Saudi Arabia is preparing to launch the first company specialized in the marketing of agricultural products, with funding from the Agricultural Development Fund amounting to 700 million riyals (USD 186.6 million).
The National Agricultural Committee said the move would further support investors in the agricultural sector and Saudi farmers in various areas of the country.
Ibrahim Al-Turki, Chairman of The National Agriculture and Fisheries Committee at Union of Chambers of Commerce, said that the idea to establish the company was launched at the initiative of the Ministry of Agriculture in its efforts to develop the sector, in accordance with Vision 2030, by raising agricultural domestic product from 130 to 165 billion riyals ($44 billion).
The specialized agricultural marketing company will represent a qualitative addition to the sector, helping to create an identity for agricultural products and crops, allowing farmers to better access retail markets, and organizing the work of the 660,000 farms currently operating in the Kingdom.
Al-Turki added that work was underway between the Ministry of Agriculture and the Committee of the Federation of Saudi Chambers to establish the new company, which would operate across Saudi Arabia in order to contribute to achieving food security and support the farmers’ technical capabilities.
According to the Saudi official, during a joint meeting that included the Ministry of Agriculture, Environment and Water and the Federation of Saudi Chambers, the Agricultural Development Fund expressed willingness to finance the company with a minimum amount of 700 million riyals.
In a separate development, the National Logistics Committee of the Federation of Saudi Chambers is preparing to launch a detailed study on the localization of the logistic sector professions and its impact on investors and the national economy.
The study would be submitted to the competent authorities to find appropriate solutions that guarantee the competitiveness and sustainability of companies.
The Committee chairman, Khaled Al-Bawardi, emphasized the support of investors in the logistic sector for the state’s efforts to implement localization projects, within the Kingdom’s strategic development goals. But he added that such an endeavor requires intense parallel efforts to train and qualify national cadres and focus on jobs that attract Saudi youth to the logistic sector.
