Saudi Arabia Agriculture Insurance Market Overview, 2030

Agricultural insurance in Saudi Arabia has evolved in tandem with the Kingdom’s broader agricultural and food security strategies, shaped by its desert climate, water scarcity, and heavy state involvement. In the 1970s and 1980s, when Saudi Arabia pursued large-scale agricultural self-sufficiency programs, particularly in wheat and dairy, risk management relied primarily on direct government subsidies and compensation schemes rather than formal insurance. Losses due to drought, pests, or extreme heat were absorbed through financial support packages, leaving the insurance sector underdeveloped. The 1990s and early 2000s saw growing recognition of the need for structured agricultural risk transfer, particularly as the government began phasing out wheat subsidies and scaling back unsustainable irrigation. However, the lack of actuarial data, small-scale farming outside large agribusiness operations, and the dominance of subsidies limited early insurance uptake. Private insurers offered basic livestock and greenhouse coverage, but penetration remained very low. A significant shift came in the 2010s, when Saudi Arabia integrated agricultural insurance into its Vision 2030 and National Transformation Program agendas. The government emphasized food security diversification, livestock development, aquaculture, and sustainable greenhouse farming. Insurance gained policy traction as a tool to protect investments in these sectors. Partnerships with reinsurers and international institutions supported pilots of parametric drought and heat-stress products, while the Saudi Agricultural Development Fund (ADF) began linking financing to insurance adoption. By the 2020s, Saudi Arabia’s agricultural insurance market started transitioning from subsidy reliance toward structured, technology-enabled solutions. Today, the focus is on expanding coverage through digital platforms, parametric products, and integration with ESG-linked agricultural investments, laying the foundation for a more resilient farming sector in a climate-vulnerable environment.

According to the research report, "" Saudi Arabia Agriculture Insurance Market Overview, 2030,"" published by Bonafide Research, the Saudi Arabia Agriculture Insurance market is anticipated to add to more than USD 20 Million by 2025–30.Agricultural insurance in Saudi Arabia is regulated within the framework of the Kingdom’s financial and agricultural policies, shaped by the Saudi Central Bank (SAMA) and the Ministry of Environment, Water, and Agriculture (MEWA). Oversight of insurance companies and product approvals falls under SAMA, ensuring solvency and compliance, while MEWA sets agricultural policy priorities aligned with Vision 2030. Unlike countries such as Brazil or India, Saudi Arabia does not operate a large-scale public premium subsidy program for crop insurance. Instead, risk management is integrated with state-led financing and sustainability initiatives.A cornerstone of agricultural policy is the role of the Saudi Agricultural Development Fund (ADF), which provides concessional loans and financial incentives for investments in greenhouses, aquaculture, and modern irrigation. Increasingly, the ADF ties financing eligibility to insurance requirements, encouraging adoption of coverage for high-value farming ventures. This linkage has effectively served as a policy lever to expand insurance penetration. Regulations also encourage public–private partnerships, particularly with reinsurers and global institutions, to introduce parametric and index-based products. These are critical in Saudi Arabia’s arid climate, where risks like drought, water scarcity, and extreme heat cannot be efficiently covered by traditional multi-peril crop insurance. Policy alignment with Vision 2030 and the National Food Security Strategy emphasizes insurance as part of broader resilience planning. Regulatory frameworks promote digital platforms, ESG-linked funding, and private sector participation, while state agencies continue to act as a financial safety net.

Agricultural insurance in Saudi Arabia can be segmented into crop yield insurance, crop revenue insurance, and other specialized products, though their adoption reflects the Kingdom’s unique farming structure. Crop yield insurance is gradually emerging as the most relevant product type, particularly for high-value greenhouse crops, date plantations, and fodder production. It covers losses caused by drought, extreme heat, pest infestations, and irrigation system failures—major risks in the arid environment. While adoption remains limited compared to global markets, yield-based policies are increasingly tied to loans offered by the Agricultural Development Fund (ADF), making them a critical tool for protecting investments in modern farming. Crop revenue insurance is less prevalent in Saudi Arabia, given the country’s limited export-oriented crop production. However, for strategic crops such as dates, which hold significant commercial and cultural importance, revenue insurance is being explored to protect farmers against both yield fluctuations and market price volatility in regional and international trade. Large-scale agribusinesses with supply chain exposure are more likely to adopt this type of coverage.The Others category represents the most innovative and dynamic segment of Saudi Arabia’s agricultural insurance. This includes parametric and index-based products that trigger payouts based on temperature thresholds, rainfall deficits, or heat stress indices highly relevant given the Kingdom’s climate challenges. Livestock and aquaculture insurance are also growing segments, aligned with Vision 2030 goals to diversify food production. Supported by international reinsurers and insurtech collaborations, these products are paving the way for broader adoption of agricultural risk transfer in Saudi Arabia.

In Saudi Arabia, agricultural insurance coverage is shaped by the country’s extreme climate conditions and reliance on high-value, resource-intensive farming. Multi-Peril Crop Insurance (MPCI), common in markets like Brazil or the U.S., has seen limited adoption in the Kingdom. Traditional MPCI, which protects against a wide range of perils such as drought, pests, and floods, is difficult to implement in Saudi Arabia because risks like drought and heat stress are systemic and highly correlated across regions. However, modified MPCI policies have been developed for greenhouse farming, date plantations, and fodder crops, offering protection against localized risks such as pest infestations, irrigation system breakdowns, or sandstorms. Government-linked financing from the Agricultural Development Fund (ADF) often incentivizes adoption of these policies.Crop-hail insurance, which is a major coverage type in temperate agricultural countries, has almost no relevance in Saudi Arabia. Hail events are rare in the Kingdom’s desert climate, and when they occur, they are highly localized and infrequent. As a result, crop-hail insurance does not represent a significant share of the agricultural insurance portfolio.The Others category is the most innovative and fast-growing segment. This includes parametric insurance products based on rainfall deficits, heat stress, and temperature thresholds, which provide quick payouts in case of extreme weather. Insurance for livestock, aquaculture, and poultry is also expanding, reflecting Vision 2030’s push to diversify food production beyond traditional crops. These coverage options, supported by international reinsurers and insurtech platforms, are positioning Saudi Arabia’s agricultural insurance market toward more specialized, climate-adaptive solutions.

Agricultural insurance in Saudi Arabia is distributed through a mix of banks, insurance companies, and other intermediaries, with the structure reflecting the country’s financing-led agricultural model. Banks, particularly in partnership with the Saudi Agricultural Development Fund (ADF), play a central role in distribution. Many agricultural loans whether for greenhouse farming, date plantations, aquaculture, or fodder production are tied to mandatory insurance coverage. This credit-linked model ensures that investments in modern, capital-intensive farming are protected, while simultaneously encouraging insurance adoption. Commercial banks and Islamic finance institutions are also beginning to bundle agricultural insurance with financing products for agribusiness clients. Insurance companies are the primary direct distributors of agricultural insurance. Local insurers such as Tawuniya, Bupa Arabia, and MedGulf, along with international players operating under Saudi Central Bank (SAMA) regulations, design specialized products tailored to the Kingdom’s climate risks. These companies often collaborate with global reinsurers to structure parametric covers for drought and heat stress and provide livestock and aquaculture insurance. Distribution typically occurs through company branches, licensed agents, and increasingly digital platforms, reflecting Saudi Arabia’s broader digital transformation agenda under Vision 2030.The Others category includes agricultural cooperatives, brokers, technology providers, and insurtech platforms. Cooperatives help aggregate demand for insurance, particularly among small and medium-scale farmers, while brokers play a role in structuring reinsurance-backed deals for large agribusinesses. Insurtech startups are emerging as critical enablers, offering digital distribution, satellite monitoring, and weather-index triggers that expand access and reduce claims-processing times.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others

By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others

By Distribution Channel
• Banks
• Insurance Companies
• Others

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others

By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others

By Distribution Channel
• Banks
• Insurance Companies
• Others Show more