RIYADH: Rural farming in Saudi Arabia is expected to see increased investments and loans, with the Ministry of Environment, Water, and Agriculture signing two agreements with the Agricultural Development Fund.
According to the Saudi Press Agency, the deal is expected to increase the production efficiency of the agricultural industry in the Kingdom and extend the fund’s involvement in various activities of the ministry.
The deal will also encourage entrepreneurs to exploit investment opportunities in the sector and provide support and finance for farms.
“The Agricultural Development Fund plays a significant role in supporting the agriculture sector in the Kingdom through financial initiatives and other programs that aim to strengthen food security and sustainability,” said Habib Al-Shammari, the fund’s official spokesperson.
Ensuring food security for the Kingdom is one of the key goals outlined in Saudi Arabia’s Vision 2030, and initiatives like these are further expected to encourage growth.
The ministry and ADF will also work together to increase the utility of modern agricultural methods and address the problems and difficulties faced in the farming sector.
“The fund offered over SR6.5 billion ($1.73 billion) in financial support in 2022, SR1.5 billion in the first quarter of 2023, and SR2 billion in the second quarter of this year,” said Al-Shammari.
In June 2023, Saudi Arabia announced the launch of the Smarter Climate Farmers Challenge in partnership with UpLink, the open innovation platform of the World Economic Forum, to identify and support innovators of climate-smart agriculture solutions.
The announcement was made by Saudi Minister of Economy and Planning Faisal Alibrahim during the World Economic Forum’s 14th Annual Meeting of the New Champions in Tianjin, China.
During his speech, the minister said that immediate action is required to address food security challenges, especially in the desert environment in Saudi Arabia.
Earlier this month, the ADF approved SR1.5 billion to farmers in Saudi Arabia for small farmers involved in greenhouse vegetable production, poultry breeding, and fish and shrimp farming.
Minister of Industry and Mineral Resources Bandar Alkhorayef also indicated that the Kingdom is eyeing to attract investments worth $20 billion in the food sector by 2035.
These investments will be made specifically in major areas of the food industry, including poultry, dairy, bakery, sweets and beverages.
According to Alkhorayef, these investments are also in line with the country’s aim to double agricultural exports from $3.7 billion in 2022 to $10.9 billion in 2035, as per the objectives of the National Industry Strategy.
