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Industry Insights

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Industry Insights

Saudi's growing population is driving demand for agricultural products

Saudi's growing population is driving demand for agricultural products

Saudi Arabia's agricultural sector is going through a period of change following a governmental decision in 2008 to focus on value-added crops such as fruits and vegetables as well as implementing new water-saving and irrigation technologies.
Saudi Arabia's agricultural sector is going through a period of change following a governmental decision in 2008 to focus on value-added crops such as fruits and vegetables as well as implementing new water-saving and irrigation technologies.
To enable such developments the government allocated $12.3 billion in the 2010 budget for water, agriculture and related infrastructure, a 30% rise on 2009. A further $12.9 billion has been disbursed by government credit institutions for developing agriculture, industry and infrastructure in the kingdom, while the Agriculture Development Fund is being restructured.
To enable such developments the government allocated $12.3 billion in the 2010 budget for water, agriculture and related infrastructure, a 30% rise on 2009. A further $12.9 billion has been disbursed by government credit institutions for developing agriculture, industry and infrastructure in the kingdom, while the Agriculture Development Fund is being restructured.
On a more micro level, attention is being placed on expanding dairy production to meet domestic and regional demand, such as from the largest dairy farm in the world, which has over 37,000 cows. Poultry and egg farming is an additional export focus, with the Kingdom currently self sufficient in terms of domestic demand. New farms, abattoirs and cold storage facilities are under construction to meet rising demand in the Gulf and elsewhere in the Middle East.
On a more micro level, attention is being placed on expanding dairy production to meet domestic and regional demand, such as from the largest dairy farm in the world, which has over 37,000 cows. Poultry and egg farming is an additional export focus, with the Kingdom currently self sufficient in terms of domestic demand. New farms, abattoirs and cold storage facilities are under construction to meet rising demand in the Gulf and elsewhere in the Middle East.
Further investment is earmarked for developing the Kingdom’s fisheries, flour mills and associated agro-food industries. Infrastructure developments will equally bolster the sector, such as the Prince Abdulaziz Mousaed Economic City in the city of Hail, which is to be the largest agriculture and processing hub in the kingdom with a dry port providing warehousing, handling and transport services, near a new international airport being constructed.
Further investment is earmarked for developing the Kingdom’s fisheries, flour mills and associated agro-food industries. Infrastructure developments will equally bolster the sector, such as the Prince Abdulaziz Mousaed Economic City in the city of Hail, which is to be the largest agriculture and processing hub in the kingdom with a dry port providing warehousing, handling and transport services, near a new international airport being constructed.
Saudi Arabia's food and beverages market is worth $5.6 billion
Saudi Arabia's food and beverages market is worth $5.6 billion
 
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