In a strategic move aimed at enhancing the investment environment and securing food supply chains, the Ministry of Environment, Water and Agriculture in the Kingdom of Saudi Arabia has taken a significant step to update its legislative framework. The Ministry, through its "Istilaa" platform, has proposed amending certain articles of the executive regulations of the Agriculture Law. The proposal centers on replacing the requirement for an "investment license" with "registration with the Ministry of Investment" as a prerequisite for foreign investors wishing to import fresh fruits and vegetables.
General context and objectives of Vision 2030
This amendment comes as part of the comprehensive national efforts to achieve the goals of Saudi Vision 2030, which prioritizes improving the business environment and attracting foreign direct investment. Historically, multiple regulatory procedures have posed a challenge for investors. Through these steps, the government aims to eliminate duplication of requirements and reduce bureaucratic procedures, making the Saudi market more attractive and globally competitive. Consolidating requirements under the Ministry of Investment ensures a smoother and clearer investment journey and reflects the maturity of the Kingdom's regulatory environment.
Details of the proposed amendments
The proposed amendments included Articles 45 and 208 of the regulations. Under the updated regulations, foreign investors no longer need to obtain a separate investment license from the Ministry of Environment to engage in import activities; they now only need to present the "registration" document issued by the Ministry of Investment. The updated regulations also require importers to submit an electronic application for an import permit, while emphasizing that this simplification does not compromise the strict technical and health requirements, most notably the unified agricultural quarantine requirements of the Gulf Cooperation Council (GCC) countries, to ensure the safety and quality of products entering the Kingdom's markets.
Importance and expected impact
This step is expected to have multiple positive effects on various levels:
- Domestically, facilitating imports will increase the supply of fruits and vegetables in the local market, potentially contributing to price stability and greater variety for consumers. It will also support local logistics and distribution companies and enhance their competitiveness.
- Regionally and internationally, this decision sends a strong signal to exporters and investors worldwide that the Kingdom is working diligently to become a leading trade and logistics hub. This will enhance the flow of products from around the world and reinforce the Kingdom's position as a key player in global food security.
- Aquaculture sector: The amendments did not overlook the promising “aquaculture” sector, as Article (208) stipulated that registration with the Ministry of Investment is the required condition for the foreign investor, which opens the door to quality investments in this vital field, which is one of the pillars of the national food security strategy.
In conclusion, through this initiative, the Ministry of Environment seeks to achieve a delicate balance between facilitating trade and attracting investment on the one hand, and maintaining the highest standards of safety and quality and protecting the Kingdom’s plant and animal wealth on the other hand, in a way that serves the country’s overall economic and development goals.
