RIYADH: Saudi Arabia’s commitment to bolstering food security received a significant boost as the country’s Agricultural Development Fund inked financing contracts worth SR926 million ($246.8 million). These deals, focused on the feed industry, animal production, and dairy sectors, aim to support the import of key agricultural products essential for sustaining the Kingdom’s food supply, including maize, soybeans, and barley.
The contracts encompass various initiatives, such as the establishment of an agricultural product marketing center, cold storage facilities, and a broiler and poultry farming project. By diversifying agri projects, the fund aims to strengthen food security, address potential food supply shortages, and solidity food supply chains.
Established in 1961 through a royal decree, the Agricultural Development Fund plays a vital role in providing financial support to agricultural activities in Saudi Arabia. In June, the fund provided SR1.5 billion to local farmers, primarily supporting poultry breeding, greenhouse vegetable production, and fish and shrimp farming. The fund also extended support to date manufacturing and marketing centers and refrigeration warehouses.
Saudi Agricultural Development Fund’s Commitment
These recent loan approvals highlight the fund’s commitment to its developmental and financing role in the agricultural sector, aligning with the Ministry of Environment, Water and Agriculture’s policies and the Kingdom’s overarching food security strategy. In the first quarter of 2023 alone, the fund granted development and investment loans exceeding SR2.3 billion, marking a significant increase compared to the same period in 2022.
The surge in loans, which increased by 167 percent year over year, particularly benefit small farmers, breeders, and poultry projects across various regions. Notably, Nairiyah, Rabigh, Al-Ghat, and Al-Olaya have also received financial support.
Through these financing contracts and loan approvals, Saudi Arabia emphasizes its commitment to achieving food security and reducing dependency on imports by strengthening domestic agricultural production and supporting vital projects across the value chain. The country continues to proactively invest in the farming sector and optimize the supply chain, ensuring a sustainable and self-reliant food system.
