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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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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.

Business

Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.