The following terms – wherever they appear in this Law – shall have the meanings specified next to each, unless the context requires otherwise:
1 - The Fund: Agricultural Development Fund.
2 - The Minister: Minister of Environment, Water, and Agriculture.

The fund shall have a legal personality and an independent financial liability, which entitles it to ownership, action, and litigation in accordance with the provisions of this law. It shall be represented by the president or his deputy, and the fund is organizationally linked to the National Development Fund. The main headquarters of the fund shall be located in the city of Riyadh, and in order to carry out its activities, it may establish branches in various regions and governorates of the Kingdom or appoint agents or correspondents therein. It may also benefit, to the extent possible, from the resources available in the commercial environment in managing its activities.

With due consideration for water conservation and the rationalization of its agricultural uses, as well as environmental preservation, the fund aims to support agricultural development and its sustainability by providing facilitated loans and necessary credit facilities, which include the following:
1 - Encouraging the cultivation of agricultural crops, raising livestock and poultry, fishing for fish and shrimp, storing any of these or marketing them, and all necessary requirements for that.
2 - Encouraging the use of modern technologies and localizing their production, especially water-saving technologies, for various fields of agricultural sector activities.
3 - Supporting agricultural cooperative societies.
4 - Supporting small enterprises that provide services to the agricultural sector.
5 - Providing consulting services to individuals and entities operating in the agricultural sector.

• First: The capital of the fund is (20,000,000,000) twenty billion riyals, and the capital may be increased by a decision of the Council of Ministers.

• Second: Other funding sources for the fund:

  • 1 - Loans and deposits provided by the Saudi Central Bank and other public and private entities.

  • 2 - Fees charged by the fund for the services it provides through its activities as determined by the Council.

  • 3 - Income generated from investing the fund's assets and properties.

  • 4 - Allocations or funds provided by the government as a grant or loan.

  • 5 - Issuance of securities in accordance with Sharia regulations.

  • 6 - Funds or allocations provided by others as a grant.

The fund transfers the surplus from its revenues – after deducting expenses and repaying loans – to the general reserve and the emergency reserve.

The Fund provides loans to individuals, associations, companies, entities, and organizations that primarily operate in the agricultural sector in the Kingdom. It is authorized to guarantee the loans contracted by borrowers with third parties, and the following provisions shall be observed:
1 - The agricultural and water policy of the state.
2 - The loans – whether cash or in-kind – shall be short-term loans to cover seasonal expenses, and the Council shall determine their purposes and deadlines.
3 - The loans – whether cash or in-kind – shall be medium-term loans with maturity dates not exceeding ten years.
4 - Verification – within reasonable limits – of repayment opportunities and appropriate guarantees.
5 - The proceeds of the loans shall not be used for purposes other than those for which they were provided, and the Implementing Regulation of this Law shall specify the provisions that must be observed in this regard.

The Council meets at the invitation of its President whenever necessary, or at the request of three of its members, provided that its meetings are not less than four meetings per year. Meetings are only valid if attended by at least seven members, including the President or his Deputy. The Council issues its decisions by a majority of those present, and in the event of a tie, the side that the President of the meeting voted with prevails.

• First: The Council is the authority supervising the operations of the Fund and achieving its objectives. It has, in particular, the following:

  • 1 - Approval of the internal regulations, executive regulations, administrative, financial, supervisory, lending, revenue, and others. The approval of the administrative regulations related to the employees of the Fund shall be after the approval of the Ministry of Civil Service, and the approval of the financial regulations shall be after the approval of the Ministry of Finance.

  • 2 - Adoption of plans and approval of the annual budget for the Fund's activities and its administrative expenses.

  • 3 - Taking the necessary procedures to open accounts with the Central Bank and banks in the Kingdom, and managing them.

  • 4 - Establishing rules for owning real estate and other movable properties, securities, selling, trading, dealing with them, mortgaging them, and disposing of them in any manner that serves the interest of the Fund.

  • 5 - Establishing the necessary rules for issuing securities in accordance with the Sharia principles and the applicable regulatory procedures.

  • 6 - Defining the powers of the General Director of the Fund.

  • 7 - Setting maximum limits for the value of different types of loans.

  • 8 - Determining the grace periods for various loans, as well as rescheduling the repayment of those that are in default.

  • 9 - Appointing highly experienced auditors and determining their remuneration.

  • 10 - Approving the final accounts of the Fund and the annual report, and submitting them to the National Development Fund for consideration, in preparation for completing the applicable regulatory procedures.

• Second: The employees of the Fund are subject to the provisions approved by the Royal Order No. (5464/M B) dated 20/4/1426 AH.