Saudi Arabia’s agricultural sector is undergoing a significant transformation, driven by the ambitious Vision 2030 and a series of multi-ministry food security programs. The kingdom is increasingly turning to high-tech agriculture to secure its food future, with large-scale indoor farming projects, including vertical farms and advanced greenhouse systems, progressing rapidly across the country.
The kingdom’s AgTech landscape has evolved considerably since 2023, with a strong focus on controlled-environment agriculture (CEA), high-tech greenhouses, and vertical farming. This shift is aimed at reducing reliance on imports and ensuring long-term sustainability, a stark contrast to the water-intensive wheat self-sufficiency push of the 1980s.
This year has seen a series of high-impact collaborations that position Saudi Arabia as a regional AgTech hub. Notably, Saudi Arabia has signed Memorandums of Understanding (MoUs) worth USD 114 million with Dutch partners such as Dutch Greenhouse Delta, Hoogendoorn, Certhon, Van der Hoeven, and Wageningen University & Research. These agreements aim to strengthen greenhouse construction, genetics R&D, and technology transfer. Additionally, Mowreq and YesHealth Group have launched a 20,000 sqm vertical farming project, a significant milestone in indoor leafy greens production.
Within the Gulf Cooperation Council (GCC), the affordability-adjusted indoor farming market is valued at USD 0.39 billion, with vertical farming representing approximately 15% of this segment. Saudi Arabia accounts for a substantial share of this value due to its scale, strong policy momentum, and investment capacity. The kingdom is prioritizing energy-water optimization, automation, and desert-adapted crop genetics—areas where technology providers see long-term opportunity.
Despite these advancements, several challenges persist. Energy pricing reforms are affecting industrial and greenhouse operations, and there is a shortage of skilled labor, particularly in hydroponics, automation, and climate control. Additionally, fragmented regulatory processes for seeds, biologicals, and fertilizers, along with consumer price sensitivity, are limiting mass-market adoption of indoor-grown produce.
As Saudi Arabia continues to consolidate its position as one of the Middle East’s most active AgTech markets, its advancements in greenhouses, vertical farming, and automation will continue to influence AgTech innovation across the broader GCC and Middle East. With strong government backing, international partnerships, and high-tech expansions underway, the country is transitioning from early pilots to scalable models that can support its long-term food security goals.