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

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

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.