Page 42 - AA 2023 Year Book Website

Saudi Arabia

SAUDI ARABIA AGRICULTURE MARKET SIZE & SHARE

ANALYSIS - GROWTH TRENDS & FORECASTS (2023 - 2028)

Saudi Arabia Agriculture Additionally, the technological ad-
Market Analysis vances to increase productivity and
catering demand is showing a positive
• The Saudi Arabian agriculture mar- trend in the agriculture market of Saudi
ket is projected to register a CAGR of Arabia. For instance, in 2022 KSA an-
4.9% during the forecast period. nounced a smart farm project which will
supply fresh agricultural produce to the
• Saudi Arabia is the largest market Saudi Arabia market. This project is a
for agriculture in the GCC region, and joint venture between Saudi supermar-
the demand for agriculture is higher at ket chain Tamimi Markets, Japan-based
present in the country, owing to chang- Mitsui & Co., and Italian agricultural
ing consumption patterns of consumers technology provider Zero SRL aims to
and increasing awareness. The agricul- develop vertical smart farms in the Al
tural sector contributes 53 billion SR an- Kharj area of the kingdom. Such techno-
nually to the country’s GDP. The increase logical developments in the field of ag-
in population in the past few years also riculture will help increase the farmer’s While the country is currently food-
raised the importance of agriculture in income and also strengthen the agricul- secure, farming in Saudi Arabia has
this region. ture sector in Saudi Arabia. been a crucial area of interest for those
• Additionally, the government of Sau- Along with this, there are many start- who wish to expand Saudi sustainability
di Arabia is highly supportive of favor- up companies in the Saudi Arabia region and shore up potential risks in global
able policies to support agriculture in that are taking up a wide range of tech- food supply network crashes. To avoid
the region. For instance, the Grain Silos nological approaches to innovate the the uncertainty and the risks related to
and Flour mills Organization, purchases agriculture industry. For instance, Red the food supply, the country’s govern-
and stores wheat, constructs flour mills Sea Farms is an agricultural technology ment now, subsidizes the use of manu-
and produces animal feed. The govern- business that makes it possible to grow factured feed for livestock farmers and
ment also offers land distribution and crops commercially using mostly salt encourages vegetable growth using
reclamation programs and funds re- water. greenhouses and drip irrigation meth-
search projects. ods. These techniques conserve water
Moreover, the increased arable land while ensuring a more sustainable food
• Moreover, the increase in the income year after year shows an increase in the supply.
levels of the people and the high pres- demand for food products showing de-
ence of superstores and hypermarkets velopment in agriculture. For instance, Along with this, the Saudi government
has increased purchasing power and As per the FAO, in 2020, the total area has made concerted efforts to improve
access to high-quality agricultural prod- harvested under dates was 152,705 ha, its agricultural sector as part of its Vi-
ucts for the Saudi population. As many of up from 136,992 ha in 2019. Crops like sion 2030 program. Saudi Arabia’s Vi-
these retailers adopt strategies, includ- dates, citrus, watermelon, grapes, toma- sion 2030 is focused on rationalizing
ing optimal pricing strategies to capture toes, and cabbage are majorly cultivated the use of finite resources and increas-
the market, the demand among consum- in the country, with dates and tomatoes ing efficiency through production and
ers is increasing. The urban population holding the major share. value chains. The development of rural
is gradually becoming brand conscious economies is a top priority. To assist
and is becoming aware of the origin and Increase in Government initiatives to attain them in achieving their objectives under
type of food consumed. agricultural self-sufficiency in the country the government’s 2030 economic plan,
Saudi Arabia has approved financial
Technological advancements and According to the Borgen Project, the support for the environment, water, and
increase in land under Agriculture are Saudi Arabian Kingdom imports more agriculture sectors totaling 92 billion ri-
Driving the Market than 80% of its necessary food supply yals (USD24.5 billion). Similarly, as a part
with its oil money. Only about 1.5% of of Vision 2030, the Saudi government is
Water is very scarce in Saudi Arabia the land area of Saudi Arabia is arable, spending worth 13.94 billion riyals on
due to the presence of large desert land. and the agriculture done in the country the Ministry of Agriculture as a part of
To encourage farming in the region ends up taking over 80% of the King- the National Transformation Plan.
many alternative sustainable agricultur- dom’s water supply. This is increasing
al activities, such as greenhouse farming the imports of various food to the coun- Moreover, the Saudi Arabian Agri-
and implementing advanced drip irriga- try in order to satisfy the increased de- cultural Bank (SAAB) is a government
tion practices, to produce fruits and veg- mand. For instance, according to the ITC agency that offers subsidies to small and
etables. This promotes the cultivation of trade map, the import volume of citrus medium land-holding farmers. It also
different varieties of fruits, vegetables, increased from 653.6 metric ton in 2018 credits interest-free loans and supports
and grains for the sustainable develop- to 615.5 metric ton in 2021. So to reduce the growers financially. Such govern-
ment of the nation and becomes the best import dependency the government is ment initiatives to support the agricul-
solution for water scarcity. taking various initiatives to attain self- tural sector in the country is expected
to boost the growth of the agriculture
sufficiency in agriculture production. market.
40 Arab Agriculture 2023