Wedoany.com Report-Apr. 18, On April 15, 2025, Saudi Arabia introduced the National Grain Supply Company (SABIL) to oversee grain operations and strategic reserves, enhancing the nation’s food supply chain. Launched at the Ministry of Environment, Water, and Agriculture in Riyadh, SABIL is the first fully owned subsidiary of the Saudi Agriculture & Livestock Investment Company (SALIC), a division of the Public Investment Fund.

SABIL will manage 14 silo branches across various regions, including facilities at Jeddah Islamic Port, King Abdulaziz Port in Dammam, Yanbu Commercial Port, and Jazan Port, with a combined storage capacity exceeding 2.7 million tonnes. This infrastructure supports efficient grain handling and distribution nationwide.

The establishment of SABIL marks the transition of the General Grains Organization into the General Food Safety Authority, with operational responsibilities shifting to SALIC. SABIL will focus on managing silos and strategic wheat reserves to ensure a stable food supply.

During the launch ceremony, Abdulrahman bin Saud Al Owais, SABIL’s chief executive officer, outlined the company’s goals: “Our vision is to empower the grains sector through operational excellence in the supply chain, and our mission is to strengthen strategic partnerships and provide solutions and support to all partners, from producers to consumers.”

Ahmed bin Abdulaziz Al-Fares, governor of the General Food Safety Authority, explained the transition process: “The authority will continue to supervise purchasing of local and imported wheat during the first phase of the transfer, while SABIL has begun to assume the handling of wheat from ports to milling companies and silo management.”

SALIC, established in 2011 to secure food supplies through production and investments, views SABIL as a key component of its strategy. Sulaiman Abdulrahman AlRumaih, CEO of SALIC Group, highlighted additional benefits: “Leveraging SABIL’s infrastructure also would provide storage and logistics solutions for the private sector, commercial opportunities that would further strengthen its supply chain capabilities.”

According to the U.S. Department of Agriculture’s Foreign Agricultural Service, Saudi Arabia is expected to import 3.2 million tonnes of wheat in the 2025-26 marketing year, with domestic production projected at 1.5 million tonnes and beginning stocks estimated at 4.09 million tonnes. SABIL’s operations will play a crucial role in managing these imports and ensuring efficient distribution to meet domestic consumption needs.

By establishing SABIL, Saudi Arabia aims to strengthen its food security framework, optimize grain storage, and foster partnerships across the supply chain. The company’s efforts will support both public and private sectors, contributing to a resilient and sustainable food system.