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The Saudi Arabia Indoor Farming market is forecast to grow at a CAGR of 9.8%, reaching USD 303.3 million in 2031 from USD 190.2 million in 2026.
Saudi Arabia Indoor Farming Market Highlights:
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 greenhouses, 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 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.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Companies |
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The Saudi Arabia Indoor Farming Market is segmented by:
Component: The hardware segment is anticipated to be the major segment in the component segment in the Saudi Arabia market, due to its being essential in the setup of infrastructure such as climate control sensors, lighting, and irrigation systems, among others.
Growing System: Hydroponics is a widely accepted indoor farming system in Saudi Arabia because of its increased efficiency in water-scarce regions, along with supporting the government's water conservation initiatives.
Facility Type: The greenhouse segment is expected to hold the largest rate in the Saudi Arabian indoor farming due to urbanization, and 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 the 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.
Crop Type: The demand for fruits and vegetables is rising constantly, propelling the market growth. 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.
City: Riyadh is the largest segment in the province for this market due as 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.
Rise in Vertical and Smart Farming Adoption
The increasing trend of vertical farming adoption in Saudi Arabia, especially in urban regions with projects like iFarm Bather Smart Farm and Riyadh Indoor Vertical Farming Project, is accelerating the market.
Drivers:
Increasing 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 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. This growth is mainly fueled by the various product innovations by major Saudi Arabian 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. 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.
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, a viable solution. The government's “Vision 2030” is a key catalyst for market growth.
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.
Challenges:
High Initial Cost: The initial cost of investment in setting up these facilities demands upfront cost for machinery, infrastructure, and other technologies like climate control sensors, which poses a barrier for small-sized farmers due to financial constraints, which could hamper market acceptance.
The market is fragmented, with many notable players, including Mishkat, Mowreq, Blue Fields Farms, iFarm, Red Sea Global, AeroFarms and PIF Joint Venture, Badia Farms, Pure Harvest Smart Farms, Aljoaib Holdings, Mojan Farms, Natufia, Arab Farmer Company, and Al Watania Agriculture Company, among others.
Partnership: In April 2025, South Korea initiated a partnership with Saudi Arabia for the construction of a smart farm complex in Riyadh. This facility is included with a multi-purpose complex featuring vertical farming systems, advanced agricultural robots, along with glass greenhouses and environmental control systems. The targeted completion is expected for December 2025.
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