Saudi Arabia’s GFSA purchases 500,000T of wheat from Saudi investors abroad
These investor-linked channels are designed to complement the country’s traditional international wheat tenders
SAUDI ARABIA – Saudi Arabia’s General Food Security Authority (GFSA) has purchased approximately 500,000 metric tonnes of wheat from Saudi investors overseas, in its second tender of the year dedicated to sourcing grain through Saudi-invested farming ventures abroad.
The GFSA announced the purchase via its official account on social platform X, stating that the wheat is expected to arrive in the Kingdom by April 2026.
According to the agency, the procurement forms part of Saudi Arabia’s ongoing strategy to enhance food security through diversified sourcing channels.
The overseas investors involved in the tender include Saudi entities owning farmland and trading interests in key grain-exporting regions such as the Black Sea, Australia, and Brazil, the GFSA said.
These investor-linked channels are designed to complement the country’s traditional international wheat tenders by securing supply directly from Saudi-backed production ventures abroad.
Earlier this month, on October 6, the GFSA concluded an international wheat tender for 455,000 tonnes of hard milling wheat, scheduled for shipment in December 2025 and January 2026.
According to data published by Hellenic Shipping News and Reuters, the average cost-and-freight (C&F) price for that tender was about US$263 per tonne, with offers accepted from multiple origins including the European Union, the Black Sea region, North and South America, and Australia.
The new investor-sourced purchase comes as Saudi Arabia continues to balance domestic wheat production with external procurement to meet national food demand.
According to the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA FAS), the Kingdom is forecast to import around 3.2 million tonnes of wheat in the 2025/26 marketing year, slightly lower than the previous year due to an expected increase in local production.
Saudi Arabia’s wheat consumption is projected at about 4.6 million tonnes, supported by steady population growth and expanding industrial use in the milling and baking sectors.
Local wheat production, estimated at around 1.5 million tonnes, remains below national consumption levels, making imports a vital component of the country’s food supply chain.
The GFSA, formerly known as the Saudi Grains Organization (SAGO), has been gradually transitioning toward a new procurement model that leverages Saudi agricultural investments abroad to secure long-term grain supplies.
The agency’s approach aims to reduce exposure to global price volatility, strengthen strategic reserves, and ensure consistent quality for the domestic milling sector.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
