G/AG/N/SAU/17  
 
27 February 2020  
(20-1497) Page: 1/12 
Committee on Agriculture  Original: English  
 
NOTIFICATION  
The following submission, dated 8 April 2019, is being circulated at the request of the delegation of 
the Kingdom of  Saudi Arabia . The notification concerns domestic support commitments 
(Table  DS:1 and the relevant supporting tables) for the calendar  year 2016 . 
 
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  G/AG/N/SAU/17  
 
- 2 - Table  DS:1 
DOMESTIC SUPPORT : KINGDOM OF SAUDI A RABIA  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Current  Total Aggregate Measurement of Support  
Total AMS commitment level  Currency  Current Total AMS  
(from Section I of Part IV of the Schedule)  (from Section I of Part IV of the Schedule)  (from attached Supporting Tables)  
1  2  3  
3,218.28  SAR/million  1,184.55  
 
   
  G/AG/N/SAU/17  
 
- 3 - Supporting  Table DS:1  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Measures  exempt from the reduction commitment - "Green Box"  
Measure Type  Name and description of measure with reference to criteria in 
Annex 2  Monetary value  
 
SAR,  million  Data Sources  Note  
1 2 3 4  
2. General Services      
2 (a). Research  Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, Agricultural Research Centres and Distance 
sensors centres.  76.44  NEWA   
Subtotal:  76.44    
2 (b). Pest and disease control  Securance of veterinary, Vaccine production, Veterinary labs, Air spray pest 
and disease control, and Veterinary services.  229.6  NEWA   
Subtotal:  229.6    
2 (c). Training services  Saudi Chinese Cooperation, FAO Agreement and Veterinary training 
centres.  87.12  MEWA  (1) 
Subtotal:  87.12    
2 (d). Extension and advisory services  Agricultural Extension Expenses, Programmes of nurseries and Extension 
and development of Honeybees.  14.3 MEWA   
Subtotal:  14.3   
2 (e). Inspection services  Operation of stations of sorting and purification of seeds and Establishment 
and equipping of veterinary quarantine.  62.54  MEWA   
Subtotal:  62.54    
2 (g). Infrastructural services  Construction of dams, maintenance of dams, Irrigation and drainage 
systems, Prevention of moving sand and Planting and development of 
forests.  62.5 MEWA   
Subtotal:  62.5   
3. Public stockholding for food security purposes  GSFMO, among other things, fulfils a public stockholding role for food 
security purposes by managing and controlling the storage and distribution 
of grains.  56.7 SAGO  (2) 
Subtotal:  56.7   
Grand Total Green Box  589.2    
MEWA:  Ministry of Environment, Water and Agriculture.  
SAGO:  Saudi Grains Organization.  
Notes:  
(1) See methodological note number 2.  
(2) This meets the criteria of footnote to paragraph 3 of Annex 2 of the Agreement on Agriculture.    
  G/AG/N/SAU/17  
 
- 4 - Supporting  Table DS:4  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Calculation  of the Current Total Aggregate Measurement o f Support  
Description of basic products  
(including non -product -specific AMS)  
 
 Product -specific AMS 
(from ST DS:5 to DS:7)  
 
SAR,  million  Product -specific EMS 
(from ST DS:8)  
 
 
SAR,  million  Total  
(2 + 3)  
 
 
SAR,  million  Value of production  
 
 
 
SAR,  million  Support as a 
% of value of 
production  
 Current Total AMS  
 
 
 
SAR,  million  Note  
 
1 2 3    4  
Barley  0  0 0 0% 0 (de minimis )  
Dairy  0  0 7,748 0% 0 (de minimis )  
Dates  68.85   68.85  9,626 0.72%  0 (de minimis )  
Livestock  -1,160.03   0 9,105 0% 0 (de minimis )  
Poultry  1,184.55   1,184.55  8,585 13.79% 1,184.55   
Wheat  0  0 0 0% 0 (de minimis )  
Non-product -specific AMS  (from ST/DS:9)  412.76  64,952 0.64%  0 (de minimis )  
TOTAL  1,184.55   
 
   
  G/AG/N/SAU/17  
 
- 5 - Supporting  Table DS:5  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Product -Specific Aggregate Measurements of Support: Market Price Support  
Description of basic 
products  Reporting Year  Measure 
Types  Applied 
administered 
price  
 
 
SAR External 
reference price 
(generally 
from AGST)  
 
SAR Eligible production  Associated 
fees/levies  
 
 
 
SAR,  million  Total market 
price support 
((4-5)*6) -7 
 
 
SAR,  million  Data 
Sources  Note  
Type  From  To 
1 2 3 4 5 6 7 8 9  
Wheat  CY 01-01-16 31-12-16 Market price 
support  0/Tonne  658.29/Tonne  0 Tonne   0 SAGO   
Total Wheat          0   
Barley  CY 01-01-16 31-12-16 Market price 
support  0/Tonne  685.22/Tonne  0 Tonne   0 SAGO   
Total Barley          0   
External reference price: World prices CIF Jeddah.  
SAGO : Saudi Grains Organization. The SAGO replaced the Grain Silos and Flour Mills Organization (GSFMO).  
 
   
  G/AG/N/SAU/17  
 
- 6 - Supporting  Table DS:6  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Product -Specific  Aggregate Measurements of Support: Non -Exempt Direct Payments  
Description 
of basic 
products  Reporting Year  Measure 
Types  Applied 
administered 
price  
 
 
 
SAR External 
reference 
price 
(generally 
from AGST)  
 
SAR Eligible 
production  Total price 
related direct 
payments 
((4-5)*6)  
 
 
SAR,  million  Other non -
exempt 
direct 
payments  
 
 
SAR,  million  Associated 
fees/levies  
 
 
 
 
SAR,  million  Total direct 
payment 
(7+8 -9) 
 
 
 
SAR,  million  Data 
Sources  Note  
Type  From  To 
1 2 3 4 5 6 7 8 9 10 11  
Dates  CY 01-01-16 31-12-16 Fixed 
amount 
of subsidy      68.85   68.85    
Total Dates            68.85    
MEWA:  Ministry of Environment, Water and Agriculture. The MEWA replaced the Ministry of Agriculture (MOA) .  
 
   
  G/AG/N/SAU/17  
 
- 7 - Supporting  Table DS:7  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Product -Specific Aggregate Measurements of Support: Other Product -Specific Support and Total Product -Specific AMS  
Description 
of basic 
products  Reporting Year  Measure Types  Other 
product -
specific 
budgetary 
outlays  
 
 
 
SAR,  million  Other 
product -
specific  
support 
(with 
calculation 
details)  
 
SAR,  million  Associated 
fees/levies  Total other 
product -
specific 
support 
(4+5 -6) 
 
 
 
SAR,  million  Market 
price 
support 
(from ST 
DS:5)  
 
 
 
SAR,  million  Non-
exempt 
direct 
payments 
(from ST 
DS:6)  
 
 
SAR,  million Total AMS  
(7+8+9)  
 
 
 
 
 
 
SAR,  million  Data 
Sources  Note  
Type  From  To 
1 2 3 4 5 6 7 8 9 10 11  
Total  Wheat          0  0   
Total Barley          0  0   
Dates  CY 01-01-16 31-12-16 Target subsidy 
for palm trees   0  0    MEWA  (1) 
Total Dates         0  68.85  68.85    
Livestock  CY 01-01-16 31-12-16 Input subsidy   -1,160.03   -1,160.03     Annex 2  (2) 
Total 
Livestock         -1,160.03    -1,160.03    
Poultry  CY 01-01-16 31-12-16 Fixed amount of 
input subsidy for 
feed (imported 
corn and 
soybean)   1,184.55   1,184.55     MOF  
Poultry  CY 01-01-16 31-12-16 Fixed amount of 
input subsidy for 
equipment   0  0    ADF  
Total  Poultry         1,184.55    1,184.55     
  G/AG/N/SAU/17  
 
- 8 - Description 
of basic 
products  Reporting Year  Measure Types  Other 
product -
specific 
budgetary 
outlays  
 
 
 
SAR,  million  Other 
product -
specific  
support 
(with 
calculation 
details)  
 
SAR,  million  Associated 
fees/levies  Total other 
product -
specific 
support 
(4+5 -6) 
 
 
 
SAR,  million  Market 
price 
support 
(from ST 
DS:5)  
 
 
 
SAR,  million  Non-
exempt 
direct 
payments 
(from ST 
DS:6)  
 
 
SAR,  million Total AMS  
(7+8+9)  
 
 
 
 
 
 
SAR,  million  Data 
Sources  Note  
Type  From  To 
1 2 3 4 5 6 7 8 9 10 11  
Dairy  CY 01-01-16 31-12-16 Fixed amount of 
input subsidy for 
production 
equipment and 
transportation 
costs  0  0    ADF  
Total Dairy         0   0   
SAGO:  Saudi Grains Organization.  
MEWA:  Ministry of Environment, Water and Agriculture.  
MOF:  Ministry of Finance.  
ADF: Agricultural Development Fund.  
Notes: 
(1) To encourage producers to use drip irrigation for water conservation.  
(2) For calculation, see methodological note (Annex 2).  
 
   
  G/AG/N/SAU/17  
 
- 9 - Supporting Table DS:9  
DOMESTIC SUPPORT: KI NGDOM OF SAUDI ARABI A  
REPORTING  PERIOD: CALENDAR YE AR 2016  
Non-Product -Specific AMS  
Measure Types  Reporting Year  Non-product -
specific 
budgetary 
outlays  
 
SAR,  million  Other non -product -
specific  support 
(include calculation 
details)  
 
SAR,  million  Associated 
fees/levies  
 
 
 
SAR,  million  Total non -
product -specific 
support 
(3+4 -5) 
 
SAR,  million  Data 
Sources  Note  
Type  From  To 
1 2 3 4 5 6 7  
General agricultural subsidies  CY 01-01-16 31-12-16  62.35   62.35  ADF (1) 
Opportunity cost for interest -free agricultural loans  CY 01-01-16 31-12-16  9.41  9.41 ADF (2) 
Bad debts for agricultural loans  CY 01-01-16 31-12-16  341  341 ADF (3) 
TOTAL  412.76   
ADF: Agricultural Development Fund. The ADF replaced the Saudi Arabian Agricultural Bank (SAAB).  
Notes:  
(1) Agricultural subsidies are paid by ADF. See methodological note number 7.  
(2) For calculations, see methodological note number 8.  
(3) For calculations, see methodological note number 9.  
 
 
 
 
 
 G/AG/N/SAU/17  
 
- 10 - 
 
  METHODOLOGICAL NOTE  
 
The Basis of Calculation of Agricultural Domestic Support  
  
This is an explanatory note to be read in conjunction with the current Saudi domestic support 
notification.  
 
1. The figures are expressed in Saudi Riyals, where the exchange rate has been fixed at USD 1 = 
SAR 3.75 since 1986.  
2. Saudi  Chinese Cooperation: In the context of this programme, specia lists from China are 
contracted with in order to work in the Ministry of Agriculture. Similarly, Saudis are sent to this 
country to gain experience. In addition, laboratory equipment is provided to support these 
programmes.  
3. In determining eligible producti on for wheat, it excludes 5% impurities and 5% Zakat from total 
production. The ratio of 5% impurities represents a general average based on samples analysis 
drawn randomly from wheat and barley received by GSFMO. The ratio of 5% Zakat is determined 
accord ing to Islamic Rules (this percentage of Zakat is limited only on farming and differs from 
the normal Zakat on all kinds of money which is 2.5%).  
4. The applied administered price of wheat has been reduced to SAR 1,000/tonne (or USD  266.67) 
since 2004.  
5. Extern al reference prices of wheat are expressed as CIF Jeddah. These reference prices are 
determined as a sum of (Export price of US Hard Winter Ordinary Protein, FOB US Gulf Ports) + 
Ocean Freight to Egypt (Alexandria) + USD 3/tonne as estimated freight from A lexandria to 
Jeddah (2001 -2003 Base Year). (Source: Food Outlook of the Food and Agriculture Organization 
of the UN, No. 5, December 2002 and No.1 April 2005).  
6. The external reference price for barley is calculated as the annual average of effective import 
prices for barley imported by GSFMO during the period 2001 -2003 (Base Year).  
7. Agricultural subsidies which are included in Supporting Table DS:9 are provided to all agricultural 
projects: wheat, poultry, dairy, sheep, greenhouse, vegetables and fruits, etc.  These subsidies 
can be disclosed as follows: 25% of the price fixed by the Ministry of Agriculture for farm 
machinery; and the cost of poultry and dairy farms equipments.  
8. The opportunity cost for agricultural loans represents the amount of total loans gra nted by the 
Agricultural Development Fund (ADF) multiplied by the average commercial interest rates 
because ADF does not charge interest on the granted loans (Annex 1).  
9. Bad Debts for Agricultural Loans represent due balances carried forward for several fin ancial 
years divided by ten. These amounts are based on a ten -year average because medium -term 
loans are extended for a period of ten years.  
10. Calculation of livestock feed subsidy (Annex 2): the amount of subsidy per tonne on  imported 
barley is the difference between the reference price and the price paid by the domestic livestock 
producers. The calculation of this subsidy is as following:  
- For imported barley: IFBS = (E - P) * I, where:  
• IFBS: Imported feed barley subsidy;  
• P: Price paid by livestock producers for barley;  
• E: External reference price (= world price C.I.F Jeddah); and  
• I: Quantity of Imported barley.  
  G/AG/N/SAU/17  
 
- 11 - 
 
  ANNEX 1  
THE OPPORTUNITY COST  FOR THE INTEREST FR EE TOTAL LOANS  
GRANTED BY THE SAUDI  ARABIAN AGRICULTURAL BANK  
Reporting period: Calendar year 2016  
Year  Amount of Total loans Million Saudi 
Riyals  Average Interest Rate 
%  Opportunity cost Million Saudi 
Riyals  
2016 455.49  2.066  9.41 
Source:  Agricultural Development Fund (ADF)  and Saudi Arabian Monetary Agency (SAMA).  
 
  
  
  
  
  G/AG/N/SAU/17  
 
- 12 - 
 
  ANNEX 2  
CALCULATION OF LIVES TOCK FEED SUBSIDY  
Reporting period: Calendar year 2016  
Description of 
Basic 
products  Calendar  
year 
2016  Measure  
Type (s)  Reference 
price  Price paid by 
livestock 
producers  Quantity  Associated 
fees/levies  Total  
support  Data 
sources  
   (SAR/Tonnes ) (SAR/Tonnes ) (Tonnes)  (SAR, Million)   
1 2 3 5 4 6 7 8 9 
Livestock:                MOF 
Input subsidy                  
Imported barley     578  800  5,225,369    -1,160.03    
Domestic barley      -     -  0     0    
Total               -1,160.03     
 
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