Agricultural Development Fund

The Agricultural Development Fund is a Saudi government institution with an independent legal personality and financial and administrative autonomy. It is organizationally affiliated with the National Development Fund and headquartered in Riyadh.[1]

The Fund originated from the Saudi Arabian Agricultural Bank, established by Royal Decree No. (58) dated 3/12/1382 AH (1963), which began its operations in 1384 AH.[2]

It operates under its statute issued by Royal Decree No. (M/30) dated 20 Safar 1445 AH, a statute that remains in force.[1]

The Saudi Arabian Agricultural Bank was established by Royal Decree No. (58) dated 3/12/1382 AH as a specialized government credit institution financing the various fields of agricultural activity, and it began its operations in 1384 AH.[2]

On 29 Muharram 1430 AH, the Council of Ministers approved the statute of the Agricultural Development Fund to replace the statute of the Saudi Arabian Agricultural Bank, and the Fund's capital was set at twenty billion riyals under that statute.[2]

The Fund's statute was issued by Royal Decree No. (M/30) dated 20 Safar 1445 AH and published in the Official Gazette on 30 Safar 1445 AH, corresponding to 15 September 2023, and it remains in force.[1]

This statute replaces the previous Fund statute issued by Royal Decree No. (M/9) dated 1/2/1430 AH, and it takes effect ninety days after publication.[1]

The Fund works to support sustainable agricultural development and contribute to food security, in line with approved strategies and policies, through concessional loans and credit facilities.[1]

This support takes into account environmental preservation and the rationalization of water use in agriculture.[1]

Under its statute issued in 1445 AH, the Fund's capital was set at twenty-five billion riyals (25,000,000,000 riyals), and it may be increased by a Council of Ministers decision upon a proposal from the board of directors of the National Development Fund.[1]

Under the previous statute of 1430 AH, its capital had been set at twenty billion riyals.[2]

A board of directors manages the Fund, chaired by the Minister of Environment, Water and Agriculture.[1]

Its membership comprises the Chief Executive Officer, representatives of government entities at or above the fourteenth rank or its equivalent, and five persons with expertise and specialization in the Fund's field of work nominated by the Minister. At least three of these five must be from the private sector.[1]

Short-term loans cover seasonal expenses, and medium-term loans, in cash or in kind, carry maturities not exceeding ten years.[1]

Long-term loans carry maturities not exceeding fifteen years, and the board may extend this to twenty years in less-developed regions and in strategic projects.[1]

From the start of the Fund's activity in 1384 AH to the end of fiscal year 1431/1432 AH, total approved loans reached about 436,268, with an aggregate approved value of nearly 33,777 million riyals.[3]

In fiscal year 1441/1442 AH (2020), lending grew by 97% to 3.7 billion riyals in approved loans, while disbursed loans reached 1.6 billion riyals, an increase of 19% over the previous fiscal year.[6]

Agricultural projects financed by the Fund recorded investment costs of about 6,637 million riyals in fiscal year 1443/1444 AH (2022), against approved loans of about 5,603 million riyals and total disbursed loans of about 4,221 million riyals.[5]

Lending continued to grow in fiscal year 1446/1447 AH (2025) at a rate of 5.8% in approved loans, with 5,765 loans approved at a total value of about 6,470 million riyals.[4]

Approvals in fiscal year 1446/1447 AH (2025) included 85 loans in the poultry sector worth 1,373 million riyals, covering broilers, layers, breeders, and hatcheries.[4]

A further 16 loans were approved in the greenhouse sector, worth 422 million riyals, and 23 loans in aquaculture, worth 257 million riyals.[4]

In its first year, the Saudi Agricultural Investment Program Abroad approved loans totaling 644 million riyals for cultivating and supplying barley, wheat, corn, oilseeds, and soybeans.[7]

On 2 June 2022, the Fund signed a financing contract for an agricultural investment project with Al Rajhi International for Investment Company, worth 281 million riyals, under the Saudi Responsible Agricultural Investment Program Abroad.[8]

Q: What is the Agricultural Development Fund? A: It is a Saudi government institution with an independent legal personality and financial and administrative autonomy. It is organizationally affiliated with the National Development Fund and headquartered in Riyadh, and it works to support sustainable agricultural development and contribute to food security through concessional loans and credit facilities.[1]

Q: When was the Fund established and what is its current statute? A: Its origins go back to the Saudi Arabian Agricultural Bank, established by Royal Decree No. (58) dated 3/12/1382 AH, which began its operations in 1384 AH. It now operates under a statute issued by Royal Decree No. (M/30) dated 20 Safar 1445 AH and published on 30 Safar 1445 AH, corresponding to 15 September 2023.[2][1]

Q: What is the Fund's capital? A: Twenty-five billion riyals, and it may be increased by a Council of Ministers decision upon a proposal from the board of directors of the National Development Fund.[1]

Q: What are the loan maturities the Fund grants? A: Short-term loans cover seasonal expenses, medium-term loans carry maturities not exceeding ten years, and long-term loans do not exceed fifteen years, extendable to twenty years in less-developed regions and strategic projects.[1]

Q: What were the Fund's main approvals in fiscal year 1446/1447 AH (2025)? A: It approved 5,765 loans worth about 6,470 million riyals at a growth rate of 5.8%, including 85 loans in the poultry sector worth 1,373 million riyals, 16 loans in greenhouses worth 422 million riyals, and 23 loans in aquaculture worth 257 million riyals.[4]

The Fund's origins extend back to 1382 AH (1963), and it continues its developmental role in supporting sustainable agricultural development and contributing to food security, under an effective statute and a capital of twenty-five billion riyals.[2][1]

Related topics on the platform include Saudi Industrial Development Fund, Public Investment Fund, Financial Sector Development Program, and Saudi Vision 2030.