Advertisement

Reports

Saudi Arabia: A rising force in global aquaculture

The country aims to boost domestic aquaculture production from 280,000 tons in 2024 to 530,000 tons annually by 2030.

Naqua
Credits: NAQUA

Historically, seafood was a fundamental protein source for Saudis residing in coastal cities such as Jeddah, Dammam, and Jizan. Today, a combination of government initiatives promoting healthier lifestyles and a growing expatriate population is significantly boosting seafood demand across Saudi Arabia. The Kingdom, with its expansive 2,400 km (1,500 miles) of undeveloped coastline along the Red Sea and the Arabian Gulf, is strategically leveraging these natural advantages for robust aquacultural development.

While the Arabian Gulf coast, about 560 kilometers (350 miles) long, remains the primary source for wild-caught seafood, the aquaculture industry is attracting substantial local and international investment. A prime example is the Saudi Agricultural and Livestock Investment Company (SALIC), owned by the Saudi Public Investment Fund (PIF), which has increased its stake in the National Aquaculture Group (NAQUA), recognized globally as one of the most extensive integrated aquaculture operations.

Production and growth trajectory

Aquaculture production in Saudi Arabia commenced in the early 1980s and has since undergone continuous expansion and technological advancement. Nowadays, Saudi Arabia's aquaculture production primarily focuses on white shrimp, barramundi, seabream, and tilapia. Notably, Saudi Arabia has emerged as one of the world's leading producers and exporters of whiteleg shrimp, supplying over 40 countries globally.

In recent years, aquaculture has overtaken traditional fisheries in total seafood production. In 2012, aquaculture accounted for just 17,283 tons—19.5% of the total—compared to 71,301 tons from wild fisheries, according to a USDA Foreign Agricultural Service report. By 2023, aquaculture output had surged to 139,949 tons, representing 65% of total seafood production, while fisheries contributed 74,700 tons.

Further bolstering this growth, King Abdullah University of Science and Technology (KAUST), in collaboration with the Ministry of Environment, Water, and Agriculture (MEWA), initiated the Aquaculture Development Program. This partnership, formed in June 2024, aims to revolutionize Saudi Arabia's aquaculture landscape. The program is projected to significantly boost domestic production from 280,000 tons in 2024 to 530,000 tons annually by 2030. A key objective of this program is to offer direct government investment support for innovative aquaculture projects.

The role of aquafeed

Aquafeed plays a critical role in aquaculture farming operations across the Kingdom. According to the General Authority for Statistics (GAS), the consumption of fish feed in 2023 totaled 298,491 tons, with 87,204 MT used for inland aquaculture and 211,287 MT for sea farming. Leading producers and importers of aquafeed in Saudi Arabia include ARASCO, Maram Feed Mill, and Al Hejaz Feed Company. More recently, some aquaculture producers, such as NAQUA, have begun producing their own aquafeed with research and development support from KAUST. Given the ongoing developments in the aquaculture sector, demand for aquafeed and its ingredients is anticipated to rise significantly.

Soybeans are a main ingredient in aquafeed manufacturing. In 2024, Saudi Arabia imported approximately 1.4 million tons of soybeans and soybean meal. The U.S. has historically been one of Saudi Arabia's leading suppliers of soybeans, ranking second after Brazil in 2024 with 62,110 tons exported. Soybeans are a vital component for both poultry and aquafeed production in the Kingdom.

Consumption, distribution, and trade

In 2020, the per capita seafood consumption in Saudi Arabia was 11.7 kg, considerably lower than the global average of 21.3 kg. This is attributed to traditional consumption patterns, which historically favored red meat and poultry. However, seafood consumption in coastal cities is notably higher. MEWA and other governmental bodies have set a target to increase per capita seafood consumption to 20 kg by 2030.

Saudi Arabia's seafood distribution network primarily utilizes designated fish markets in major cities, supermarkets, and increasingly, e-commerce platforms, offering fresh, farmed, and imported selections. A distinctive feature of the Saudi market is that most of its exported seafood is farmed. Locally, farmed seafood is preferred by the Hotel, Restaurant, and Institutional (HRI) sector due to its lower price point and consistent, year-round availability, effectively meeting their demand for a reliable supply.