Arab News, Wed, Jan 22, 2025 | Rajab 22, 1446
Saudi agritech firm closes $2.55m in seed funding round
Saudi Arabia:
Saudi Arabia’s hydroponic farming sector is
poised for a boost, as the Kingdom-based agritech startup Arable announces the
successful closure of a $2.55 million seed funding round, led by undisclosed
investors.
The funding round attracted both institutional and
private investors, with 90 percent of the capital coming from foreign investors.
The funds will be allocated within Saudi Arabia to help advance the country’s
agricultural sector, the company stated in a press release.
Saudi Arabia, facing limited water resources and
harsh climate conditions, grapples with significant agricultural challenges,
including groundwater salinization.
Hydroponic farming presents a promising
solution to improve produce yields and conserve water in the Arabian
peninsula—one of the driest regions in the world, with little rainfall.
Arable emphasized that its growth is supported by
key strategic partnerships and government backing, which have bolstered the
company's progress in the region's agricultural landscape.
“Saudi Arabia offers an unparalleled ecosystem for
startups like Arable to thrive. Thanks to the support of organizations such as
the Ministry of Environment, Water, and Agriculture, the Ministry of Investment,
the National Technology Development Program, and the General Authority of SMEs,
we’ve been able to scale rapidly and bring innovation directly into the
Kingdom,” said Lawrence Ong, CEO of Arable.
Founded last year by Ong and Christina Khalife,
Arable designs and operates hydroponic farming systems. The company claims its
innovative approach enables faster, more cost-effective setups with lower
operational expenses.
Arable’s goal is to provide an affordable
method of vegetable production by growing plants without soil, using
nutrient-rich water solutions to deliver essential minerals directly to the
roots—ideal for the Kingdom’s challenging desert climate. The company also
points out that 80 percent of its system’s components can be sourced or
manufactured locally.
The firm aims to contribute to Saudi Arabia’s
agricultural transformation by offering a sustainable and scalable solution for
growing fruits and vegetables, aligning with the Kingdom’s Vision 2030 goals of
reducing food imports and increasing local food production.
“The Saudi Ministry of Investment supports foreign
investment and local innovation by streamlining the investor journey and
ensuring a seamless experience. At MISA, we facilitate various initiatives and
strategies aligned with Vision 2030, supporting the growth of businesses across
all sectors, including those such as Arable, which address critical needs such
as food security,” said Mohammad Abahussain, deputy minister at the Ministry of
Investment.
Hydroponic farming has the potential to
thrive even in harsh environments by promoting fibrous root development, which
allows better nutrient absorption, reduces the risk of root rot, and accelerates
plant maturity.
“Arable’s impressive achievement in raising
significant funding, with a majority from international investors, highlights
the innovative potential of Saudi Arabia’s agricultural sector,” said Ali Al-Sabhan,
general manager of entrepreneurship at MEWA.
He added that the company’s hydroponic system,
designed specifically for local conditions and at a significantly reduced
cost—with most components sourced locally—sets a new standard for efficiency and
sustainability.
“We are proud to have them as part of the Sunbulah
platform, as this startup not only enhances our agricultural self-sufficiency
but also attracts global interest, aligning perfectly with our vision for a
diversified economy,” Al-Sabhan concluded.
A report from MEWA on technology adoption within
the Kingdom’s agricultural sectors highlights significant growth in key areas.
The global market for agricultural drones, for instance, is expected to surge
from $1.1 billion in 2022 to $7.19 billion by 2032, driven by the increasing use
of drone technology in precision farming.
At the same time, the overall agricultural market
is projected to expand from $13.6 billion in 2022 to $33.6 billion by 2032, with
a compound annual growth rate of 9.8 percent, according to the report.
The global agricultural biotechnology market is
also set for substantial growth, with forecasts indicating it will rise from
$106.62 billion in 2022 to $242.17 billion by 2032. This growth reflects the
growing impact of biotech innovations in boosting crop yields and enhancing
sustainability.