food products and stabilize their prices through the establishment of subsidiaries and partnerships.

Mission and Vision

SALIC's mission is to ensure a stable and sustainable supply of essential food commodities, thereby contributing to the Kingdom's food security strategy. Its vision encompasses becoming a global leader in the agri-food sector by diversifying investments, building resilient supply chains, and fostering sustainable agricultural practices.

Primary Area of Focus

SALIC focuses on securing and stabilizing the supply of key food commodities, including wheat, barley, rice, corn, soybean, fodder, red meat, poultry, aquaculture, edible oil, sugar, and milk products.

Industry Significance

As a subsidiary of the PIF, SALIC plays a pivotal role in Saudi Arabia's Vision 2030 plan by ensuring food security and economic diversification. Its strategic investments in the agri-food sector contribute to the Kingdom's self-sufficiency and global competitiveness.

Key Strategic Focus

Core Objectives

Diversification of Investments: Enhance access to essential foods from countries with comparative advantages.

Global Agrifood Trading Leadership: Achieve a volume of 50 million tons of grains and diversified products by 2030.

Supply Chain Security: Establish robust and resilient supply chains capable of withstanding global disruptions.

Enhancement of Logistics Operations: Improve agricultural logistics to strengthen the value chain from international farms to the Kingdom's consumers.

Boosting Sustainability: Adopt innovative practices and technologies to promote sustainable growth.

Specific Areas of Specialization

SALIC specializes in the full supply chain of selected agricultural and livestock goods worldwide, including production, processing, storage, and distribution.

Key Technologies Utilized

SALIC invests in agricultural technologies that aim to rationalize water use, increase production efficiency, and preserve the environment.

Primary Markets Targeted

SALIC targets both domestic and international markets, focusing on countries with competitive advantages in producing essential food commodities.

Financials and Funding

Funding History

As a wholly owned subsidiary of the Public Investment Fund (PIF), SALIC's funding is primarily sourced from the PIF. Specific details regarding total funds raised and recent funding rounds are not publicly disclosed.

Notable Investments

Olam Agri: In February 2025, SALIC increased its stake in Olam Agri from 35.4% to 80.01% for $1.78 billion, with a call option to acquire the remaining 19.99% within three years.

National Grain Supply Company (SABIL): In April 2025, SALIC launched SABIL to manage the Kingdom's strategic grain reserves, with a storage capacity of over 2.7 million tonnes.

Intended Utilization of Capital

The capital from these investments is utilized to enhance SALIC's global presence, strengthen supply chains, and support the development of sustainable agricultural practices.

Pipeline Development

Key Pipeline Candidates

Olam Agri: SALIC's increased stake aims to integrate Olam Agri's operations into its global supply chain, enhancing access to essential food commodities.

SABIL: The establishment of SABIL is a strategic move to bolster domestic grain storage and distribution capabilities.

Stages of Development

Olam Agri: The acquisition is in the final stages, pending regulatory approvals.

SABIL: Operational as of April 2025, managing 14 silo branches across Saudi Arabia.

Target Conditions

Both initiatives aim to secure and stabilize the supply of essential food commodities, contributing to Saudi Arabia's food security.

Anticipated Milestones

Olam Agri: Completion of the acquisition and integration into SALIC's operations.

SABIL: Expansion of storage capacity and enhancement of distribution networks.

Technological Platform and Innovation

Proprietary Technologies

SALIC invests in agricultural technologies that aim to rationalize water use, increase production efficiency, and preserve the environment.

Significant Scientific Methods

The company employs advanced agricultural practices and technologies to enhance productivity and sustainability.

AI-Driven Capabilities

While specific AI-driven capabilities are not detailed, SALIC's focus on innovation suggests the integration of advanced technologies in its operations.

Leadership Team

Key Executives

Sulaiman Abdulrahman AlRumaih: Chief Executive Officer (CEO) of SALIC Group.

Abdulrahman bin Saud Al Owais: CEO of SABIL.

Ali Abousaleh: Chief Investment Officer.

Sergei Sulimsky: Senior Vice President, Transaction Advisory.

Ahmad Shahini: Chief Executive Officer and Board Member.

Professional Backgrounds and Contributions

Sulaiman Abdulrahman AlRumaih: Oversees SALIC's strategic direction and operations.

Abdulrahman bin Saud Al Owais: Leads SABIL, focusing on enhancing Saudi Arabia's grain storage and distribution capabilities.

Ali Abousaleh: Manages SALIC's investment portfolio, identifying and executing strategic investments.

Sergei Sulimsky: Advises on transaction strategies and partnerships.

Ahmad Shahini: Provides leadership and strategic guidance to SALIC's operations.

Competitor Profile

Market Insights and Dynamics

The global agri-food sector is characterized by increasing demand for food security, sustainable practices, and resilient supply chains. SALIC's strategic investments position it to capitalize on these trends.

Key Competitors

Olam Group: A global agri-business operating across the value chain, from farming to distribution.

Archer Daniels Midland Company (ADM): A leading global food processing and commodities trading corporation.

Cargill: A multinational corporation specializing in agribusiness, food, and industrial products.

Competitive Landscape

SALIC differentiates itself through strategic investments in both domestic and international markets, focusing on securing essential food commodities and enhancing supply chain resilience.

Strategic Collaborations and Partnerships

Significant Collaborations

Olam Agri: The increased stake in Olam Agri strengthens SALIC's position in the global grains sector.

SABIL: The establishment of SABIL enhances domestic grain storage and distribution capabilities.

Impact on Market Position

These collaborations bolster SALIC's global presence, improve access to essential food commodities, and contribute to the Kingdom's food security.

Operational Insights

Strategic Considerations

SALIC's investments in Olam Agri and SABIL are strategic moves to enhance supply chain resilience and ensure a stable supply of essential food commodities.

Competitive Advantages

SALIC's integration of local and international investments, focus on sustainable practices, and commitment to innovation provide a competitive edge in the agri-food sector.

Strategic Opportunities and Future Directions

Strategic Roadmap

SALIC aims to diversify its investments, strengthen supply chains, and promote sustainable agricultural practices to achieve long-term growth and food security.

Future Business Directions

The company plans to expand its global footprint, enhance domestic production capabilities, and invest in innovative technologies to improve efficiency and sustainability.

Opportunities for Expansion

SALIC seeks opportunities in emerging markets, partnerships with leading agri-food companies, and investments in agricultural technologies to further its mission.