IoT revolutionizes Saudi agriculture toward sustainability and prosperity

IoT revolutionizes Saudi agriculture toward sustainability and prosperity
IoT-enabled farming technologies play a crucial role in improving productivity and sustainability through precision monitoring and management, resource efficiency, and remote management. (SPA)
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Updated 26 June 2024
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IoT revolutionizes Saudi agriculture toward sustainability and prosperity

IoT revolutionizes Saudi agriculture toward sustainability and prosperity
  • Transformative approach promises to revolutionize traditional agricultural practices

RIYADH: In Saudi Arabia’s vast agricultural terrain, a transformative shift is occurring, driven by the adoption of advanced technologies.

Despite challenges such as water scarcity, inefficient practices, and climatic hardships, integrating Internet of Things technologies in farming is bringing a sense of optimism.

This transformative approach promises to revolutionize traditional agricultural practices and offer a path toward a more resilient and prosperous future for Saudi farmers. 

In an interview with Arab News, economist and policy adviser Mahmoud Khairy said that improving productivity, resource efficiency, and sustainability in the farming sector are key factors driving the adoption of IoT applications in the Kingdom.

“These technologies enable farmers to monitor and manage their crops and livestock more effectively, leading to better yields and reduced costs,” he said.

Phil Webster, partner at the management consulting firm Arthur D. Little, told Arab News: “There has been significant uptake of these relatively nascent technologies compared to, say, five years ago.”

As the nation embraces IoT solutions, it embarks on a journey toward sustainable agriculture, where productivity, efficiency, and environmental stewardship converge to create a brighter future.

Transforming agricultural practices

The application of IoT in smart farming is revolutionizing traditional agricultural practices. Farmers can gather real-time data on various parameters crucial for crop growth by utilizing sensors, actuators, and connected devices. 

Soil moisture, temperature, humidity, livestock health, and crop growth data are collected and analyzed to make informed decisions. This data-driven approach enables farmers to optimize resource usage, improve crop yields, and minimize environmental impact.

Mishkat, a company specializing in sustainable and high-production farming, has highlighted its initiatives, such as vertical farming and impressive greenhouse facilities, which showcase the immense potential of IoT technologies in overcoming challenges.

The company aims to produce nutritious, authentic, and trusted food with minimal environmental impact, prioritizing sustainability, safety, and health.

“We want to be the leading experts in KSA on sustainable and high production farming techniques, delivering high- quality produce with maximum resource efficiency,” Mishkat says.

The firm’s unique fusion of vertical farming with greenhouse cultivation offers a sustainable solution to local pesticide-free and water-efficient production.

Nestled on the outskirts of Jeddah, Mishkat’s agricultural facility combines vertical farming with advanced greenhouse technology to offer a sustainable solution to local pesticide-free and water-efficient production.

This unique fusion of techniques presents a compelling vision for the future of agriculture in arid regions. Their facility includes a vertical farm where crops are grown in stacked layers.

This design, reminiscent of a multi-tiered tower, is more than just visually striking – it’s a smart solution to land scarcity. 

These technologies enable farmers to monitor and manage their crops and livestock more effectively, leading to better yields and reduced costs.

Mahmoud Khairy, economist and policy adviser

Complementing the vertical farm, Mishkat boasts two state-of-the-art greenhouses. These structures, armed with advanced climate control systems, provide an optimal environment for plant growth.

By modulating factors like temperature, humidity, and light, greenhouses ensure that the crops inside are shielded from the harsh climatic conditions typical of the Jeddah outskirts.

Mishkat’s headquarters is unique for several reasons: it is among the first commercial vertical farms in the Kingdom, offers rare greenhouse and vertical hybrid agricultural facilities, and is one of the few certified organically controlled environment farms globally.

In Riyadh, Bather Farm is also redefining urban farming with its cutting-edge vertical farming system.

By leveraging Agritecture Designer farm planning software and iFarm technology, Bather Farm optimizes crop production in an otherwise arid environment.

“At Bather Farm, we envision a greener and healthier Saudi Arabia, where agriculture gives to the people and planet more than it takes,” the firm says on its website.

This project underlines CEA’s potential to reinvent regional agriculture, paving the way toward food security and sustainability.

This melding of technology and agriculture underscores the potential for harmonizing urban living with sustainable farming practices.

E-farming boosting the economy

Economist and policy adviser Mahmoud Khairy emphasized the significance of adopting advanced agricultural solutions in Saudi Arabia.

Khairy highlighted that embracing IoT-enabled farming technologies and precision agriculture practices aligns with the nation’s broader economic and agricultural development objectives.

He added: “By embracing these technologies, the country aims to modernize its agricultural sector, create job opportunities, and reduce its dependency on food imports,” stressing that such advancements would bolster food security, diversify the economy, and minimize water usage in agriculture.

Moreover, Khairy pointed out that implementing data-driven approaches to optimize crop yields and resource efficiency could lead to several economic benefits.

By leveraging data analytics, farmers can make more informed decisions, resulting in increased productivity, higher revenues, and improved profitability. 

Partnerships and collaborations play a critical role in promoting the adoption and maintenance of digital technologies in agriculture.

Phil Webster, partner at Arthur D. Little

Khairy emphasized that compared to traditional methods, data-driven approaches offer a more precise and scientific way of managing agricultural operations. Therefore, they enhance productivity and resource efficiency while ensuring long-term economic viability and sustainability.

IoT-enabled farming technologies in Saudi Arabia’s agricultural sector play a crucial role in improving productivity and sustainability through precision monitoring and management, resource efficiency, and remote management, according to Khairy.

“These technologies, such as sensors and drones, provide real-time data on soil quality, crop health, and pest infestations, allowing farmers to make informed decisions on irrigation, fertilization, and pest control,” he explained.

Government support and collaboration

For IoT technologies to reach their full potential in Saudi agriculture, government support and collaboration are paramount.

Initiatives like the National Agricultural Development Co.’s AI solutions demonstrate the importance of leveraging technology for agricultural advancement.

By fostering collaboration among stakeholders and providing financial support, policymakers can facilitate the widespread adoption of IoT technologies.

Additionally, investment in research and development, infrastructure, and training programs is essential to equip farmers with the necessary skills and knowledge to embrace IoT solutions effectively.

Moreover, partnerships between government agencies, agricultural extension services, technology providers, and academic institutions can promote knowledge-sharing and innovation in the agricultural sector.

“Partnerships and collaborations play a critical role in promoting the adoption and maintenance of digital technologies in agriculture,” Arthur D. Little’s Webster emphasized.

He added: “The most important role of such collaborations is to ensure that there is good governance over the data that is collected at all parts of the food chain from farm to fork.” 

Webster explained that data governance is “clarity over how data – and any associated meta-data – is collected, in what form, and for use by whom (e.g., different parts of the agri-food supply chain, regulators, Government) and under what circumstances.”

He stressed the cruciality of such aspects in ensuring that business models involving the use and monetization of data work effectively.

Webster also called on farmers to take advantage of the Saudi government’s wide range of initiatives and programs to integrate digital technologies.

The General Authority for Statistics has recently launched the inventory survey of agricultural holdings in the Kingdom in order to provide essential data on plant and animal production, including cultivated areas and production quantities, as well as sales volumes, crop values, and livestock numbers at the regional level.

Commenting on the survey, Khairy said: “With this data, policymakers, researchers, and agricultural stakeholders can identify areas for improvement, pinpoint specific challenges faced by farmers, and tailor agriculture solutions to address the unique needs of different regions.”

As Saudi Arabia faces the challenges of water scarcity, climate change, and food security, embracing IoT technologies becomes imperative.

The integration of IoT in agriculture offers a pathway to overcome these challenges, enhance productivity, and promote sustainable farming practices.

Through collaboration, innovation, and government support, Saudi farmers can embark on a journey toward a more resilient and prosperous agricultural future.

“Owing to both demand and investment – as well as the increasing availability of IoT-enabled farming technologies – this future trajectory will no doubt continue,” Webster said.

He suggested that the nation could soon achieve self-sufficiency or become a net exporter, particularly in products like eggs.

Webster envisioned a revolution in agricultural supply chains, emphasizing a transition to alternative proteins with great potential in semi or fully-automated indoor farming, which promises heightened productivity and reduced production costs.

Khairy said that Saudi Arabia’s adoption of advanced farming technologies is “poised to make significant contributions to global food security and environmental conservation efforts.”

He added that through the incorporation of sustainable agricultural practices, farmers in the Kingdom can increase productivity while minimizing environmental impact.

“This not only ensures food security domestically but also allows Saudi Arabia to potentially become a key player in international food supply chains,” Khairy explained.


Saudi Arabia’s participation at WEF strengthens global push for innovation, AI

Saudi Arabia’s participation at WEF strengthens global push for innovation, AI
Updated 11 sec ago
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Saudi Arabia’s participation at WEF strengthens global push for innovation, AI

Saudi Arabia’s participation at WEF strengthens global push for innovation, AI

RIYADH: Saudi Arabia’s active participation in the World Economic Forum underscores its commitment to advancing global initiatives aimed at enhancing the digital economy, fostering innovation, and leveraging artificial intelligence, a senior official has stated. 

Minister of Communications and Information Technology Abdullah Al-Swaha emphasized that the Kingdom’s presence at the annual Davos meeting, held from Jan. 20 to 24, comes at a pivotal moment as the world transitions from the digital age to the era of artificial intelligence. 

Saudi Arabia’s participation aligns with its National Strategy for Data and AI, which seeks to position the country among the top 10 nations on the Open Data Index and the top 20 in peer-reviewed data and AI publications by 2030.  

The strategy also aims to attract SR30 billion ($7.9 billion) in cumulative foreign direct investment and SR45 billion in local investment in data and AI by the same year. 

In a statement to the Saudi Press Agency, Al-Swaha noted that the forum offers a global stage to showcase the Kingdom’s developmental, economic, and technological progress under the framework of Vision 2030. 

He highlighted Saudi Arabia’s collaboration with the international community to harness AI as a vital tool for propelling sustainable development and achieving shared global objectives.  

He underlined that these endeavors aim to enhance quality of life, bolster the digital economy, and generate fresh employment opportunities across diverse sectors, all contributing to a sustainable and prosperous future for everyone. 

Earlier this month, the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology and consultancy firm Hello Tomorrow, released a report highlighting Saudi Arabia’s advancements in deep technology. 

The report revealed that up to 50 percent of the Kingdom’s deep tech startups are focused on developing artificial intelligence and the Internet of Things. It also noted that more than 43 high-growth startups in Saudi Arabia collectively secured over $987 million in funding by 2022. 

The funding surge was attributed to a rapidly expanding investment ecosystem, which ranked among the top three in the Middle East and North Africa for funding volume and deals. 

In September 2024, an analysis by global consulting firm Strategy& Middle East projected that Saudi Arabia’s technology sector could achieve an SR15 billion increase in operating profit by 2028 through the adoption of generative AI. 

The study suggested that a 15-percentage-point margin growth is attainable if technology companies capitalize on the demand for advanced hardware and infrastructure while developing and commercializing new generative AI use cases. 


Saudi Arabia’s holdings in US treasuries at $135.6bn in November

Saudi Arabia’s holdings in US treasuries at $135.6bn in November
Updated 34 min 37 sec ago
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Saudi Arabia’s holdings in US treasuries at $135.6bn in November

Saudi Arabia’s holdings in US treasuries at $135.6bn in November
  • Kingdom’s holdings in US treasuries increased by 5.85 percent in November compared to the same month in 2023
  • Saudi Arabia is only GCC country to secure a place among the top 20 holders of US Treasury securities

RIYADH: Saudi Arabia’s holdings in US treasuries reached $135.6 billion by the end of November, representing a marginal decline of 2.58 percent compared to October, official data showed. 

The Kingdom’s holdings in US treasuries stood at $139.2 billion in October, while it was $143.9 billion and $142.8 billion in September and August, respectively. 

Data released by the US Treasury Department revealed that Saudi Arabia maintained its 17th place among the largest holders of such financial instruments in November. 

The Kingdom and other nations are investing in these bonds for their safety, diversification benefits, and alignment with their economic relationships with the US.

The latest data also said that Saudi Arabia is the only country in the Gulf Cooperation Council region to secure a place among the top 20 holders of US Treasury securities. 

The Kingdom’s holdings in US treasuries increased by 5.85 percent in November compared to the same month in 2023, according to the report.

Saudi Arabia’s holdings of US Treasuries were distributed among long-term bonds worth $112.3 billion, representing 83 percent of the total.

Short-term bonds amounted to $23.2 billion, accounting for 17 percent. 

The report said Japan was the largest investor in US treasury bonds in November, with holdings totaling $1.09 trillion, representing a decline of 0.91 percent compared to October. 

Japan was followed by China and the UK, with portfolios valued at $768.6 billion and $765.6 billion, respectively. Luxembourg and the Cayman Islands were ranked fourth and fifth on the list, with treasury holdings amounting to $424.5 billion and $397 billion. 

Canada secured the sixth spot with holdings worth $374.4 billion, closely followed by Belgium with portfolios of $361.3 billion. 

Ireland came in eighth with treasury reserves worth $338.1 billion, followed by France and Switzerland, with assets amounting to $332.5 billion and $300.6 billion, respectively.

Taiwan was ranked 11th on the list, with treasury holdings worth $286.9 billion. 

Singapore came in the 12th spot with assets amounting to $257.7 billion, followed by Hong Kong and India, with holdings worth $255.7 billion and $234 billion. 

The UAE held US treasury holdings worth $73.13 billion by the end of November. Kuwait also maintained a steady presence in the US Treasury market, with its holdings standing at $51.2 billion.


Kuwait’s non-oil exports hit $75m in December 2024

Kuwait’s non-oil exports hit $75m in December 2024
Updated 19 January 2025
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Kuwait’s non-oil exports hit $75m in December 2024

Kuwait’s non-oil exports hit $75m in December 2024

JEDDAH: Kuwait’s non-oil exports rose to 23.2 million dinars ($74.9 million) in December 2024, a 12.08 percent increase from November, according to data from the Ministry of Commerce and Industry. 

The ministry’s Department of International Organizations and Foreign Trade Affairs reported that 1,766 certificates of origin were issued for Kuwaiti exports to Gulf Cooperation Council countries in December, with a total value of around 16 million dinars.  

This marked a slight decline in volume compared to November 2024, which saw 1,785 certificates valued at approximately 11.4 million dinars. 

The rise in December exports comes despite broader economic challenges. A recent report from the International Monetary Fund highlighted Kuwait’s ongoing recovery in its non-oil sector amid easing inflation.  

However, the IMF noted that the country’s real gross domestic product contracted by 1.5 percent year on year in the second quarter of 2024, driven by a 6.8 percent decline in the oil sector, offset by a 4.2 percent expansion in non-oil activities. 

Exports to Arab countries included 336 certificates covering 11 nations, totaling 7 million dinars in December, down from 8.9 million dinars across 10 countries in November. 

European exports saw modest growth, with five certificates issued to four countries, valued at 179,413 dinars in December, compared to three certificates worth 47,811 dinars issued to three countries in the prior month. 

Kuwaiti exports to African markets showed an uptick, with three certificates issued for three countries in December, valued at 26,027 dinars, up from one certificate worth 16,071 dinars issued in November. 

In the Americas, five certificates were issued for one country in December, valued at 150,060 dinars, marking a decline from November’s 10 certificates worth 223,296 dinars, which covered three countries. 

Asian and Australian markets saw six certificates issued for four countries, valued at 39,544 dinars in December, compared to five certificates worth 51,662 dinars issued to three countries in November. 

The ministry clarified that certain Kuwaiti exports do not require certificates of origin, meaning the figures reflect only shipments processed through the ministry. This underscores the evolving nature of global trade dynamics, where some importers bypass formal documentation for specific products. 

Kuwait’s exports continue to gain traction in global markets, spanning GCC nations, Arab countries, Europe, Africa, Asia, Australia, and the Americas. Key export products include liquid gases, foodstuffs, and polyethylene, as well as organic solvents, and packaging materials like empty cartons. 

Additionally, refined oils, mineral oils, medical oxygen, dairy products, empty glass bottles, and copper rods remain significant contributors to Kuwait’s export portfolio, according to KUNA. 


GCC ports rank among world’s top 70 for efficiency in 2024

GCC ports rank among world’s top 70 for efficiency in 2024
Updated 19 January 2025
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GCC ports rank among world’s top 70 for efficiency in 2024

GCC ports rank among world’s top 70 for efficiency in 2024

RIYADH: Ports in the Gulf Cooperation Council have earned global recognition, with 10 container terminals ranking among the 70 most efficient worldwide in 2024, according to newly released data.

The rankings highlight the growing importance of the Gulf region in international shipping and logistics.

The ports were selected from a pool of 405 terminals globally, underscoring the region’s increasing role in global trade, the Emirates News Agency reported, citing data from the GCC Statistics Center.

In addition to port efficiency, countries in the region—Saudi Arabia, the UAE, Oman, and Qatar—have been ranked among the top 35 nations for the size of their maritime fleets by tonnage and capacity, according to the UN Conference on Trade and Development’s 2024 report.

The GCC Statistics Center noted that the Gulf’s commercial fleets now account for 54.2 percent of the total Arab shipping fleet, reinforcing the region’s status as a major player in global maritime trade. With more than 25 major seaports across its member states, the GCC’s maritime infrastructure is positioned for further growth.

On container productivity, two Gulf ports have secured rankings among the world’s top performers, handling more than 4 million containers annually. Another eight ports were classified as medium performers, with annual container throughput ranging between 500,000 and 4 million. These results reflect the region’s substantial investments in port infrastructure and logistics capabilities.

The GCC countries—Saudi Arabia, Oman, the UAE, and Qatar—are continuing to enhance port efficiency and productivity through strategic investments aimed at establishing the region as a critical global trade hub. These efforts include significant infrastructure upgrades, operational improvements, and policy initiatives designed to strengthen the competitiveness of the Gulf's maritime sectors.

In Saudi Arabia, the government’s Vision 2030 framework, under the National Industrial Development and Logistics Program, seeks to position the Kingdom as a global logistics hub. Key projects led by the Saudi Ports Authority include a SR640 million ($170.5 million) expansion of Jeddah Islamic Port’s berths to accommodate mega container ships with capacities of up to 24,000 twenty-foot equivalent units. Additionally, the government has allocated over SR7 billion to upgrade container terminals at King Abdulaziz Port in Dammam, enhancing both infrastructure and operational capacity to boost trade competitiveness.

Oman is capitalizing on its strategic location to strengthen its role in global maritime trade. The country is making substantial investments in port infrastructure, integrating advanced technologies to improve operational efficiency and streamline logistics operations.

The UAE continues to lead the maritime sector, with Dubai’s Jebel Ali Port ranked as the world’s ninth-largest container port. The UAE is home to DP World, one of the largest port operators globally, managing 181 terminals across 64 countries.

In Qatar, port infrastructure development is central to the country’s broader economic diversification strategy. The Ministry of Commerce and Industry has introduced incentives, including reduced service fees, to attract foreign investment and enhance the business environment, with the goal of integrating Qatari ports more fully into global trade networks.

GCC-Stat emphasized the region’s commitment to sustainable port development, noting that the focus on sustainability has positioned Gulf ports as key players in global supply chains. The organization also highlighted the strategic importance of Gulf maritime operations in maintaining regional security and stability.

The GCC’s ongoing investments in port infrastructure and sustainable practices are expected to further solidify the region’s role as a critical node in global trade.


IMF projects Saudi economy to grow 3.3% in 2025, 4.1% in 2026 amid global shifts

IMF projects Saudi economy to grow 3.3% in 2025, 4.1% in 2026 amid global shifts
Updated 19 January 2025
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IMF projects Saudi economy to grow 3.3% in 2025, 4.1% in 2026 amid global shifts

IMF projects Saudi economy to grow 3.3% in 2025, 4.1% in 2026 amid global shifts

RIYADH: Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026, according to the latest forecasts from the International Monetary Fund.

These projections reflect significant shifts in the global economic landscape, with the ongoing OPEC+ agreement on oil production cuts playing a key role in tempering growth expectations for the Kingdom in the near term.

In its January 2025 World Economic Outlook Update, the IMF outlined the broader economic outlook for the Middle East and Central Asia, where growth is anticipated to rise by 3.6 percent in 2025, followed by a slightly stronger 3.9 percent in 2026.

These figures are notably lower than previous estimates, primarily due to downward revisions in Saudi Arabia’s growth forecast, which had initially projected a 4.6 percent expansion for 2025. As the region's largest economy, Saudi Arabia's performance significantly impacts the overall regional outlook.

In addition to the impact of oil production cuts, the IMF highlighted other challenges influencing the region's economic prospects, including inflationary pressures and ongoing global uncertainties. Despite these challenges, Saudi Arabia’s ambitious diversification initiatives under Vision 2030—which aim to expand non-oil sectors such as tourism, technology, and renewable energy—are expected to support long-term growth.

Global economic outlook

Globally, the IMF projects economic growth to stabilize at 3.3 percent in both 2025 and 2026, signaling a slowdown compared to previous years. Advanced economies are forecast to grow by 1.9 percent in 2025 and 1.8 percent in 2026, facing persistent challenges such as inflation, tightening monetary policies, and geopolitical tensions.

Among these advanced economies, the US is expected to lead with a growth rate of 2.7 percent in 2025, followed by a modest deceleration to 2.1 percent in 2026.

In contrast, emerging markets and developing economies are expected to grow at 4.2 percent in 2025 and 4.3 percent in 2026, buoyed by the strong performances of countries like India and China. India’s growth is forecast to remain robust at 6.5 percent, while China is projected to experience growth of 4.6 percent in 2025 and 4.5 percent in 2026.

Saudi Arabia’s short-term outlook

The reduction in Saudi Arabia’s 2025 growth forecast is largely attributable to the extended OPEC+ agreement, which continues to limit oil production in an effort to stabilize global oil prices. While these production cuts support oil price levels, they simultaneously constrain the Kingdom's oil revenues, a crucial element of its gross domestic product.

Despite the impact on short-term growth, Saudi Arabia is actively pursuing comprehensive economic reforms to reduce its dependency on oil. Initiatives such as the development of megaprojects like NEOM, as well as strategic investments in green energy and infrastructure, are designed to drive diversification and open new avenues for sustainable growth.

Sectoral diversification and Vision 2030

Saudi Arabia’s Vision 2030 initiatives are already showing promising results in diversifying the economy. Non-oil sectors, particularly tourism, have seen notable advancements. Efforts to position Saudi Arabia as a global destination have led to a surge in international visitors, contributing significantly to the Kingdom’s economic development.

Additionally, the financial sector and emerging industries such as technology and renewable energy are increasingly playing a pivotal role in boosting GDP growth. As the largest economy in the Middle East, Saudi Arabia remains a key driver of regional economic stability.

The IMF’s projections for the Middle East and Central Asia highlight that the region’s overall growth is heavily influenced by developments in Saudi Arabia. While other economies, including Egypt and Gulf states, are also undertaking significant reforms, Saudi Arabia continues to serve as the linchpin for regional economic performance.