Riyadh, Saudi Arabia-based Saudi Fisheries Company (SFC) has created a new aquaculture company, betting that a government goal to increase fish-farming output along the country's 2,600-kilometer coastline will pan out.
In early October, Saudi Fisheries’ board of directors approved the establishment of a new aquaculture affiliate firm that will be wholly owned by SFC and have starting capital of SAR 100,000 (USD 26,600, EUR 24,500).
The proposed aquaculture company, the official name of which has yet to be disclosed, will also be based in the Saudi capital of Riyadh and now awaits necessary government approvals before launching operations.
The move marks one of the first SFC has made since it announced plans to restructure in an attempt to mitigate runaway debt and mounting losses.
Other moves SFC has made to slow losses include reducing its capital from SAR 400 million (USD 106.4 million, EUR 98.1 million) to SAR 67 million (USD 17.8 million, EUR 16.4 million), marking nearly an 83 percent reduction. SFC also reduced the company's shares from 40 million to 6.7 million through the cancelation of 33.3 million shares.
The gamble on aquaculture comes as Saudi Arabia's government has outlined a Vision 2030 Aquaculture Development Program, which sets out strategies to ensure 600,000 metric tons (MT) of seafood production domestically by 2030. This figure would mark additional annual seafood production of 280,000 MT from current production totals.
The anticipated expansion of Saudi Arabia's aquaculture sector is based on five pillars, including a marketing campaign to create awareness on the benefits of consuming locally produced seafood. Government plans to increase fish-farming production also entail wooing private-sector investments.
Additionally, Saudi Arabia is promoting the development of marine clusters, which feature the construction of “fish landing sites; developing floating docks, ice factories, gas stations, and boat maintenance workshops; providing integrated logistics services, as well as creating an attractive environment for tourists,” the Saudi Ministry of Environment, Water, and Agriculture said.
SFC, founded in 1981, operates several wholesale and retail fish outlets in Saudi Arabia.
