Spokesperson of the Agricultural Development Fund of Saudi Arabia Habib bin Abdullah Al-Shammari expects loan approvals to reach SAR 7.4 billion ($2 billion) this year, supporting key agricultural projects under the National Agriculture and Food Security Strategies.
He also announced that the Fund’s contribution to the agricultural sector’s GDP has increased to 11% in 2024, up from 3.6% in 2016.
Speaking to Asharq Al-Awsat, Al-Shammari said the Fund has increased financing for local agricultural production and modern technology initiatives from 50% to 70% of the loan value, due to their importance for food security and resource sustainability.
The Fund is reviewing funding requests from five innovative companies that meet its criteria and supporting mergers and acquisitions in the agricultural sector to strengthen food security, he revealed.
The Fund aims to increase its support for agricultural projects, especially those in the National Agriculture and Food Security Strategies, he went on to say.
Moreover, it is boosting financing for modern technologies in agriculture, raising support from 50% to 70% due to their importance for food security and resource sustainability.
It is funding supply chain and marketing projects that support food security and the food industry. These projects help close marketing gaps and ensure sustainable resources and income for farmers and small businesses, promoting investment in agriculture, he explained.
Al-Shammari expects loan approvals to reach SAR 7.4 billion ($2 billion) in 2025, up from SAR 7.17 billion ($1.9 billion) last year, marking a 9% increase from 2023.
The funding will cover a variety of developmental loans for small farmers, beekeepers, and livestock breeders across several regions of the Kingdom.
It will also support projects in sectors aimed at boosting local production and ensuring food security. These include red meat production, poultry farming, greenhouse vegetable cultivation, fish farming, and cold storage facilities.
Additionally, the loans will finance supply chains and processing industries, such as tomato paste production, a coffee bean sorting and roasting plant, cold storage, and agricultural product marketing centers.
Al-Shammari stressed that the Fund has launched several initiatives and financing programs that have contributed to increased local production, improved self-sufficiency, and bolstered the domestic stock of food commodities.
These efforts have also supported supply chains and enhanced the strategic reserves of targeted agricultural products within the Kingdom’s food security initiative.
As a result of these initiatives and financing programs, loan approvals have risen from SAR 455 million ($121 million) in 2016 to over SAR 7 billion ($1.9 billion) by the end of 2024. Since its establishment, the Fund has provided a total of SAR 65 billion ($17.3 billion).
Al-Shammari explained that the Fund offers financing for mergers and acquisitions within the agricultural sector to support food security, enhance project efficiency, and ensure sustainability.
The Fund also facilitates these processes to boost production and market value, address struggling projects, and provide opportunities for new investors in agriculture.
Additionally, it supports expansion and both horizontal and vertical integration.
He added that the Fund also provides loans to innovative start-ups focused on developing agricultural production, boosting local output, and increasing the competitiveness of domestic agricultural products.
These loans aim to help start-ups grow and launch new, innovative products, including in water and energy technologies, agriculture and food, and deep-tech and biotech sectors.
Since the introduction of its new regulations, the Fund has been extending loans to foreign investors and licensed foreign agricultural companies operating in the Kingdom under the Foreign Investment Law.
