Arab News,
Thursday, July
06, 2023 | Thul-Hijjah 18, 1444
AH
Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022
RIYADH: Led by a boost in investment and a significant increase in measures to
promote sustainable development, Saudi Arabia’s agricultural gross domestic
product witnessed over 38 percent growth in 2022 to reach SR100 billion ($26.6
billion) from SR72.25 billion in 2021.
During the 43rd session of the UN Food and Agriculture Organization General
Conference, the Kingdom’s deputy minister of environment, water, and
agriculture, Mansour Al-Mushaiti, stated that this marks the sector’s highest
contribution to the GDP in its history, Al Arabiya reported.
Thanks to integrated water management, Saudi Arabia has achieved high levels of
self-sufficiency in various crops, especially those utilizing modern technology.
As a result, water consumption in agriculture has reduced from 86 percent to 70
percent, he added.
Al-Mushaiti emphasized that significant developments and investments made in the
agricultural sector have positively impacted the GDP output.
He pointed out that the Kingdom has adopted several strategies, initiatives and
programs to promote sustainable agricultural development and improve water
management to preserve natural and environmental resources.
Saudi Arabia’s Agricultural Development Fund has adopted several lending
policies that support modern technologies, which provide loans covering over 70
percent of the capital costs of agricultural projects.
Al-Mushaiti confirmed that the lending ratio increased greatly from SR500
million in 2015 to over SR7 billion in 2022.
These efforts align with UN FAO’s objectives of achieving global food security
and combating hunger and poverty on a local, regional and international level.
The rise of the agricultural GDP has been consistent for a couple of years, as
it achieved 7.8 percent growth in 2021 compared to 2020.
The jump is attributed to the Kingdom’s National Strategy for Agriculture 2030,
which seeks to create a sustainable sector that achieves food and water security
and economic, social and environmental developments.
The strategy also aspires to use modern technologies and practices to conserve
natural resources and improve agriculture productivity while leveraging
strategic partnerships with cooperatives, the private sector and research
centers.