Increased public spending and investment diversification
The Saudi government has announced its most ambitious budget to date, with US$186 billion in spending and US$16 billion dedicated to agriculture. This is in line with the Ministry of Agriculture’s objective of promoting the sector’s development.
The budget allotment is also used to finance new projects, in addition to current initiatives. To meet the country’s increasing demands, new investments are made in wheat silos, grain storage facilities, and flour mills.
The Middle East’s Largest Market for Agro-Food Products and Technologies Is Saudi Arabia
Saudi Arabia’s Ministry of Agriculture, Food and Rural Development has awarded the USDA Foreign Agricultural Service with a $3.45 million grant to modernize its systems and provide better customer service. The Kingdom of Saudi Arabia is the region’s largest individual market, with a population of 28 million. Because of the growing populace.
This was combined with a 32% rise in consumer spending, which was split between food purchases. Food sales are anticipated to increase by about 5% each year in Saudi packaged meals.
- The average compound annual growth rate (CAGR) for the previous five years is 5.9% – The typical agriculture CAGR for the previous five years
- According to the World Bank, Saudi Arabia’s agricultural output in 2011 was $12 billion.
- Saudi Arabia is the Middle East’s major food importer, accounting for nearly half of all imports.
- In 2011, the Kingdom has issued 200 new agricultural projects permits.
- The food market in the Kingdom has a 5% annual growth rate.
- The growth rate of the global poultry sector is expected to be 16.5%.