Saudi Arabia will expand food security efforts

Significance

The Fund channelled investments to farmers, breeders and greenhouse projects, among others. In February, the country’s sovereign wealth fund, the Public Investment Fund (PIF), signed an agreement with US-based company AeroFarms to build and operate indoor vertical farms. These efforts will boost local agriculture, despite challenging weather and water conditions.

Impacts

• Saudi Arabia will seek technology transfer to support the agricultural sector, and this could include Israeli technology.
• Local agricultural production will strengthen economic diversification efforts, expanding the non-oil sector’s contribution to GDP.
• The Saudi private sector will still pursue agriculture investments in third countries but will be risk-averse in its choice of projects.
• Saudi Arabia will use food security initiatives to enhance its global image and status within the G20 and other similar groupings.