JAZADCO sets up SAR 500 mln aquaculture firm with 3 other companies

Jazan Energy and Development Co. (JAZADCO) inked on Jan. 30 an agreement with Tabuk Fisheries Co., Aquaculture Sharq Farms Co., and Tharawat Seas Co. to merge the aquaculture sectors of the four companies.

The potential merger entails establishing a new limited liability company (LLC) headquartered in Riyadh at a capital of SAR 500 million, SPA reported, citing Saudi minister of environment, water and agriculture, Abdulrahman Al-Fadli.

"This merger will help fulfill the ministry's objectives as regards boosting the local aquaculture industry," Al-Fadli said, adding that a number of local and global companies in the industry will also mull merger deals.

The new entity is expected to initially produce 60,000 metric tons, which will likely double to 120,000 metric tons at a later stage. The company also targets to reach a production capacity of 300,000 metric tons by 2035.

Earlier this month, JAZADCO signed a memorandum of understanding (MoU) with the 3 companies to conduct a feasibility study to merge their aquaculture sectors.

The new entity is fully supported by the Ministry of Environment, Water and Agriculture as part of the national strategy to develop the aquaculture sector and promote its contribution to the national economy in line with Saudi Vision 2030.