Imagine a nation where the food and agriculture sector not only sustains its own population but also stands as a beacon of economic growth. Saudi Arabia is that nation, as its food and agriculture industry surges forward, contributing a remarkable 100 billion Saudi Riyals ($26.6 billion) to the GDP in 2022. The Kingdom is setting records and paving the way for future prosperity.
In alignment with its National Industrial Strategy, Saudi Arabia is on a mission to achieve food security and comprehensive economic development. The Kingdom is projected to attract a staggering $20 billion in investments into the food industry by 2035, reinforcing its commitment to sustainable growth and innovation.
Self-Sufficiency Milestones
Saudi Arabia’s journey towards self-sufficiency in food production is nothing short of impressive. The nation has surpassed a 100% self-sufficiency level in dairy products and table eggs, reaching 118% and 117% respectively, leading the region in these sectors. Meanwhile, the poultry and red meat sectors have achieved 68% and 60% self-sufficiency, showcasing significant strides toward independence in these areas.
The fish sector, with a self-sufficiency ratio of 48% in 2022, presents a promising opportunity for further growth and development, highlighting the Kingdom’s potential for expansion in aquaculture.
Investment Initiatives: Fueling Progress
Saudi Arabia recognizes the critical role of the food industry in national security and economic stability. This awareness has led to ambitious investment initiatives from both the government and private sectors. Two notable examples include:
- The Saudi Agricultural and Livestock Investment Company (SALIC) has strategically acquired stakes in influential players in the food industry, including a 25% stake in Minerva Foods, a leading meat producer in South America, and a 42.4% stake in the National Aquaculture Group (NAQUA).
- Al Marai, a leading food and beverage company in the GCC, plans to invest SAR 1.2 billion in hatchery production facilities in the Al-Jouf region. Additionally, the company is expanding into the seafood category, demonstrating its commitment to diversification and growth.
Supporting Vision 2030
Frost & Sullivan is dedicated to fostering the growth of Saudi Arabia’s local food industry by providing a comprehensive suite of services, including feasibility studies, strategy development, and investor outreach. By working closely with industry stakeholders and regulatory bodies, Frost & Sullivan aims to support the realization of Vision 2030 goals, driving sustainable economic development and prosperity throughout the Kingdom.
Saudi Arabia’s food and agriculture sector is not just a cornerstone of its economy; it is a testament to the Kingdom’s vision for a self-sufficient and prosperous future. For investors seeking opportunities in a thriving market, Saudi Arabia offers a fertile ground for growth and innovation.
