NADEC subsidiary secures US$293 million to boost livestock farming, meat production

SAUDI ARABIA – The Kingdom of Saudi Arabia is set to enhance its red meat production capabilities following a major financing agreement between Al-Ra’i National Livestock Company, a subsidiary of the National Agricultural Development Company (NADEC), and the Agricultural Development Fund (ADF). 

The state-owned ADF has approved a loan of US$293.2 million (1.1 billion Saudi riyals) to support an ambitious livestock farming and meat production project.

The project aims to expand the breeding and production of sheep and goats, aligning with Saudi Arabia’s ongoing efforts to boost domestic food production and reduce reliance on meat imports. 

Abdulaziz Al-Rebdi, Chairman of the National Agricultural Development Co. (NADEC), stated that the financing agreement will enable the facility to expand its operations, reaching an annual production capacity of one million head of livestock.

According to a statement submitted to the Saudi Stock Exchange (Tadawul), the financing agreement spans 15 years, including a three-year grace period.

NADEC has pledged land in Wadi Al-Dawasir as collateral and provided corporate guarantees as part of the loan terms. 

The funds will be disbursed in phases based on project milestones, ensuring structured progress in developing modern livestock farming facilities.

Vision 2030 alignment

The financing agreement was signed on March 23 under the sponsorship of Minister of Environment, Water and Agriculture Abdulrahman AlFadley. 

It forms part of Saudi Arabia’s broader Vision 2030 strategy, which emphasizes food security and sustainable agricultural development.

Saudi Arabia has been investing heavily in modernizing its livestock sector. As of 2023, the country produced over 270,000 tons of red meat, achieving a 61% self-sufficiency rate. 

The livestock industry includes approximately 20.6 million sheep, 7.4 million goats, 502,000 cows, and 2.2 million camels, all of which contribute to national food security and economic growth.

Sheep and goat meat hold significant cultural and dietary value in Saudi Arabia. Mutton (sheep meat) remains particularly popular in traditional cuisine, making the country one of the largest consumers of red meat in the Middle East. 

By enhancing domestic meat production, this initiative supports both local demand and national economic resilience.

The Saudi government continues to introduce programs to improve breeding techniques, support local farmers, and integrate modern production technologies. 

The NADEC-led project, backed by ADF funding, is expected to play a crucial role in achieving these objectives while strengthening Saudi Arabia’s livestock industry for years to come.

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