In a strategic move aimed at bolstering the agricultural sector in Saudi Arabia, Al-Munif Trading, Industry, Agriculture and Contracting Company announced the signing of a non-exclusive local distribution agreement with SABIC Agri-Nutrients, a global leader in the field. Under this agreement, Al-Munif will purchase SABIC's high-quality products and resell and distribute them through its extensive network of retail outlets and distribution points across the Kingdom.
Background and importance of the partnership
This partnership comes within the framework of the Kingdom's ongoing efforts to achieve food security, a key pillar of Saudi Vision 2030. SABIC AgriNutrients, the specialized arm of the petrochemical giant SABIC, is a pivotal player in global and local markets, providing integrated agricultural nutrient solutions that contribute to increased agricultural productivity efficiently and sustainably. For its part, Al-Munif Company possesses extensive experience and a long history in the Saudi market, along with a robust infrastructure and integrated distribution network serving farmers and major agricultural projects.
Expected impact on the local agricultural sector
This collaboration is expected to have a tangible positive impact on farmers in Saudi Arabia. By facilitating their access to SABIC’s innovative products, such as stabilized urea and specialized fertilizer compounds, farmers will be able to improve the quality of their crops and increase their productivity. This agreement strengthens the stability of local supply chains for vital agricultural inputs and reduces reliance on imports, contributing to the development of a more resilient and sustainable national agricultural sector. The agreement also supports efforts to localize industries and enhance local content by strengthening trade ties between major national companies.
Contract details and future prospects
According to a statement issued by Al-Munif Company and published on the Saudi Stock Exchange (Tadawul), the contract is for one year, with the possibility of its value changing based on fluctuating market prices. The contract covers a wide range of essential products for modern agriculture, including regular and granular urea, diammonium phosphate (DAP), and other specialized compounds. While the direct financial impact of this contract is expected to appear in the company's financial results in 2026, its strategic impact begins now, laying the foundation for broader future collaborations that could extend to innovative agricultural solutions and new technologies serving the Kingdom's sustainable development goals.
