Saudi Arabia's Agricultural GDP Soars by 38% to Reach USD 26.6 Billion

Saudi Arabia's agricultural sector has experienced remarkable growth, with the gross domestic product (GDP) increasing by over 38 percent in 2022, reaching SR100 billion (USD26.6 billion) compared to SR72.25 billion in 2021.

This surge in investment and the implementation of sustainable development measures have played a significant role in this achievement, marking the highest contribution to the GDP in the history of the sector. During the 43rd session of the UN Food and Agriculture Organization General Conference, Mansour Al-Mushaiti, the Kingdom's deputy minister of environment, water, and agriculture, highlighted the impressive progress.

He noted that Saudi Arabia has attained high levels of self-sufficiency in various crops, particularly those utilizing modern technologies, thanks to integrated water management. As a result, water consumption in agriculture has decreased from 86 percent to 70 percent.

Al-Mushaiti emphasized the positive impact of the substantial developments and investments made in the agricultural sector, which have contributed to the increased GDP output. The Kingdom has implemented various strategies, initiatives, and programs aimed at promoting sustainable agricultural development and improving water management to preserve natural and environmental resources.

The Agricultural Development Fund of Saudi Arabia has played a crucial role by adopting lending policies that support modern technologies. These policies provide loans that cover more than 70 percent of the capital costs of agricultural projects. Al-Mushaiti revealed that the lending ratio has significantly increased from SR500 million in 2015 to over SR7 billion in 2022.

These efforts align with the objectives of the UN Food and Agriculture Organization (FAO) in achieving global food security and combating hunger and poverty at local, regional, and international levels. The consistent growth in the agricultural GDP over the past years is attributed to the Kingdom's National Strategy for Agriculture 2030.

This comprehensive strategy aims to create a sustainable sector that ensures food and water security, as well as economic, social, and environmental development. It also emphasizes the use of modern technologies and practices to conserve natural resources and enhance agricultural productivity, while fostering strategic partnerships with cooperatives, the private sector, and research centers.

With continued investment and the implementation of innovative practices, the Kingdom is poised to further strengthen its position in the global agricultural landscape while ensuring the well-being of its people and the preservation of the environment.