Saudi Arabia permits flour mills to export surplus production

The General Food Security Authority issued the approval, requiring mills to repay the full value of the wheat subsidies provided by the government for the quantities they intend to export. Shutterstock
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Updated 24 November 2024
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Saudi Arabia permits flour mills to export surplus production

JEDDAH: Saudi Arabia has approved a plan allowing licensed flour mills to export surplus production to international markets, provided local supply remains secure. 

The General Food Security Authority issued the approval, requiring mills to repay the full value of the wheat subsidies provided by the government for the quantities they intend to export, the Saudi Press Agency reported. 

Ahmed bin Abdulaziz Al-Faris, governor of the GFSA, emphasized that this decision aligns with Saudi Arabia’s Vision 2030, which supports national industries and fosters competition based on high product quality. 

Under Article 14 of the Kingdom’s Wheat Flour Production Law, issued in 2018, flour mills are prohibited from exporting wheat, flour, or derived products without prior approval from the relevant authority. Mills must repay the subsidy granted for these products intended for export. Additionally, exports must not disrupt the local supply of these products. 

Saudi Arabia has developed a strategic plan for its agricultural sector, focusing on sustainability, food security, and welfare for farmers, as well as economic contributions and preventative measures. 

Despite its desert climate and limited water resources, the Kingdom’s national policies address critical issues such as food and water security, sustainable agricultural development, and ecological balance. 

These efforts reflect Saudi Arabia’s commitment to enhancing agricultural productivity while ensuring the responsible management of its natural resources. 

In 2023, Saudi Arabia’s grain production reached 1.75 million tonnes, harvested from 323,000 hectares of a total of 331,000 hectares planted, according to the figures released by the General Authority for Statistics.  

Wheat was the leading crop, accounting for 63.4 percent of the total area, with production reaching 1.314 million tonnes. 

Formerly known as the Saudi Grains Organization, the GFSA plays an important role in driving economic development and meeting the food needs of Saudi citizens. 

Established in 1972, the GFSA was created as part of the government’s efforts to ensure national development. Its objectives include establishing and operating flour mills, production facilities, and animal feed factories, as well as developing complementary food industries.  

The authority is also responsible for marketing products, purchasing grains, and maintaining an adequate reserve stock for emergencies, in line with the government’s political-agricultural policy. 


Islamic banks’ market share in Turkiye rises to 9.2%: Fitch Ratings

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Islamic banks’ market share in Turkiye rises to 9.2%: Fitch Ratings

RIYADH: Islamic banks in Turkiye lifted their asset market share to 9.2 percent in 2025 from 8.1 percent a year earlier, as financing and deposits outpaced the broader banking sector, a new analysis showed. 

In its latest report, Fitch Ratings said financing and deposit market shares rose to 7.9 percent and 10.4 percent, respectively, by the end of 2025, compared with 7.3 percent and 9.4 percent in 2024.

The agency noted that new digital Islamic banks are emerging in the country, with investment from Gulf Cooperation Council countries expected to continue. 

Turkiye’s strong ties with Islamic countries across the Balkans, Africa and the Middle East support the development of its Islamic banking sector, attracting investors and contributing to the industry’s growth.

In its latest report, Fitch stated: “Three recently established private Islamic banks (two digital) grew rapidly in the first nine months of 2025. Investment in digital participation banking from the Gulf Cooperation Council countries underscores the potential for further investment from the region.” 

It added: “Planned establishment of new participation banks, and rapid growth of recently established banks – albeit from small bases – means that the segment landscape may be reshaped in 2026.” 

Dubai Islamic Bank PJSC’s investment in digital bank TOM underscores the potential for further GCC investment. 

Turkish regulators have approved the establishment of Halk Katilim Bankasi A.S. and Adil Katilim Bankasi A.S. (digital), while BIM Birlesik Magazalar A.S.’s application is pending. 

Fitch added that state-owned participation banks may merge or pursue initial public offerings, potentially reshaping the banking landscape. 

The report predicts Islamic banks’ market share will rise further in 2026, supported by strong internal capital generation and growth appetite. However, the non-performing financing ratio may increase moderately due to high inflows. 

“The segment’s non-performing financings ratio deteriorated to 2 percent at end-2025 compared to 1.2 percent in 2024 but remained below the sector average of 2.5 percent,” said Fitch. 

It added: “We expect pressure to persist given still-high financing rates, high but declining inflation, and the sensitivity of unsecured retail (lower share than conventional banks) and SME segments to economic cycles. We forecast a moderate increase in the segment NPF ratio in 2026.”