Saudi Arabia Looks to Cambodia to Diversify Rice Imports
The initiative, Asharq Al-Awsat has learned, is part of broader government efforts to expand the availability of high-quality rice alongside existing imports from countries like India, Pakistan, the United States, Egypt, and others.
Rice is a staple food in Saudi households and across the Gulf region. Rising demand, coupled with global challenges such as high shipping costs and climate-related disruptions, has led to fluctuations in supply and pricing. In response, the Kingdom is now looking to Phnom Penh to ensure consistent supply and greater price stability of this essential commodity.
Cambodia has built a strong reputation for producing premium-grade rice. It has been named the producer of the 'World's Best Rice' six times, most recently at the International Rice Conference held in Manila.
The country exports around 63 percent of its rice production, which totals nearly 12 million tons annually. Agriculture remains a top priority for the Cambodian government, which is actively working to increase production and expand access to global markets.
Following the visit by Cambodia's Minister of Commerce to Riyadh in February, Saudi Arabia's General Authority for Foreign Trade has begun coordinating with the private sector to facilitate Cambodian rice imports. Discussions include inviting Saudi companies to visit Cambodian farms to explore supply chain opportunities and assess product quality.
Currently, per capita rice consumption in Saudi Arabia stands at approximately 45.8 kilograms annually and is projected to rise to 50 kilograms in the coming years. Rice plays a vital role in the national diet and is central to many traditional dishes.
Saudi Arabia's broader food security strategy includes the establishment of a dedicated General Food Security Authority and the rollout of national strategies targeting agriculture, water, and environmental sustainability.
Over the past five years, agricultural investment financing has grown by 1,000 percent, and loans to the sector reached nearly 7 billion riyals ($1.8 billion) in 2022.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
2 hours ago
- Asharq Al-Awsat
Sustainable Finance: From Ethical Choice to a Key Driver of Profitability in Global Markets
As the world undergoes rapid economic and environmental transformations, sustainable finance has emerged as a central player in global markets, not merely as an ethical choice, but as a tangible investment opportunity with measurable returns. Sustainable finance is defined as the integration of environmental, social, and governance (ESG) considerations into investment decisions, fostering long-term investments in sustainable economic activities and projects. With the growing risks of climate change and heightened investor awareness of environmental and social responsibility, it is clear that ignoring sustainability standards is no longer a regulatory oversight, but a strategic mistake that could cost companies and investors dearly. This reality raises fundamental questions about the relationship between profit and sustainability, and whether sustainable finance can truly balance financial performance with social responsibility. Adopting Sustainable Practices Mohammed Al-Faraj, Senior Head of Asset Management at Arbah Capital, stressed that sustainable finance has evolved from an ethics-driven choice reliant on corporate goodwill or government support into an effective investment tool and long-term profitability driver. He explained that this shift stems from investors realizing that companies adopting sustainable practices are built on stronger, more stable foundations. The growing economic value of sustainability is now the primary driver behind corporate adoption. Studies show that companies integrating sustainability standards attract top talent, build stronger brands, and reduce long-term operating costs through efficient resource and energy use. Over the past five years, sustainable finance instruments - such as green bonds and sustainable investment funds - have outperformed traditional ones. These funds also proved more resilient during economic crises, showing less volatility, reflecting sustainable companies' stronger risk-management capabilities. Al-Faraj noted that sustainable investment is less risky in the long term, as it accounts for factors often missed in traditional financial analysis, such as climate change, human rights risks, and corrupt governance. This approach acts as a 'risk shield' by helping companies comply with increasing environmental and social regulations, avoid fines or penalties, and remain resilient to market shocks. While the initial costs of sustainability may affect short-term competitiveness, they provide a lasting advantage over time. Al-Faraj concluded that sustainable finance is a natural evolution in investment philosophy, redefining the link between profit and responsibility, and guiding smart investors toward building wealth on solid, sustainable foundations in a risk-laden world. Global Shifts Financial and economic consultant Dr. Hussein Al-Attas echoed this view, saying sustainable finance is no longer merely an ethical stance or a marketing framework, but is now an investment option driven by pure economic logic. Amid climate shifts, global regulatory changes, and evolving investor behavior, market indicators in recent years have shown that companies and funds applying sustainability standards achieve better long-term financial performance with lower volatility and risk. The consultant noted that while government support remains helpful, it is no longer the sole factor. Institutional investors, pension funds, and global asset managers are adopting sustainability strategies to achieve higher returns with reduced risk. He continued that sustainable investment enables early regulatory compliance, reduces environmental damage that could lead to lawsuits or penalties, builds strong market reputations that boost customer and investor loyalty, and improves operational efficiency through innovation, energy efficiency, and resource management. Al-Attas further emphasized that sustainability is no longer an operational burden but a strategic investment in corporate continuity and growth. He concluded that sustainable finance has become a prerequisite for profitability and success in global markets, and ignoring it could leave companies behind.
Arab News
13 hours ago
- Arab News
Saudi Arabia's money supply hits $832bn as time deposits reach 16-year high
RIYADH: Saudi Arabia's money supply rose to a record SR3.12 trillion ($832 billion) in June, marking a 7.63 percent annual increase, driven predominantly by a sharp rise in time and savings deposits. According to data from the Saudi Central Bank, also known as SAMA, these income-generating accounts, now totaling around SR1.1 trillion, represent the highest share of the money supply in 16 years. While demand deposits — non-interest-bearing checking accounts — remain the largest component at 47.93 percent, or SR1.49 trillion, their growth at 5.2 percent year on year has lagged that of savings accounts, which grew 21.71 percent over the same period. Other quasi-monetary instruments, including residents' foreign currency deposits, marginal deposits related to letters of credit, outstanding remittances, and repo placements, account for roughly 9 percent of the money supply. However, this category declined 18.54 percent, dropping to SR280.54 billion. Meanwhile, currency outside banks, although the smallest component at 7.83 percent, increased 6.6 percent to SR244.31 billion. Why are time deposits surging? Global monetary tightening and attractive yields are key factors. After previously peaking at 6 percent, SAMA reduced its repo rate in stages, mirroring that of the US Federal Reserve — first to 5.5 percent in September 2024, then further to 5 percent in December 2024. Despite these cuts, the current rate remains relatively elevated compared to the prolonged low-rate environment of previous years, making fixed-term, interest-bearing accounts more attractive than demand balances. Strong lending growth, particularly in sectors tied to Vision 2030, mortgage financing, and corporate borrowing, has outstripped deposit inflows. As a result, banks face increased funding needs and have ramped up offerings on time deposits to attract liquidity. The 2025 International Monetary Fund Article IV Mission noted that while banks maintain strong solvency at 19.6 percent and a healthy return on assets, liquidity pressures are building, and liquid assets relative to short-term liabilities have declined. In response, banks are expanding liabilities through bonds, syndicated loans, and certificates of deposit. Notably, net foreign assets turned negative in 2024 for the first time since 1993, highlighting rising external borrowing. To address risks, SAMA introduced a 100-basis-point countercyclical capital buffer in May 2025, and the IMF welcomed this step, along with tighter loan-to-value and debt burden measures, plus potential foreign-currency liquidity ratios to bolster financial stability. Market analysts foresee continued strength in time and savings deposits. Alvarez & Marsal's first quarter Banking Pulse reported that deposits rebounded 4 percent quarter on quarter, led by an 8.1 percent increase in time deposits, following a seasonal dip at the end of 2024. Likewise, Fitch Ratings, in its March 2025 forecast, projected lending growth of 12–14 percent, led by corporate demand, to continue outpacing deposit growth. Fitch expects Saudi banks to issue more than $20 billion in debt this year as they shift toward non-deposit funding. This, coupled with the continued dilution of CASA 'current and savings accounts' and competition for funding, may blunt the benefits of lower policy rates on banks' net interest margins.
Asharq Al-Awsat
16 hours ago
- Asharq Al-Awsat
Saudi Arabia Rolls Out Measures to Spur Property Use
Saudi Arabia on Sunday began enforcing an updated version of its 'white land' tax, under directives from Prince Mohammed bin Salman, Crown Prince and Prime Minister, aiming to push landowners to either develop or sell idle plots to developers, boosting supply and easing property prices. The amended rules broaden the levy to include vacant buildings, as well as undeveloped plots, and streamline its rollout by imposing an annual tax of up to 10% of a plot or group of plots' market value if their combined area within an urban zone is 5,000 square meters or more, according to regulations. Vacant properties will also face an annual tax based on comparable rental values, capped at 5% of their market value. This rate could be increased to 10% by cabinet decision on a ministerial committee's recommendation. State-owned properties are exempt. Hamed bin Hamri, a member of the Eastern Province Chamber of Commerce's real estate committee and chief executive of Tamkean Investment, said the tax would pressure owners to utilize vacant assets or sell them to avoid annual charges, spurring market activity. 'Holding onto undeveloped land will now come with a cost linked to its market value,' he told Asharq Al-Awsat. 'This reduces the appeal of land hoarding.' He urged owners to seize the opportunity to build or partner with developers to revive unused plots, and called for incentive schemes, easier bank financing, and feasibility studies to help owners bring projects to life. Khalid Aljasir, head of Amaken International Group, warned that the changes could trigger a cautious slowdown in the real estate market. 'Supply will rise faster than demand, giving buyers with cash more bargaining power,' he told Asharq Al-Awsat, predicting that this caution could last for six months before the market regains balance. He described the move as 'bold' and said it could push land prices back to earlier levels. Financial and economic consultant Hussein Al-Attas told Asharq Al-Awsat that expanding the tax to cover vacant buildings was a key step towards tackling one of the main causes of market stagnation — idle, ready-to-use properties. Setting a 5,000 square meter threshold for taxable plots would reduce inefficient land fragmentation and make compliance easier to monitor, he said. Linking the tax rate to asset value, capped at 10%, would ensure fairness and reduce evasion while encouraging genuine development. By targeting vacant buildings, the system addresses shortages in ready-to-occupy or investable stock, Al-Attas said, adding that flexible executive regulations would allow the housing ministry to adapt to shifting market conditions. 'These changes could accelerate development, limit speculative holding of assets, and support price stability while improving economic efficiency in the property sector,' he stressed.
