This Law consisting of 16 articles taking into account preserving the environment and rationalizing the use of water in agriculture, establishes the Agricultural Development Fund aiming to support sustainable agricultural development and contribute to achieving food security, by providing soft loans, credit facilities, and other appropriate tools and methods, which include the following (i) promoting local agricultural production, sustainable rural development, livestock and poultry farming, fishing, shrimp catching, storage, and marketing; (ii) advocating for the adoption of modern technologies to optimize water usage, enhance production across various agricultural activities, and localize industry; (iii) supporting agricultural cooperative societies to foster collaboration and mutual benefit within the agricultural community; (iv) assisting small and medium enterprises offering services to the agricultural sector; (v) offering advisory services to individuals and entities within the Fund’s jurisdiction to facilitate informed decision-making; (vi) providing financial support for agricultural projects at all stages of the supply chain; (vii) funding existing agricultural investments abroad involving Saudi investors, aimed at enhancing food security in the Kingdom; (viii) facilitating financing for mergers and acquisitions involving agricultural establishments to promote consolidation and efficiency; (ix) financing the importation of essential food products vital for the Kingdom’s food security objectives.
Article 5 outlines the criteria and provisions for loans provided by the Fund to individuals, associations, companies, institutions, foreign investors licensed to operate in the Kingdom, and organizations mainly operating in the agricultural sector, ensuring compliance with state agricultural, water, and environmental policies, determining loan purposes and terms, verifying repayment ability and guarantees, and monitoring project implementation to ensure adherence to specified plans and offering advice on overcoming implementation obstacles. The Fund has a Board of Directors, headed by the Minister of Environment, Water and Agriculture, undertaking the following main functions (i) supervising the Fund and managing and administering its affairs; (ii) establishing the general policies to be followed by it; (iii) taking all necessary decisions and measures to achieve the Fund’s objectives within the limits of the provisions of the law. The Fund has a CEO responsible for managing the Fund’s affairs, and his responsibilities will be based within the limits of what the System stipulates and what the Council decides.