Saudi talks on farmland investments make progress

Riyadh: Saudi Arabia's minister of commerce and industry Abdullah Zainal disclosed that there has been progress in talks with various countries with regard to farmland investments as part of the kingdom's food security plan.

"The kingdom has formulated a number of fundamental principles to make the Food Security Initiative, launched by King Abdullah Bin Abdul Aziz, a great success.

"The initiative aims at achieving food security by making investments in farmlands abroad after forming integrated partnership with a number of countries, especially those in Africa," he said.

Addressing a workshop on ‘Experiments, opportunities and challenges in farmland investments abroad' in Riy-adh yesterday, Zainal said Saudi Arabia will extend financing to implement infrastructure projects prior to farmland investments in countries with a high potential for farming.

Financing

The financing will be made available by the Saudi Industrial Development Fund as well as by the local and international financing firms tasked with aiding firms exploring agricultural investments abroad.

Saudi Arabia set up a company with a capital of three billion riyals this April to invest in farmland abroad.

Referring to the fundamental principles of the food security initiative, Zainal said that several factors would be taken into account while making investments in farmland abroad. "These included potential for farming, investment environment and incentives, and proximity to the kingdom."

The kingdom's private sector will be the actual investors in such projects, he said. "The government of Saudi Arabia will extend all the support and incentives to the private sector for making investments in such projects."

Zainal added: "More talks would be held with countries in southern and eastern Africa in the near future."

He added that several countries have welcomed the entry of Saudi Arabia to make investments in their farmlands."