Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

Saudi Arabia Turns Potato Farming Challenge into Export Opportunity
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Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

In the deserts of Hail in northern Saudi Arabia, where rugged mountains border a climate that turns mild in summer and biting in winter, an unlikely agricultural success story has emerged.

From sandy soil that appears unforgiving at first glance, uniform potatoes are harvested to meet the exacting standards of local and international markets, supplying global food companies and contributing to the growth of a thriving export industry.

Grown not on traditional farmland but in a desert landscape long constrained by water and energy shortages, the crop has become a case study in how agricultural innovation and industrial sustainability can converge, positioning Saudi Arabia among the world's exporters of potatoes and processed potato products.

Potatoes in Hail are cultivated in sandy soil that gives the crop sufficient room to grow without deformities, setting it apart from harder soils that reduce quality and market acceptance. The main challenge, however, was not the soil but groundwater scarcity, making the search for innovative irrigation solutions a necessity rather than a choice.

That marked the start of a shift. Farmers have adopted drip irrigation systems powered by solar energy to reduce consumption and increase productivity, transforming Hail into a strategic production hub that contributes to self-sufficiency and exports to global markets.

According to previous remarks by Saudi Industry Minister Bandar Alkhorayef, the kingdom developed an irrigation model tailored to potatoes grown for potato chip manufacturing and export.

Alkhorayef said at the time that PepsiCo, which produces the well-known Lay’s brand, faced difficulties exporting potatoes grown in the kingdom. He stated that the government had collaborated with the Ministry of Agriculture to address the issue.

“They had a valid concern related to water scarcity, so we developed an appropriate irrigation model, which was approved by the agriculture ministry, resolving the export problem,” he said.

According to the Ministry of Environment, Water, and Agriculture, Saudi Arabia experienced a significant increase in potato production in 2023, with output rising by 47 percent to exceed 621,750 tonnes. The self-sufficiency rate reached 86.8 percent, according to the latest officially announced figures.

Hamoud Al Saleh, founder and chairman of Lahaa Agricultural Production, one of the Saudi suppliers to PepsiCo, said the kingdom had exported potatoes to Russia for six consecutive years, in addition to other countries including Norway, Lebanon, Syria and Jordan, while also supplying local factories.

Challenges

Some European markets still face hurdles in importing Saudi potatoes due to the absence of trade protocols, while Norway has proven more flexible, continuing imports over recent years, Al Saleh said.

He said groundwater remains the biggest challenge for farmers. Speaking to Asharq Al Awsat, Al Saleh said PepsiCo supported the company in implementing drip irrigation, covering part of the cost for three years and providing experts to help design and approve the system, which significantly increased productivity.

He said yields per hectare rose to between 50 and 60 tonnes in some fields, alongside a notable reduction in water consumption. He added that Saudi potatoes show high resilience to environmental conditions.

Energy has also been a challenge, with agricultural equipment relying heavily on diesel. This has prompted many farmers to adopt solar power, thereby easing operating costs for both farmers and the state.

Al Saleh unveiled a new project costing 15 million riyals, approximately $4 million, spanning 700 hectares and utilizing a combination of diesel and solar energy, describing it as a long-term investment aimed at enhancing sustainability and reducing consumption.

Resource efficiency

PepsiCo said resource efficiency has become a central pillar of its regional strategy. Ahmed El Sheikh, president and general manager for the Middle East, North Africa and Pakistan, said the company had adopted advanced drip irrigation systems in cooperation with specialized firms and the agriculture and industry ministries.

He said this helped cut water use by around 30 percent compared to traditional irrigation, alongside a shift toward solar energy instead of diesel, which reduced fuel and energy consumption.

Regarding exports, El Sheikh stated that most products are shipped to Gulf states and Jordan, with efforts underway to explore exports to Syria from plants within the kingdom.

In terms of investments linked to Vision 2030, he stated that the company has invested 300 million riyals, approximately $80 million, in new production lines targeting both local and export markets.

He stated that local content reached 95 percent for certain packaging materials that were previously imported, while locally sourced potatoes also achieved 95 percent, with ongoing efforts to reach 100 percent.

Local content refers to the share of raw materials, manufactured inputs, or extracted resources produced inside Saudi Arabia, whether agricultural, industrial, or packaging-related.

Regarding workforce localization, El Sheikh stated that some plants, including the Dammam factory, have achieved Saudization rates of 80 percent, with the appointment of the first Saudi female plant manager.

In research and development, the company stated that it has established an R&D center with investments exceeding 30 million riyals, approximately $8 million, thereby localizing operations within the kingdom instead of relying on overseas centers.

El Sheikh said the company has reached full operational capacity in working with farmers on potato crops, calling it a major achievement that it hopes to replicate with other crops in the future.

Water scarcity by the numbers

This agricultural experience comes amid mounting challenges to water resources. The National Water Strategy says Saudi Arabia has a limited stock of exploitable non-renewable groundwater, with low recharge rates not exceeding 2.8 billion cubic meters annually.

Total water demand is estimated at approximately 24.8 billion cubic meters, with an annual growth rate of around 7 percent.

The strategy states that agriculture is the largest consumer of water in the kingdom, accounting for approximately 84 percent of total demand, and relies heavily on non-renewable resources that make up nearly 90 percent of agricultural water use.

Agriculture ministry data show irrigation efficiency does not exceed 50 percent, compared with more than 75 percent under global best practices. Fodder cultivation alone consumes about 67 percent of agricultural water, according to the latest available figures.

Government role

This shift in potato farming would not have been completed without government support. The kingdom developed and approved an irrigation model suited to potatoes grown for chips and export as the preferred method, prompting PepsiCo to expand its factories in the Eastern Province with investments exceeding 300 million riyals.

This helped make Saudi Arabia the world’s second-largest hub for potato chip manufacturing, according to previous remarks by the industry minister.

Beyond exports, the model strengthens self-sufficiency. Under this approach, Saudi potatoes have become more than just an ingredient in chips, turning into a symbol of integration between agriculture and industry and evidence of the kingdom’s ability to transform environmental challenges into global economic and investment opportunities, in line with the ambitions of Vision 2030.



Crypto Platform Binance Confirms ‘Complex’ $6.3 Bn Hack

Representations of cryptocurrencies are seen in front of displayed Binance logo in this illustration taken November 10, 2022. (Reuters)
Representations of cryptocurrencies are seen in front of displayed Binance logo in this illustration taken November 10, 2022. (Reuters)
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Crypto Platform Binance Confirms ‘Complex’ $6.3 Bn Hack

Representations of cryptocurrencies are seen in front of displayed Binance logo in this illustration taken November 10, 2022. (Reuters)
Representations of cryptocurrencies are seen in front of displayed Binance logo in this illustration taken November 10, 2022. (Reuters)

Cryptocurrency platform Binance said Friday it was working to resolve a "complex attack" that hit around $6.3 billion in funds, with about half that amount frozen to prevent a massive theft. 

The company -- the world's largest crypto exchange by daily trading volumes -- said investigations had "uncovered additional points of breach", contrary to initial findings that suggested the hack involved a single compromised laptop. 

"This was a complex attack, and we are doing all we can in coordination with law enforcement to resolve it," Binance wrote on X. 

The firm earlier posted a series of sometimes contradictory messages, insisting that "user funds are completely safe" but also saying it would "cover all losses." 

The company confirmed on its X account for Latin America that "the total estimated impact is around $6.3 billion." 

That is four times the amount impacted in the biggest-ever cyberattack of its kind to date: $1.5 billion taken in February last year from the Bybit platform. 

Binance warned the figure "may continue to increase as our teams work closely with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets." 

It said around $3 billion in affected assets had been frozen. 

The 2023 Bybit heist was attributed at the time to a group of hackers affiliated with North Korea called TraderTraitor. 

Blockchain investigation firm TRM Labs said Thursday it had "high confidence" that the Binance hack was also orchestrated by TraderTraitor, citing "robust on and off-chain intelligence." 

"Several features of this attack match earlier North Korea-linked heists," TRM said. 

TraderTraitor is believed to be part of Lazarus Group -- which gained notoriety in 2014 when it was accused of hacking into Sony Pictures as revenge for "The Interview," a film that mocked North Korean leader Kim Jong Un. 

- Fund freeze - 

At about 0900 GMT Friday, Binance said it was on track to resume withdrawals in 45 hours, after announcing earlier that all deposits and withdrawals had been "temporarily suspended". 

"Deposits remain unaffected," it said. 

The company had said on X that initial investigation suggested the hack involved a compromised laptop belonging to a "DevOps engineer," allowing the unauthorized party to access a "service container" and execute unauthorized withdrawal transactions. 

"We have found no evidence of any private key leaks from wallets," it said, promising to share a detailed technical analysis once investigations were complete. 

But it said later that "subsequent investigation has uncovered additional points of breach." 

Paolo Ardoino, the boss of Tether -- a company that issues a cryptocurrency known as USDT -- said his firm froze about $1.6 billion "related to a potential Binance exchange hack." 

Jeremy Allaire, who runs cryptocurrency platform Circle, said his company had frozen more than $800 million in USDC. 

USDT and USDC are both "stablecoins," or digital currencies whose value is linked to a traditional currency, the US dollar. 

The US Department of Justice and the FBI did not immediately respond to requests for comment. 

- Crypto prices tumble - 

For several hours before Binance confirmed the attack, industry observers said hackers had managed to reach the platform. 

The prices of most major cryptocurrencies fell on news of the cyberattack, except for the stablecoins, which by definition can only fluctuate within tight margins. 

Bitcoin and Ethereum plunged nearly five percent and nearly six percent respectively on the news. BNB, native to Binance, tumbled nearly 10 percent. 

The attack on Binance comes as many observers express worries that the ever-expanding capabilities of artificial intelligence (AI) models could compromise cryptography and IT security protocols. 


TotalEnergies to Cut Diesel Prices to €2.15 per Liter at 705 French Stations

A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (AFP)
A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (AFP)
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TotalEnergies to Cut Diesel Prices to €2.15 per Liter at 705 French Stations

A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (AFP)
A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (AFP)

TotalEnergies said on Friday it will cut diesel prices to €2.15 ($2.40) a liter at 705 French stations from ‌Saturday, October ‌31.

The price ‌reduction ⁠comes after France ⁠announced it would release 10 million barrels of diesel from its strategic reserves on November ⁠1.

TotalEnergies said it ‌is ‌passing on the savings ‌from these older, cheaper ‌fuel stocks immediately, without waiting for physical deliveries to arrive.

The company ‌said in a statement the Access ⁠stations ⁠account for 60% of its fuel sales in the country, adding it will maintain a nationwide diesel price cap of €2.25 per liter.


Türkiye’s Q3 Tourism Revenues Rise 5%, Minister Sees Full-Year Topping $65 Billion

People walk on a small street that leads to the historical Galata Tower, Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street that leads to the historical Galata Tower, Istanbul, Türkiye, April 25, 2025. (Reuters)
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Türkiye’s Q3 Tourism Revenues Rise 5%, Minister Sees Full-Year Topping $65 Billion

People walk on a small street that leads to the historical Galata Tower, Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street that leads to the historical Galata Tower, Istanbul, Türkiye, April 25, 2025. (Reuters)

Türkiye’s tourism revenues rose 5% year-on-year to $25.53 billion in the third quarter, with revenues in the first nine months increasing 2.4% to $51.29 billion, Turkish Statistical Institute data showed on Friday. 

Tourism Minister Mehmet Nuri Ersoy said Türkiye was on track to generate more than $65 billion in full-year tourism revenues. 

"Longer-than-expected average stays and higher overnight spending have boosted tourism revenues," Ersoy told a news conference on the sector's performance in the ‌first nine ‌months of the year. 

The number of visitors ‌fell ⁠1% year-on-year to ⁠23.37 million in the third quarter, while total arrivals reached 49.13 million in the January-September period, the data showed. 

Separately, data from the Tourism Ministry showed that the number of foreign visitors rose 0.4% year-on-year to 6.11 million in September. However, foreign arrivals fell 1.52% to 40.93 million ⁠in the first nine months of the ‌year. 

Russians accounted for the ‌largest group of foreign visitors in September, with 979,647 arrivals, ‌followed by visitors from Germany, Britain, Iran and Poland. 

Average ‌overnight spending per visitor declined 1.3% year-on-year to $723 in the third quarter. For the first nine months, it fell 9.6% to $778. 

Ersoy said average visitor stays continued to exceed expectations, but warned ‌of risks to the sector in the final quarter, including a possible escalation of ⁠the Iran ⁠war, as well as an increase in drone attacks on cities amid the Russia-Ukraine war. 

In 2025, revenues increased by 6.8% from the previous year to a record $65.2 billion, according to official data. Before the Iran war began, the government's target for this year was $68 billion. 

Lower revenues could add to Türkiye's current account deficit, which is already under pressure from soaring energy prices due to the fallout from the Iran war. 

The war has hurt demand for travel to Türkiye's historic sites and Mediterranean beaches.