From sand, life • Chapter summary
For a country famous for its arid land and inhospitable climate, Saudi Arabia’s agricultural development over the past few decades has been nothing short of remarkable. In this intriguing story, the arrival of the pandemic presented a new chapter and, through it, the Kingdom has emerged with clear objectives for its food and agriculture sectors.
The early images of the pandemic that one could easily relate to were those of shoppers hurriedly emptying supermarket shelves and hording as much as they could. The worst was feared but it never came to pass. Nevertheless, the panic shone a spotlight on food security, which has, in fact, been a strategic objective for the Kingdom and is a key component of Vision 2030.
The Ministry of Agriculture oversees the bulk of agricultural policy, however there are other key public entities that have continued to do important work. The Saudi Arabian Agricultural Bank (SAAB) disburses subsidies and grants interest-free loans, while the Grain Silos and Flourmills Organization purchases and stores wheat, constructs flourmills, and produces animal feed. The government also offers land distribution and reclamation programs and funds research projects. Another key player in the pursuit of this goal is the Saudi Agricultural and Livestock Investment Company (SALIC), which focuses on investment in mass commodities such as barley, corn, soya, rice, sugar, oil, vegetables, and meat. Through its work, Saudi Arabia is on course to maintain its agricultural capacity and to export its surplus and thereby ensure long-term profitability.
The private sector has played a major role in the Kingdom’s agricultural development. This is mostly due to government programs that offered long-term, interest-free loans, technical and support services, and incentives such as free seeds and fertilizers, low-cost water, fuel and electricity, and duty-free imports of raw materials and machinery.
Among the more news grabbing headlines was last year’s announcement that Saudi Arabia had earmarked USD26.6 million for local vertical farming projects. This innovating sector, which also leverages on investment in AI technology, is likely to boom in the coming years and play a critical role in Saudi Arabia’s food security future. The excitement of private enterprises specializing in vertical farms lies in their abilities to grow fresh, safe, nutritious, and pesticide-free produce locally year-round, in spaces protected from harsh climate, with unparalleled savings in water and land use whilst having a low environmental impact.
Across our research for this publication, we see how the sector has displayed its resiliency and leveraged on the new opportunities to be found while navigating the pandemic.