RIYADH, 13 August — The government has approved guidelines for agricultural investments in the Kingdom’s southern region, Minister of Agriculture and Water Dr. Abdullah Ibn Moammar announced here yesterday.
The royal approval came following a major conference held early this year on how to implement ambitious agricultural projects in Jizan and Tihama regions, where cost component is likely to exceed SR7 billion in early stages. According to the approved guidelines, all licensed and economically feasible agricultural and fishery projects with possibilities of positive returns submitted by the investors for implementation in Jizan area and Tihama plains will be monitored by the Ministry of Agriculture and Water. The move is mainly intended to boost the agricultural economy of the southern regions in particular and diversify the Saudi economy in general. In fact, the plan to promote agricultural projects on the alluvial land stretching up to the borders of Yemen in Jizan and Tihama plains has been recommended by a high-level panel, chaired by Prince Naif, minister of interior.
The panel was constituted to map out future strategy as how to develop the southern areas, where a large number of people depend on farming for their livelihood. Referring to the new guidelines of investments in southern regions, Dr. Moammar said that the sites allotted for agricultural and fisheries investments will be leased at a nominal price for a period of 30 years, renewable for a further period by the consent of the Agriculture Ministry within the framework of the conditions laid out in the license-agreement given to an investor.
The site will be utilized for investment purposes for which it is licensed.
"The implementation of the agricultural and fisheries projects shall be in conformity with the time schedule shown in the economic feasibility study agreed by the ministry and the investor", explained the minister, adding that the Saudi government has also asked its various agencies including its lending institutions like the Saudi Agriculture Bank to support farmers of Jizan and Tihama regions by offering them loan facilities.
The Saudi government has already provided more than SR28 billion in interest-free loans to farmers across the Kingdom.
