One of the world’s 10 largest exporters of wheat, sorghum and barlely, Saudi Arabia is reaping the fruits of its heavy investments in agricultural infrastructure.

representing around 8% of GDP, the agriculture sector is given its due importance in Saudi Arabia. In a bid to achieve self-sufficiency in food production but also to help raise rural incomes, the sector was dramatically restructured during the 70s and 80s. The government distributed land for the growing of crops and raising of livestock, and also provided indirect support by spending heavily on infrastructure, including electricity supply, irrigation, drainage, secondary road systems and other transportation facilities for the distribution and marketing of products.

The restructuring program prompted a huge response from the private sector, with average annual growth rates well above the forecasts. Private investments went mainly into expanding wheat cultivation – Saudi Arabia is one of the world’s 10 largest exporters of wheat – but also sorghum and barley. Commercial poultry farms greatly benefited from government incentives and grew rapidly. However, chicken has become a major staple of the Saudi diet and current production accounts for less than half of total demand.

FAHAD BIN ABDULRAHMAN BIN SULEIMAN BALGHUNAIM Minister of Agriculture

Nevertheless, the kingdom’s agriculture continues to grow at 8% a year, driven by the massive population growth and the increasing demand for food products. A substantial part of the budget has been set aside to increase agricultural productivity, develop new farming areas, improve quality and marketability, and for vital water conservation projects. “Our efforts are geared towards improving the efficiency of our agricultural activities in the sense of optimizing the use of natural resources,” says Minister of Agriculture Fahad Bin Abdulrahman Bin Suleiman Balghunaim. “We are encouraging farmers by providing bank loans and promoting the use of new methods of irrigation.”

Technology has been extremely important in the development of agriculture in the kingdom. Large companies in the private sector, such as Al-Safi and Al-Marai in the dairy industry or Al-Watania in the poultry sector, have made the most of technology, to the extent that the kingdom’s agriculturalists are providing the expertise and know-how for investments in other countries.

Back in Saudi Arabia, the need for continued production opens the door to tremendous investment opportunities. “The policy of the government is to encourage and facilitate foreign investment because we believe this is the best way to improve the productivity of the sector,” highlights the minister.