Saudi Arabia's rural farming sector is set to receive a boost in investments and loans as the Ministry of Environment, Water, and Agriculture recently signed two agreements with the Agricultural Development Fund (ADF). The move is expected to enhance the production efficiency of the agricultural industry in the Kingdom and expand the fund's involvement in various activities of the ministry.
The agreements aim to encourage entrepreneurs to capitalize on investment opportunities in the agricultural sector while providing crucial support and financial assistance to farms. Habib Al-Shammari, the official spokesperson for the ADF, emphasized the fund's significant role in bolstering the Kingdom's agriculture sector through financial initiatives and programs that promote food security and sustainability.
Enhancing food security is a key objective outlined in Saudi Arabia's Vision 2030, and initiatives such as these are anticipated to stimulate sectoral growth. The ministry and the ADF will collaborate to enhance the effectiveness of modern agricultural methods and address the challenges faced by farmers.
Al-Shammari revealed that the ADF provided substantial financial support in recent periods, including over SR6.5 billion (USD1.73 billion) in 2022, SR1.5 billion in the first quarter of 2023, and SR2 billion in the second quarter of this year. This demonstrates the fund's commitment to empowering the agricultural sector and promoting its development.
In June 2023, Saudi Arabia made an announcement during the World Economic Forum's 14th Annual Meeting of the New Champions in Tianjin, China. The country launched the Smarter Climate Farmers Challenge in collaboration with UpLink, the open innovation platform of the World Economic Forum.
The initiative aims to identify and support innovators who provide climate-smart agriculture solutions. Faisal Alibrahim, the Saudi Minister of Economy and Planning, stressed the urgency of taking immediate action to address food security challenges, particularly in the arid desert environment of Saudi Arabia.
Earlier this month, the ADF approved SR1.5 billion to support small farmers engaged in greenhouse vegetable production, poultry breeding, and fish and shrimp farming in Saudi Arabia. The Minister of Industry and Mineral Resources, Bandar Alkhorayef, also revealed the Kingdom's ambition to attract USD20 billion in investments in the food sector by 2035.
These investments will be targeted at key areas of the food industry, including poultry, dairy, bakery, sweets, and beverages. Alkhorayef noted that these investments align with the country's objective to double agricultural exports from USD3.7 billion in 2022 to USD10.9 billion in 2035, as outlined in the National Industry Strategy.
