The agricultural sector of kingdom of Saudi Arabia received more
governmental support and finance to achieve the desired agricultural
development. Agricultural development fund was built as an intermediate
financial governmental agency, in addition to support the Ministry of
Agriculture, to finance the various production processes in the agricultural
sector. The research aimed to study and analysis the direct governmental
finance for the development of agricultural sector.
The agricultural governmental support and finance Consists of four types, the
average value of them during the period ( – ) about million
riyals. it shows that the medium-term loans comes in the front with an average
value of million riyals, which represents about , subsidies of the
Ministry of agriculture comes with an average value of million riyals by
and followed by subsidies of the fund and short-term loans with an
average value of , million riyals, which represents ,
respectively. And it was clear the presence of significant differences between
the various type of governmental finance, while there is no significant
differences between the years of study of these forms. There are also
statistically significant differences for both qualitative and spatial distribution
of those loans.
The development of agricultural loans, short-and medium-term, and
support from the Agricultural Development Fund was studied, also the support of ministry of agriculture during the period ( - ). Factor of instability
to changes in the value of direct governmental agricultural finance of Saudi
Arabia showing lack of stability.
By measuring the efficiency of the direct agricultural governmental finance by
several indicators the most important of them are the productivity of
investment, return on investment, and the investment multiplier, it was shown
the efficient using of those forms of financing during the study period, and low
investment rate, except for medium-term loans. As for the investment multiplier
was clear the significant increase in the rate of subsidies for the ministry of
Agriculture, followed by each of the subsidies of the Development Fund, then
the medium-term loans, and at the bottom is the short-term loans.