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Saudi Agriculture Sector Grows 7.8%

Saudi Agriculture Sector Grows 7.8%

Tuesday, 16 August, 2022 - 09:00
Significant growth witnessed by the agricultural sector in the Kingdom as a result of implementing initiatives that contribute to achieving self-sufficiency (SPA)

The Ministry of Environment, Water and Agriculture (MEWA) stated that the Kingdom’s agricultural gross domestic product (GDP) rose 7.8% to SAR72.25 billion ($19.2 billion) in 2021, compared to SAR67.05 billion ($17.8 billion) a year earlier, recording the highest growth rate in five years.

In a statement, the ministry indicated that this growth was driven by the implementation of plans and strategies in accordance with the objectives of Vision 2030, in addition to the recovery from the coronavirus pandemic.

Agricultural production reached SAR67.05 billion in 2020, SAR66.20 billion in 2019, SAR65.49 billion in 2018 and SAR65.29 billion in 2017.

The sector contributed 2.3% to the Kingdom’s total GDP amounting to about SAR3 trillion in 2021. Meanwhile, it dominated 3.6% of the non-oil GDP, up 0.2% compared to 3.4% in 2020.

Agricultural exports rose to SAR13.16 billion in 2021, increasing SAR415 million compared to a year before.

The agricultural trade balance deficit decreased to SAR64.59 billion, compared to SAR72.96 billion in 2020, due to the decline in agricultural imports. This is because of the ministry's adoption of flexible agricultural plans and strategies that contributed to supporting the local content, increasing self-sufficiency rates and achieving food security.

In other news, Saudi Grains Organization (SAGO) awarded the last batch of a tender for the purchase of wheat from Saudi investors abroad for 2022, to Saudi Agricultural & Livestock Investment Co. (SALIC).

The supply of 180,000 tons was distributed on three vessels set to reach the Kingdom's ports between October 2022 and February 2023, SAGO said in a statement.

SAGO Governor Ahmed bin Abdulaziz Al-Faris said that the organization completed the contract for the entire quantity specified in the tender allocated to Saudi investors abroad during this year, amounting to 720,000 tons, which represents 20% of the Kingdom’s total annual consumption of wheat.

He stressed that the partnership with Saudi investors abroad comes within the framework of plans to support strategic stocks, along with diversifying sources of wheat purchase and linking them to local consumption.

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