Birr Metrics | 27 March 2026
Saudi Star rice project in Gambella languishes, authorities demand action
by Mintesinot Nigussie
Investment activity by Saudi Star Agricultural Development PLC, the MIDROC-linked rice farming project in Gambella, has slowed, prompting regional authorities to press for renewed plans to revive the operation.
Lou Obup Opiew (PhD), Commissioner of the Gambella Regional State Investment Commission, said the project’s pace has not matched initial expectations despite its status as a flagship commercial rice initiative. The venture controls around 14,000 hectares along the Alwero River and includes modern processing facilities, with early aims of boosting exports and creating local employment.
He added that the region has a dam more than the investment potential, which could irrigate 10,000 hectares of land.
“You have made a significant investment in constructing the machinery and irrigation channels for rice production, which, based on available information, is the only facility of its kind in East Africa,” Obup (PhD) said at the fourth edition of Invest in Ethiopia High-Level Business Reform, adding that the systems are currently not operational.
Saudi Star, one of six companies under MIDROC’s agro-cluster, operates as a private limited company majority owned by Sheikh Mohammed Hussein Ali Al-Amoudi, who holds 80 percent of the shares, with the remaining 20 percent held by Seid Hussein Ali Al-Amoudi. The company has secured about 14,020 hectares of agricultural land in Gambella, including 10,000 hectares at the Alwero rice farm and 4,020 hectares at the Abobo farm, alongside modern rice processing facilities and a cotton ginnery.
The Alwero farm, located about 45 kilometres from Gambella city, draws irrigation water from the Abobo reservoir dam to support both rain-fed and irrigated cultivation, with a focus on high-quality exportable rice. The area’s suitability for rice production had been established through earlier basin studies dating back to the 1980s.
The region recently revealed that 55,000 hectares of land have been cleared and prepared for investors, with approximately 8,200 square kilometres, nearly 26 percent of the region’s total area , deemed suitable for large-scale agriculture.
During a press conference last September, he said the land is fed by four major rivers, the Baro, Akobo, Alwero, and Gilon, which also support a huge fish population of around 113,000 species, making Gambella one of Ethiopia’s top spots for fisheries.
The commissioner also pressed the group to expand its presence in Gambella, calling for bold moves into large-scale gold mining and the hospitality sector, while highlighting the region’s vast untapped potential and the group’s exclusive role as Ethiopia’s only private gold mining investor.
“Gambella has a shortage of quality hotels,” Obup (PhD) added. “We have invited Haile Gebrselassie to invest in the hotel sector, and I also want to hear from you.”
Jemal Ahmed, Chief Executive of the MIDROC Investment Group, conceding their position as the region’s largest investor, said the decline in performance occurred because the initial study and investment for the rice project underestimated environmental challenges. During the crop’s milking stage, moisture shortages affected growth. In response, the company developed 35 kilometres of irrigation channels, installed all necessary machinery, and carried out extensive land development.
“But when it reached maturity, erratic rains turned harvesting into a challenge, and in the dry season, swarms of migrating birds threatened production,” he told the commissioner at the business forum. He added that keeping a skilled workforce in place remained another pressing hurdle, which also constrained operations on their cotton farm.
The group is now reengineering its investment plan to address these challenges, exploring ways to reinvest in the region using advanced moisture‑controlled harvesting technology, which the CEO noted they had observed in countries such as Vietnam.
But he added that, although the group plans to explore investments in the region’s hospitality sector, their expansion is currently limited to the 10 locations where they already operate hotels, including Addis Ababa and Jimma.
“We may consider expansion in the next phase,” he added.
MIDROC has begun tearing down Millennium Hall to make way for a bold redevelopment, anchored by a Moxy by Marriott hotel. Alongside this, existing properties like Sheraton Addis and the historic Wabi Shebele Hotel are being upgraded to Marriott’s global standards.
The group is expanding its footprint across multiple brands, Sheraton, Four Points by Sheraton, Moxy, Westin, and the Autograph Collection.
In regional cities, Four Points by Sheraton is planned for Jimma, Hawassa, and Bahir Dar to cater to business travellers and domestic tourists, while Protea by Marriott will redevelop existing hotels around Bahir Dar