Saudi Arabia Indoor Farming Market Size, Share, Opportunities, and Trends Report Segmented By Component, Growing System, Facility Type, Crop Type, and By City – Forecasts from 2025 To 2030

Saudi Arabia Indoor Farming Market Size:

The Saudi Arabian indoor farming market is estimated to attain a market size of USD 298.484 million by 2030, growing at 9.43% CAGR from a valuation of USD 190.186 million in 2025.

Saudi Arabia Indoor Farming Market Highlights:

• Water scarcity drives the adoption of efficient indoor farming technologies like hydroponics.
• Government initiatives under Vision 2030 promote sustainable, high-tech farming practices.
• Vertical farming optimizes space and resources for year-round crop production.
• Demand for fresh, pesticide-free produce fuels indoor farming growth.

Saudi Arabia Indoor Farming Market Introduction:

Saudi Arabia’s indoor farming market is rapidly evolving as part of its broader food?security vision. Having faced limited arable land, scarce freshwater, and extreme climate for so long, the country is embracing soilless and controlled-environment agriculture, hydroponics, aquaponics, soil-based greenhouse, and hybrid setups as strategic tools to boost local produce and reduce dependency on imports. Public and private sectors are collaborating on flagship projects: the Public Investment Fund teamed up with AeroFarms to build a large-scale vertical farm in Riyadh utilising up to 95% less water, and Al?Bir Charity now operates a 200,000?m² hydroponic facility delivering self?sufficiency to rural communities. International firms like InvertiGro are partnering locally to integrate hydroponic and aquaponic systems. Meanwhile, educational programs and tech incubators are supporting the adoption of smart?farming tools like IoT sensors.

The expansion of the use of contemporary tools and technology in farming methods is another factor boosting Saudi Arabia's Indoor Farming market growth. In a vertical farming configuration, the farmers optimize temperature, nutrients, humidity, and light to improve crop production quality and yield while using less water and space.

Saudi Arabia Indoor Farming Market Overview:

Saudi Arabia's indoor farming market involves growing crops in controlled environments, often without soil, using technologies such as hydroponics, aeroponics, aquaponics, vertical farming, and greenhouses. The market is experiencing significant growth, driven by Saudi Arabia’s priority for reducing heavy import dependency on fruits and vegetables. As the country is a desert, there are natural water shortages (the National Water Strategy aims to reduce reliance on non-renewable groundwater for agriculture from nineteen billion m³ in 2017 to 6.2 billion m³ by 2030) and a lack of arable land, making controlled-environment agriculture, indoor farming using technologies viable solution. The government's “Vision 2030” is a key catalyst for the market growth.

The above factors are driving the adoption of contemporary tools and technologies in farming practices, driving the growth of the indoor farming market in Saudi Arabia. The precise control over environmental conditions such as temperature, humidity, nutrients, and lighting in vertical farming systems is enabling improved crop quality and higher yields.

Saudi Arabia is 95% desert and heavily relies on imports for approximately 80% of its food supply. Its water resource is continuously declining. According to the United Nations COMTRADE database on international trade, Saudi Arabia's imports of Vegetable, fruit, and nut food preparations have grown from US$1 billion in 2020 to US$1.31 billion in 2022 to US$1.42 billion in 2023, highlighting a huge reliance on imported food products. Thus, the kingdom, as part of Vision 2030, has prioritized the optimal use of water resources and building safe and strategic food reserves. This has significantly given a boost to indoor farming as a strategic solution for long-term food security.

According to the data published by the Saudi Arabia General Authority of Statistics, the total production of organic crop agriculture in Saudi Arabia amounted to about 95,300 tons in 2023, highlighting growing demand and capacity for sustainably grown produce, including pesticide-free, high-quality vegetables, aligning with the indoor farming.

Some of the major key players in the Saudi Arabian indoor farming market include Mishkat, Mowreq, Blue Fields Farms, iFarm, Red Sea Farms, AeroFarms and PIF Joint Venture, Badia Farms, and Pure Harvest Smart Farms. The market includes a mix of domestic startups, government-backed projects, and foreign technology providers entering through partnerships. For instance, in February 2023, PIF and US-based AeroFarms formed a joint venture to build and operate a facility in Saudi Arabia with an annual production capacity of up to 1.1 million kg of crops.

Additionally, the Riyadh Indoor Vertical Farming Project represents a significant collaboration between Mowreq Specialized Agriculture and YesHealth Group, initiated in December 2022, supported by the Saudi Agricultural Development Fund. The project includes a built area of 4,500 square meters, a total growing area of 20,000 square meters, and a yield of up to 2,200 kilograms of leafy greens daily.

Saudi Arabia Indoor Farming Market Drivers:

• Growing government initiatives

Agriculture is one of the major economic areas that will be reshaped and upgraded as part of the Saudi Vision 2030. The Saudi government is concentrating on lowering the imports of fruits and vegetables, which is expected to spur the growth of the Saudi Arabian vertical farming market in the coming years by providing benefits like tax exemptions, subsidies, and other advantages to promote the adoption of vertical farming practices.

Between 2021 and 2025, the Saudi Arabian Agricultural Development Fund plans to invest over $ 220 million (SAR 825 million) in high-tech greenhouses. Up to 70% of the capital costs for these projects will be covered by the fund, which will fuel the Saudi Arabian Indoor Farming market. Saudi Arabia is also picking up ideas from other nations' vertical farming and agricultural technology experiences. For instance, in January 2023, a Saudi-Japanese Virtual Forum for Agricultural Technology was conducted to shed light on new technological adoption for farming.

• Rising organic cultivation in Saudi Arabia

According to the data published by the Saudi Arabia General Authority of Statistics, the production of organic cultivation for crops surged from 98,559 tonnes in 2020 to 98,775 tonnes in the year 2021. This growth is mainly fueled by the various product innovations by major Saudi Arabia Indoor Farming industry players in the country. For instance, The PIF and New Jersey-based AeroFarms announced that the first farm, in Saudi Arabia, is anticipated to be the biggest in the Mena area, with an annual production of up to 1.1 million kilograms of crops utilizing unique agricultural technology.

• Increasing demand for pesticide-free production

The 2021 Alpen Capital GCC Food Industry report sheds light on the surging demand for top-tier, pesticide-free fresh produce in Saudi Arabia. This upswing is primarily steered by the escalating awareness surrounding healthy dietary patterns and the populace's well-being. Furthermore, the burgeoning premium tourism sectors and affluent expat communities are also amplifying this trajectory. The Estidamah Center highlights an escalating appetite for high-caliber agricultural goods available year-round, unburdened by pesticides.

• Rising adoption of vertical farming

While Saudi Arabia's agriculture sector is just beginning to embrace vertical farming technologies, the nation has only seen a handful of operational indoor vertical farms. A noteworthy instance is the Bather Smart Farm, which employs iFarm Leafy Greens technology to cultivate lettuce and microgreens. Launched in October 2022, the farm spans over 2,000 square meters, boasting a potential monthly yield of 16 tons. The domestically cultivated produce caters to local markets, reaping advantages by trimming long logistics chains, especially crucial for maintaining the freshness essential to leafy greens' flavor. This paradigm shift has found resonance in high-end dining establishments and luxury hotels that understand the intrinsic worth of fresh produce and are willing to pay a premium for it further fueling the Saudi Arabia Indoor Farming market growth.

• A decrease in arable land in the nation

As reflected by the World Bank data, the limited availability of arable land propels the adoption of indoor farming, especially given the Kingdom's remarkable transformation of desert into cultivable land over the past six decades. Despite this expansion, the agricultural land's stagnancy, hovering around 80.75% of the total land area since 2017, underlines the challenge posed by limited land resources. One key driver is the resolute need for enhanced self-sufficiency in food production and processing, along with the imperative to diversify imports. This impetus has prompted substantial investments in AgTech, notably exemplified by the Agricultural Development Fund's plan to allocate approximately $220 million (SAR 825 million) towards advanced greenhouses between 2021 and 2025. The fund's support, covering up to 70% of capital expenses and offering a two-year profit demonstration moratorium, underscores the government's dedication to modernizing the agricultural landscape.

• Growth in water scarcity in the region

Water scarcity, a prominent challenge in Saudi Arabia, stands as another catalyst for the growth of vertical farming. With hydroponics requiring only 10% of the water used in conventional farming, it serves as a sustainable solution within a water-constrained environment. Dr Abdulrahman Al Ibrahim, advisor to the HRH Minister of Energy, emphasizes the urgency of water conservation and modern agricultural technologies to enhance productivity while rationalizing water use.

• Food security and import reduction goals

Growing focus on food security and reducing the import of foods such as vegetables, fruits, and others is the key factor driving market expansion. The Saudi government is prioritizing lowering the imports of fruits and vegetables, which is expected to spur the growth of the Saudi Arabian vertical farming market in the coming years.

According to the World Bank Data, Saudi Arabia's food imports stood at 13.4% in 2023 out of total merchandise imports, showing a huge share of food imports.

Under Vision 2030, the Kingdom aims to reduce this dependency by investing heavily in controlled-environment agriculture such as indoor farming and vertical farms. By providing benefits like tax exemptions, subsidies, and other advantages, the government is promoting the adoption of vertical farming practices or other indoor farming methods. Between 2021 and 2025, the Saudi Agricultural Development Fund (ADF) has allocated SAR 825 million (approximately $220 million) to advance high-tech greenhouse farming across the Kingdom. This initiative and investment aim at modernising local food production, boosting year-round yields. This directly drives the market of indoor farming in Saudi Arabia, as this program supports both large-scale farms and emerging agri-entrepreneurs, with funding covering up to 70% of capital costs. In 2025, Saudi Arabia's Agricultural Development Fund (ADF) announced plans to disburse SAR 7.4 billion (USD 2 billion) in loans, marking a continued expansion in support of high-tech agriculture.

Saudi Arabia Indoor Farming Market Segmentation Analysis:

• The demand for fruits and vegetables is rising constantly, propelling the market growth

By crop type, the Saudi Arabian indoor farming market is segmented into fruits & vegetables, herbs & microgreens, and flowers & ornamentals. The Kingdom of Saudi Arabia, besides being one of the largest countries in the Gulf, also accounts for the majority of the population in the Middle East. Hence, the change in consumer lifestyle followed by improved disposable income has led to a dynamic shift in the consumption pattern of the people with more emphasis on healthy food products, which has escalated the overall consumption volume for varied fruits & vegetables in the country.

Moreover, since the country relies mainly on imports from foreign nations, such as the United States, India, Australia, and Egypt, it is investing in expanding its agricultural operations to bolster its domestic production and reduce foreign reliance, which has provided new growth prospects for commercial farming.

Likewise, the rapidly growing population has also increased the consumption of fruits & vegetables.  For instance, according to the “Citrus World Market and Trade” report issued by United States Department of Agriculture, it was stated that for FY2024-2025, the fresh domestic consumption of lemon and lime reached 212 thousand metric tons, marking a 2.4% growth over the consumption recorded in FY2023-2024. Likewise, the consumption of oranges in the country reached 416 thousand metric tons with heavy reliance on imports.

Saudi Arabia Indoor Farming Market Key Developments:

• In February 2023, the Saudi Public Investment Fund revealed a revolutionary vertical farming proposal, a modern urban concept for growing crops in vertically stacked indoor spaces. A joint venture between the Saudi Arabian sovereign wealth fund and the US business AeroFarms will enable the construction of vertical farms in Saudi Arabia and other Middle Eastern and North African nations.

Saudi Arabia Indoor Farming Market Companies:

• Mishkat
• Mowreq
• Blue Fields Farms
• iFarm
• Red Sea Farms

Saudi Arabia Indoor Farming Market Scope:

Report Metric	Details
Saudi Arabia Indoor Farming Market Size in 2025	USD 190.186 million
Saudi Arabia Indoor Farming Market Size in 2030	USD 298.484 million
Growth Rate	CAGR of 9.43%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Million
Segmentation	Component Growing System Facility Type Crop Type City
Geographical Segmentation	Riyadh, Jeddah, Others
List of Major Companies in the Saudi Arabia Indoor Farming Market	Mishkat Mowreq Blue Fields Farms iFarm Red Sea Farms
Customization Scope	Free report customization with purchase

 

Segmentation

• By Component
  • Hardware
  • Software
  • Services
• By Growing System
  • Hydroponics
  • Aquaponics
  • Aeroponics
• By Facility Type
  • Greenhouse
  • Container Farms
  • Vertical Farms
  • Others
• By Crop Type
  • Fruits and Vegetables
  • Herbs and Microgreens
  • Flowers and Ornamentals
• By City
  • Riyadh
  • Jeddah
  • Others

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1. Executive Summary

2. Market Snapshot

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. Business Landscape

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. Technological Outlook 

5. Saudi Arabia Indoor Farming Market By Component (2020-2030)

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

6. Saudi Arabia Indoor Farming Market By Growing System (2020-2030)

6.1. Introduction

6.2. Hydroponics

6.3. Aquaponics

6.4. Aeroponics

7. Saudi Arabia Indoor Farming Market By Facility Type (2020-2030)

7.1. Introduction

7.2. Greenhouse

7.3. Container Farms

7.4. Vertical Farm

7.5. Others

8. Saudi Arabia Indoor Farming Market By Crop Type (2020-2030)

8.1. Introduction

8.2. Fruits and Vegetables

8.3. Herbs and Microgreens

8.4. Flowers and Ornamentals

9. Saudi Arabia Indoor Farming Market By City (2020-2030)

9.1. Introduction

9.2. Riyadh

9.3. Jeddah

9.4. Others

10. Competitive Environment and Analysis

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. Company Profiles

11.1. Mishkat

11.2. Mowreq

11.3. Blue Fields Farms

11.4. iFarm

11.5. Red Sea Farms

11.6. AeroFarms and PIF Joint Venture

11.7. Badia Farms

11.8. Pure Harvest Smart Farms

12. Research Methodology

Mishkat

Mowreq

Blue Fields Farms

iFarm

Red Sea Farms

AeroFarms and PIF Joint Venture

Badia Farms

Pure Harvest Smart Farms