A USD 27 million Saudi-India joint venture to supply Basmati rice to consumers in the Middle East has been established in Dubai, making the city the largest hub for rice storage and distribution in the MENA region.
Prince Mishaal bin Abdullah bin Turki, the second child of Prince Abdullah bin Turki bin Abdul Aziz Al-Saud and global private investor V Raman Kumar have formed the joint venture with India's rice producer, LEAF India (Lakshmi Energy and Foods Ltd.), to create the Middle East and North Africa (MENA) region's largest hub for rice storage and distribution.
Pan Gulf Food and Industries have taken warehouse in Jebelali in Dubai for storing up to 100,000 tonnes of Basmati rice in its first year of operations.
The company aims to set up a processing, polishing and packaging facility with a capacity of over 100,000 tonnes of Basmati rice with an investment of over AED 100 million (nearly USD 27 million), in the next one year.
The venture, Innovo Specialty Foods JLT will market and distribute Basmati rice processed and packed by Pan Gulf Food and Industries exclusively across the Middle East and North Africa.
"Our concept idea of creating this rice hub will aim to contribute and deliver food security objectives in the UAE," Kumar was quoted as saying by the Arab News.
"Food security is clearly an immediate priority for the UAE and wider Middle East. The region is entering a new period of economic growth underpinned by a burgeoning population with a high dependence on imported food.
"Currently, 20 per cent of all UAE imports comprise food items and 90 per cent of food is imported but there are only 3 months of basic food items stored, so food security cover is not fit for the rapidly growing economy," he said.
Kumar said the 100,000 tonnes of Basmati rice capacity that will be created in Jebel Ali, UAE, will be a giant step for this region to strengthen its food security strategy.
"We look to take this strategy to Saudi Arabia as well in the near future. We believe that execution of a core food security strategy is essential to provide a sustainable growth platform," he said.
The increasing demand for Basmati rice has been primarily driven by Saudi Arabia, Yemen, Iran, Iraq, Bahrain, Oman, UAE and Kuwait, accounting for over 4 million tonnes of Basmati rice consumption every year.
LEAF's premium brands of Basmati rice under brand name Lakshmi Foods- Big Dad, Uncle Chef, Lazeez and Afreen will be made available initially across UAE and other Gulf countries.
