Saudi Arabia, scaling back its domestic wheat-growing production to save water, will make billion-dollar investments in countries neighboring the Black Sea, especially in Russia. The investments will be through acquisitions, including agricultural land, logistics and storage areas.

Saudi Arabia’s SALIC is considering investing in a Russian grain producer owned by Russian conglomerate Sistema and members of the Louis-Dreyfus family, Reuters reported. “The parties will discuss the structure and parameters of the potential deal after the due diligence of RZ Agro Holding Ltd,” Sistema said in a statement.

Saudi Arabia began scaling back its domestic wheat-growing programme in 2008, planning to rely completely on imports by 2016 to save water. Russia, one of the world’s top grain exporters, is expected to harvest a record grain crop in 2017. The Saudi Agriculture and Livestock Investment Company (SALIC) was formed in 2011 to secure food supplies for the kingdom mainly through mass production and foreign investments. RZ Agro, a joint venture between Sistema and Louis-Dreyfus family members, was created in 2012. It produces grain and has a land bank of 106,000 hectares in Russia’s southern regions.

SALIC TO INVEST IN BLACKSEA Saudi Agricultural and Livestock Investment Company (SALIC) and the UAE-based Al-Dahra Holding signed a joint venture agreement to establish a 1.333 billion USD company that will be mandated to invest in 10 countries throughout the Black Sea region in the grains and livestock sectors. Said Abdullah Aldubaikhi SALIC’s CEO on the sidelines of the UAE-Saudi Business Forum held in Abu-Dhabi, and he added that the investments will be through acquisitions, including agricultural land, logistics and storage areas.