Saudi Arabia's agricultural sector is poised to receive enhanced monitoring support aimed at improving productivity, thanks to a memorandum of understanding (MoU) signed between two government agencies. The Ministry of Environment, Water, and Agriculture and the National Co. for Agricultural Services (AgriServ) have joined forces to elevate the quality of services provided to stakeholders in the farming sector.
AgriServ, established in 2018 and wholly owned by the Saudi government, aligns its efforts with the objectives of Vision 2030 to advance the agricultural sector. Per the terms of the agreement, the Ministry of Environment will extend data, monitoring, compliance, and coordination support to AgriServ, facilitating its operations. In return, AgriServ will execute all operational tasks within the agreed-upon timeline.
The promotion of the agricultural sector holds paramount importance for Saudi Arabia as it endeavors to diversify its economy away from oil dependency and bolster national food security. Initiatives such as the launch of a new financial product by the Agricultural Development Fund on September 5 aim to bolster sustainable rural farm operations, diversify income sources, and capitalize on rural opportunities while ensuring long-term sustainability and preserving local ecosystems.
Furthermore, the fund's strategy includes providing financial support to existing agricultural businesses, covering their investment and operational expenses. In July, the fund signed financing contracts worth SR926 million ($246.8 million) in crucial sectors like feed production, animal breeding, and dairy, aimed at supporting the importation of essential agricultural products such as maize, soybeans, and barley. These contracts encompass various projects, including the establishment of agricultural marketing centers, cold storage facilities, and poultry farming initiatives.
Moreover, the fund has approved payouts for small farmers involved in greenhouse vegetable production, poultry breeding, and fish and shrimp farming, as well as support for refrigeration warehouses and date manufacturing and marketing centers. These initiatives underscore the fund's commitment to enhancing its developmental and financing role in agricultural activities, contributing significantly to the growth and sustainability of the agricultural sector in Saudi Arabia.
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https://www.arabnews.com/node/2432601/business-economy
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