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. 


UAE’s residential real estate market to see softer home sales

Updated 21 February 2026
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UAE’s residential real estate market to see softer home sales

  • Moody’s sees mild softening of prices over the next 12 - 8 months as rising completions add supply

RIYADH: The UAE’s residential real estate market is expected to see a modest decline in developer sales and a mild softening of prices over the next 12 to 18 months as rising completions add supply, Moody’s said.

Despite near-term easing, the credit ratings agency noted that developers are supported by strong revenue backlogs and solid financial positions, while regulatory measures have reduced banks’ exposure to the construction and property sectors, helping to preserve robust solvency and liquidity buffers across the financial system.

The broader trend is reflected in the UAE’s real estate market, which recorded a strong performance during the first three quarters of 2025, according to Markaz.

In Dubai, transaction values increased 28.3 percent year on year to 554.1 billion Emirati dirhams ($150.88 billion), while Abu Dhabi recorded total sales of 58 billion dirhams, up 75.8 percent year on year. The number of transactions in Abu Dhabi rose 42.3 percent to 15,800.

The report said: “After five years of extraordinary growth in the UAE’s residential real estate market, particularly in Dubai, we expect developer sales to decline modestly and some price softening over the next 12 to 18 months as rising completions add supply. 

“From 2026 to 2028, around 180,000 new units will be completed in Dubai, a significant increase from prior years that is likely to weigh on demand and slow price growth. 

“However, fundamentals remain supportive, underpinned by continued population growth and an influx of high-net-worth individuals. Rated developers’ credit quality will remain resilient, supported by strong revenue backlogs, front-loaded payment plans and solid financial positions.”

Munir Al-Daraawi, founder and CEO of Dubai-based Orla Properties, told Arab News the Moody’s report underscores what the firm is seeing on the ground, namely “a market that is successfully transitioning from a period of extraordinary growth to one of sustainable stability.”

He added: “While a mild softening of prices and a modest decline in sales are anticipated over the next 12 to 18 months, these are natural adjustments for a maturing global hub like Dubai.” 

Al-Daraawi believes the the projected delivery of 180,000 units between 2026 and 2028 is not a cause for concern, but “a reflection of the UAE’s long-term appeal to high-net-worth individuals and a growing population.”   

The CEO added: “The report rightly points out that fundamentals remain supportive, underpinned by Dubai’s 2040 Urban Master Plan and a significant influx of global talent.” 

He went on to note that the resilience of the sector is further bolstered by the solid financial positions of developers and the strong regulatory measures that have shielded the banking sector from excessive exposure.

“This creates a robust ecosystem where credit quality remains high, even as we navigate a more competitive landscape. For boutique and luxury-focused developers, the current environment emphasizes the importance of quality, execution, and strategic capital allocation — factors that will continue to define the UAE’s real estate success story,” said Al-Daraawi. 

The current environment emphasizes the importance of quality, execution, and strategic capital allocation.

Munir Al-Daraawi, Founder and CEO of Orla Properties

Riad Gohar, co-founder and CEO of BlackOak Real Estate, told Arab News that while Moody’s is correct to say that supply is rising, the conclusion of a broad slowdown ignores the structure of this current economic cycle.

He added: “First, this is not a debt-fueled market. Around 83 percent of Dubai residential transactions in 2024 and 2025 were non-mortgaged. That means the market is equity-driven, not credit-driven. When cycles are not built on leverage, corrections are typically shallow and segmented, not systemic. “

He added that the macroeconomic backdrop is stronger than in past cycles, driven by sustained non-oil gross domestic product increase, structural reforms, population growth, and capital inflows aligned with long-term national plans.

“Demand is not purely speculative; it is driven by migration, business formation, and wealth relocation,” the CEO said.

“Third, prime vs. non-prime must be separated. Any pressure from increased completions is more likely to affect marginal locations, not established prime areas supported by global HNWI inflows. Historically, prime assets in Dubai have shown resilience even during broader market pauses,” Gohar added.

He continued to clarify that for smaller developers, some may feel margin compression if sales moderate, but this becomes a consolidation phase, not a systemic risk.

“Banks’ real estate exposure has already declined to around 12 percent of total loans — from 19 percent in 2021 — and NPLs (non-performing loans) are low at 2.9 percent, meaning financial contagion risk is limited. Regulatory escrow structures and stricter oversight further reduce spillover,” the CEO said.

“We are in a capital-rich, cash-driven cycle, regulated market with strong GDP and population growth. If anything, weaker fringe players exiting would strengthen the core not destabilize it,” he said.

The Moody’s report highlighted that while most developers it rates will generate “substantial excess cash” over the next two to three years, there will be fewer opportunities to make significant investments, especially within the Dubai real estate market.

As well as prompting a shift toward corporate governance and, in particular, how developers deploy their rising liquidity, some firms are looking to diversify beyond their core business models.

“For instance, Binghatti has recently launched its first master-planned villa community, marking a departure from its historical focus on single-plot high-rise developments, as demand for villas continues to outperform that for apartments,” said the report.

It continued: “Others are looking beyond Dubai and the UAE for growth, whether through geographic diversification or expansion into unrelated sectors.

“For example, Damac’s owner, Hussain Sajwani, has announced significant planned investments in data center development across the US and Europe.

“Emaar continues to develop actively in Egypt and India and is evaluating potential entry into China and the US. Aldar has started development projects in the UK and Egypt, while Arada has begun building in Australia and the UK and Sobha is expanding into the US.”