|24 August, 2019

Saudi Arabia to buy 10% of annual wheat from Saudi firms abroad -SAGO

Interested firms must be registered at the kingdom's ministry of environment, water and agriculture

Image used for illustrative purpose. A view shows ears of barley during sunset in a field of the Solgonskoye private farm outside the Siberian village of Talniki in Krasnoyarsk Region, Russia August 25, 2018.

Image used for illustrative purpose. A view shows ears of barley during sunset in a field of the Solgonskoye private farm outside the Siberian village of Talniki in Krasnoyarsk Region, Russia August 25, 2018.

REUTERS/Ilya Naymushin

DUBAI: Saudi Arabia's SAGO will buy 10 percent of its annual wheat needs from Saudi-controlled companies based abroad, the state grain buyer said on Saturday.

Saudi investors must own at least 51% of such companies and should be able to produce 5,000 tonnes of wheat in the same country to be eligible, it said.

Interested firms must be registered at the kingdom's ministry of environment, water and agriculture and SAGO will issue the tenders, with prices to be in line with the international markets.

Sago said this month it would relax its insect-damage specifications for wheat imports from its next tender onwards, opening the door to Black Sea imports and strengthening ties with Russia. 

Last month, it also started the next phase of the sale of its flour mills, which will see pre-qualified bidders perform due diligence and present financial offers.

(Reporting by Aziz El Yaakoubi; editing by Angus MacSwan and Jason Neely) ((aziz.elyaakoubi@thomsonreuters.com; +971552994086; Reuters Messaging: aziz.elyaakoubi.reuters.com@reuters.net))

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