• In this Law, the following words and phrases shall have the meanings assigned thereto, unless the

• context requires otherwise:

  • 1. Law: Law of the Agricultural Development Fund.

  • 2. Fund: Agricultural Development Fund.

  • 3. Minister: Minister of Environment, Water, and Agriculture.

  • 4. Board: Board of Directors of the Fund.

  • 5. Chairman: Chairman of the Board.

  • 6. CEO: Chief Executive Officer of the Fund.

1. The Fund shall have a legal personality and financial and administrative independence and shall report to the National Development Fund.

2. The Fund shall be headquartered in the city of Riyadh, and may, pursuant to a Board decision, establish branches or offices within the Kingdom as needed.

• Taking into account the preservation of the environment and water conservation in agriculture, the Fund aims, in accordance with approved strategies and policies, to support sustainable agricultural development and achieve food security by providing soft loans, credit facilities, and other appropriate tools and methods, including the following:

  • 1. Supporting local agricultural production and sustainable rural agricultural development, livestock and poultry farming, fish and shrimp farming and fishing, and the storage or marketing thereof as well as all the necessary requirements therefor.

  • 2. Encouraging the use of modern technology that contributes to water conservation and the enhancement of the production of various activities in the agricultural sector as well as the localization of such technology.

  • 3. Supporting agricultural cooperative associations.

  • 4. Supporting small and medium enterprises that provide services to the agricultural sector.

  • 5. Providing individuals and establishments with consulting services in areas falling within the Fund’s activities.

  • 6. Financing agricultural projects across all stages of agricultural supply chains.

  • 7. Financing agricultural investments abroad which are owned or invested in by Saudi investors to complement national agriculture in achieving food security in the Kingdom, in accordance with controls set by the Board.

  • 8. Financing mergers and acquisitions of establishments operating in the agricultural sector.

  • 9. Financing the import of food products of priority for food security in the Kingdom.

• 1. Without prejudice to the functions of the National Development Fund, the Fund shall have all the powers necessary to achieve its objectives, in accordance with relevant laws and regulations, including the following:

  • a) Lending and other forms of financing.

  • b) Accepting liens and other guarantees of payment.

  • c) Owning, possessing, pledging, and selling movable or immovable assets, as approved by the Board

  • d) Collecting fees for services rendered by the Fund, as determined by the Board.

  • e) Investing its funds in a manner that is consistent with its activities and enables it to create the necessary reserves.

  • f) Obtaining loans and other financing instruments in agreement with the National Debt Management Center and the National Development Fund.

  • g) Developing local and international partnerships in accordance with legal procedures.

  • h) Undertaking any other activity or task approved by the Board that achieves the Fund’s objectives and is consistent with the nature of its business.

  • i) Utilizing the capabilities, tools, and methods of the commercial and banking sectors in the management of its activities.

• 2. The Fund's liabilities may not exceed the value of its assets.

• The Fund shall extend loans to individuals, associations, companies, institutions, and foreign investors–licensed to operate in the Kingdom in accordance with the Foreign Investment Law–as well as entities and organizations that operate primarily in the agricultural sector and contribute to achieving food security in the Kingdom. The Fund may guarantee loans concluded by borrowers with third parties. In doing so, the Fund shall take the following into consideration:

  • 1. The agricultural, water, and environmental policy of the State.

  • 2. Short-term loans, whether cash or in-kind, are extended to cover seasonal expenses. The Board shall determine the purposes and maturity dates of such loans.

  • 3. The maturity dates of medium-term loans, whether cash or in-kind, do not exceed ten years.

  • 4. The maturity dates of long-term loans, whether cash or in-kind, do not exceed fifteen years. The Board may extend the period to twenty years in less-developed regions as well as for strategic projects.

  • 5. Verifying the repayment ability and the adequacy of collateral.

  • 6. Loan proceeds are not used for purposes other than those for which the loans are extended. The Board shall determine the necessary provisions.

  • 7. Ensuring that the required financing has been determined according to an approved feasibility study.

  • 8. Without prejudice to the role of other monitoring agencies, the Fund shall monitor the progress of the execution of the projects it finances to ensure that they are executed in accordance with the set plan, and shall provide its advice regarding the challenges and difficulties encountered during the execution of such projects.

• The Fund shall have a board of directors chaired by the Minister and comprising the following members:

  • 1. The CEO

  • 2. Members representing government agencies who are of a rank not lower than grade “Fourteen” or its equivalent. Such agencies shall be determined pursuant to a resolution by the Council of Ministers upon the Minister’s recommendation.

  • 3. Five persons with expertise and knowledge in the Fund’s field of activity to be nominated by the Minister, provided that at least three of them are from the private sector. Their appointment shall be pursuant to a decision by the Chairman of the Board of Directors of the National Development Fund, and their membership shall be for a term of three years, renewable once.

• Without prejudice to the functions of the National Development Fund, the Board shall oversee the Fund and manage its affairs, set its general policies, and take the decisions and procedures necessary to achieve its objectives within the limits of the provisions of this Law. The Board shall, in particular, have the following powers:

  • 1. Proposing draft laws and regulations related to the Fund's functions, and proposing amendments to existing laws and regulations, in preparation for completion of applicable legal procedures.

  • 2. Approving the Fund's financial regulations and the provisions with financial impact in the administrative regulations in agreement with the Ministry of Finance, approving the Fund’s administrative regulations in agreement with the Ministry of Human Resources and Social Development, and approving other internal and technical regulations and procedures necessary for the conduct of the Fund's affairs.

  • 3. Setting internal rules for owning, selling, trading, dealing, and pledging real estate and other movables and securities as well as disposing of the same in any manner that achieves the Fund’s interests, in accordance with relevant legal provisions.

  • 4. Approving borrowing and other financing instruments in agreement with the National Debt Management Center and the National Development Fund.

  • 5. Determining the powers of the CEO.

  • 6. Determining the maximum amount of financing, and determining the categories and entities benefiting therefrom.

  • 7. Approving lending and other forms of financing, determining the grace periods for various loans, and rescheduling payment in case of default.

  • 8. Appointing an external auditor and a comptroller.

  • 9. Approving the Fund's draft budget, final accounts, and annual report on its activities, and submitting the same to the National Development Fund for consideration, in preparation for completion of applicable legal procedures.

  • 10. Overseeing the execution of the tasks entrusted to the Fund, reviewing the Fund’s periodic progress reports, and taking necessary decisions in this regard.

  • 11. Approving the policies and strategies related to the Fund's activities and the plans and programs necessary for their implementation, and submitting matters requiring completion of necessary procedures.

  • 12. Approving the Fund’s organizational structure.

  • 13. Approving the conclusion of agreements and contracts in accordance with applicable legal procedures.

  • 14. Approving the Fund's investment policies.

  • 15. Accepting grants, aids, gifts, bequests, and endowments in accordance with applicable rules.

  • 16. Approving the establishment of branches or offices for the Fund within the Kingdom, as needed.

  • 17. Determining the fees for services and works provided by the Fund.

• The Board may, in exercising its powers, form standing or ad-hoc committees from among its members or others and entrust such committees with certain tasks. The formation decision of each committee shall name its chairman, members, and secretary. Each committee may seek the assistance of others to perform the tasks entrusted thereto.

• The Board may also delegate certain powers to the CEO.

• 1. The Board shall meet upon a call by the Chairman once every three months, and when the need arises as determined by the Chairman or if requested by at least three of its members.

• 2. A Board meeting shall be deemed valid if attended by at least two-thirds of its members, including the Chairman or his designee from among the Board members who are representatives of government agencies. Board decisions shall be passed by the majority vote of attending members; in case of a tie, the chairman of the meeting shall have the casting vote.

• 3. A call to a Board meeting shall be made in writing at least seven days prior to the date set for the meeting, and may be made using electronic means. In all cases, the call shall include the meeting agenda. The Board may invite non-members to attend its meetings in a non-voting capacity to provide information, opinions, or clarifications.

• 4. A member may not abstain from voting nor vote by proxy.

• 5. The Board may issue a decision by circulation; in such case, all Board members must agree to the decision in writing, and such decision shall be presented to the Board at the subsequent meeting to be entered into the meeting minutes.

• 6. Board deliberations and decisions shall be entered into minutes to be signed by the chairman of the meeting and attending members.

• 7. Board meetings shall be held at the Fund's headquarters and may, if necessary, be held at another location within the Kingdom or remotely using means of technology.

• 8. The Board shall set the rules and procedures for remote meetings, including the procedures for calling for such meetings and the manner in which they are held.

• The Fund shall have a CEO whose appointment and dismissal shall be pursuant to a Board decision; the appointment decision shall determine his remuneration and other financial benefits. The CEO shall be in charge of managing the Fund’s affairs, and his responsibilities shall be within the limits of this Law and pursuant to Board decisions. He shall, in particular, undertake the following:

• 1. Monitoring the implementation of Board decisions.

• 2. Supervising the administrative and financial affairs of the Fund as well as its employees, and verifying that its operations are consistent with the provisions of this Law and Board decisions.

• 3. Supervising the preparation of policies and strategies relating to the Fund's activities and the plans and programs necessary for their implementation; the Fund’s organizational structure; the Fund's financial, administrative, internal, and technical regulations; the Fund's draft annual budget and annual report; and any other document requiring submission to the Board.

• 4. Representing the Fund before the judiciary and relevant government agencies and before other entities within the Kingdom and abroad. The CEO may delegate such power to others.

• 5. Any other power delegated thereto by the Board.

• The CEO may delegate certain powers and tasks to any of the Fund's employees in accordance with the Fund's internal regulations.