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Saudi Arabia Announces $1 Bn Plan to Increase Agricultural Production in Greenhouses

Saudi Arabia supports food self-sufficiency trends through greenhouses (Asharq Al-Awsat)
Saudi Arabia supports food self-sufficiency trends through greenhouses (Asharq Al-Awsat)
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Saudi Arabia Announces $1 Bn Plan to Increase Agricultural Production in Greenhouses

Saudi Arabia supports food self-sufficiency trends through greenhouses (Asharq Al-Awsat)
Saudi Arabia supports food self-sufficiency trends through greenhouses (Asharq Al-Awsat)

Saudi Minister of Environment, Water and Agriculture, Abdulrahman al-Fadhli, approved the expansion plan in the plant resources sector and greenhouses with new investments valued at $1.06 billion until 2025.

The plan is done in cooperation with the relevant authorities and private sector companies, which aim to raise production capacity by encouraging the usage of the latest technologies in the agriculture sector.

Fadhli, the chairman of the board of directors of the Agricultural Development Fund, confirmed that the approved plan from 2023 to 2025 would contribute to additional productivity estimated at 430,000 tons, bringing the total production capacity of the greenhouses to more than 1 million tons annually.

He said that it aims to achieve national food security, increase the local content's contribution, and offer job opportunities following the goals of Vision 2030.

The minister explained that the expansion plan extends the unlimited support that the agricultural sector enjoys from the Saudi government.

He added that the Fund's loan value to the productive sectors during 2022 exceeded about $1.3 billion.

The plan comes from the ministry's keenness to raise the efficiency of this vital sector and to work towards its development and sustainability, as it is an essential pillar of food security in Saudi Arabia.

Notably, preparations for the expansion plan in greenhouses with the latest technologies have started earlier, as this type of cultivation in Saudi Arabia has been used for over 30 years.

Greenhouses are also considered a key factor for the success of specialized agricultural production, such as organic farming, protecting from different climatic conditions and their effects.

The results of the studies and research conducted by the ministry have revealed that using the latest technologies in the agriculture sector and greenhouses has contributed to saving irrigation water by up to 60 percent.

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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.