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. 


Global brands shut Middle East stores as conflict causes chaos

Updated 03 March 2026
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Global brands shut Middle East stores as conflict causes chaos

  • Luxury brands and retailers close stores in Middle East
  • Conflict threatens the region that has ‌been luxury’s fastest growing
  • Mass-market retailers monitor situation, adjust operations in region

PARIS: In Dubai and other major Middle Eastern shopping hubs, many stores are closed or operating with a skeleton staff as the escalating conflict in the ​region causes chaos for businesses and travel.

The US-Israeli air war against Iran expanded on Monday with no end in sight, with Tehran firing missiles and drones at Gulf states as it retaliates for a weekend of bombing that killed Iran’s supreme leader and reportedly killed scores of Iranian civilians, including a strike on a girls’ primary school.

Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the UAE, Saudi Arabia, and Jordan remained open though staff attendance was “voluntary.”

“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al ‌Khatib told Reuters, adding ‌that the company’s leadership team personally visited Dubai Mall and Mall of the Emirates ​on ‌Monday ⁠morning to check ​in ⁠with workers.

E-commerce giant Amazon closed its fulfillment center operations in Abu Dhabi, suspended deliveries across the region and instructed its employees in Saudi Arabia and Jordan to remain indoors, Business Insider reported on Monday, citing an internal memo.

Gucci-owner Kering said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar and it has suspended travel to the Middle East.

Luxury growth engine under threat

Shares in luxury groups LVMH, Hermes, and Cartier-owner Richemont were down 4 percent to 5.7 percent on Monday afternoon as investors digested the knock-on impacts of the conflict.

The Middle East still accounts for a small share of global spending on luxury — between 5 percent and 10 percent, according ⁠to RBC analyst Piral Dadhania. But the region was “luxury’s brightest performer” last year, according to consultancy ‌Bain, while sales of expensive handbags have stalled in the rest of the ‌world.

Now, shuttered airports have put an abrupt stop to tourism flows into ​the region and missile strikes — including one that damaged Dubai’s ‌five-star Fairmont Palm hotel — are likely to dissuade travelers, particularly if the conflict drags on.

“If you assume that it’s ‌a $5 billion to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” said Victor Dijon, senior partner at consultancy Kearney.

If Middle Eastern shoppers cannot travel to Paris or Milan, that could also hurt luxury sales in Europe, he added.

Luxury brands have been investing in lavish new stores and exclusive events ‌across the region. Cartier unveiled a “high-jewelry” exhibition in Dubai’s Keturah Park just days before the conflict started.

Cartier and Richemont did not reply to requests for comment.

Luxury conglomerate LVMH ⁠has also bet big on ⁠the region. Last month, its flagship brand Louis Vuitton staged an exhibition at the Jumeirah Marsa Al Arab hotel, and beauty retailer Sephora launched its first Saudi beauty brand.

LVMH does not report specific figures for the region, but in January Chief Financial Officer Cecile Cabanis said the Middle East has been “displaying significant growth.” LVMH did not reply to a request for comment on how its business may be impacted by the conflict.

The Middle East has also attracted new investment from mass-market players. Budget fashion retailer Primark said in January that it plans to open three stores in Dubai in March, April and May, followed by stores in Bahrain and Qatar by the end of the year.

“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark-owner Associated British Foods said.

Apple stores in Dubai will remain closed until Thursday morning, the company’s website showed, while Swedish fast-fashion retailer ​H&M said its stores in Bahrain and Israel are ​closed.

Consumer goods group Reckitt has told all employees in the Middle East to work from home, temporarily closed its Bahrain manufacturing site and suspended all business travel to the region until further notice.