Market Trends of Saudi Arabia Agriculture Industry
Fruit Segment Leads Saudi Arabian Agriculture Market Growth
- The Fruit Segment dominated the Saudi Arabian agriculture market, driven by government initiatives, technological advancements, and increasing consumer demand. The Saudi government implemented policies and programs to diversify the agricultural sector and reduce reliance on imports. In July 2024, the Saudi Ministry of Environment launched the Al-Janabeen Dam, covering 4.6 million square metres, specializing in palm trees, fruit trees, and other fruit crops.
- Consumer preferences have significantly influenced the growth of fruit production in Saudi Arabia. Rising health consciousness has led to increased demand for fresh, nutritious fruits. Fruit production in the country increased by about 2.0% between 2021 and 2022, reaching 2.8 million metric tons. This growth is primarily attributed to an expansion in the overall harvested area of fruits, which increased from 210.2 thousand hectares in 2021 to 215.9 thousand hectares in 2022. This trend has created a favorable market for domestic fruit producers, who are meeting the growing demand by offering a diverse range of high-quality products.
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Saudi Arabia Emerges as Global Leader in Date Production and Export
- Saudi Arabia's date industry thrives due to the country's favorable climate, supporting both domestic consumption and significant export opportunities. In 2022, Saudi Arabia became the world's leading date exporter, according to the International Trade Centre, underscoring its strong position in the global date trade.
- In 2023, Saudi Arabia's date export value reached USD 390.1 million, as reported by the UN Comtrade database. The country produces over 300 types of dates and has achieved the highest annual growth rate in date exports over the past five years, reaching 113 countries. The Kingdom's date production has seen substantial development, employing modern technologies and maintaining high-quality standards, contributing to increased global exports.
- Saudi Vision 2030 recognizes the importance of the palm and date sector, which contributes nearly 12% to the agricultural gross product and 0.4% to the non-oil gross product. The government's focus on this sector, combined with increasing date exports, is projected to drive further growth in Saudi Arabia's agricultural market. This development aligns with the country's goals of economic diversification and enhancing its global trade presence.
