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AQUACULTURE

4 KEY REASONS TO INVEST IN AQUACULTURE IN SAUDI ARABIA

1 FAVORABLE ENVIRONMENTAL ANDCLIMATIC CONDITIONS

2

SaudiArabiaisstrategicallylocatedwitha 1,800 km coastlinealongtheRedsea

SaudiArabia’saccesstotheRedSeaoffersidealconditionsforaquacultureandtheproductionof

high quality seafood: - Pristinewater:7.04mg/lofdissolvedoxygen(DO) - Lowwaveheights:0.5mto1m - Suitabledepth:20mto50mofdepth(dependingon

location) - Adequatesalinity:35to41PPT(dependingonlocation) - Varyingwatertemperaturealongthecost:18˚C(north)

and38˚C(south)makingitpossibleforproductionofa widerangeoffishspecies

SaudiArabia’sseafoodconsumptionisexpectedtogrowby7.4% per annum until 2030

Growing local consumption,drivenbypopulationgrowthandincreaseinconsumptionpercapita,expectedtogenerateanadditionaldemandof

500,000tonsin2030

Withstagnantgrowthincapturefisheriesand stricter safety regulations imposed on imports, aquacultureispoisedtobethemainsourceofsupplyofseafoodinSaudiArabia

Inadditiontolocalconsumption,SaudiArabiaisstrategicallylocatedtobecomeaquality seafood exporter serving the GCC marketaswellastheAsianandEuropeanmarkets

GROWING LOCAL MARKET AND BIG

EXPORT POTENTIAL

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3 GOVERNMENT COMMITMENTTO GROW THE SECTOR TO

ITS FULL POTENTIAL

4 SaudiArabia’s1,800kmcoastlineontheRedSeaoffersplentyofopportunities

Severalopportunitiesalongtheaquaculturevaluechainarereadyforinvestors,includingfeed mills, hatcheries, grow-outs and processing plants.

15locationshavebeenidentifiedbythegovernmentassuitableforaquacultureafterrigorousexplorationoftheRedSeashores.Assuch,theareasconformtothestandardsadoptedintheKingdomwhichhavebeenissuedbytheFisheries Department in 2017 (1438 AH)

SaudiArabiaishighlycommittedtogrowingtheindustryasbuildingsafe and strategic food reservesaremandatedbySaudiArabia’sVision2030

InlinewithVision2030,theMinistryofEnvironment,WaterandAgriculture(MEWA)launchedadedicatedprogramthatiscommittedtoreach600,000 tons of fisheries products by 2030

Theprogramseta budget of SAR 1.3 bn tounlockthesectorbyinvestingininfrastructure,R&D,andmarketingcampaigns

Inaddition,SaudiArabia’sstrictqualityandsafetyassuranceprogramshavemadeitsseafoodproductsrenownedfortheirsafe and high quality

INVESTMENT OPPORTUNITIES READY

FOR INVESTORS

WITH LONG COASTLINES ALONG THE RED SEA, SAUDI ARABIA IS AN IDEAL LOCATION FOR AQUACULTURE

AQUACULTUREIN SAUDI ARABIA

AL JOWF

HAEL

AL QASIM

AL BAAHA

ASEER

JAZAN

TABOUK

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CLIMATICCONDITIONS

LONG COASTLINE

LOW WAVE HEIGHTS

SUITABLE CAGE DEPTH

ADEQUATE SALINITYdependingonlocation

PRISTINE WATER AND ADEQUATE DO

SUITABLE WATER TEMPERATUREdependingonlocation

THE RED SEA HAS FAVORABLE AND DIVERSIFIED ENVIRONMENTAL AND CLIMATIC CONDITIONS FOR AQUACULTURE

1,800 km

7.04 mg/l

35 to 41 ppt

20 to 50 m

0.5 to 1 m

18 to 30°C

These conditions allow local production of a wide range of species

SAUDI ARABIA’S SEAFOOD CONSUMPTION CREATES A NATURAL LOCAL MARKET FOR AQUACULTURE

SEAFOODCONSUMPTION

SAUDI ARABIA’S SEAFOOD CONSUMPTION TO GROW AT 7.4% PER YEAR UNTIL 2030 …

Seafood consumption in Saudi Arabia (thousand ton)

Source:NationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

2016

+7.4%

500

2018 2020 2022 2024 2026 2028 2030

790

708

630

557

486

420

357

290

0

07

… DRIVEN BY AN INCREASE IN POPULATION AND PER CAPITA SEAFOOD CONSUMPTION

Populationgrowth rate inSaudiArabia

1.4% per year

SaudiArabia’sseafood consumption(toreachglobalaverageof20kgby2030)

6% per capita

POPULATION GROWTH AND INCREASE IN PER CAPITA SEAFOOD CONSUMPTION ARE DRIVING MARKET GROWTH

Source: NationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

POPULATION GROWTH

2016

+1.4%

2018 2020 2022 2024 2026 2028 2030

Population in Saudi Arabia (million)

SEAFOODCONSUMPTION

39.4

38.3

37.3

36.3

35.3

34.3

32.6

31

0

09

Source: NationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

INCREASE IN PER CAPITA SEAFOOD CONSUMPTIONSeafood consumption per capita (kg)

2016

0

10

20

30

+6%

2018 2020 2022 2024 2026 2028 2030

Worldaverage20 kg

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AS CAPTURE FISHERIES PRODUCTION IS EXPECTED TO REMAIN STABLE …

… AQUACULTURE PRODUCTION IS EXPECTED TO CAPTURE THE DEMAND GROWTH

Capture Fisheries recorded a 1% CAGR over the past 12 years No further growth is expected in the future

Aquaculture recorded a 12% CAGR over the past 12 years

FISHERIES PRODUCTION

SAUDI ARABIA CAPTURE FISHERIES PRODUCTION HAS BEEN STABLEOVER THE PAST TWELVE YEARS

FISHERIES PRODUCTION

TOTAL CAPTURE FISHERIES PRODUCTION IN SAUDI ARABIA (THOUSAND TONS)

0

20

40

60

+1%

80

2005 2010 2015 2017

Capture fisheries production expected to stabilize at 70,000 tons per year

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WHEREAS AQUACULTURE PRODUCTION IS GROWING SIGNIFICANTLY

AQUACULTUREPRODUCTION

TOTAL AQUACULTURE PRODUCTION IN SAUDI ARABIA (THOUSAND TONS)

Aquaculture expected to grow at even faster rate due to increase in consumption and increase in competitiveness of local products

0

10

20

30+12%

40

50

60

2005 2010 2015 2017

THE GCC ALSO OFFERS OPPORTUNITIES FOR LOCAL AQUACULTURE PRODUCTS

INTERNATIONAL MARKET

KSAiswellpositionedtocapturethisgrowthinimportsduetoitsproximityandabilitytoprocurefreshproducts

GCC EXPECTED TO IMPORT770,000 TONS OF FISH BY 2030

GCC fish imports (thousand tons)

Source:FAO,MEWA,Industryexperts

0

500 440

770

1,000

2017 2030

+330

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SAUDI ARABIA HAS THE RIGHT INFRASTRUCTURE ACROSS THERED SEA TO FACILITATE EXPORT

FACILITATING EXPORT

AL JOWF

HAEL

AL QASIM

AL BAAHA

ASEER

JAZAN

TABOUK

11 LOCAL, REGIONAL & INTERNATIONAL AIRPORTS 10 SEAPORTS

Seaports

Airports

Source:SaudiArabia’sVision2030

SAUDI ARABIA IS COMMITTED TO UNLOCKING THE AQUACULTURE SECTOR

We will concentrate our efforts on supporting the aquaculture industry

AQUACULTURE, APRIORITIZED INDUSTRY

UNLOCKING THEAQUACULTURE SECTOR

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KEY STEPS TAKEN TOWARDS UNLOCKING THE SECTOR

Conducteddetailedandcomprehensivesectorreviewtounderstandcurrent state of fisheries sector

Preparedsectordevelopmentplantoattain sector’s production targets

Establishedadedicated,crosssectorial,program to implement the development plan

Source: MinistryofEnvironment,WaterandAgriculture

“THE NATIONAL FISHERIES DEVELOPMENT PROGRAM IN THE KINGDOM OF SAUDI ARABIA”

OBJECTIVES

EnsureAquaculturesectorinSaudiArabiaiscompetitive and sustainable

Build strong and effective relationshipsbetweentheprivateandpublicsector

Promote local sea food productionlocallyandinternationally

Continuetodevelopandmodernize the post-harvest sector

Establishpartnerships with relevant stakeholderstosupportthesectorinR&D,humancapitaldevelopmentandfinancing

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THE PROGRAM AIMS AT INCREASING TOTAL SEAFOOD PRODUCTION TO 600,000 TONS BY 2030

FISH PRODUCTION

TARGET PRODUCTION FROM AQUACULTURE IS 530,000 TONS IN 2030

2016

0

200

400

AcquacultureCapturefisheries

600

+13%

800

2018 2020 2022 2024 2026 2028 2030

600

443

339260

205170

131108 530373269190

135100613870 70

7070

70

70

70

70

Source: TheNationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

SAUDI ARABIA’S SEAFOOD PRODUCTION (THOUSAND TON)

TO ENABLE THE RAMP-UP, THE PROGRAM WILL SPEND SAR 1.3 BN IN ORDER TO UNLOCK THE AQUACULTURE’S POTENTIAL

PROGRAMSUPPORT

Source:TheNationalFisheriesDevelopmentProgram

PROGRAM FINANCIAL SUPPORT From 2018-2030, SAR million

Infrastructure TotalIncentives

1,26040

100

320

800

PrivateSectorSupport

MarketingCampaign

R&D

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1

3 4

2

DETAILS OF THEPROGRAM SUPPORT

Develop 8 marine clusters across Saudi Arabia (providingice,fuel,freshwater,power,landingstations,

maintenancefacilities)

Develop support infrastructure (includingProcessingplants,FeedMills,Hatcheriesand

Growoutfacilities)

Continuous researchondevelopingnewspeciesthatcangiveSaudiArabiasustainablecompetitiveadvantage

Promote local products

Buildawarenessabouthighquality,safeandnutritionallyrichlocalproductswithinSaudiArabia

andinternationalmarkets

Providemarketing supportandfundstoorganizeandhostconferences,events,etc.

FINALLY, SAUDI ARABIA IS ALREADY PUTTING IN PLACE STRICT REGULATIONS TO ENSURE SUSTAINABILITY

INDUSTRY SUSTAINABILITY

Source:TheNationalFisheriesDevelopmentProgram

BAP CERTIFICATION

SAMAQ

BIO-SECURITY PROGRAM

BAPcertificationmandatoryforallaquaculturefacilitiesby2020

SaudiArabiaontracktobethefirstcountryintheworldtohavenationallevelBAPcertification

ThisensuresenvironmentallysafeandsustainableproductsandthattheBestAquaculturePracticesareimplemented

NationalAquacultureproductcertificationandbrandscheme,basedonresponsibleAquaculturepractices

SAMAQcertificationtobeusedforthepromotionofKSA’sAquacultureproductstothelocal(andregional)markets

Strongbio-securityprogrambasedoninternationalstandards,withISOcertifiedlabs

SOPsharedwithfarmstoensuresafetyofoperations

Regularmonitoring(monthly)toensureSOPisbeingimplemented

Of the Aquaculture sector and the high quality of its safe local seafood products

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OPPORTUNITIES ALONG THE VALUE CHAIN AVAILABLE TO ACHIEVE FISH PRODUCTION TARGETS OF 600,000 TONS BY 2030

PRODUCTION TARGET

Source:TheNationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

Fishfeed

Hatcheries

InlandfishRASfarming

Coastalshrimpfarming

Marinefinfishcagefarming

Refrigeratedtransport

Chilled/coldstorage

Secondaryprocessing/valueadd

PRE-HARVEST

DESCRIPTION ESTIMATED INVESTMENTS REQUIREMENTS

PRODUCTION

POST HARVEST

1.5 bn SAR1

15 bn SAR2

1 bn SAR3

1.Inlandfishrecirculation,costalshrimpandmarinefinfishfeed2.Cagecollars,nets,moorings,feedstorage,workboats,equipmentandhatcheries3.Transportation,chilledstorage,secondaryprocessing/valueadding

TODAY, 15 MARINE FINFISH AQUACULTURE OPPORTUNITIES ARE READY FOR INVESTORS

AQUACULTURE OPPORTUNITIES

PROVINCE SITE NO. LOCATION

TABOUK

MADINAH

MAKKAH

ASEERJAZAN

123456789101112131415

DubaOmlojYanbuYanbuArrayisMastorahMastorahMastorahRabighAlMuzaylifAlMuzaylifAlMuzaylifAlQunfudahSaeedatAlSawalaehaAlSumairat

Source:TheNationalFisheriesDevelopmentProgramintheKingdomofSaudiArabia(2016)

AL JOWF

HAEL

AL QASIM

AL BAAHA

ASEER

JAZAN

TABOUK1

234

5 678

9

15

10 1213

14

11

25

MAIN AQUACULTURE PLAYERS ON THE RED SEA

Source: MEWA

TABUK FISHERIES

NAQUA

ASMAK

SAUDI FISHERIES

THAWRAT SEAS

ISLAND PRAWN

SAUDI COASTS CO.

JAZADCO

RED SEA AQUACULTURE CO.

ABOUT SAUDI GENERAL INVESTMENT AUTHORITY

27

ImamSaudBinAbdulazizRoad

P.O.Box5927,Riyadh11432

KingdomofSaudiArabia

T+966112035555

F+966112632894

Eindustrial@sagia.gov.sa

investsaudi.sa

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