Saudi Arabia’s Agricultural Development Fund (ADF) is set to increase its loan approvals to SAR 7.4 billion ($2 billion) in 2025, supporting key projects under the National Agriculture and Food Security Strategies, according to Asharq Al-Awsat.
Habib bin Abdullah Al-Shammari, ADF’s spokesperson, highlighted that the Fund’s contribution to the agricultural sector’s GDP rose to 11% in 2024, up from 3.6% in 2016. He noted that financing for local agricultural production and modern technology initiatives has increased from 50% to 70% of the loan value, given their importance for food security and resource sustainability.
The Fund is currently reviewing funding applications from five innovative companies that meet its criteria and is also supporting mergers and acquisitions in the agricultural sector to strengthen food security.
Al-Shammari expects loan approvals in 2025 to grow by 9% compared to 2023, reaching SAR 7.4 billion ($2 billion), up from SAR 7.17 billion ($1.9 billion) last year. This funding will be directed toward developmental loans for small farmers, beekeepers, and livestock breeders across various regions, while also supporting critical sectors such as red meat production, poultry farming, greenhouse vegetable cultivation, fish farming, and cold storage facilities.
Additionally, the Fund is financing supply chain and processing projects, including tomato paste production, a coffee bean sorting and roasting plant, cold storage facilities, and agricultural marketing centers. These initiatives aim to address marketing gaps, ensure sustainable resources and income for farmers, and promote investment in agriculture.
Since its establishment, ADF has provided SAR 65 billion ($17.3 billion) in loans, with approvals increasing from SAR 455 million ($121 million) in 2016 to over SAR 7 billion ($1.9 billion) by the end of 2024.
Al-Shammari emphasized that the Fund offers financing for mergers and acquisitions in the agricultural sector to enhance project efficiency, boost market value, and provide opportunities for new investors. It also supports expansion strategies, including horizontal and vertical integration, to improve production sustainability.
Furthermore, the Fund provides loans to innovative start-ups developing agricultural technologies, water and energy solutions, and biotech advancements to enhance local production and competitiveness. It has also begun extending loans to foreign investors and licensed agricultural companies operating in the Kingdom under the Foreign Investment Law.
