RIYADH: The inclusion of a date palm edged by crossed swords in the Saudi emblem reflects the deep-rooted cultural and economic value attached to the fruit in the Kingdom.

Symbolizing the essence of Arabian hospitality and holding a fundamental role in the daily life of people in the Kingdom, it is little surprise that over the past few years Saudi Arabia has worked on international and local initiatives that have contributed to raising the market value of dates.

This has led to the establishment of the National Center for Palms and Dates and the International Dates Council, with the membership consisting of 11 producing countries.

There are more than 33 million palm trees in Saudi Arabia — representing 27 percent of the total number in the world — while the number of palm agricultural holdings in the Kingdom has reached 123,000.

According to Market Research Future, the date market is projected to grow from $120 million in 2023 to $220 million by 2032, reflecting a compound annual growth rate of 5.22 percent.

Global and local initiatives’ contribution to elevating the dates market value

Saudi Arabia is actively promoting its dates as a top-tier product in global markets through various channels.

Engagements in worldwide food expos like Gulfood and SIAL, alongside targeted campaigns, have boosted recognition and interest in the fruit.

By emphasizing the country’s rich cultural and historical ties to dates, these branding initiatives are amplifying the attractiveness of Saudi dates to a broader audience.

According to Ibrahim El-Basyoni, a plant breeding and genetics research scientist at King Abdullah University of Science and Technology, the Kingdom is bringing together date-producing and consuming nations to promote the global industry.

“It has facilitated knowledge exchange, trade partnerships, and coordinated efforts to position dates as a staple food worldwide,” El-Basyoni told Arab News.

“It also advocates for increased global consumption of dates by highlighting their nutritional benefits,” he added.

Saudi Arabia is also advancing date cultivation through research, development, and farmer training programs.

El-Basyoni shed light on how the country advocates the adoption of modern agricultural techniques and sustainable practices to significantly enhance the production and quality of dates.

“Through collaborations with Saudi entities, KAUST is working to preserve Saudi Arabia’s historic date palm cultivars by creating an electronic date palm atlas. Additionally, the collaboration aims to boost production by introducing improved cultivars and implementing advanced agricultural practices and technologies, such as regenerative and smart agriculture,” he said.

Zooming into specific regions in the Kingdom, dates are the strongest agricultural asset in AlUla due to their economic value and dominance.

In fact, the Royal Commission for AlUla’s strategy includes a dedicated pillar for dates, with a vision to elevate the international profile of dates from the region, particularly the AlUla Barni variety.

Abdullah Al-Hameid, director of the agriculture center at RCU, explained that this is primarily supported by enabling initiatives focused on adopting efficient and resource-sustainable production practices.

There is also a drive to achieve research and innovation excellence in Barni production, establish AlUla dates as a benchmark of quality internationally, and expand date processing capabilities and diversify value-added product portfolios.

“These align with Saudi Arabia’s vision to sustainably develop agriculture. The RCU Agriculture Strategy is fully synchronized with the national agenda and sectoral strategies, ensuring RCU contributes to these goals,” Al-Hameid said.

“RCU has established a partnership with the National Center for Palms and Dates, which has proven successful over the past five years. This includes NCPD’s involvement in organizing the AlUla Dates Festival and the development of export guidelines for AlUla Mabroom dates,” he added.

The dates auction in AlUla marked the initial stage of NCPD’s Seasonal Dates Market, designed to lay the foundation for trading in Saudi Arabia, positioning AlUla as a benchmark for other regions in the country.

Enhanced marketing strategies, both domestically and globally, have elevated the worth of AlUla dates.

“Marketing improvements, locally and internationally, have boosted the value of AlUla dates. The 2024 Dates Auction demonstrated remarkable progress, with over 800 participants — a 45 percent increase in farmer participation,” Al-Hameid said.

The scientist added: “The auction recorded sales of 1.7 million kilograms of dates, generating SR8.8 million ($2.34 million). Additionally, 2.3 million kilograms were sold outside auction, adding SR12 million.”

He went on to explain how over the years, the average price per kilogram rose from SR6.7 in the first 2021 auction to SR10.3 in 2023, with Mabroom dates fetching SR 50 per kilogram.

“To celebrate the diversity of AlUla’s agriculture, the Dates Festival has been integrated into AlUla’s Fresh Produce Season. This includes the Summer Fruits Season, Dates Season, Peregrina Season, and Citrus Season,” Al-Hameid said.

“AlUla Fresh Produce Season showcases AlUla’s agricultural products and raises global awareness of an internationally recognized brand for AlUla products, enhancing their appeal and entry into new markets,” he added.

Al-Hameid cited RCU’s recent sponsoring of a pioneering export trial to facilitate the entry of AlUla Mabroom dates into Germany as an example of trying to expand sales across Europe.

How Saudi Arabia is leveraging the country’s global palm tree population to lead industry

Saudi Arabia’s role as home to a significant portion of the global palm tree population offers a strong foundation for the Kingdom to lead the industry.

With this comes a responsibility to pioneer environmentally friendly date farming practices, meaning the Kingdom is prioritizing enhancing resource efficiency — particularly in water usage — and implementing advanced agricultural practices to maximize production and ensure sustainability.

From KAUST’s point of view, a key initiative is the introduction of the Saudi Dates Mark, a quality certification that guarantees compliance with international food safety and quality standards.

“This certification will enhance the global reputation of Saudi dates as a premium product. Additionally, efforts to promote iconic varieties such as Ajwa, Majdool, Sukkary, and Khalas have further boosted their appeal in competitive international markets,” El-Basyoni said on KAUST’s behalf.

Saudi Arabia’s export strategy emphasizes meeting global market preferences by offering organic and value-added date products, including date syrup, date paste, and date-based snacks.

“Collaborative efforts with KAUST are driving innovation in the industry by improving productivity, combating pests, and ensuring the long-term sustainability of palm cultivation,” El-Basyoni said.

The Kingdom also actively participates in international forums and exhibitions to position Saudi dates as a key player in the global food market.

Beyond traditional offerings, Saudi Arabia is expanding into value-added products, such as energy bars, health supplements, and premium gift packaging.

“These innovations cater to a diverse range of consumers, including health-conscious individuals and luxury markets. Advanced packaging and processing technologies have further extended the shelf life of dates and improved convenience, aligning with the evolving demands of international consumers,” the KAUST representative highlighted.

Potential growth opportunities that Saudi Arabia envisions for its date industry

Saudi Arabia envisions substantial growth opportunities for its date industry, both domestically and internationally, as it seeks to position itself as a global leader in production and trade of the fruit.

These initiatives and research goals are strongly aligned with Saudi Vision 2030, which focuses on economic diversification and increasing non-oil exports.

From KAUST’s point of view, by prioritizing the date industry, these efforts leverage Saudi Arabia’s natural resources and cultural heritage to support the vision’s objectives.

“The growth prospects for the date industry, spanning value-added product innovations, international market expansion, sustainability, and cultural preservation will underscore its vital role in the Kingdom’s economic transformation,” El-Basyoni said.

Meanwhile, RCU is committed to enhancing recognition of AlUla dates through best-in-class practices, leveraging research and development, improving market access, and building superior processing capabilities.

According to Al-Hameid, when it comes to adopting efficient and resource-sustainable production practices, RCU is spearheading the AlUla Irrigation Transformation Project to introduce advanced water-saving techniques, phasing out flood and surface irrigation.

The entity is also developing Good Agricultural Practices and organic production standards, he said, adding: “In 2024, the RCU Agriculture Center held over 95 training sessions for more than 1,500 date farmers in 18 villages on best agriculture practices.”

The director explained that this contributed to achieving an extra 250 Saudi Date Mark, ensuring compliance with the NCPD standards.

“We aim for 70 percent of AlUla dates to be accredited and certified by 2035,” Al-Hameid said.

“The Integrated Pest Management program ensures the health and economic viability of date farms. In 2024, approximately 2 million date palm trees have been surveyed and managed as per international pest control standards to ensure compliance with demand for high-quality dates that match food safety requirements,” he added.

Another key area is achieving research and innovation excellence in Barni production, while expanding processing capabilities and diversifying product portfolio are also in focus.

“RCU is developing two advanced processing facilities (Farmers Hubs) for AlUla dates, focusing on enhancing the value of by-products and creating new value-added products for lower-quality dates to maximize value,” he concluded.

RIYADH: Saudi Arabia has emerged as a transformative force in the private equity landscape within the Gulf Cooperation Council, driven by strategic initiatives, regulatory reforms and the nation’s commitment to Vision 2030.

The Kingdom’s ambitious plans are reshaping the region’s investment ecosystem, setting new benchmarks for growth, diversification and global engagement.

A surge in private equity activity

Private equity investments in Saudi Arabia have witnessed unprecedented growth over the past five years.

The total value of PE transactions surged from $523 million in 2019 to an all-time high of $4 billion in 2023 — seeing a compound annual growth rate of 66 percent during this period, according to a report by MAGNiTT and Saudi Venture Capital Co.

This surge highlighted the Kingdom’s success in creating a favorable environment for local and international investors.

Speaking to Arab News, Arjun Singh, partner and global head of fintech at Arthur D. Little, emphasized Saudi Arabia’s economic resilience amid global challenges: “While the world has grappled with rising prices due to inflation, Saudi Arabia has been able to maintain a relatively low inflation rate — 2.1 percent in 2024 and projected 2.3 percent in 2025 — which makes for a stable investment environment.” 

Head of Janus Henderson Investors for Middle East, Africa and Central Asia, Meshal Al-Faras, expanded on this resilience, attributing it to strong domestic liquidity anchored by the Public Investment Fund and family offices, as well as a low debt-to-GDP ratio that ensures continued counter-cyclical investment even during global economic downturns.

He also highlighted Vision 2030’s success in “reducing dependence on oil and fostering resilience to inflationary pressures.”

Key to this growth is the increasing dominance of buyout transactions, which have consistently accounted for about 80 percent of the total PE capital deployed in Saudi Arabia. 

Growth equity investments have also gained traction, reflecting the Kingdom’s strategy to support mid-sized companies poised for expansion.

Sectoral highlights

The manufacturing sector led the charge in PE investments, capturing 46 percent of the total value between 2019 and 2023. Other prominent sectors included financial services, telecommunications and health care.

Vision 2030 initiatives have encouraged diversification into non-oil sectors, with Singh identifying several opportunities: “While manufacturing and financial services dominate, greater activity is anticipated in food and beverage, tourism, entertainment, health care, technology, renewable energy and real estate.”

Leader of FTI Consulting Middle East and Africa, Vikas Papriwal, noted the opportunities emerging in health care and technology. “The Kingdom is fast becoming a regional tech hub. Advancements in fintech, cybersecurity and in particular AI (artificial intelligence) are supported by key government initiatives,” he said.

Papriwal said that partnerships with leading centers of excellence are positioning Saudi Arabia as a leader in cutting-edge health care and medical research.

Al-Faras echoed these observations, pointing to technology as a key area: “Government initiatives like SDAIA (Saudi Authority for Data and Artificial Intelligence) and fintech success stories such as STC Pay highlight opportunities in AI, fintech and cloud computing.” 

He also emphasized the Kingdom’s ambitions in tourism and entertainment: “Giga-projects like NEOM and the Red Sea Development aim to attract 100 million annual visitors by 2030, driving investments in hospitality and eco-tourism.” 

Additionally, he highlighted logistics and supply chain opportunities due to Saudi Arabia’s strategic location as a global trade hub.

The top five PE transactions accounted for 76 percent of the total investment during the period between 2019 and 2023, underscoring the concentration of capital in high-value deals.

Driving forces behind the transformation

Saudi Arabia’s transformation into a PE powerhouse is deeply rooted in its economic and regulatory reforms. Vision 2030 has been instrumental in fostering a robust investment ecosystem.

Papriwal highlighted the impact of regulatory enhancements: “The recent updates to Companies Law have made conducting business in Saudi Arabia significantly easier for investors as it improves legal certainty and transparency.”

Al-Faras elaborated on this: “The introduction of new laws such as the New Companies Law, effective January 2023, have transformed Saudi Arabia’s business landscape.”

He added: “They have streamlined corporate structures, for example, the introduction of the Simplified Joint Stock Co. allows flexibility and ease for startups and investors, requiring no minimum capital. They have also improved governance, with enhanced minority shareholder protections and formal recognition of shareholder agreements boosting investor trust.”

The top official explained that the regulations enable full foreign ownership, which enables access to previously restricted sectors such as retail and manufacturing, and encourages international investment. 

“Moreover, they provide support for SMEs and Innovation in that provisions like audit exemptions and employee share schemes reduce costs and foster entrepreneurship,” he added.

Additionally, Singh pointed to Saudi Arabia’s improving global rankings: “KSA has steadily been rising in the ‘Ease of doing business’ ranking … and has also gone up the ranks in the Global Innovation Index ranking from 66th in 2020 to 48th in 2023; the GII ranks the world economies according to their innovation capabilities.”

The role of the Public Investment Fund

PIF has played a central role in driving private equity growth. Papriwal described it as a catalyst for fulfilling Vision 2030 objectives: “It is at the fulcrum of many government initiatives driving public and private sector growth and employment.”

He added: “PIF has successfully created a number of significant industry platforms allowing cutting-edge technologies to be embedded into these key growth engines.” 

Al-Faras highlighted the wealth fund’s pivotal role in de-risking investments: “By acting as an anchor investor, the PIF reduces risks for private and institutional investors. Its investments in technology, renewable energy and tourism projects like NEOM have positioned Saudi Arabia as a hub for innovation.” 

He added that PIF’s strategic approach balances domestic development with global diversification, demonstrating how sovereign wealth funds can align investments with national priorities to drive long-term growth.

Comparative advantage in the GCC

While global PE markets grapple with high interest rates and inflation, the GCC region, led by Saudi Arabia, remains resilient.

Saudi Arabia’s PE ecosystem benefits from its particular investor composition, where family offices and sovereign wealth funds dominate compared to institutional investors in Western markets.

Papriwal said: “Saudi private equity investors are also less dependent on global capital markets compared to their counterparts in other regions, which allows for a degree of insulation from international interest rate fluctuations.”

Al-Faras added: “Expanding IPO activity, and the privatization of state-owned assets create liquidity and exit opportunities.”

To attract more international general partners, Singh suggested building trust through greater transparency and aligning regulatory frameworks with global standards. 

Local players must focus on protecting intellectual property rights, streamlining dispute resolution and improving ease of doing business through financial incentives, he advised.

Al-Faras concurred, stating: “Another recommendation is to simplify market access: Expand 100 percent foreign ownership to additional industries and digitize business processes.”

Venture capital synergy

Complementing the PE landscape is Saudi Arabia’s thriving venture capital ecosystem. 

Venture funding in the Kingdom grew nearly 15-fold between 2018 and 2023, reaching $6.1 billion.

Programs such as the Neom Investment Fund and Aramco Ventures are catalyzing innovation, particularly in technology-driven sectors.

Papriwal said that encouraging partnerships between local firms and international general partners will ease navigation across the business landscape and accelerate investments.

Future outlook

As Saudi Arabia continues to reshape the PE landscape, several trends are expected to define its trajectory,

Increased deal flow, with ongoing economic diversification and infrastructure development will sustain growth in PE transactions.

Alongside that, sectoral expansion will occur, with health care, technology and logistics likely to attract increased investment, leveraging the Kingdom’s young, tech-savvy population and strategic geographical location.

Enhanced exit opportunities are also set to help foster a rise in IPOs, and strategic mergers and acquisitions, while secondary market activity will provide more avenues for PE firms to realize returns.

Papriwal summarized the Kingdom’s trajectory, explaining that Saudi Arabia’s proactive strategies “create a wider appeal to private equity investors who will give the Kingdom access to global capital.”

He added: “The resulting inflow of international capital, expertise and technology will have a profound and long-lasting impact on Saudi Arabia’s economic development, positioning the Kingdom as a major global business hub in the years ahead.”