World Grain - March 2024 - 14

COUNTRY FOCUS
KEY FACTS
FOCUS ON
SAUDI ARABIA
Wheat production nearly doubles as
milling privatization efforts continue
by Susan Reidy
Saudi Arabia produced nearly double the wheat expected in the 202223
marketing year and is on track for similar results in 2023-24 as
government purchase prices remain high.
Production totaled 1.18 million tonnes in 2022-23 and is estimated
at 1.2 million tonnes in 2023-24, according to a report from the Foreign
Agricultural Service (FAS) of the US Department of Agriculture
(USDA). The government offered a purchase price of $466.70 per
tonne.
Still, the nation will need to import an estimated 4.63 million tonnes
of wheat in 2022-23 and 4.8 million tonnes in 2023-24.
This February, Modern Mills Co. was the second of the nation's four
recently privatized milling companies to complete an initial public offering.
Privatization of the sector started in 2018, with the companies
being sold by the Saudi Grains Association (SAGO) to consortiums of
investors in 2020 and 2021.
Privatization is part of a larger plan to raise the contributions of the
private sector to the gross domestic product, attract local and international
investments and diversify the country's economy,
which is the largest in the Middle East and the
18th largest in the world.
Diversification includes finding non-oil
sources of income for the nation, which
relies on oil for 87% of its budget revenues.
Agriculture made its largest
contribution ever to the GDP in
2022, reaching $26.6 billion, an
increase of 38% from the previous
year.
The country has adopted multiple
strategies and programs to
promote sustainable agriculture
and improve water management
to preserve natural and environmental
resources. It faces multiple
challenges in expanding agriculture
production, including a hot and dry climate
with low precipitation, sandy soils
14
Capital: Riyadh
Population: 35,939,806 (2023 est.)
Religions: Muslim (official; citizens are
85% to 90% Sunni and 10% to 12% Shia),
other (includes Eastern Orthodox, Protestant,
Roman Catholic, Jewish, Hindu,
Buddhist, and Sikh) (2020 est.).
Location: Middle East, bordering the
Persian Gulf and the Red Sea, north of
Yemen.
Government: Absolute monarchy. Chief
of state: King Salman bin Abd al-Aziz Al
Saud (since Jan. 23, 2015); head of state
and prime minster: Crown Prince Muhammad
bin Salman bin Abd al-Aziz Al
Saud (since Sept. 27, 2022).
Economy: High-income, oil-based Middle
Eastern economy. It is the largest
economy in the Middle East and had the
fastest growing G20 economy in 2022.
The economy is undergoing a transformation
as it looks to reduce oil dependence,
diversify income sources and enhance
competitiveness. Non-oil growth
has accelerated since 2021, averaging
4.8% in 2022. Female labor force participation
has nearly doubled in the last
few years, but it is still low. Challenges
include high youth unemployment, fiscal
sustainability issues due to high spending
and fluctuating oil revenues.
GDP per capita: $44,300 (2021); inflation:
3.06% (2021 est.); unemployment:
7.36% (2021 est.).
Currency: Saudi riyal (SAR); 3.75 Saudi
riyals equal 1 US dollar (Feb. 16, 2024).
Exports: $286.502 billion (2021): crude
petroleum, refined petroleum, polymers,
industrial alcohols, natural gas (2021).
Imports: $213.016 billion (2021): cars,
refined petroleum, broadcasting equipment,
gold, packaged medicines (2021).
Agriculture: 2.3% (2022) of GDP and
2.7% of the labor force (2021).
Internet: Code: .sa ; 36 million (2021 est.)
users.
Source : CIA World Factbook/World Bank
March 2024 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - March 2024

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