News / 24 Mar 2025"Al-Raai" Signs Major Financing Agreement with Agricultural Development Fund Worth Over 1100 Million Riyals
The agreement was signed by Engineer Badr bin Suleiman Al-Malik, Executive Director of Credit at the ADF, and Dr. Sulaiman bin Abdulaziz Al-Tuwaijri, Chairman of the Board of Managers at the company.
ADF CEO, Munir bin Fahd Al-Sahli, emphasized the Fund’s commitment to diversifying its financing programs and ensuring its coverage across all agricultural activities, including the livestock sector. This includes supporting livestock breeding projects throughout the Kingdom to enhance food security and ensure the stability and sustainability of food supply chains—particularly for agricultural products targeted in the national food security strategy, such as red meat. He confirmed that the Fund is working toward inclusive agricultural economic growth and contributing to sustainable food security by encouraging and supporting investment in key sectors and strategic food products.
He also stressed the importance of effective partnerships with the private sector to empower it in meeting demand for agricultural products—plant-based, animal-based, and fisheries. The private sector also plays a critical role in supporting local stockpiles of food commodities, stabilizing prices and markets, localizing modern agricultural technologies, improving production efficiency, and reducing the depletion of natural and energy resources. Additionally, it contributes to the development of agricultural marketing and services, enhances local content, and creates more job opportunities in the sector.
On his part, Dr. Al-Tuwaijri praised the pivotal role played by the ADF in supporting and financing agricultural and food projects within a comprehensive national ecosystem aimed at strengthening food security in the Kingdom. He confirmed that today’s financing agreement will help achieve key goals for the “Al-Raai” project in sheep breeding and fattening, and in the processing and manufacturing of red meat. The project targets investments worth more than SAR 2 billion as part of the company’s efforts to support food security and sustainability standards in the food sector, while also serving local markets by filling the supply gap—thus reducing imports and improving the trade balance.
Increasing local red meat production will also boost competitiveness, enhance quality standards, and support self-sufficiency in accordance with the highest global standards—meeting the expectations and needs of Saudi consumers.
He noted that the project will also support local content by collaborating with local companies and institutions for project components, and by establishing national partnerships that support the domestic food sector. The project will incorporate the latest global technologies in livestock fattening, red meat processing, and manufacturing through international partnerships and expertise. It will also focus on hiring and training national talent and young Saudi professionals in the food sector. In addition, research and development units will be established focusing on production, transportation, packaging, and distribution. Local farmers will be empowered through investments in products and equipment as part of the company’s policy to widen the beneficiary base of the project—especially small breeders—while also creating jobs and supporting the local economy in the region.
In the same context, Dr. Tareq Al-Jamaz, CEO of Al-Raai Company, pointed out that the project is based on implementing the principles and standards of the circular economy. It will benefit from livestock waste and all stages of production—including organic fertilizers and leather—to reduce waste and promote sustainability. The project will also use water recycling technologies during production, which will improve natural resource efficiency and enhance environmental practices across the production cycle.
He added that the agreement is significant for accelerating the development of the project and business growth, with the first phase of production expected to begin in the third quarter of 2026, ultimately delivering one million heads of livestock over the course of the project.
The project will also utilize clean and sustainable energy sources at various production stages, contributing to reduced carbon emissions and aligning with the Kingdom’s commitment to achieving the Sustainable Development Goals (SDGs). It will also reduce environmental footprint and increase production efficiency through safe and innovative practices. The project will employ advanced sustainability technologies and innovative animal nutrition systems in livestock farming and fattening, in addition to improving livestock genetics in line with the best international practices and standards in the field.
This new project is a joint venture between the National Agricultural Development Company (NADEC) and Al Muhaidib Group. It focuses on sheep rearing, fattening, cutting, and processing. Upon completion, the project is expected to handle one million heads of sheep and goats, improving the quality of meat-related food services in the Kingdom. It will also contribute to enhancing food security and increasing self-sufficiency levels—currently, local red meat self-sufficiency in the Kingdom has reached 61%.