In a remarkable step that reflects the growing interest in the agricultural sector, the Saudi Agricultural Bank announced financing loans worth 3 billion Saudi riyals. This announcement comes in the context of rapid growth in the volume of agricultural financing in the Kingdom in recent years. Let us review the development of the volume of agricultural loans over the past years:
• 2016: 455 million riyals
• 2017: 617 million riyals
• 2018: 422 million riyals
• 2019: 1.9 billion riyals
• 2020: 1.75 billion riyals
• 2021: 2.62 billion riyals
• 2022: 5.32 billion riyals
• 2023: 6.5 billion riyals
These numbers reveal a huge jump in the volume of agricultural financing, as it rose from 455 million riyals in 2016 to 6.5 billion riyals in 2023. This rapid growth, although it bodes well for the agricultural sector, raises fundamental questions about the effectiveness and efficiency of using these funds. .
While increased funding is a positive step, it also presents us with new challenges and opportunities that require reflection and strategic planning:
1. Suitability of technologies and sustainability:
With this significant growth in funding, are we effectively investing in sustainable agricultural techniques and practices that are compatible with our local environment? We must ensure that these huge investments do not go to waste in technologies that are not suited to our unique climate conditions. Investing in developing local solutions may be more worthwhile in the long term.
2. Local capacity building:
Instead of relying solely on importing technologies, a significant portion of this funding should be directed towards developing local capabilities in agricultural R&D. This will help us produce solutions tailored to our agriculture challenges, and create job opportunities for Saudi talent in the field of agricultural technology.
3. Evaluation and follow-up:
With such rapid growth in financing, we need robust mechanisms to evaluate the impact of these loans. How many of the funded projects achieved sustained success? What are the lessons learned from projects that faced difficulties? An integrated monitoring and evaluation system must be established to ensure maximum benefit from every riyal invested.
4. Strategic diversification:
We must ensure that this huge funding is strategically distributed across various aspects of the agricultural sector. This includes improving infrastructure, developing value chains, enhancing food security, and investing in vertical farming and smart agriculture that suit the Kingdom’s limited water resources.
5. Innovation and technology:
With this significant funding available, we have a golden opportunity to invest in cutting-edge agricultural technologies such as precision agriculture, artificial intelligence in crop management, and water-saving technologies. But we must ensure that these technologies are adapted and developed locally to suit our unique circumstances.
6. Education and training:
A significant portion of this funding should go toward educating and training the next generation of farmers and agronomists. This ensures the long-term sustainability of the sector and creates new job opportunities in the field of agricultural technology.
in conclusion,
The tremendous growth in the volume of agricultural financing in the Kingdom represents a historic opportunity to bring about a radical transformation in the agricultural sector. But, it takes more than just an infusion of money. We need a comprehensive strategic vision that ensures that these resources are used efficiently to build a sustainable and innovative agricultural sector, capable of facing the challenges of food security and climate change.
Let us make this increased funding an opportunity to reshape the future of agriculture in the Kingdom, and turn it into a model to be emulated in the region and the world. The real challenge is not the amount of funding, but rather how to invest it wisely to achieve sustainable development and food security for future generations.
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