Story Outline
- Government funds fuel KSA’s seafood market growth with Vision 2030’s 600,000-ton seafood production target.
- Foreign investments surge, like Marine Harvest’s USD 120M fish farming project and Skretting’s USD 200M fish feed factory.
- Private sector actively invests in KSA’s seafood industry, with NAQUA and Saudi Fisheries leading the way.
- Investment funds, including SALIC, boost seafood projects for food security and domestic production.
- VC firms like Impact46 back innovative seafood startups, like “Fish Farm,” advancing aquaculture and fish feed solutions.
- According to Ken Research, The KSA Seafood and Fish Feed Market is expected to reach $900 Mn by 2027, currently the market is growing at a CAGR of ~11% in 2022.
The Kingdom of Saudi Arabia (KSA) has been an attractive investment destination for decades, thanks to its abundant natural resources, growing economy, and favorable business environment. Recently, the seafood and fish feed market in the Kingdom has emerged as a potential magnet for both local and foreign investments.
This rising trend is fueled by various factors such as a burgeoning population, increasing per capita income, government-led initiatives, and a growing preference for healthier diets. To fully grasp the potential and depth of this market, it is crucial to understand the investment landscape. This comprehensive analysis uncovers the major investments in the KSA seafood and fish feed market and the entities driving them.
1.Government Investments towards Self-Sufficiency
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The Saudi government has been a leading investor in the country’s seafood and fish feed market. As part of its Vision 2030, the government aims to produce 600,000 tons of seafood annually by 2030 to achieve significant self-sufficiency. This ambitious plan has attracted significant government investments in the aquaculture sector. The National Industrial Development and Logistics Program (NIDLP), under Vision 2030, has allocated a staggering SAR 5.3 billion (~ USD 1.41 billion) to the fisheries sector, including aquaculture and fish feed production. This initiative is expected to create 100,000 direct and indirect jobs in the sector, further demonstrating the government’s commitment to developing a robust seafood and fish feed market.
2.Increasing Foreign Direct Investment in Seafood Sector
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The KSA seafood and fish feed market’s potential hasn’t gone unnoticed by foreign investors. In 2018, the Norwegian seafood company, Marine Harvest, announced an investment of USD 120 million to set up a fish farming operation in Saudi Arabia. The investment includes a hatchery, fish farms, and a processing plant to cater to the rising demand for seafood in KSA and the broader Middle East.
Furthermore, in 2021, Skretting, a leading fish feed manufacturer from Norway, announced plans to invest USD 200 million in constructing a state-of-the-art fish feed factory in the Kingdom. Skretting’s entry into the Saudi market is a strong testament to the lucrative prospects of the fish feed market, which is closely tied to the seafood industry’s growth.
According to Ken Research, The KSA Seafood and Fish Feed Market is expected to reach $900 Mn by 2027, currently the market is growing at a CAGR of ~11% in 2022 owning to influx of major investment, government vision 2030 and change in consumers preferences.
3.Private Sector Participation in KSA Seafood Sector
The private sector in Saudi Arabia has also recognized the growth potential in the seafood and fish feed market. Several private companies have invested heavily in various segments of this market, contributing to its rapid development.
For instance, the Jazan-based National Aquaculture Group (NAQUA), one of the largest aquaculture companies in KSA, has invested extensively in creating an integrated aquaculture system. This includes hatcheries, fish farms, and a feed mill with an annual production capacity of 50,000 metric tons of fish feed.
Moreover, the Saudi Fisheries Company, a public company listed on Tadawul (the Saudi Stock Exchange), has also invested significantly in expanding its seafood processing capacity and developing a high-quality fish feed portfolio.
4.Investment Funds eyeing on KSA Fish Feed Industry
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Investment funds are playing a significant role in shaping the KSA seafood and fish feed market. In 2020, the Saudi Agricultural and Livestock Investment Company (SALIC), a subsidiary of the Public Investment Fund (PIF), invested USD 100 million in an offshore shrimp farming project in the Red Sea. This investment is part of a larger strategy to enhance domestic seafood production and promote food security in the Kingdom.
Furthermore, in 2021, the Saudi Investment Bank (SAIB) and the Arab Investment Company (TAIC) jointly launched a USD 400 million fund dedicated to investments in the food and agriculture sector, including the seafood and fish feed market. This initiative further underscores the significant investment potential of the market.
5.Venture Capitalists are backing Innovative Seafood Startups in KSA
Venture capital (VC) has emerged as a vital source of investment in the KSA seafood and fish feed market. Several startups in this sector have caught the attention of VC firms with their innovative solutions. One such example is Jeddah-based startup “Fish Farm,” which secured USD 1.5 million in seed funding in 2022 from the Riyadh-based VC firm, Impact46.
Fish Farm leverages advanced aquaculture technologies to produce high-quality seafood and has plans to develop a proprietary line of fish feed.
Conclusion
The Kingdom of Saudi Arabia’s seafood and fish feed market is witnessing a surge of investments from various sources, reflecting the sector’s lucrative potential. Government initiatives, foreign direct investments, private sector participation, investment funds, and venture capital have all contributed significantly to this growth narrative. This infusion of capital has not only helped the market evolve but also positioned it for sustained future growth.
For More Insights On Market Intelligence, Refer to the Link Below: –
KSA Seafood and Fish Feed Market Outlook to 2027
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