A distinguishing feature of Fish Farming is that it is the best utilization of land, water and fish in a sustainable way, taking into consideration the environmental impact by ensuring that utilization of these resources does not affect the eco-system.
Saudi fish farming has now come of age, with the success of two shrimp aquaculture projects on the Red Sea coast. Of these two, the most outstanding is the SR 1.3 billion National Prawns Company (NPC) project, one of the world's largest of its kind. Next comes the shrimp project of the Saudi Fisheries Company. There are some other large projects in the pipeline too.
Prospects for new joint ventures are equally bright since fish farming is exempted from the Negative List for foreign investors (unlike the marine fisheries sector, which is reserved for local entrepreneurs).
The progress of Saudi aquaculture can be gauged from the fact that production of fish and shrimp farms (fresh water and salt water) has gone up from less than 2000 tons in 1999 to 6000 tons by 2001. The total production is poised to touch a new record of 15,000 tons in 2004, according to non-official estimates.
Saudi Arabia, meanwhile, has emerged as a notable shrimp supplier to the world markets from this year onwards, as NPC production is largely export-oriented.
Farming fish is a suitable and vital alternative for traditional fishing which has been exploited to the maximum. Furthermore it's likely that production volume will start to decline because of illegal marine fishing that does not allow enough time for fish and shrimps to reproduce and grow. Since international demand is increasing consistently, it is unlikely that fish supply will be able to meet this demand without the contribution of Fish Farming.
Although Fish Farming in the Kingdom started only in 1978 with an objective of producing some specific species of fish and shrimps, nonetheless this industry has witnessed a major development particularly in shrimps farming.FISH
FARMING IN THE KINGDOM
Economic ValueFish Farming has gained special importance in recent years, because of the advantages it provides for both investors and consumers. Scientific experiments and feasibility studies have proved that investment in this industry will yield economic benefits.
For consumers, Fish Farming is one of the effective means to counter circumstances and changes facing the mankind nowadays, especially those related to environmental pollution.
Fish Farming projects can secure a sustainable and safe food source away from negative factors and uncontrollable difficulties that face traditional fishing.
Compared to other development projects, Fish Farming is one of the most successful investments. Ministry of Agriculture is attaching special importance to this kind of activities considering the role they play towards achieving self-sufficiency and supporting the national economy.
Importance and advantages of Fish Farming in the Kingdom are as follows:
1. Providing a fresh food of high value,
2. Production throughout all seasons.
3. Ability to adapt quantity and quality according to local and international demand.
4. Economically feasible projects (annual profits mount upto 30% and capital return within 3-5 years)
5. Most of requirements for these kinds of projects are locally available.
6. Proximity of the Kingdom to European markets (major consumer of fish), advanced transportation means, governmental support and good infrastructure.
7. Availability of technology related to Fish Farming as a result of a number of researches, experiments and studies carried out on local fish and systems of Fish Farming, improvement of fish fodder production technology and using local alternatives.
8. Low prices of energy and availability of transportation and highways.
9. Nominal rental prices of onshore lands as well as funding farming projects with no-interest agricultural loans, which in return leads to reducing production costs.
Fish Farming can also support national economy by:
1. Limiting and reducing of imports to reach self-sufficiency.
2. Exporting surplus (as the case now with shrimps farming) to enhance and diversify non-oil national income resources by bringing foreign currency to the Kingdom.
3. Providing jobs for a big sector of national qualified personnel.
4. Strengthening the contribution of the agricultural sector in the national economy.
Suitability of the Kingdom's Natural Conditions for Fish Farming:
- The Kingdom has all necessary components for carrying out Fish Farming activities that include suitable climate, location, water, energy sources, infrastructure utilities, capital and good markets. Located between the Gulf and the Red Sea with coasts spread over 2400 km, the Kingdom is very rich of fish resources. Commercial success of farming some of the aforementioned species has been practically proven.
- Surveys conducted by the Aquaculture Dept. of the Ministry of Agriculture have proved the existence of vast regions suitable for carrying out this kind of activities.
- Fish Farming projects could be either internal as part of bigger agricultural projects that depend on fresh underground water used for irrigation, or marine projects utilizing seawater.
- A number of research centers and stations that are concerned with fish resources are also available such as Fish Resources Research Center in Jeddah, Fish Resources Research Center in Qatif/Dammam and two research stations in Derab and Qasim, of King Abdulaziz City for Science and Technology.
Development of Fish Farming in Saudi Arabia:
During the last decade, the Kingdom witnessed a strong start of Fish Farming. According to Fishery Statistics Books of 2000, published by Marine Fishery Dept. of the Ministry of Agriculture, the production of shrimp farms jumped from 180 tons in 1992 to 4,650 tons in 2002, while the statistics of Fish Farms Administration indicated that estimated production exceeded 8,000 tons in 2003. Ministry of Agriculture expects shrimps production of existing and under-construction farms will reach 30,000 ton per annum. Thus, the Kingdom will achieve self-sufficiency of shrimps.
When all licensed fish farms are operational to their optimal capacity, production can cover 80% of the local demand. It is worth mentioning that the Kingdom imports over 60% of its needs for fish.
Fish Farming Projects Statistics:
Total number of licensed fish and shrimp farms is about 135 in addition to 48 licenses still being processed. There are 78 fresh water farms and 38 salt-water fish and shrimp farms. Planned production when all projects go operational is 50,900 tons per annum as per the statistics of the Aquaculture Dept. for the year 2002. Statistics of 2003 estimate that total production of existing farms reached 10,650 tons including 8000 tons of shrimps.
Kinds of fish viable for commercial inland and onshore farming in the Kingdom:
A Freshwater fish:1. Bulti (Tilapia): Red and Mongrel
2. Mabrook: Regular, Bighead, Silver, Grass fish, Indian, Chinese
3. Catfish: African Catfish
4. Bas fish
5. Freshwater Shrimps: Jumbo Shrimps.
B Saltwater Fish and Shrimps and other Marine organisms:1. Fish: Hamour, Safi, Arabi, Danis, Qaros, Salmani and Sea Bulti
2. Shrimp: White and Tiger Shrimps
Future of Fish Farming in Saudi Arabia:
There is great potential for expanding fish resources through intensifying effort in marine farming and exploiting both the Red Sea and the Arabian Gulf coast resources especially where surveys made by the Aquaculture Dept. have proved the existence of vast regions suitable for fish farming.
Research in the various aspects of fish farming has been given high priority. This has helped to develop advanced systems and methods of Fish Farming and ability of farming a number of specific species on commercial levels, such as Hamour, Safi and Arabi in addition to Shrimp as well as transferring recent technologies to make them available for investors and fish producers.
The Jazan Region and the Tihama plains are considered the Kingdom's most promising region to develop sustainable Fish Farming projects. That is attributed to availability of water, good land, suitable environment and skilled manpower.
The Kingdom has allotted 80,000 hectares of good lands for long-term lease (20-50 yrs).The Kingdom is a good lace for investment in this industry for the following reasons:1. The Kingdom has excellent potential favorable environment for Fish Farming, such as climate, location, availability of land, water and energy, infrastructure and capital, good marketing prospects as well as skilled manpower.
2. The Kingdom has a unique geographical location with the length of its coastal belt along the Red Sea and the Gulf exceeding 2,400 kms. This makes the Kingdom a rich source of a wide range of fish and other marine products suitable for commercial exportation and aquaculture. The Kingdom is a good place for farming different species between temperate and tropical climates both inlands and coastal areas. The coasts of the Kingdom also contain suitable locations for all types of this industry such as offshore lakes, floating cages and offshore curves. That is in addition to some forms of islands and bays particularly in the northern area of the Red Sea.3. The growing health awareness of the importance of seafood as healthy and high value products and the high purchasing power of Saudi consumers, coupled with the increasing local and international demand for the sea foods - all of these factors will provide excellent marketing prospects for producers.4. Chances for exportation and competition are in favor of farming in Saudi Arabia due to low production costs, closeness to export markets, easiness of transportation and freight added to that the Kingdom is free of many diseases that could hinder development of this activity.
5. The existence of a strong base for researches represented by research centers and stations - especially in Jeddah- and enhancing these centers and station with national and foreign expertise with availability of financial sources will all contribute to improving and transferring new technologies and methods and make them available for investors.
6. The Deputy Ministry of Fisheries Resources represented by its specialized departments is responsible for evaluating feasibility, technical and environmental studies undertaken by specialists to ensure the availability factors, and hence approve those studies and give licenses for the projects. It also gives recommendations for loans from the Saudi Arabian Agricultural Bank. The agency then follows up the progress of the projects throughout the various stages and provides free consultation and technical services. It also issues a number of periodicals, booklets and essays in all aspects of Fish Farming.
7. The Kingdom is cooperating with many international and specialized organizations in this field such as the FAO and JAICA.Insight into the Future of Fish Farming in the Kingdom:The success achieved during the last decade should give confidence to investors, Saudi or foreign, regarding the profitability of fish farming here. This is so particularly for Shrimps Farming.
Farming activities have developed significantly and exceeded the stage of self-sufficiency to reach stage of an export surplus. A landmark regarding this was the recent visit of a European Union delegation to discuss systems and regulations that organize exporting the Kingdom's fish productsshrimps in particular- to countries of the European Union as well as lifting the ban on those products.
Regarding fish farming, the Kingdom is about to achieve 80% self-sufficiency, once all licensed projects are operational. The joint efforts and cooperation between concerned departments and the private sector, particularly research centers which shoulder most of the burden, will be required for the best utilization of onshore sources in both the Red Sea and Arabian Gulf areas in addition to the investment opportunities in Jazan region and Tihama plains.
MAJOR COMPANIES IN SAUDI FISH FARMING INDUSTRY
1. Saudi Fisheries Company:It is a leading company in this field. Production of its projects in the Red Sea coast in Jazan Region reached 1,500 tons of White Shrimp.
2. National Prawns Company: This is a group of 10 projects in the Makkah Region. Area of each project is between 3,750 and 4,000 donums, with targeted production capacity of 11,100 tons per annum. Preparations are underway for another 15 projects in the same region.
3. Jazan Agricultural Development Company (JAZADCO):This company is located in the Jazan Region with targeted production capacity of 2,700 tons per annum. Another project is under construction with a production capacity of about 2,560 tons per annum.
A number of promising companies and establishments are currently processing licenses for new shrimp farming projects, in addition to expansion plans of the aforementioned companies to increase their production capabilities, for example the National Shrimp Company and the Jazan Agricultural Development Company (JAZADCO).
Mohammed Al Shahli, Director - Aquaculture Dept., Ministry of Agriculture, Government of Saudi Arabia
© Saudi Commerce and Economic Review 2004
