According to the World Bank, more than 95% of Saudi Arabian land is covered by desert, making it a nation that is rewriting the rules of agriculture, and Agri-tech startups are leading the way. At one time, it was dismissed as too arid to farm, but the Kingdom has made its harsh climate a test bed for innovation. The need for food security and a sustainable future is driving Saudi Arabia to take the leap with the Internet of Things (IoT) and Artificial Intelligence (AI) to transform its agriculture industry. It's not just about growing crops: It's about how we can still farm in the most hostile of environments.
Saudi Arabia’s Agri-tech startups are rewriting the rules of farming. Once heavily reliant on imports for over 80% of its food supply, the Kingdom is now at the forefront of agricultural innovation, bridging sustainability and technology to tackle one of humanity's oldest challenges: growing food in tough environments. Using the power of the Internet of Things (IoT) and Artificial Intelligence (AI), these startups are making the efficiencies that were once deemed unthinkable, possible. IoT-enabled smart irrigation systems, for instance, have decreased water use by 50%, saving 600 million cubic meters of water per year — enough water for 8 million people. At the same time, AI-driven tools have boosted crop yields by up to 300% in smart greenhouses and controlled environments. It’s not about growing more food; it’s about securing the future.
Agritech
Through the use of technology like automation, biotech, and data analysis, Agritech has changed how people think about farming; delivering better yields, more efficiency, and better profits. Agritech in places like Saudi Arabia and the UAE can be a lifeline to sustainability and ensuring self-sufficiency in the face of harsh climates and water shortages. Controlled Environment Agriculture (CEA) is the leading force behind this transformation. Now, farming is decoupled from friendly weather with greenhouses, vertical farms, and hydroponic systems. For instance, Saudi Arabia has already reduced crop growth cycles by up to 50 percent through hydroponics and is investing $220 million in vertical farms by 2025. This is about more than just numbers; it’s about becoming a global leader in high-tech agriculture. But the UAE has the world’s largest vertical farm, a giant 330,000-square-foot behemoth that requires 95 percent less water than traditional farming.
But it doesn’t stop there. Every day farmers are empowered by technologies such as artificial intelligence (AI), Internet of Things (IoT), and big data to make better decisions. Real-time data gathered by IoT sensors about soil moisture, nutrients, and temperature helps know exactly how much to consume, where, and when. It’s not just about smart farming, it’s about resilient farming, ensuring that it can succeed in the very conditions for which these regions are renowned. Innovation makes the impossible possible in the toughest environments, proving that even in the toughest environments, Agritech is possible. Growing crops isn’t all; it’s about a sustainable future.
Government Agri-Tech Initiatives
Government initiatives in Saudi Arabia are driving substantial strides in agricultural technology. In arid landscapes of the Kingdom, the government has plans to modernize and sustain agriculture with investment plans reaching the billions (such as $1 billion planned to be invested in greenhouse technology). The Vision 2030 plan includes these initiatives as part of a wider strategy to diversify the economy, spur innovation, and provide for long-term sustainability. The government plays multidimensional roles in the Agritech ecosystem from financial support to infrastructural development. It is nothing new, it has been a commitment since the 1970s when an attempt was made to be self-sufficient in wheat production. While that resulted in the issues of water scarcity, the experience is a lesson to current AgTech initiatives to adopt sustainable practices.
The government also makes direct investments in addition to fostering a collaborative ecosystem that includes academia and the private sector. This interconnected approach is driving the acceleration of innovation and growth in the AgTech sector, putting Saudi Arabia on a fast trajectory to becoming a leading player in this global arena. In 2018 the government also went a step further, putting aside a $200 million budget to boost organic farming. The purpose of this thesis was to realize a 300% increase in organic agriculture that would be a sustainable and environmentally friendly farming technique. These initiatives are further encapsulated with investments in NEOM and the Red Sea Development Company (TRSDC). A $500 billion mega-city project NEOM will incorporate the future of agriculture with technologies like vertical farming and hydroponics.
The bold change in Saudi agriculture is aligned with the Vision 2030 goals and the Saudi government is making brave steps to transform agriculture through innovative Agri-tech solutions. An inspiring example is Wa’ed, a venture capital arm of Saudi Aramco that is investing $18.5 million in Red Sea Farms, a pioneering startup that produces produce in some of the harshest, water-scarce places imaginable, using cutting-edge technology. It’s not just business, it’s an important step we need to make towards sustainable food security. Natufia Labs moved to Saudi Arabia from Estonia in 2021 to set up the world’s first-ever ‘smart’ indoor garden, as the Kingdom positions itself as a science and technology hub.
Additionally, the company highlighted Saudi Arabia’s commitment to working with top-tier innovations as a way of reiterating the government’s intention to spearhead the Agri-tech revolution. UAE is doing the same as it heavily invests in vertical farming, hydroponics, and patented tracking technology to enhance local food production. A regional shift towards tech-driven agriculture was signaled as the Abu Dhabi Investment Office (ADIO) launched a $200m fund to support early-stage Agri-tech companies.
Companies and Startups
The buzz in Saudi Arabia’s AgTech scene is alive and well, with many exciting collaborations and groundbreaking projects that are really changing the face of agriculture in their Kingdom. Edama Organic Solutions shares one such partnership with Saudi Investment Recycling Co. They’re doing more than managing waste; they’re combining it with a catalyst for desert agricultural development. This collaboration demonstrates the dedication to a sustainable and circular economy practice, showing that even under the most difficult conditions innovation can thrive. The Red Sea Farms have recently joined the Saudi Downtown Company, a subsidiary of the Public Investment Fund, through a Memorandum of Understanding. In line with Saudi Vision 2030, the country’s forward-looking aspirations, this agreement will see the development and operation of sustainable greenhouses across Saudi Arabia, supplying communities with locally sourced fresh produce and reducing reliance on imports. I am talking about the Kingdom’s ongoing commitment to building a resilient and self-relying agricultural sector.
At the same time, MOWREQ is building what will be the biggest indoor vertical farm in Saudi Arabia and the highest in the Middle East. This state-of-the-art facility will help provide Riyadh and the surrounding region with locally produced, fresh, low-carbon leafy vegetables as a healthy alternative to the imported versions and in supporting local food security. Another exciting development is that NADEC is partnering with Pure Harvest Smart Farms to utilize smart farming technologies. This is part of a larger attempt to spur technological advances across Saudi agriculture to keep the Kingdom at the forefront of AgTech innovation.
Challenges and Opportunities
Despite recent technological advances, there are still a number of countries trailing far behind. Take the UAE and Kuwait: they have seemingly higher access to digital technology than say Yemen or Lebanon, thereby impeding innovative capacity that is open and widely spread. Humanitarian aid and FDI can help narrow the gap with time. Moreover, Saudi Arabia has been an important source of support for IFAD, the International Fund for Agricultural Development of the United Nations, with it having contributed more than two-thirds of all other MENA countries' development assistance. Nevertheless, agricultural data is not available in the MENA region: either it has not been systematically collected, or there have been limits, often due to governmental regulation and security concerns. In GCC Small is the norm; few of the region’s startups have the financial means to fund their own research and development. Moreover, many startups are not yet profitable, and they finance their startup operations. These startups can gain in importance with the supply from regional governments; either through changing policy, or creating direct investments.
Conclusion
Agri-Tech is not only an innovation but it’s also Saudi Arabia’s transformation of its agricultural identity. Smart greenhouses can cut water usage in agriculture by 50 percent and increase crop productivity by 300 percent — all while facing even the harshest of climates. Investments in projects like futuristic NEOM farms that can produce 10 times more yield per acre than traditional farming are evidence of the Kingdom’s obsession with the sustainability of growth. And Saudi Arabia is not just growing crops, it’s growing a movement. Using Agri-tech innovation, the Kingdom demonstrates exactly what can be done when vision and technology come together.
.svg){kind=icon}
