The launch of Madinah Central Dates Market, a new hub within the holy city’s one-million-square-metre (sqm) Food City project, bolsters the production of the kingdom’s most famous food item. But it also showcases the country’s ambition to build up its food sector. 

Opened in September, the market’s first phase spans over 37,000 sqm and is designed to consolidate date trading and processing, strengthen marketing channels for farmers, and improve quality and logistics standards. 

The palm and date sector is a strategic pillar of the national economy, supported by consistent government investment and modernisation initiatives. Madinah’s comparative advantage – with its diverse, high-quality date varieties and long-established farming base – secures its strong position both domestically and internationally. 

The new Central Dates Market marks a step forward in organising and scaling the industry in line with Saudi Vision 2030, which aims to diversify economic activity and expand non-oil exports. It also forms part of awider food ecosystem incorporating fruit, vegetable, meat, and poultry markets supported by an integrated logistics network.

During the hub opening, which coincided with That Nakhal Forum for Premium Dates, producers, researchers, and agritech developers assembled to exchange knowledge and showcase new technologies in cultivation, packaging, and processing. 

Project developer Al Madinah Logistics Services Company also announced a second-phase expansion to enhance facilities and operational efficiency, along with plans for a central fruit and vegetable Market to serve regional producers. Agreements were also signed to improve digital systems and management services, and to begin work on the next stage of the Food City development.

SELF-SUFFICIENCY GOALS

The kingdom is focused on enhancing its food security and increasing self-sufficiency. In 2024,the sector's contribution to the GDP reached a  record SAR 114 billion, underscoring its growing economic significance. Notably, the kingdom achieved self-sufficiency in dairy and eggs, with  production exceeding domestic demand by 9% and 16%, respectively. Poultry self-sufficiency also improved, rising from 40% in 2016 to 60% in 2024.

A key initiative under Vision 2030 is the "Reef Saudi" programme, which focuses on sustainable rural development and enhancing agricultural productivity. This programme provides financial and technical support to farmers, promoting practices that increase efficiency and environmental sustainability. 

Additionally, the kingdom is investing in advanced agricultural technologies, such as hydroponics, vertical farming, and precision agriculture, to optimise resource use and boost productivity. These innovations are crucial in addressing challenges posed by the kingdom's arid climate and limited arable land.

INTERNATIONAL PARTNERSHIPS

Saudi Arabia’s food industry is also becoming a focal point of international co-operation. At the Saudi-Chinese Business Forum held in Beijing earlier this year, the two nations signed 57 agreements and memoranda of understanding (Mou) valued at more than SAR 14 billion across the environment, agriculture, fisheries, livestock, and industrial food sectors. The agreements reflect effoets to deeoen collabration on food security and sustainable production, including initiatives on water recycling, biofertilisers, and seaweed cultivation. 

Among the most ambitious plans is the proposed smart city for food security, envisioned as an integrated complex featuring factories, laboratories, and logistics centres to strengthen supply chains. Another project involves developing a comprehensive industrial city in Jazan Region, designed to host primary and downstream agricultural industries, and attract investment into processing and export-oriented production. 

The govemment's push for self-sufficiency extends beyond traditional  crops. Earlier this year, Al-Jouf Agricultural Development Company and South Korea’s Global Grain (EGG) signed a deal to localise potato seed production. The project aims to reduce Saudi Arabia’s dependence on imported seed potatoes – which currently cost around SAR 200 million annually – by establishing a domestic supply chain based on advanced research and biotechnology.

Under the agreement, a state-of-the-art laboratory will be built at developing and producing high-yield, water-efficient potato seed Al-Jouf’s headquarters in Al-Basita, serving as a regional hub for varieties. Production is scheduled to begin in 2026, with cumulative agricultural output projected to reach SAR 500 million by 2034. The deal also includes a SAR 15 million investment in Global Grain through convertible bonds, underlining the private sector’s growing role in agricultural innovation.

GROWING CLUSTER

The expansion of the broader food manufacturing base is being reinforced by regulatory modernisation. The Saudi Food and Drug Authority (SFDA) reported a record 82% increase in the number of licensed factories and warehouses in 2024 compared with 2023. The rise reflects both investor confidence and a streamlined licensing framework developed in coordination with other government entities.

In the food sector alone, licenses were issued for 693 factories and 3,857 warehouses, while related industries also saw growth: eight pharmaceutical factories, 42 cosmetics factories, 24 medical device factories, and 29 feed factories received approvals. The SFDA said its ongoing initiatives – including re-engineering of licensing procedures and the introduction of digital systems – are designed to localise production and support industrial resilience. 

SFDA's focus on efficiency and safety complements wider economic  reforms aimed at reducing import dependence and increasing domestic value-added (DVA) in food and beverage production. The growth in licensed facilities indicates that more private firms are entering processing and packaging. Both sectors are expected to play a larger role in domestic consumption and export diversification.