A Saudi Arabian group plans to invest around US$300m in a Philippine banana plantation, the latest development to come out of Saudi interest in the horticultural powerhouse.
Far East Agriculture Co is the group behind the deal, a joint venture between 10 Saudi Arabian companies.
The deal was announced by a Philippine Department of Agriculture official on Sunday, reported BusinessWorld, and was the result of a visit in May by a group of Saudi companies interested in agribusiness investment and jount ventures.
“For banana `production`, they have indicated to start with 10,000ha. That is one of the results of the earlier agribusiness missions,” said Marriz B Agbon, president of the Philippine Agricultural Development and Commercial Corp.
“They are going to `plant in` Davao del Norte for integrated production and processing,” he stated, adding the plantation would produce both Cavendish and Saba banana varieties.
The Philippines has proved an attractive option for Saudi Arabia, which along with other Gulf countries has been seeking to increase food security with agriculture investments in Asia and Africa.
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