Saudi Agricultural Sector Achieves $31.5 Billion Contribution To GDP In 2024

The Ministry of Environment, Water and Agriculture announced that the agricultural sector contributed $31.5 billion to Saudi Arabia's GDP in 2024. Total agricultural and food production surpassed 16 million tons, marking progress towards Saudi Vision 2030. This development enhances food security and builds sustainable food systems. The announcement was made at the 42nd Saudi Agriculture exhibition, highlighting significant achievements.

Ali Al-Zahrani, director of the ministry's National Agriculture Strategy implementation department, detailed the sector's progress. He noted that the strategy has helped overcome challenges such as water scarcity, harsh climates, and low productivity. The focus is on managing natural resources effectively and adopting innovative technologies.

The National Agriculture Strategy has launched 38 pioneering initiatives. These initiatives target productivity enhancement, sustainable rural development, food system resilience, and natural resource sustainability. The strategy also empowers small farmers and expands international investments and partnerships.

Efficient irrigation systems have been implemented under this strategy. These systems have led to a 52% reduction in non-renewable water use in agriculture compared to 2016 levels. This achievement underscores the sector's commitment to sustainable practices.

The agricultural sector has seen a compound annual growth rate exceeding 7% over the past five years. This growth reflects the successful implementation of strategic initiatives aimed at boosting productivity and sustainability.

Boosting Domestic Production

Domestic fruit production reached over 2.9 million tons, achieving 64% self-sufficiency. Meanwhile, domestic vegetable production exceeded 3.5 million tons, reaching a self-sufficiency rate of 78%. These figures highlight the sector's strides towards meeting local demand.

The Agricultural Development Fund has played a crucial role by increasing soft agricultural loans by more than $1.9 billion. This financial support aids farmers in adopting smart and sustainable agricultural systems.

Incentives for Investment

The ministry continues to encourage investment through various incentives. These include facilitating land rental processes and simplifying licensing procedures to promote smart agricultural practices.

The comprehensive approach outlined in the National Agriculture Strategy is pivotal for achieving long-term sustainability goals within Saudi Arabia's agricultural sector.

With inputs from SPA