Riyadh's Economic landscape and the Saudi agriculture sector

 

Riyadh is the center of a $1.108 Trillion economy, the largest in the MENA region with agricultural sector investments of over $70 Billion by 2030...

The agricultural sector is a major contributor to GDP…

Major expansion is underway in multiple segments

 

Saudi Arabia had the Fastest Growing Economy among G20 

countries in 2022 and GDP $1.108 Trillion. 

Saudi Arabia will maintain its GDP over $1 Trillion in 2024...

Aquaculture production jumped by 183% during the past 5 years 

from 30,000 to 85,000 tons

During the same period, Broiler chicken’ production grew to over

60% of domestic demand.

Greenhouse production increased by 58% from 257,000 tons to 

about 407,000 tons.

Organic food farming increased by 18% to 52.800 tons during 

the same period.

The Agricultural and Food Industries sector are one of the most 

important contributors in the development of the national economy

in the Kingdom of Saudi Arabia and meeting Vision 2030 goals,

and has a major role in achieving food security. The agricultural 

contribution to GDP amounted to about US$ 19.37 billion in 2022.

$70 Billion

Agri Investments by 2030...

Saudi Arabia has a growing food production, manufacturing, and processing sector. The sector is benefiting from population and income growth, lifestyle changes, government support, and favorable trade agreements. Investments in the sector are expected to reach $70 billion by the end of 2030, up from $44 billion in 2016.

$17.3 Billion

Agricultural Development Loans…

The Agricultural Development Fund approved

financing instruments for technology purchases and

imports, farming operations and other investments

totaling $17.3 Billion over the last fiscal year. The

big winners were the poultry, greenhouse and

aquaculture sectors.

$30.68 Billion

Food & Beverage Market Growth...

The Saudi Arabian food & beverage market led by

agri food is valued at $28.8 Billion and is projected

to register a CAGR of 3.22% during the next five

years to reach $29.73 Billion in 2024 and $30.68 in

2025. The specialist market is flourishing owing to an

increasing demand for convenience food.

$16.80 Billion

Agri Food Market + $6.88B of Imports...

The local agri food market is projected to amount

to $16.26 Billion. An annual growth rate of 3.56%

is expected, resulting in a value of $16.84 Billion by

2025. The import value in the agriculture market is

projected to amount to $7.24 Billion in 2024 and $7.63

Billion by 2025 at an annual growth rate of 5.29%.

$18.01 Billion

Saudi Poultry Market Expansion…

The poultry market in Saudi Arabia is one of the

largest and fastest growing. It is projected to reach

of $17.3 Billion in 2024. With a projected growth rate

of 4.11% over the next 5 years the market will reach

$18.01 Billion in 2025, and $18.75 Billion by 2026. The

high-growth sector presents multiple opportunities

to provide farm buildings and equipment, feeds,

packaging and processing equipment, veterinary and

logistics services.

$1 Billion

Egg Market Expansion…

Saudi Arabia is self-sufficient in the production of eggs. $1 Billion in egg production will be reached by 2025 with production growth annually by 3.95% (CAGR 2023-2028). The surplus of egg production is exported mainly to GCC countries. Opportunities for feeds, poultry houses, health services, processing and packing as well as cold-chain logistics are driving sector expansion.

4.5 Million

Livestock Heads Growth…

Saudi Arabia’s livestock production is expected to reach 4.5 million heads by 2026. Due to agricultural investments in livestock rearing coupled with new technologies, significant growth opportunities exist in livestock farming, feeds, equipment, veterinary services, farm buildings and more are required for the expansion.

$3.11 Billion

Animal Feed Market Opportunities…

Saudi Arabia's animal feed market was valued at $2.4

Billion in 2020 and is anticipated to grow at a

CAGR of 5.31% to reach $2.95 Billion in 2024 and

$3.11 in 2025. This is due to increasing agricultural

development and investment in meat, dairy and

poultry production coupled with the growing

population and the increased demand for animalbased agricultural products. Market growth is

providing an ideal climate for animal feed producers

to increase output and revenues.

$2.3 Billion

Cold Chain Market Expansion…

The cold chain logistics market size is expected

to grow from $1.36 Billion in 2023 and reach

$1.51 Billion in 2024 and $1.69 Billion in 2025. The

acceleration of the smart food logistics market

dominates the cold chain sector. Rising domestic

consumption of fresh food imports and exports has

ushered in a rapidly growing cold chain logistics

market that is relying on smart technologies

in transport management and distribution of

temperature-controlled products.

500%

Projected Sector Growth for Aquaculture Products and Services…

With the predicted fish production increase of 500% by 2025, new opportunities to service the aquaculture sector are accelerating. With the increasing export of Saudi fish that will add nearly $1 Billion to the economy, the expansion of fish production requires an increase in aquatic health services, fish farming equipment, packaging and processing systems, and cold-chain logistics services.

17.4% Projected Growth

Creates Fastest and Largest Market in the Region for Organic Foods...

Saudi Arabia is the largest natural and organic foods market in the Middle East valued at $54.2 Million. Projections anticipate a market growth of 17.4% to 2026. The organic food market growth is driven by rising disposable income and government support towards organic farming as well as growing consumer preferences toward chemical free food.

$191 Million

Veterinary Medicine Market Growth Assured…

Saudi Arabia’s veterinary medicine market is expected to grow at a CAGR of 5.00% in the forecast period (2023-2027), to reach $201.80 Million by 2027. The growth presents room in the market for new business entrants as well as expansion opportunities for current providers. The full services of animal health are in growing demand as the sector desires the latest know how and further sophistication.

Top 10 in Consumption

Kingdom's Coffee Consumers Spend Annually more than $266 Million…

Saudi Arabia sits in the Top 10 of coffee consuming nations, globally. The Kingdom imports 70,000- 90,000 tones of coffee every year and produces another 800 tones locally. Whilst significant business opportunities exist in the coffee import market, the government’s plan to plant 1.2 Million coffee trees by 2026 presents new opportunities for coffee farm machinery and equipment suppliers and coffee processing and packaging solution providers.

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