Saudi agricultural fund boosts food sector with $533m in loans, credit facilities

JEDDAH: Saudi Arabia’s Agricultural Development Fund has approved SR2 billion ($533.33 million) in loans and credit facilities aimed at enhancing food sustainability and security throughout the Kingdom.

This strategic funding will support a range of agricultural initiatives, including red meat and poultry production, greenhouse farming, fish aquaculture, and cold storage facilities. The decision was made during the fund’s third board meeting of the year, held on Sept. 18 and chaired by Minister of Environment, Water, and Agriculture Abdulrahman Al-Fadhli.

Despite approximately 90 percent of its land being desert, Saudi Arabia is experiencing an agricultural renaissance focused on increasing domestic crop production and reducing reliance on imported food. The Kingdom has already achieved complete self-sufficiency in dates, fresh dairy products, and table eggs, according to the General Authority for Statistics.

By enhancing local production and ensuring stable supply chains, the ADF is playing a vital role in advancing the country’s food security objectives while promoting long-term agricultural sustainability, in line with the goals of Saudi Vision 2030.

Munir bin Fahd Al-Sahli, chief executive of ADF, noted that working capital will be financed in collaboration with banks to support the importation of key agricultural products. He emphasized that this initiative is part of a comprehensive food security strategy designed to strengthen reserves and stabilize supply chains.

The board also reviewed a report on the performance of agricultural projects supported by the fund over the past five years, assessing their operations, production, and funding goals. Additionally, the board examined ADF’s overall performance report for the current fiscal year up to the end of August.

Mansour Al-Mushaiti, vice minister of the Ministry of Environment, Water, and Agriculture, highlighted the surge in investments in the Saudi agricultural sector during his speech at the 43rd session of the UN Food and Agriculture Organization’s General Conference in July 2023. He noted that domestic agricultural production reached SR100 billion in 2022, the highest contribution in history, and that the Kingdom has achieved commendable levels of self-sufficiency, particularly in crops utilizing modern technologies.