Saudi Arabia Indoor Farming Market Overview, 2029

Saudi Arabia, primarily recognized for its vast desert landscapes, is undergoing a remarkable agricultural transformation aimed at enhancing food security and reducing reliance on imports. The country faces significant challenges, including limited water resources and extreme temperatures, yet the government has made substantial investments in modernizing the agricultural sector. Large-scale irrigation projects, including advanced desalination plants, have been implemented to provide essential water for farming. The adoption of innovative technologies such as hydroponics and vertical farming allows for efficient crop production in arid conditions, maximizing yields while minimizing water usage. Saudi Arabia has made notable progress in cultivating crops like dates, wheat, and various vegetables, contributing to its agricultural output. The Kingdom's Vision 2030 initiative emphasizes the importance of diversifying the economy and ensuring sustainable agricultural practices. With approximately 85% of its food still imported, the government aims to bolster domestic production through research and development of climate-resilient crop varieties and precision agriculture techniques. Furthermore, initiatives promoting organic farming and smart agricultural practices are gaining traction.

According to the research report, "Saudi Arabia Indoor Farming Market Outlook, 2029," published by Bonafide Research, the Saudi Arabia Indoor Farming market is anticipated to add to more than USD 358 Million by 2024–29. Saudi Arabia, recognized for its dry climate and limited agricultural land, is witnessing substantial growth in its indoor farming sector. This expansion is fueled by factors such as rising urbanization, concerns regarding food security, and advancements in technology, positioning indoor farming as a practical solution to address the nation’s agricultural demands. A prominent trend within this sector is the increasing implementation of vertical farming, an innovative approach that enables the cultivation of crops in stacked layers, thereby optimizing production within confined spaces. Vertical farms are becoming more prevalent in urban areas of Saudi Arabia, providing a sustainable and efficient method for producing fresh produce. Additionally, the popularity of hydroponics and aeroponics is on the rise. These methods employ nutrient-rich water solutions or mist to cultivate plants without soil, leading to enhanced yields and lower water usage. Hydroponic and aeroponic systems are particularly well-suited to the arid conditions of Saudi Arabia and can be adapted for a diverse range of crops, including leafy greens, herbs, and fruits. The Saudi government has been instrumental in fostering the development of the indoor farming sector, offering financial incentives and technical support to farmers and researchers through initiatives such as the National Transformation Program 2020.

The Saudi Arabia indoor farming market is rapidly evolving, characterized by various facility types, including vertical farming, greenhouses, and other innovative structures. Among these, vertical farming is gaining significant momentum, exemplified by the country’s largest indoor vertical farm project in Riyadh. This facility, developed as a joint venture between Mowreq Specialized Agriculture and YesHealth Group, features a remarkable design with 19 layers and a total growing area of 20,000 square meters, allowing for the production of up to 2,200 kilograms of leafy greens daily. The project not only aims to enhance local food security but also serves as an experiential center, combining agricultural production with public engagement through exhibitions and dining spaces. Greenhouses also play a vital role in the market, providing controlled environments that optimize growth conditions for various crops while protecting them from harsh weather. Other facility types, such as container farms and aquaponics systems, are emerging as viable options that leverage technology to improve sustainability and productivity. The Saudi government actively supports these innovations through funding and initiatives aligned with Vision 2030, which aims to diversify the economy and enhance food security.

The Saudi Arabia indoor farming market is significantly influenced by various growth mechanisms, including hydroponics, aeroponics, aquaponics, soil-based systems, and hybrid methods. Notably, soil-based systems currently hold the largest market share due to their traditional effectiveness in supporting diverse crop varieties and facilitating natural nutrient uptake. However, hydroponics is rapidly gaining traction as an innovative solution that allows for soilless cultivation using nutrient-rich water solutions, making it particularly advantageous in the arid climate of Saudi Arabia. This method enables year-round production and significantly reduces water usage—up to 95% less compared to traditional farming methods. Aeroponics, which involves growing plants in a mist environment without soil, is also emerging as a promising technique that conserves water while enhancing growth rates. Aquaponics combines fish farming with plant cultivation, creating a sustainable ecosystem that optimizes resource use. Hybrid systems that integrate these various techniques are being explored to maximize productivity and sustainability.

Covid-19 impact:
Traditional farming was hit hard during the pandemic due to lockdowns, border closures, quarantines, and supply chain disruptions. This limited access to fresh agricultural produce paved the way for indoor farming. In fact, the pandemic pushed the market demand for indoor farming as the populace was already experiencing high levels of food insecurity. During the pandemic's early stages of spread, the agriculture sector encountered difficulties. There were severe labor shortages on farms; some farmers lost their window of opportunity to harvest seasonal crops; agricultural product prices were plummeting; and logistics were disrupted. All this in spite of the fact that agriculture didn’t face a harsh shutdown as it was under essential services that were exempted. The development of indoor farming can also help in addressing all aspects of various food security concerns. Increased health awareness and the consumption of food free of residues have made it possible to use cutting-edge methods, such as indoor farming. In order to have food that is pest-free, people are cultivating essential crops on a modest scale in their own homes, which has increased productivity.



Considered in this report
• Geography: Saudi Arabia
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Saudi Arabia Indoor Farming market with its value and forecast along with its segments
• various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Growth Mechanism
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

By Facility Type
• Vertical Farm
• Greenhouse
• Others

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the battery manufacturers, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.