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Saudi Arabia to Increase Agricultural Funding to $2 Bn in 2025

The Agricultural Development Fund of Saudi Arabia supports all investment opportunities that comply with its regulations. (SPA)
The Agricultural Development Fund of Saudi Arabia supports all investment opportunities that comply with its regulations. (SPA)
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Saudi Arabia to Increase Agricultural Funding to $2 Bn in 2025

The Agricultural Development Fund of Saudi Arabia supports all investment opportunities that comply with its regulations. (SPA)
The Agricultural Development Fund of Saudi Arabia supports all investment opportunities that comply with its regulations. (SPA)

Spokesperson of the Agricultural Development Fund of Saudi Arabia Habib bin Abdullah Al-Shammari expects loan approvals to reach SAR 7.4 billion ($2 billion) this year, supporting key agricultural projects under the National Agriculture and Food Security Strategies.

He also announced that the Fund’s contribution to the agricultural sector’s GDP has increased to 11% in 2024, up from 3.6% in 2016.

Speaking to Asharq Al-Awsat, Al-Shammari said the Fund has increased financing for local agricultural production and modern technology initiatives from 50% to 70% of the loan value, due to their importance for food security and resource sustainability.

The Fund is reviewing funding requests from five innovative companies that meet its criteria and supporting mergers and acquisitions in the agricultural sector to strengthen food security, he revealed.

The Fund aims to increase its support for agricultural projects, especially those in the National Agriculture and Food Security Strategies, he went on to say.

Moreover, it is boosting financing for modern technologies in agriculture, raising support from 50% to 70% due to their importance for food security and resource sustainability.

It is funding supply chain and marketing projects that support food security and the food industry. These projects help close marketing gaps and ensure sustainable resources and income for farmers and small businesses, promoting investment in agriculture, he explained.

Al-Shammari expects loan approvals to reach SAR 7.4 billion ($2 billion) in 2025, up from SAR 7.17 billion ($1.9 billion) last year, marking a 9% increase from 2023.

The funding will cover a variety of developmental loans for small farmers, beekeepers, and livestock breeders across several regions of the Kingdom.

It will also support projects in sectors aimed at boosting local production and ensuring food security. These include red meat production, poultry farming, greenhouse vegetable cultivation, fish farming, and cold storage facilities.

Additionally, the loans will finance supply chains and processing industries, such as tomato paste production, a coffee bean sorting and roasting plant, cold storage, and agricultural product marketing centers.

Al-Shammari stressed that the Fund has launched several initiatives and financing programs that have contributed to increased local production, improved self-sufficiency, and bolstered the domestic stock of food commodities.

These efforts have also supported supply chains and enhanced the strategic reserves of targeted agricultural products within the Kingdom’s food security initiative.

As a result of these initiatives and financing programs, loan approvals have risen from SAR 455 million ($121 million) in 2016 to over SAR 7 billion ($1.9 billion) by the end of 2024. Since its establishment, the Fund has provided a total of SAR 65 billion ($17.3 billion).

Al-Shammari explained that the Fund offers financing for mergers and acquisitions within the agricultural sector to support food security, enhance project efficiency, and ensure sustainability.

The Fund also facilitates these processes to boost production and market value, address struggling projects, and provide opportunities for new investors in agriculture.

Additionally, it supports expansion and both horizontal and vertical integration.

He added that the Fund also provides loans to innovative start-ups focused on developing agricultural production, boosting local output, and increasing the competitiveness of domestic agricultural products.

These loans aim to help start-ups grow and launch new, innovative products, including in water and energy technologies, agriculture and food, and deep-tech and biotech sectors.

Since the introduction of its new regulations, the Fund has been extending loans to foreign investors and licensed foreign agricultural companies operating in the Kingdom under the Foreign Investment Law.

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Business

Saudi Airlines Compete Against Post-Summer Slump With Cost-Cutting Offers

Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
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Saudi Airlines Compete Against Post-Summer Slump With Cost-Cutting Offers

Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)

As travel activity returns to normal levels following a busy summer season and the start of the academic year, Saudi airlines have opened the door to price competition, offering discounts of up to 50 percent. Through these offers, national carriers aim to maintain booking momentum and encourage families and travelers to seize lower-cost travel opportunities outside peak periods.

Riyadh Air, flynas, and Saudia are offering varying deals on a number of international flights and destinations, including ticket price reductions and incentives linked to loyalty programs, as airlines seek to attract travelers during periods following the holiday season.

Financial and economic adviser Dr. Hussein Al-Attas told Asharq Al-Awsat that airline price offers come at an important time, particularly as the summer holiday season ends and demand shifts from its peak to more normal levels. He said lower prices could encourage some consumers to travel during less crowded periods and help airlines maintain good load factors rather than suffer a sharp decline in demand after the season ends.

Al-Attas explained that lower airfares could affect travelers' overall spending, allowing families to redirect part of the money that would otherwise have gone toward airline tickets to hotels, restaurants, shopping, and tourism activities, thereby supporting the broader travel and tourism ecosystem.

He noted that lower ticket prices do not necessarily mean a decline in overall tourism spending, as lower travel costs could lead to more trips or longer stays, resulting in higher travel-related spending despite the lower cost of the ticket itself.

According to Al-Attas, price has become one of the most influential factors in travelers' decisions, particularly as families have become more sensitive to costs. He explained that competition among airlines affects not only the choice of carrier, but can also prompt travelers to change their travel dates or choose an alternative destination with a lower cost of reaching it.

He added that the coming period could see greater flexibility among travelers regarding the timing of their trips, allowing them to take advantage of offers outside peak periods, which would help distribute demand throughout the year and reduce the seasonality of travel.

He pointed out that lower ticket prices are a positive factor in families' ability to manage their travel budgets and may allow them to maintain travel plans while reducing overall costs or redirecting some of the savings to other expenses. He said price competition, when accompanied by improved service quality and a wider range of options, benefits consumers and supports the growth of Saudi Arabia's travel market.

For his part, tourism media specialist Mohammed Al Abdul Karim told Asharq Al-Awsat that the high volume of airfare offers currently seen in the Saudi market is a natural and expected development in the seasonal cycle of travel demand, coinciding with the end of the peak summer holiday period and the return of schools. This changes the pattern of demand for flights, particularly family and leisure travel, he said, confirming that local airlines are competing in this area.

Al Abdul Karim said July and August are typically among the periods of highest demand for international travel among Saudis, which raises flight load factors and reduces the need for promotional pricing. As the season ends and families return to their usual routines, airlines begin repricing part of their available seat capacity and introducing offers aimed at stimulating demand and maintaining good flight load factors.

According to Al Abdul Karim, "What we are seeing does not necessarily mean a general decline in ticket prices, as airlines use dynamic pricing that changes according to demand levels, booking rates, flight dates, available capacity, and the level of competition on each route."

Al Abdul Karim expected the offers to continue in the coming weeks, particularly on international tourist destinations that saw high demand during the summer, with significant opportunities to secure competitive fares on midweek flights and routes served by multiple flights and carriers.

He added that the biggest beneficiary during this period is the traveler with flexibility in travel dates, as more pricing options become available after the peak season subsides, particularly during the period between the end of the summer holiday and the start of the next travel seasons. He said competition among local airlines had contributed to stimulating seasonal offers, with discounts of up to 50 percent on some flights and destinations, as carriers seek to stimulate demand and raise seat load factors after a summer season that saw high demand.

The offers launched by Saudi carriers vary in terms of discount levels and booking and travel periods. Riyadh Air announced discounts of up to 35 percent on base fares for premium economy, 20 percent for economy, and 15 percent for business class on selected destinations. The offer can be booked from August 18 to 31, with travel from September 1, 2026, through February 28, 2027.

For its part, flynas introduced fares starting at 239 riyals ($63.70) one way on a selection of international flights, with bookings available until August 31 and travel through October 31.

Saudia also offered discounts of up to 50 percent on international destinations, along with an additional tier credit for AlFursan members. Bookings remain open until September 3, for travel between September 1 and December 10, 2026. The offer applies to both Guest and Business classes.

The current offers reflect the range of competitive tools being used by Saudi carriers to attract international travelers, as airlines seek to stimulate demand outside the peak summer travel season and encourage bookings for the coming periods.

Business

Egyptian Central Bank Issues Regulations for Digital Financial Identity Services

The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
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Egyptian Central Bank Issues Regulations for Digital Financial Identity Services

The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)

Egypt's central bank has approved regulations for a digital financial identity platform that will enable remote customer verification and identification, it said on Sunday, as it seeks to expand access to ⁠financial services.

According to Reuters, it said ⁠the move was part of efforts to support digital transformation, promote financial inclusion ⁠and modernize the banking sector's digital infrastructure.

Governor Hassan Abdalla said the platform will enable more citizens to open bank accounts and access banking products and services online without visiting branches.

The ⁠regulations set out a governance framework, defining the roles and responsibilities of relevant parties, along with technical, data protection, and cybersecurity requirements, the central bank said.

Business

Sinopec's Half-year Profit Grew 19.3% on Year Despite Iran War

Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
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Sinopec's Half-year Profit Grew 19.3% on Year Despite Iran War

Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura

China's Sinopec reported an unexpected 19.3% year-on-year increase in net profit for the first half of 2026, despite a litany of issues including the Middle East conflict and falling demand for fuel domestically, but said it had to write down its inventories by 16 billion yuan.

Net profit over the January-June period stood at 25.63 billion yuan ($3.81 billion) under Chinese accounting standards, versus the 21.48 billion yuan a year earlier, Sinopec said in a filing at the Shanghai stock exchange on Sunday.

In a separate filing, the company said it set aside provisions for asset impairment of 16 billion yuan as a result of the volatility in oil and fuel prices in the first six months of this year.

Sinopec, ⁠the world's biggest ⁠refiner, relies on the Middle East for half of its crude oil needs, making it vulnerable to the worst supply crisis in history as the Strait of Hormuz - through which it usually imports large quantities of oil - has remained largely closed since March.

It also processed 5.6% less crude oil between January and June versus the same year-ago period, at 113.31 million metric tons, or 4.57 million barrels per day (bpd), according to the filing.

The company said its refining margin was up 44.1% on ⁠the year in the first half of 2026 - up 139 yuan per metric ton to 453 yuan per metric ton - a surprising jump given domestic fuel price hikes lagged the surges in crude oil cost.

Its refining segment reported a 381.5% growth in operating profit by "broadening crude oil sourcing outside the Middle East, closely managing the timing of purchases in line with market conditions, and optimizing its product mix based on product profitability," the filing showed, according to Reuters.

China has drastically cut oil imports since the war began in March, freeing up barrels for others and keeping a lid on global prices. Sinopec's result is all the more surprising given how exposed it was to the Strait and the way in which Beijing has forced the refiner, and others like it, to ⁠absorb the oil price shock ⁠by limiting their ability to pass higher oil prices through to fuel consumers

Conflict in the Middle East caused "sharp volatility in international crude oil prices and a substantial increase in imported crude procurement costs", while the domestic refined product and chemicals markets remained weak, the management stated in the filing.

But the company said it "closely monitored changing conditions, dynamically adjusted production and operating arrangements, and effectively responded to unexpected shocks and challenges on multiple fronts."

The chemicals segment remained loss-making, recording an operating loss of over 200 million yuan, but losses narrowed sharply by around 4 billion yuan, it said.

Output of ethylene, a key building block for petrochemicals, sank 15.5% on the year to 6.4 million tons in the first half, as the company faced industry over-capacity and competition from the private sector.

Sinopec projects crude throughput for July–December at 113 million metric tons, roughly flat versus the amount processed in the first half.