Saudi Arabia’s agricultural fund launches new financing product   

Saudi Arabia’s Agricultural Development Fund Launches New Financial Product to Support Rural Farms

Introduction

The Agricultural Development Fund in Saudi Arabia has introduced a new financial product aimed at strengthening farming and promoting sustainable practices in rural areas.

Objectives

The initiative aims to achieve the following Sustainable Development Goals (SDGs):

1. Goal 1: No Poverty
2. Goal 2: Zero Hunger
3. Goal 8: Decent Work and Economic Growth
4. Goal 12: Responsible Consumption and Production
5. Goal 15: Life on Land

The specific objectives of the initiative include:

• Diversifying income sources for farms
• Ensuring long-term sustainability
• Capitalizing on unique rural opportunities
• Preserving local ecosystems
• Fostering environmental and rural tourism

Financial Support for Agricultural Businesses

The fund’s strategy involves providing financial support to existing and productive agricultural businesses, covering both their investment and operational expenses.

Eligibility Criteria

To be eligible for the financial support, applicants must meet the following criteria:

• Possession of a property deed or advanced agricultural record
• Obtaining a license from the Ministry of Environment, Water and Agriculture for the specific activity

Applicants are also required to submit a simplified technical study that outlines the required funding areas. The farm should be productive and have an area suitable for both agriculture and agricultural tourism.

Promoting Agricultural and Rural Tourism

Through this new financial offering, the fund aims to enhance services provided to visitors, aiming to enrich the overall visitor experience and thereby promote agricultural and rural tourism.

Previous Financial Support

In June, farmers in Saudi Arabia received SR1.5 billion ($400 million) in development loans from the fund. The loans were approved for small farmers involved in greenhouse vegetable production, poultry breeding, fish and shrimp farming, refrigeration warehouses, date manufacturing, and marketing centers.

The approval of these loans highlights the fund’s objective to boost its developmental and financing role for agricultural activity. It is also in line with the policies of the Ministry of Environment, Water, and Agriculture and the Kingdom’s food security strategy of supporting the farming sector and boosting the supply chain.

In the first three months of this year, the fund signed off on development and investment loans worth more than SR2.3 billion, compared to the SR861 million handed out in the same period of 2022. In 2022, the fund sanctioned loans worth SR4.2 billion.

SDGs, Targets, and Indicators

1. SDG 2: Zero Hunger

   • Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
   • Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size.
   • Indicator 2.3.2: Average income of small-scale food producers, by sex and indigenous status.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
   • Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex.
   • Indicator 8.3.2: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.

3. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.
   • Indicator 12.2.2: Domestic material consumption, domestic material consumption per capita, and domestic material consumption per GDP.

4. SDG 15: Life on Land

   • Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains, and drylands, in line with obligations under international agreements.
   • Indicator 15.1.1: Forest area as a proportion of total land area.
   • Indicator 15.1.2: Proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas, by ecosystem type.

Table: SDGs, Targets, and Indicators

Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to the following SDGs:

• SDG 2: Zero Hunger
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 15: Life on Land

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific targets can be identified:

• Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage

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  Source: arabnews.com

   

  

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