Investing in Fisheries in Saudi Arabia:

Why a distressed fisheries industry is one of the

highest returns generating sector

Historically an important industry for food security, fisheries are beset with challenges currently

Saudi Arabia is the second largest producer of fish in

the GCC, with a total output of 97,348 tonnes as of
2013. Of these, 25,402 tonnes were developed
through the relatively new method of aquaculture,
and another 71,946 tonnes through traditional, largely
artisanal capture fishing.
Fisheries are the second most important resource for
Saudi Arabia after oil. Yet, despite factors like the
country possessing one of the largest shelf areas (95
040 km), and well stocked coasts like 2,320 km of
coastline adjacent to the Red Sea, and a bulk Arabian
Sea, Saudis fisheries sector is in distress.

Historically an important industry for food security, fisheries are beset with challenges currently

There are several reasons why fisheries in Saudi Arabia may seem against
reason:
Overfishing: Tragedy of the commons, wherein improper governance over
common fishing areas lead to over-exploitation by artisanal as well as
commercial fisheries. The Gulf alone under-reported about 30,000 tonnes of
capture fishing using weirs between 2005 and 2010.
Increasing demand without an accompanying increase in production: Saudi
Arabias population was 30.8 million as of 2014, increasing by 61% between
2006 and 2014. An increasing expat and young population pushes the stress
on food resources, with Saudi already the highest food consuming nation in
GCC. Contradictorily, KSA is one of the lowest per capita consumers of fish.
Poor advances in aquaculture: Despite pioneering initiatives in the
aquaculture space since 1986 producing 28 tonnes of fish (FAO), almost 3
decades later, aquacultures contribution to Saudis fisheries sector is about
26%, almost half of the world average of 50%, due to under-reporting,
insufficient political momentum and inactivity.
Labour Availability: Incidence of migrant labour from Philippines, Bangladesh
and India in the fisheries sector is on the decline, while a number of native
artisanal fishermen and women have abandoned fishing for more lucrative
livelihoods when catch became sparser and sparser.

Why you should be investing: However, recent initiatives, sure to get high returns make it a lucrative
investment sector, making it one of the countrys best kept secrets
Domestic demand of fish for
consumption
Domestic
supply

Imports (91%)
Large and Increasing Domestic Demand
One of the lowest per capita consumption, yet 91% of
domestic fish imported
Population outstrips local supply
Demand augmented by preference for protein rich food
Investments in Marine Biotech
SAGIA to gather investments worth US$ 0.3 bn
by 2016, and US$ 1.5 bn by 2025 in Blue Biotech
50% of this to be invested in R&D through KACST

Government Investments
Encourages PPPs while matching private investments.
The Saudi Arabian Ministry of Agriculture has invested US$ 10.6
bn to increase production from 100 k tonnes in 2012 to 1 mn
tonnes by 2016.

Government Support
Conducive private and foreign investments framework
encouraged under Foreign Investment Law
Active support in R&D, technology transfer, marketing support
and manpower training
Also, giving fingerlings of native species, establishing
aquaculture frameworks, relaxing institutional and investment
barriers, and charting suitable sites for development.
Increase in Fish, Shrimp and
Caviar Prices Internationally as
well as domestically

Infrastructure Investments
Increased support in food, and particularly fish
processing due to increasing demand of
processed fish
New projects like Jazan Economic City has fish
processing units
Ports, harbour and other development in the
pipeline

Quick Facts

TRENDS
DOMESTIC
Increasing population
Increasing prices of fish
Preference for protein rich food
Preference for processed food, particularly protein rich
EXTERNAL
Increasing demand for caviar and prawns
OTHER
Head over to our report to find out how you can leverage
this opportunity.

We can help you plan for, and transition smoothly from planning to implementation

Reports prepared by GCC specialists will help you make sense of this vast business
opportunity. Head over to our report on Fisheries and Aquaculture in Saudi Arabia.