Agriculture Market In Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Agriculture Market Trends and Insights

Government Vision-2030 ag-sector subsidies

Vision 2030 repurposes public funds toward high-value crops and CEA. The Agricultural Development Fund has cleared USD 4.6 billion in loans that cover 70% of capital outlays for advanced greenhouses, sharply lowering farmer risk. Policy now ties eligibility to measurable water-efficiency milestones, aligning subsidies with sustainability rather than sheer output. A series of 57 Saudi-Chinese agreements worth USD 3.73 billion (SAR 14 billion) further expands financing for export-oriented farms and smart-city clusters dedicated to food security.

Rising food-security imperative

Import reliance above 80% exposed vulnerabilities during recent global supply disruptions. As a result, SALIC intensified upstream acquisitions, lifting its holding in Olam Agri to 80.01% for USD 1.78 billion. Eight new agricultural cities under development create secure domestic production hubs supported by desalination and renewable energy. These clusters will feed major population centers and provide redundancy against external shocks, accelerating adoption of CEA that maximizes yield per cubic meter of water.

Adoption of precision and greenhouse tech

NEOM’s planned 100-hectare solar-powered greenhouse and the 4,500 m² Riyadh Indoor Vertical Farm show the leapfrog effect of digital agriculture. IoT networks, AI-driven climate control, and enterprise resource planning platforms from firms like FarmERP improve yield predictability and cut input waste. Early adopters in Riyadh and Tabuk report yield gains of 30% versus conventional greenhouses. These outcomes convince financiers that controlled systems can meet domestic demand and open premium export channels to the GCC.

National water-efficiency programmes

The National Water Strategy targets 100% wastewater reuse by 2025^{[1]Source: International Trade Administration, “Saudi Arabia – Water Resources and Desalination 2024,” trade.gov}. Tertiary-treated effluents now irrigate fodder and date plantations, relieving aquifers in central regions. A USD 21.3 billion public budget expands desalination to cover 90% of water demand by 2030. Pilots at NEOM recycle every drop through zero-liquid discharge plants. Solar desalination domes deliver water at USD 0.34 m³, undercutting legacy reverse-osmosis systems while shrinking brine footprints.

Extreme Aridity and Groundwater Depletion

Saudi Arabia withdraws far more groundwater than natural recharge supplies, with agriculture consuming 80-84% of total withdrawals^{[2]Source: Food and Agriculture Organization, “AQUASTAT Country Profile – Saudi Arabia,” fao.org}. Non-renewable aquifers in central basins show declining water tables, raising pumping costs and salinity levels that suppress yields. Soil salinity in legacy wheat zones now exceeds crop tolerance thresholds in many plots, forcing rotation changes. The pivot toward desalination and reclaimed water lessens pressure, but energy inputs rise, linking farm economics to power prices. Long-term viability hinges on accelerating treated-water networks and enforcing strict groundwater caps.

High Capital Requirements for Modern Farms

State subsidies cover up to 70% of greenhouse capex, yet a 30% equity stake still equals USD 60-120 million for mid-scale hydroponic parks. Smallholders struggle to access such sums, risking exit or acquisition by larger integrators. Precision sensors, AI licenses, and skilled technicians add recurring costs that traditional farmers had never budgeted. Training programs run by the Ministry of Environment, Water, and Agriculture help bridge the skills gap but extend project payback horizons, slowing technology diffusion.

Segment Analysis

By Commodity Type: Cereals Dominate Despite Vegetables' Growth Surge

Cereals held 38.8% of Saudi Arabia agriculture market share in 2024, underscoring the Kingdom’s commitment to staple security. Wheat quotas ensure farmers receive cost-covering prices, sustaining 1.5 million metric tons of output^{[3]Source: United States Department of Agriculture Foreign Agricultural Service, “Grain and Feed Annual 2024,” usda.gov}. Vegetables post a 7.9% CAGR to 2030, supported by greenhouse clusters near Riyadh and Tabuk that harvest year-round. The first exports of CEA-grown tomatoes to Europe signal rising quality standards that command premium pricing.
Growing vegetable output shortens import lines, trimming freight-driven carbon footprints in the Saudi Arabia agriculture market. Controlled environments stabilize supply in Ramadan and Hajj seasons when demand spikes. Fruits leverage the Saudi Green Initiative plan to plant 49 million trees, widening orchard acreage while boosting carbon sequestration. 

Note: Segment share of all individual segments available upon report purchase

By Farming System: Open-Field Dominance Challenged by Greenhouse Innovation

Open-field farms still represent 56.0% of the Saudi Arabian agriculture market size in 2024, yet their share is forecast to erode as greenhouse hectares expand at an 11.4% CAGR. Hydroponic projects financed by USD 20.2 million (SAR 76 million) loans illustrate the government's resolve to lift yields without escalating groundwater stress. Controlled environments cut water draw by 90% while tripling land productivity, offsetting higher upfront costs. Organic acreage rises in peri-urban belts where consumers pay premiums for pesticide-free produce, lifting the Saudi Arabian agriculture market value chain.

Vertical farms like the 19-layer Riyadh facility yield 2.2 tons of leafy greens daily from only 4,500 m². Aquaculture joins the CEA family through the NEOM-Tabuk Fisheries venture that aims for 600,000 tons by 2030. Integrated designs recycle nutrient-rich water, reinforcing circular economy targets. Smart Agriculture Complex partnerships with South Korea deliver technology transfer that accelerates scale-up across the Saudi Arabian agriculture market.

Note: Segment share of all individual segments available upon report purchase

Geography Analysis

Riyadh retains primacy through unmatched logistics, research institutions, and population proximity, reinforcing its 32.5% share of the Saudi Arabia agriculture market. Specialized industrial zones, such as the dairy cluster in Al-Kharj, integrate feed mills, processing, and cold storage, compressing farm-to-retail cycles. The presence of universities and R&D centers accelerates partnership formation between growers and ag-tech firms, reducing innovation adoption lags.

The Eastern province scales up fastest as desalination facilities guarantee water continuity for greenhouse mega-projects. Export corridors through Dammam port and the King Fahd Causeway open direct lines to GCC consumers, giving growers preferential freight economics. Renewable-powered desalination plants reduce operating expenditure volatility, making long-cycle CEA investments more bankable. Provincial governments co-finance smart-city ventures that bundle housing, services, and agritech incubators, attracting skilled staff from global markets.

Elsewhere, Makkah capitalizes on pilgrimage seasons to market premium halal-certified produce, while Al-Qassim leverages heritage date varieties to maintain leading export status. Jazan refines mango supply chains to hit 68% self-sufficiency, and Najran positions as a cross-border trade gate with Yemen. Tabuk collaborates with NEOM and international hatchery specialists to unlock offshore aquaculture capacity. Together, these dynamics diversify output and mitigate localized climate and water shocks across the Saudi Arabia agriculture market.