A Booming Agricultural Market Driving Self-Sufficiency
Strategic Account Manager, Agri, Food & Nutrition
Growth Advisory, Frost & Sullivan
Senior Consultant, Agri, Food & Nutrition Growth
Advisory, Frost & Sullivan
Saudi Arabia remains the largest agricultural market in the GCC region, with the gross production value projected to amount to USD 15.98 bn in 2025 and USD 17.68 bn in 2029 (Statista). Agriculture accounted for 4.3% of non-oil GDP in 2023, employing approximately 350,000 people, leading the government to invest USD 24 billion in environment, water, and agriculture to enhance self-sufficiency and reduce reliance on imports.
Currently, the import value in agriculture market is projected to amount to US$11.1bn in 2025 with a CAGR of 5% till 2029. With the Vision 2030 initiative, the government is prioritizing agricultural sustainability and food security, leading to increased funding and support for local farmers.
In terms of the end use industries of agriculture, Saudi Arabia’s food retail sales were estimated at more than $51 billion in 2023 (CAGR 5%) and foodservices around USD 29 Bn (CAGR 10%) as per USDA estimates, largely driven by population growth, rapid urbanization, and changing consumer shopping habits.
However, the sector faces arid climatic conditions and water constraints, with only 1.5% of land being arable and agriculture consuming 80% of the country’s water supply ranking 8th globally in water scarcity, with non-renewable groundwater use in agriculture dropping from 19 million m³ in 2015 to 10 million m³ in 2022. (MEWA, Innovation in the Agriculture Sector in KSA, 2023).
Self-sufficiency progress & vision 2030
Saudi Arabia is making significant strides in food security, achieving high self-sufficiency levels in key agricultural products in 2024: (GASTAT, Self-Sufficiency).
• Dairy Products: 129% self-sufficiency, with a target of 150% by 2030.
• Dates: 119% self-sufficiency, targeted to reach 150% by 2030.
• Table Eggs: 100% self-sufficiency, expected to increase to 150%.
• Poultry Meat: 71% self-sufficiency, with a goal of 100%.
• Red Meat: 61% self-sufficiency, targeted to reach 100%.
• Fish: 48% self-sufficiency, set to reach 70%.
• Tomatoes: 76% self-sufficiency, with a goal of 100% by 2030.
• Onions: 51% self-sufficiency, targeted for 80% by 2030.
The government’s strategic interventions aim to increase local agricultural production by 60% and plant 14 million trees by 2030 with commitment to restoring 1.6 million hectares through the Saudi Green Initiative (SGI).
The role of agri-tech in transforming saudi agriculture: key priority technologies
To overcome water scarcity and optimize production, Saudi Arabia is aggressively adopting Agri-Tech innovations as a first wave of implementation in 2025:
• Irrigation and Water Management: Drip irrigation, smart irrigation systems, and advanced irrigation technologies.
• Integrated Aquaculture Farm Management: Sustainable aquaculture with expected growth from 0.14 MMT in 2022 to 0.5 MMT by 2030.
• Protected Agriculture & Controlled Environment: Greenhouses, hydroponics, aeroponics, and vertical farming.
• Food Preservation & Waste Valorization: Smart packaging, edible coatings, anaerobic digestion, and composting.
• Unmanned Aerial Vehicles (Drones) & Satellite Imagery: Crop monitoring, soil analysis, and precision spraying. (KSA Agriculture Innovation Roadmap, MEWA).
Major government initiatives & investments
The Government is implementing multi-billion-dollar initiatives to boost food security and agricultural sustainability:
• USD 9.8 Billion in Private Investments: The Ministry of Environment, Water, and Agriculture has secured SAR 37 billion (approximately USD 9.8 billion) in private investments to advance the Kingdom’s agriculture and food sectors, focusing on crop production, livestock, fisheries, and infrastructure development (ESG News, KSA investment in Sustainable Agriculture Projects, 2024)
• Saudi Agri-Food Tech Alliance: Aims to foster innovation and public-private partnerships for agricultural technology development.
• Strategic Acquisitions: The Saudi Agricultural & Livestock Investment Company (SALIC) acquired Olam Agri for USD 1.78 billion, securing access to global grain and food supply chains.
• Agricultural Development Fund (ADF): Provides low-interest loans and financial incentives to farmers and Agri-Tech startups.
Outlook: a path toward sustainable agriculture
Saudi Arabia is rapidly advancing towards its Vision 2030 goals, positioning itself as a regional leader in food security and AgriTech innovation. With strong government support, foreign investments, and cutting edge Agri-Tech adoption, the Kingdom is set to achieve greater self-sufficiency, reduce import dependency, and lead the GCC in sustainable agriculture.
