{"id":79898,"date":"2025-06-28T22:44:47","date_gmt":"2025-06-28T19:44:47","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=79898"},"modified":"2025-11-25T21:21:24","modified_gmt":"2025-11-25T21:21:24","slug":"%d8%b9%d8%a8%d8%af%d8%a7%d9%84%d9%84%d9%87-%d8%a7%d9%84%d9%8a%d8%ad%d9%8a%d8%a7-%d8%b6%d8%b9%d9%81-%d8%aa%d9%88%d8%ac%d9%87-%d8%a7%d9%84%d8%b4%d8%b1%d9%83%d8%a7%d8%aa-%d9%86%d8%ad%d9%88-%d8%a7%d9%84","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/79898\/","title":{"rendered":"File - Investing in farmland creates other income-generating opportunities"},"content":{"rendered":"

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Investment in agricultural lands in the Kingdom is a key pillar to achieve food security, diversify the economy, and monetize the real estate stock to create more promising opportunities, Amlak Real Estate opens this file that highlights the most important challenges facing this type of investment, especially that the sector is expected to reach $25.7 billion by 2030<\/p>\n

Reconnaissance: Abdullah Alsalih<\/strong><\/p>\n

Abdulmajeed Al-Jarallah: Investing in agricultural land is no longer an alternative option<\/span><\/h4>\n

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Real estate broker Abdulmajeed Al-Jarallah, who is interested in agricultural lands, said that the trend of major companies towards agricultural investment in Saudi Arabia did not come out of nowhere, but is driven by a strategic vision that integrates with the goals of Vision 2030 and enhances food security locally and regionally.<\/p>\n

Al-Jarallah pointed out that the years 2024-2025 witnessed the injection of more than 37 billion riyals for agricultural projects, a move that reflects the seriousness of the state in empowering this vital sector. He also emphasized that Saudi SALIC's acquisition of 80% from Olam Agri, worth more than SAR 6.6 billion, reveals a long-term national vision to link food supply chains with local investment.<\/p>\n

\u00abToday, we are witnessing a shift in the perception of agricultural land, from being a raw property to an investment asset with attractive returns ranging from 6-12% per year when properly operated, especially with the development of smart farming techniques and the adoption of greenhouses and hydroponics,\u00bb Al Jarallah added.<\/p>\n

He also explained that regions such as Qassim, Hail, Al-Jouf, Asir and Madinah have become attractive destinations for agricultural investors due to the availability of resources and government support, through the facilities of the Agricultural Development Fund, enabling property ownership and improving infrastructure.<\/p>\n

\u00abResidential and industrial land is linked to market cycles and may be affected by speculation, while agricultural land is a real and stable source of income and has upward momentum due to the need for food security and sustained government support,\u00bb Al-Jarallah said.<\/p>\n

At the same time, Al-Jarallah did not overlook the challenges, citing: Water scarcity, limited arable land (only 1-2%), desertification, the cost of modern technologies, as well as restrictions on foreign ownership, noting that \u00abconscious agricultural investment requires smart partnerships and long-term planning to overcome these obstacles.\u00bb.<\/p>\n

Al-Jarallah concluded his statement by emphasizing that the agricultural market in the Kingdom shows strong growth indicators, expecting the size of the sector to reach $25.7 billion by 2030 at a CAGR of 7.2%, making agricultural investment a strategic choice that cannot be overlooked.<\/p>\n

Abdullah Al-Yahya: The lack of incentives for companies to invest in agricultural land is due to a lack of mechanisms and returns<\/span><\/h4>\n

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Abdullah Al-Yahya, CEO of Falk Real Estate, said that the trend of real estate companies To invest in agricultural land<\/a><\/strong> This is still limited and weak, despite the promising investment potential of these lands, due to a number of reasons and influential factors that hinder the entry of these companies into this field.<\/p>\n

Al-Yahya told Amlak Real Estate that one of the most prominent factors is the lack of clear mechanisms to deal with the agricultural instrument, whether in terms of converting it to residential or utilizing it within its specific agricultural activity, which puts the investor in a state of uncertainty, in addition to the fact that the return on agricultural projects is not yet attractive to real estate development companies.<\/p>\n

He pointed out that this reality was directly reflected in the supply of agricultural land in the market, as its prices have become very low compared to other lands, even those located within the urban area, which indicates low investment demand for it, and the owners' lack of awareness of possible development opportunities.<\/p>\n

Financial and technical challenges<\/span><\/h4>\n

Al-Yahya added that there are also financial and technical challenges, most notably the high cost of investing in agricultural lands, whether in terms of infrastructure, project management or operation, which increases the expected return and makes companies lean towards easier and more profitable options such as residential investment, which still achieves attractive returns that prevent them from venturing into areas that require different expertise and specialized cadres.<\/p>\n

\u201dThe difference between real estate and agricultural investment is huge, in terms of the nature of management, business model and sources of income, and this is what makes many real estate companies unprepared to deal with agricultural projects, as they are outside the scope of their expertise, especially since the return from them needs a long time and faces multiple challenges,\u201d he said.\u201d<\/p>\n

Saudi Rural Program. Direct support and encouragement of rural investment<\/strong><\/span><\/h4>\n

In the context of incentives, Abdullah Al-Yahya noted that the state has recently adopted support for agricultural investment through the \u201cSaudi Reef\u201d program, one of the qualitative initiatives that provided non-refundable financial support to investors in the agricultural sector, and the number of farms benefiting from this program reached more than 87,000 farms.<\/p>\n

He explained that this program helped encourage investment in rural areas inside and outside cities, and contributed to the emergence of successful and influential models, but the challenge remains in achieving continuity and increasing the demand of investors for this type of project.<\/p>\n

\u201dThese initiatives are not limited to the economic aspect, but also contribute to the quality of life, especially in areas where recreation is linked to the local nature of the population, and we have witnessed real tourist visits from citizens and residents, and even from outside the Kingdom, such as some Gulf countries, to a number of subsidized agricultural projects, which indicates the importance of this type of investment from the environmental, social and tourism point of view.\u201d<\/p>\n

Businesses are moving to industrial and residential Agriculture needs regulation and awareness<\/span><\/h4>\n

Al-Yahya added that most real estate companies prefer to expand into industrial investment as the next option after residential, due to the clarity of its parameters, the ease of calculating its returns, and the speed of its feasibility studies, noting that the demand for industrial land is almost double the demand for agricultural land in many areas.<\/p>\n

He pointed out that many agricultural lands are currently abandoned by their owners, and there is not enough awareness of the possible investment opportunities in them, which makes us need a greater societal and awareness effect, whether towards owners, investors or even real estate companies, adding:<\/p>\n

\u201cIf the opportunities are highlighted and clear regulations are put in place, we will see a major shift in the perception of these lands.\u201d<\/p>\n

Humanizing Cities and Increasing Vegetation Social benefits of agricultural investment<\/p>\n

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

He concluded by saying: \u201cAgricultural projects contribute to humanizing cities, increasing vegetation cover, and connecting people with nature. These are returns that are not only measured in financial returns, but also in terms of quality of life and community well-being, goals that must be taken into account when formulating urban development and investment policies in the future.\u201d<\/p>\n

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Reading time: <\/span> 4<\/span> Minutes<\/span><\/span>Investment in agricultural lands in the Kingdom is a key pillar to achieve food security, diversify the economy, and monetize the real estate stock to create more promising opportunities, Amlak Real Estate opens this file that highlights the most important challenges facing this type of investment, especially as the size of the sector is expected to reach 25.7 billion dollars by 2030: Abdullah Al-Salih ... Read more<\/a><\/p>","protected":false},"author":10,"featured_media":80021,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[104],"tags":[],"class_list":["post-79898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-and-regulations"],"acf":{"amlak_post_excerpt":"\u062e\u0628\u0631\u0627\u0621 \u064a\u0624\u0643\u062f\u0648\u0646 \u062a\u062d\u0648\u0644 \u0627\u0644\u0623\u0631\u0627\u0636\u064a \u0627\u0644\u0632\u0631\u0627\u0639\u064a\u0629 \u0644\u0623\u0635\u0648\u0644 \u0627\u0633\u062a\u062b\u0645\u0627\u0631\u064a\u0629 \u0628\u0639\u0648\u0627\u0626\u062f \u0645\u062a\u0648\u0642\u0639\u0629 \u0648\u0645\u062e\u0627\u0637\u0631 \u0645\u064a\u0627\u0647 \u0648\u0642\u064a\u0648\u062f 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