Saudi Arabia Agriculture - Industry - Market, Share and Trends 2023-2028

Summary of Agriculture

Saudi Arabia’s agriculture industry plays a crucial role in the nation’s food security strategy despite challenges posed by its arid climate and limited water resources. The government has been investing heavily in agricultural development, utilizing advanced technologies such as- hydroponics and vertical farming to increase domestic production. Additionally— there’s a growing emphasis on sustainable practices and reducing dependence on food imports. It currently accounts for over 10% of the worlds agricultural industry.

According to our estimates – we can say that the agricultural industry in Saudi Arabia is forecasted to be a $28.66 Billion industry in 2029 from $20.32 Billion in 2023 with a CAGR of 5.90%.

Saudi Arabia is a major exporter of fruits and vegetables with productive crops like— watermelon, grapes, citrus fruits, onions, dates, dairy products, eggs, fish, poultry, fruits, vegetables and flowers. The government plays a crucial role in the agriculture industry by subsidizing corporate farming, providing loans to farmers and offer support such as: low-cost water, fuel, electricity and duty-free imports of raw materials and machinery.

Recent Trends and Insights

Saudi Arabia is perched on two liquid gold mines: oil and water. The massive expense of pumping water to the surface for agriculture and cattle rearing has been covered by the oil which is produced in world-class quantities.

Oil revenue continues to grow for the time being, but the water supply is rapidly diminishing and the Saudi government has decreed only a few more years will be devoted to growing wheat. The country is now directing its massive wealth towards buying land and growing crops in other and more verdant nations.

In recent years we have witnessed that— Saudi Arabia has witnessed a surge in greenhouse farming and controlled environment agriculture to mitigate the impact of water scarcity and extreme temperatures. The adoption of precision irrigation systems and soil moisture monitoring technologies is enhancing resource efficiency. Furthermore— there’s a notable shift towards organic farming practices driven by consumer demand for healthier and environmentally friendly products.

Product Insights

Since the 1970s and 1980s— Saudi Arabia underwent significant agricultural restructuring to enhance food security through self-sufficiency. While successful in increasing domestic output of key crops, the country remains somewhat dependent on foreign inputs for food production.

Saudi Arabia’s agricultural product portfolio is diversifying to meet changing consumer preferences and market demands. With a focus on reducing imports, there’s increased cultivation of high-value crops such as fruits, vegetables, and specialty crops. Additionally, the livestock sector is seeing advancements in genetics and management practices to improve productivity and quality.

Saudi Arabia faces water depletion challenges due to intensive farming practices. The country heavily relies on underground aquifers for irrigation, leading to a rapid decline in water resources. Efforts are being made to address this issue and ensure sustainable agricultural practices.

Saudi Arabia has made remarkable progress in agricultural production over the years. The country has become self-sufficient in various foodstuffs like meat, milk and eggs. Saudi Arabia transitioned from being an importer to an exporter of wheat within a short period.

The agriculture market in Saudi Arabia is substantial and expected to continue growing. It was the 24th largest market for U.S. food and agricultural products which is indicating its significance on the global stage. Initiatives to enhance food security and the rising demand for organic products are driving further growth in the sector.

Key Companies

Some major players within this vast domain of industry are:

• Saudi Agricultural and Livestock Investment Company (SALIC)
• National Agricultural Development Company (NADEC)
• Almarai
• Saudi Agricultural Development Company (SADCO)
• Saudi Arabia Basic Industries Corporation (SABIC)
• Al Jouf Agriculture Development Company
• Al Safi Danone
• Middle East Agriculture Company (MEACO)
• Al Watania Agriculture
• Saudi Fisheries Company (SFC)

Country Analysis

Different regions within Saudi Arabia exhibit varying agricultural capabilities and challenges. The western region, including areas like Al-Jouf and Tabuk, is known for date palm cultivation and is increasingly adopting modern farming techniques. In the central region, around Riyadh, there’s a focus on large-scale commercial farming projects leveraging advanced irrigation technologies. The Eastern Province is emerging as a hub for aquaculture and seafood production, capitalizing on its coastal resources. Overall, the government’s Vision 2030 initiative is driving significant investments in the agricultural sector to achieve self-sufficiency goals and foster economic diversification.

Aquaculture is one of the new sectors in which the public sector is investing alongside the private sector. There has been a steady increase in the number of fish farms, whether they use onshore tanks or marine pens. The majority can be found on Saudi Arabia’s Red Sea coast. Particularly successful farming has been done with shrimp. For instance, the National Shrimp Company “Al-Rubian” is overseen by Saudi hydrobiologists and marine engineers and operates a shrimp farm south of Jeddah. The shrimp – which includes the prized black tiger kind – is primarily shipped to Japan and the United States.

The Kingdom’s most notable agricultural accomplishment is generally acknowledged to have been the quick shift from importing to exporting wheat. In 1978, the country built its first grain silos. By 1984— it had become self-sufficient in wheat. Saudi Arabia quickly began exporting wheat to thirty countries, including China and the former Soviet Union. The primary producing districts of Tabuk, Hail and Qasim saw average yields of up to 3.6 tonnes per acre.

With reference to our previous discussions— Saudi farmers grow substantial amounts of other grains such as barley, sorghum and millet. Recently – in the interest of preserving precious water resources – production of wheat and other grains has been considerably reduced.

Market segmentation

By Type:

• Crop farming
• Livestock farming
• Mixed farming (combination of crop and livestock)
• Aquaculture (farming of fish and other aquatic organisms)
• Horticulture (cultivation of fruits, vegetables, and ornamental plants)
• Forestry (management and cultivation of forests)

By End User:

• Commercial farmers
• Small-scale farmers
• Agribusinesses and cooperatives
• Government and research organizations
• Retailers and distributors of agricultural products

By Sub-Sector:

• Arable farming (crops like wheat, corn, rice, etc.)
• Dairy farming (production of milk and dairy products)
• Poultry farming (raising chickens, ducks, and other birds)
• Viticulture (cultivation of grapes for wine production)
• Floriculture (cultivation of flowers)
• Specialty crops (such as herbs, spices, and niche products)

Our Methodology

We have offered a well-founded review of Saudi Arabia’s agriculture market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.