Aquaculture
The project to establish aquaculture farms for fish production represents a promising opportunity to capitalize on the 1,800-kilometer Red Sea coastline. The project will focus on raising fish in both terrestrial and marine environments, contributing to meeting the growing demand for fish in the local market. The project is characterized by the possibility of using modern breeding and feeding techniques, ensuring the production of high-quality fish in sufficient quantities to meet market needs.
Study content
Rationale for choosing the project
Modern breeding techniques ensure that the quality of the fish is maintained and their nutrition is balanced, which increases their nutritional value.
The project contributes to diversifying local food sources and reducing dependence on fish imports.
The project will provide many direct and indirect jobs, enhancing economic development in the surrounding areas.
Using advanced technologies such as closed rearing systems (RAS) to minimize losses and improve productivity.
The project contributes to achieving food security and enhancing the sustainability of the fish sector in the Kingdom.
Demand analysis
Saudi Arabia’s population is growing exponentially to reach 40 million in 2030 from 34 in 2019.
Seafood consumption in Saudi Arabia is increasing by 5% per capita and is expected to reach the global average of 20 kg by 2030, generating additional demand for seafood.
The need for sustainable aquaculture: With increasing pressure on natural fish resources, aquaculture becomes a sustainable alternative that contributes to environmental protection and minimizes the depletion of marine stocks.
Opening up new markets: The project can contribute to exporting products to regional and international markets, boosting financial returns and increasing the Kingdom’s competitiveness in the global market.
Encouraging investment: Aquaculture projects are subsidized by the government, making it easier to obtain financing and licenses.
Financial indicators
Capital: SAR 15 million.
Return on Investment (ROI): 20%.
Annual revenue: Expected to exceed annual revenue after two years of initial operation, due to accelerated growth in demand for seafood products.
Profitability: With a 20% rate of return, the project is expected to have a positive impact on profits over time, especially as seafood prices stabilize and production expands.
Rapid cost recovery: With expected profitability, the project is expected to recover its costs within 4-5 years of startup.
Sustainable growth: As export markets expand, the financial return is expected to gradually increase.
Investment advantages
Keep pace with population growth and demand:
With the ever-increasing population and growing food awareness, the demand for fish and seafood products is expected to increase, ensuring continuous demand for the product.
Government support:
The Saudi government supports sustainability and advanced agricultural projects, opening doors for financing facilities and incentives.
Low risk:
This is a relatively low-risk project due to the constant stabilization of the demand for fish and marine products locally and globally.
Good financial return:
The project achieves good financial returns thanks to the continuous demand for marine products, with the possibility of expanding and increasing production to increase returns.
Harnessing modern technology:
The project relies on advanced technology in aquaculture that improves production and minimizes losses, which contributes to improving the profitability of the project.
Features of the project
Sustainability of production:
The project contributes to agricultural sustainability by producing local fish and marine products in ways that are in line with local and international market needs.
Utilization of natural resources:
The project relies on utilizing salt water and natural resources for aquaculture, ensuring the long-term sustainability of production.
Innovation in the food industry:
The project contributes to the development of the seafood industry and promotes the use of advanced technologies to increase efficiency and productivity.
Export opportunities:
With the increasing demand for seafood products, exports can be expanded to global markets and increase economic returns.
Product diversity:
A variety of fish and marine products such as shrimp, pearls, and algae can be produced, enhancing the chances of success in the market.
