Investment in agricultural land in the Kingdom is a cornerstone for achieving food security and diversifying the economy, as well as for monetizing real estate holdings to create more promising opportunities. Amlak Real Estate explores this topic, highlighting the key challenges facing this type of investment, especially as the sector is expected to reach $25.7 billion by 2030

Report by: Abdullah Al-Saleh

Abdulmajeed Al-Jarallah: Investing in agricultural land is no longer just an alternative option

Real estate broker Abdulmajeed Al-Jarallah, who specializes in agricultural land, stated that the trend of major companies toward agricultural investment in Saudi Arabia did not come out of nowhere, but is driven by a strategic vision that aligns with the goals of Vision 2030 and strengthens food security locally and regionally.

Al-Jarallah noted that the years 2024–2025 saw more than 37 billion riyals injected into agricultural projects, a move that reflects the government’s serious commitment to empowering this vital sector. He also emphasized that the acquisition by the Saudi company SALIC of 80% from the global firm «Olam Agri» for more than 6.6 billion riyals reveals a long-term national vision to link food supply chains with local investment.

Al-Jarallah added: «Today, we are witnessing a shift in the perception of agricultural land, from being raw property to becoming investment assets with lucrative returns ranging from 6–12% annually when well-managed, especially with the development of smart farming technologies and the adoption of greenhouses and hydroponics.»

He also explained that regions such as Al-Qassim, Hail, Al-Jawf, Asir, and Madinah have become attractive destinations for agricultural investors due to the availability of resources and government support—through facilities provided by the Agricultural Development Fund, land title clarification, and infrastructure improvements.

Al-Jarallah compared different types of land, saying: «Residential and industrial land is tied to market cycles and may be affected by speculation, whereas agricultural land is a real and stable source of income and is gaining momentum thanks to the need for food security and sustainable government support.»

At the same time, Al-Jarallah did not overlook the challenges, citing among them: water scarcity, limited arable land (only 1–2%), desertification, the cost of modern technologies, as well as restrictions on foreign ownership, noting that «informed agricultural investment requires smart partnerships and long-term planning to overcome these obstacles.»

Al-Jarallah concluded his statement by emphasizing that the Kingdom’s agricultural market is showing strong growth indicators, with the sector expected to reach $25.7 billion by 2030 at a compound annual growth rate of 7.2%, making agricultural investment a strategic option that cannot be overlooked.

Abdullah Al-Yahya: Companies" lack of interest in agricultural land stems from a lack of mechanisms and returns

Abdullah Al-Yahya, CEO of Falk Real Estate, said that real estate companies" focus to invest in agricultural land remains limited and weak, despite the promising investment potential of such land. He attributed this to a number of reasons and influencing factors that hinder these companies from entering this sector.

In an interview with the newspaper "Amlak Real Estate," Al-Yahya emphasized that one of the most prominent of these factors is the lack of clear mechanisms for dealing with agricultural land titles, whether in terms of converting them to residential use or utilizing them specifically for their intended agricultural purpose, which creates uncertainty for investors. Additionally, the returns on agricultural projects have not yet been attractive to real estate development companies.

He noted that this reality has directly impacted the supply of agricultural land on the market, where prices have become very low compared to other types of land, even those located within urban areas, which indicates low investment demand for such land and a lack of awareness among landowners regarding potential development opportunities.

Financial and Technical Challenges

Al-Yahya added that there are also financial and technical challenges, most notably the high cost of investing in agricultural land—whether in terms of infrastructure, project management, or operations— which further reduces the expected return and leads companies to favor easier and more profitable options such as residential investment, which continues to yield attractive returns that deter them from venturing into fields requiring different expertise and specialized personnel.

He said, "The difference between real estate and agricultural investment is significant in terms of the nature of management, the business model, and sources of income, which is why many real estate companies are ill-equipped to handle agricultural projects—they fall outside the scope of their expertise, especially since returns from such projects take a long time to materialize and involve multiple challenges."

The “Saudi Countryside” Program: Direct Support and Encouragement for Rural Investment

Speaking of incentives, Abdullah Al-Yahya noted that the state—may God guide it—has recently adopted a policy of supporting agricultural investment through the ”Saudi Rural” program, one of the unique initiatives that provided non-repayable financial support to investors in the agricultural sector; more than 87,000 farms have benefited from this program.

He explained that this program has helped encourage investment in rural areas both within and outside cities and has contributed to the emergence of successful and impactful models; however, the challenge remains in ensuring sustainability and increasing investor interest in this type of project.

He added: "The benefits of these initiatives are not limited to the economic aspect; they also contribute to improving quality of life, especially in areas where recreation is linked to the local natural environment of the residents. We have witnessed significant tourist visits from citizens and residents—and even from outside the Kingdom, such as some Gulf countries—to a number of supported agricultural projects, which underscores the importance of this type of investment from environmental, social, and tourism perspectives."

Companies Are Turning to Industrial and Residential Sectors… While the Agricultural Sector Needs Regulation and Awareness

Al-Yahya went on to say that most real estate companies prefer to expand into industrial investment as their next option after residential, given its clear parameters, the ease of calculating its returns, and the speed of its feasibility studies, noting that demand for industrial land is nearly double that for agricultural land in many areas.

He pointed out that much of the agricultural land is currently abandoned by its owners, and there is insufficient awareness of the potential investment opportunities it offers, which is why we need greater social and awareness-raising efforts—whether directed at landowners, investors, or even real estate companies—adding:

“If these opportunities are highlighted and clear regulations are put in place, we will see a major shift in how this land is viewed.”

Urban Humanization and Increased Vegetation Cover: Social Benefits of Agricultural Investment

Abdullah Al-Yahya emphasized that residential and industrial lands are more regulated in terms of laws and regulations, which makes them more attractive for investment than agricultural lands, which still require regulations and mechanisms commensurate with their environmental, social, and economic importance.

He concluded by saying: "Agricultural projects contribute to the humanization of cities, increase green space, and connect people with nature, and these benefits cannot be measured solely by financial returns; rather, they relate to quality of life and societal well-being—goals that must be taken into account when formulating future urban development and investment policies."