Saudi Arabia Unveils High Levels of Food Self-Sufficiency

People shop at a supermarket in Saudi Arabia. (SPA)
People shop at a supermarket in Saudi Arabia. (SPA)
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Saudi Arabia Unveils High Levels of Food Self-Sufficiency

People shop at a supermarket in Saudi Arabia. (SPA)
People shop at a supermarket in Saudi Arabia. (SPA)

Saudi Arabia announced on Monday that there are sufficient stocks of essential goods and food supplies to meet the market demand amid the coronavirus outbreak.

During a press conference, Dr. Abdullah Aba Al-Khail, spokesman for the Ministry of Environment, Water and Agriculture, said that all food production operations are continuing smoothly with sufficient strategic storage of basic commodities.

“The Kingdom has achieved high levels of sufficiency in many agricultural products. These include 60 percent of self-sufficiency in poultry, with production of one million tons annually, 60 percent in vegetables, with local production of about 180,000 tons per month, 109 percent in milk and dairy products, which is more than 7.5 million liters per day, and 55 percent in seafood products,” Aba Al-Khail said.

The ministry is working to meet the market’s needs such as wheat and flour, he added. The Saudi Grains Organization has stocks of up to two million bags of grains ready for distribution upon request, in addition to the daily production of flour, amounting to 15,000 tons, which completely covers the need of the local market.

More than 1.2 million tons of imported wheat will arrive before the end of July, which will be added to the strategic stocks of over one million tons.

The Kingdom has achieved 30 percent self-sufficiency in regards to red meat and the ministry has expanded import options that have reached 29 countries to date, with an average of six million heads of livestock annually.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.