RIYADH: Saudi Arabia’s ongoing efforts to enhance food security received a significant boost as the Kingdom’s Agricultural Development Fund signed financing contracts worth SR926 million ($246.8 million) in the feed industry, animal production and dairy sectors.
These contracts aim to support the import of key agricultural products, including maize, soybeans and barley, which are vital for sustaining the country’s food supply.
The agreements encompass a range of projects including initiatives such as the establishment of an agricultural product marketing center, cold storage facilities, and a broiler and poultry farming project.
The fund was established in 1961 through a royal decree with the primary objective of providing financial support to agricultural activities in the country.
By supporting diverse agricultural ventures, it seeks to fortify food security, address any potential supply shortages, and ensure the stability of food supply chains.
Earlier in June, the fund provided funding of SR1.5 billion to local farmers, primarily supporting greenhouse vegetable production, poultry breeding, and fish and shrimp farming.
The loans also extended support to refrigeration warehouses and date manufacturing and marketing centers.
These loan approvals underscore the fund’s commitment to its developmental and financing role in the agricultural sector, aligning with the Ministry of Environment, Water and Agriculture’s policies and the Kingdom’s overarching food security strategy.
Notably, the fund has demonstrated its dedication to supporting agricultural activities through substantial investments.
In the first three months of 2023 alone, the fund granted development and investment loans exceeding SR2.3 billion, surpassing the SR861 million allocated during the same period in 2022.
Loans surged 167 percent year over year in the first quarter of 2023, benefiting small farmers, breeders and poultry projects in various regions.
Nairiyah, Rabigh, Al-Ghat and Al-Olaya also received financial support, as stated in an announcement in March.
The increased financial support signifies the fund’s proactive approach to bolstering the farming sector and optimizing the supply chain.
The financing contracts and loan approvals emphasize Saudi Arabia’s commitment to achieving food security and reducing dependency on imports by strengthening domestic agricultural production and supporting vital projects across the value chain.
