Saudi agriculture sector adds $31.5bn to GDP  

Speaking at the 42nd Saudi Agriculture Exhibition in Riyadh, Ali Al-Zahrani, director of MEWA’s National Agriculture Strategy Implementation Department, said the sector has grown at a compound annual rate of more than 7 percent over the past five years.  Supplied
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Updated 26 October 2025
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Saudi agriculture sector adds $31.5bn to GDP  

JEDDAH: Saudi Arabia’s agricultural sector contributed $31.5 billion to the country’s gross domestic product in 2024, driven by rising production and initiatives that strengthened food self-sufficiency, according to official data. 

Total agricultural and food production exceeded 16 million tonnes last year, reflecting progress toward building resilient, sustainable food systems, the Ministry of Environment, Water and Agriculture said in a release. 

Despite roughly 90 percent of the country being desert, Saudi Arabia has expanded domestic crop production and reduced reliance on imports. The Kingdom has already reached full self-sufficiency in dates, fresh dairy products, and table eggs. 

Speaking at the 42nd Saudi Agriculture Exhibition in Riyadh, Ali Al-Zahrani, director of MEWA’s National Agriculture Strategy Implementation Department, said the sector has grown at a compound annual rate of more than 7 percent over the past five years.  

Al-Zahrani said the country’s agriculture strategy has played a key role in developing Saudi Arabia’s agricultural sector and addressing major challenges over the past years, including water scarcity, harsh climatic conditions, low productivity in certain areas, and difficulties in marketing and distributing agricultural products. 

“He explained that the strategy sets clear objectives to ensure the sustainability of the agricultural sector and enhance its contribution to food security, economic growth, and social and environmental development,” the release added, citing the official. 

Al-Zahrani added that this is achieved through the effective management of natural resources, adoption of innovative agricultural technologies, protection of farming systems and food safety, empowerment of small farmers, as well as the development of national capacities and expansion of investments and international partnerships.  

He pointed out that the ministry has launched 38 pioneering national initiatives under the strategy, including 11 to boost agricultural productivity, and five to restructure the sector and build capabilities, as per the ministry’s statement. 

The strategy includes five initiatives to support sustainable rural development programs, another five to strengthen plant and animal health under a One Health approach, and four to build resilient and sustainable food systems.  

Three initiatives, the official added, focus on enhancing natural resource sustainability and climate adaptation, while three others aim to improve marketing and agricultural services. 

In addition, two initiatives are designed to protect local products and promote exports, further supporting the sector’s growth and contribution to Saudi Arabia’s food security and economic development goals. 

He added that the implementation of efficient irrigation systems has reduced the use of non-renewable water in agriculture by 52 percent compared with 2016, while soft agricultural loans from the Agricultural Development Fund have exceeded $1.9 billion. 

He highlighted investment opportunities for the private sector in plant and animal production, including integrated seed and seedling production projects, fruit and vegetable processing, intensive livestock farming, aquaculture, and large-scale poultry production. 

Al-Zahrani noted that the total domestic fruit production, including dates, surpassed 2.9 million tonnes, achieving 64 percent self-sufficiency, while vegetable production exceeded 3.5 million tonnes, reaching 78 percent self-sufficiency, with significant expansion of greenhouse systems alongside traditional open-field farming. 

The statement concluded that the ministry continues to offer incentives, including streamlined land rental and simplified licensing, to encourage investment and the adoption of innovative, sustainable agricultural practices. 


Saudi Arabia set to attract $500bn in private investment, Al-Falih tells conference

Updated 09 December 2025
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Saudi Arabia set to attract $500bn in private investment, Al-Falih tells conference

RIYADH: Sustainability, technology, and financial models were among the core topics discussed by financial leaders during the first day of the Momentum 2025 Development Finance Conference in Riyadh.

The three-day event features more than 100 speakers and over 20 exhibitors, with the central theme revolving around how development financial institutions can propel economic growth.

Speaking during a panel titled “The Sustainable Investment Opportunity,” Saudi Investment Minister Khalid Al-Falih elaborated on the significant investment progress made in the Kingdom.

“We estimate in the midterm of 2030 or maybe a couple of years more or so, about $1 trillion of infrastructure investment,” he said, adding: “We estimate, as a minimum, 40 percent of this infrastructure is going to be financed by the private sector, so we’re talking in the next few years $400 (billion) to $500 billion.”

The minister drew a correlation between the scale of investment needs and rising global energy demand, especially as artificial intelligence continues to evolve within data processing and digital infrastructure in global spheres.

“The world demand of energy is continuing to grow and is going to grow faster with the advent of the AI processing requirements (…) so our target of the electricity sector is 50 percent from renewables, and 50 percent from gas,” he added.

Al-Falih underscored the importance of AI as a key sector within Saudi Arabia’s development and investment strategy. He made note of the scale of capital expected to go into the sector in coming years, saying: “We have set a very aggressive, but we believe an achievable target, for AI, and we estimate in the short term about $30 billion immediately of investments.”

This emphasis on long-term investment and sustainability targets was echoed across panels at Momentum 2025, during which discussions on essential partnerships between public and private sectors were highlighted.

The shared ambition of translating the Kingdom’s goals into tangible outcomes was particularly essential within the banking sector, as it plays a central role in facilitating both projects and partnerships.

During the “Champions of Sectoral Transformation: Development Funds and Their Ecosystems” panel, Saudi National Bank CEO Tareq Al-Sadhan shed light on the importance of partnerships facilitated via financial institutions.

He explained how they help manage risk while supporting the Kingdom’s ambitions.

“We have different models that we are working on with development funds. We co-financed in certain projects where we see the risk is higher in terms of going alone as a bank to support a certain project,” the CEO said.

Al-Sadhan referred to the role of development funds as an enabler for banks to expand their participation and support for projects without assuming major risk.

“The role of the development fund definitely is to give more comfort to the banking sector to also extend the support … we don’t compete with each other; we always complement each other” he added.