Al-Jouf Agricultural Share is one of the prominent stocks in the agriculture sector on the Saudi financial market 'Tadawul', attracting the attention of investors seeking opportunities within vital and sustainable sectors. In this comprehensive article, we highlight Al-Jouf Agricultural Share, reviewing its history, company activity, financial data, and position amid competition, in addition to the latest developments affecting the company's performance. We start by defining the company and its main activity, then move on to analyze its recent financial data for the years 2024-2025, discussing cash distribution policies, its relationship with sustainability, and its position amid economic changes and support for Saudi Vision 2030 for agriculture. In the upcoming sections, we will present detailed insights into operational results, environmental initiatives, expansions, and stock evaluation compared to the sector, as well as answer the most common questions about the stock and the company. The goal of this article is to provide a comprehensive informational review that helps the reader understand all aspects related to Al-Jouf Agricultural Share, adhering to a neutral educational language without any investment recommendations, while emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
Definition of Al-Jouf Agricultural Company and Its Main Activity
Al-Jouf Agricultural Development Company was established in 1988 as a Saudi joint-stock company, aiming to develop the agricultural and animal production sector in the north of the Kingdom. The company's activities are concentrated in the Wadi Al-Sarhan area of Al-Jouf, benefiting from distinctive natural resources such as groundwater and fertile soil. Its projects cover approximately 60,000 hectares, making it one of the largest agricultural companies in the Kingdom in terms of area and capabilities. The company's activities include the production of traditional crops such as wheat and barley, in addition to various agricultural and food crops, as well as livestock breeding and the manufacture of related products such as dairy and feed. The company has modern production and manufacturing lines that contribute to enhancing the added value of local agricultural products, while keeping pace with technological developments in sustainable and smart agriculture. Its strategic location near distribution networks facilitates the marketing of its products throughout the Kingdom.
Developments of Al-Jouf Agricultural Share and Listing History on Tadawul
Al-Jouf Agricultural Share is listed on the main Tadawul market under the issuance code 6070, and it is one of the agricultural sector stocks that attracts special attention amid the Kingdom's trends towards achieving food security. Since its listing, the stock has witnessed periods of growth and volatility influenced by the company's financial results, sector developments, and government support policies for agriculture. The company is keen on transparency and regular disclosure of its financial results and operational news, which has enhanced its credibility with investors. It is also committed to developing its operations according to a balanced expansion strategy that meets local demand for food and agricultural products and supports sustainable development goals.
Recent Financial Data for Al-Jouf Agricultural Share (2024-2025)
According to official data, the price of Al-Jouf Agricultural Share recently reached approximately 44.64 Saudi Riyals, and the company's market capitalization is estimated at around 1.34 billion Riyals. The price-to-earnings (P/E) ratio is 16.79, reflecting the stock's valuation level against the company's earnings. The total number of shares issued is 30 million shares with a nominal value of 10 Riyals per share. These figures indicate a relative financial stability for the company with the ability to achieve good profits and distribute them to shareholders. The board's approval of cash dividends for the first half of 2025 reflects the company's ability to generate liquidity and its confidence in future performance. The stock's financial indicators are an important starting point for analyzing its attractiveness within the agricultural sector.
Cash Distribution Policy and Its Impact on Stock Attractiveness
The board of directors of Al-Jouf Agricultural has adopted a policy of periodic cash dividends for shareholders, announcing in 2025 the distribution of dividends for the first half of the year, indicating positive financial and operational results. The distribution policy is particularly important for investors seeking stable income from their investment portfolios, as the dividend yield is related to the value of distributed profits and the stock price. Although precise figures for the latest distributions are not available, the company's continued distribution of dividends reflects the strength of its financial performance. This policy influences investors' decisions regarding whether to hold the stock or turn to other stocks in the sector, especially when comparing returns with broader agricultural sector indicators.
Analysis of the Saudi Agriculture Sector and Al-Jouf Agricultural's Position Within It
The agriculture sector is one of the strategic sectors in the Kingdom, receiving significant support within the programs and initiatives of Vision 2030, focusing on food security, rural development, and sustainability. Agricultural companies like Al-Jouf Agricultural benefit from facilitated financing, infrastructure modernization programs, and modern irrigation technologies. The company's location in the Al-Jouf region provides an exceptional competitive advantage due to the availability of groundwater and soil quality. Additionally, the company's projects contribute to achieving self-sufficiency in vital food products and support government efforts to reduce reliance on imports and improve local supply chains.
Competition in the Agriculture Sector: Comparing Al-Jouf Agricultural with Other Companies
Al-Jouf Agricultural competes with prominent companies such as Nadec, Saudi Agricultural Services, Advanced Fertilizers, and private sector companies in food and feed areas. The strengths vary by specialization: for instance, Nadec has an extensive distribution network and focuses on dairy and juice products, while Al-Jouf Agricultural excels in producing staple crops and livestock. The company's distinction lies in its production diversification and flexibility in facing climatic and technological challenges, in addition to its commitment to sustainable farming practices. This enables it to maintain a strong competitive position in a changing market, with the potential to expand into higher value-added products.
Recent Developments and News About Al-Jouf Agricultural
During 2024-2025, the company witnessed several significant developments, including the announcement of positive financial results for the period ending June 30, 2025, reflected in revenue and operating profit growth. The board also approved cash dividends for the first half of the year, reflecting the company's commitment to rewarding shareholders. Among the important developments is the company's acquisition of a loan from the Saudi Industrial Development Fund to enhance production and modernize infrastructure, in addition to signing an agreement with the Saudi Electricity Company to use clean energy in operating its agricultural facilities. Other initiatives included improving water consumption efficiency and applying modern irrigation technologies, supporting environmental sustainability and reducing operational costs.
Environmental Initiatives and Sustainability in Al-Jouf Agricultural's Strategy
Al-Jouf Agricultural places significant emphasis on environmental sustainability, having launched several initiatives to enhance water consumption efficiency through modern irrigation technologies, and programs to transition to clean energy through agreements with the Saudi Electricity Company. The company aims to reduce its carbon footprint by replacing liquid fuel with electric energy, aligning with national trends to preserve the environment. These initiatives contribute to improving the company's image among investors and customers, and support its ability to comply with stringent environmental standards imposed by local and international regulatory bodies.
Expansion and Financing Strategy: Supporting Sustainable Growth
Al-Jouf Agricultural has adopted a balanced expansion policy focusing on investing in new production lines and modernizing infrastructure. It recently secured financing from the Saudi Industrial Development Fund, enabling it to implement expansion projects and improve operational efficiency. Future plans include diversifying crops, increasing productivity, and leveraging smart agricultural technologies. This strategy supports the company's ability to face climatic challenges, meet local demand, and achieve sustainable growth in revenues and profits. The company also aims to enhance its presence in higher value-added products, such as fresh vegetables, fruits, and specialized animal products.
Evaluation of Al-Jouf Agricultural Share: P/E Ratio and Financial Indicators
The P/E ratio of the share is approximately 16.79, which is within the average rates for the agricultural sector in the Saudi market. This indicator is used to compare the current stock price with its annual earnings, helping investors assess the stock's attractiveness. If the P/E ratio is below the sector average, it may indicate that the stock is undervalued, and vice versa. The market capitalization exceeding 1.3 billion Riyals reflects the company's size and market share. Current data confirms that Al-Jouf Agricultural Share enjoys relative stability, supported by periodic dividend distribution policies and positive financial results.
Risks and Challenges of Investing in the Saudi Agriculture Sector
Despite the numerous advantages of the agricultural sector, there are challenges to consider, including weather fluctuations, limited water resources, high operational costs, and the impact of regulatory and political changes on government support. Additionally, intense competition with local and global companies requires agricultural companies, including Al-Jouf Agricultural, to continuously innovate and improve production efficiency. Furthermore, the company's results may be affected by changes in global agricultural commodity prices and fluctuations in local demand, highlighting the importance of closely monitoring news and financial reports related to the company and the sector.
The Role of Saudi Vision 2030 in Supporting the Agriculture Sector
Saudi Vision 2030 places significant importance on developing the agricultural sector as part of its goals to achieve food security and sustainable rural development. Al-Jouf Agricultural has benefited from government initiatives such as facilitating financing, supporting modern irrigation projects, and developing infrastructure. The company is working to align with the vision's requirements by investing in modern technologies, improving product quality, and expanding local export scope. These efforts are part of a broader plan to increase the agricultural sector's contribution to GDP and enhance the Kingdom's food self-sufficiency.
The Importance of Disclosure and Transparency in Al-Jouf Agricultural's Performance
Al-Jouf Agricultural is committed to the disclosure and transparency standards imposed by the Saudi Capital Market Authority, regularly announcing its financial results, material developments, and distribution policies. This contributes to building investor trust and enhancing the company's credibility in the market. Regular disclosure also enables investors to make informed decisions based on accurate and transparent information, reducing the risks of unexpected surprises in stock performance.
Conclusion
Al-Jouf Agricultural Share represents one of the important options within the Saudi agriculture sector, reflecting the company's journey in developing agricultural and animal production and enhancing sustainability and innovation. Recent financial data, distribution policies, and environmental initiatives indicate the company's strength and its ability to achieve growth in a competitive environment supported by Saudi Vision 2030. However, investing in agricultural stocks remains linked to several external and internal factors that require careful analysis and continuous monitoring. At SIGMIX, we are committed to providing educational and analytical content that helps you understand the opportunities and challenges in the Saudi financial market. If you are considering making investment decisions, we always advise consulting a licensed financial advisor to ensure that your investment plan aligns with your personal goals and financial circumstances.
Frequently Asked Questions
Al-Jouf Agricultural Company focuses on agricultural and animal production and the manufacturing and marketing of related products. The company has extensive projects in the Al-Jouf region covering about 60,000 hectares, producing crops such as wheat, barley, and vegetables, in addition to sheep breeding, dairy production, and feed manufacturing. It seeks to expand and diversify its products to meet local demand and enhance sustainability.
Al-Jouf Agricultural Company was established in 1988 as a Saudi joint-stock company, with an authorized and paid capital of 300 million Saudi Riyals distributed over 30 million shares with a nominal value of 10 Riyals per share. The company has maintained this financial structure since its establishment, reflecting its financial stability and commitment to precise financial organization.
The main project of the company is located in Wadi Al-Sarhan in the Al-Jouf region of northern Saudi Arabia. The location is characterized by the availability of deep groundwater, soil quality, and favorable climatic conditions, providing the company with significant production capabilities. The proximity to distribution networks facilitates the marketing of products across the Kingdom and enhances the company's role in food security.
According to the latest data from the Saudi financial market, the price of Al-Jouf Agricultural Share is approximately 44.64 Saudi Riyals, and the company's market capitalization is estimated at around 1.34 billion Riyals. These figures reflect the company's size and stability in the market and are important indicators when evaluating the stock.
Al-Jouf Agricultural follows a policy of distributing cash dividends to shareholders when good operating profits are achieved. In 2025, the board announced the distribution of cash dividends for the first half of the year, reflecting the company's ability to generate liquidity and its commitment to rewarding shareholders. The value of distributions varies based on the company's results and is officially announced through the Saudi financial market.
The main competitors in the Saudi agricultural sector include Nadec (National Agricultural Development Company), Saudi Agricultural Services, Advanced Fertilizers, and private sector companies in food and feed. The strengths vary among companies based on specialization, with Al-Jouf Agricultural excelling in production diversification and sustainability, while other companies may have broader distribution networks or focus on specific products.
Al-Jouf Agricultural has launched several environmental initiatives, including transitioning to clean energy through an agreement with the Saudi Electricity Company and using modern irrigation technologies to conserve water. These initiatives aim to reduce the carbon footprint and improve operational efficiency, supporting the company's commitment to sustainability and environmental responsibility.
Al-Jouf Agricultural receives significant support under Vision 2030, which includes facilitating financing, modernizing infrastructure, and supporting smart irrigation projects. These initiatives contribute to improving production efficiency and developing local products, helping the company meet market demands and enhance its role in achieving national food security.
The P/E ratio of Al-Jouf Agricultural Share is approximately 16.79 according to the latest data, which is an indicator that measures the ratio of the stock price to its annual earnings. This number is used to compare the stock's attractiveness with sector stocks. A moderate P/E ratio indicates a balance between market valuation and the company's ability to generate profits.
The company faces challenges such as weather fluctuations, limited water resources, intense competition, and changes in agricultural commodity prices. It may also be affected by government support or regulatory changes in the agriculture sector. Therefore, investors should carefully monitor news and financial results before making their decisions.
Yes, Al-Jouf Agricultural has expansion plans that include increasing the cultivated area, diversifying crops, investing in high-value products, and adopting smart agricultural technologies. The company has secured financing from the Saudi Industrial Development Fund to support these expansions and achieve sustainable growth in revenues and profits.
Al-Jouf Agricultural is committed to disclosure and transparency standards, regularly announcing its results and developments in Tadawul. This enhances investor trust and provides them with accurate information that contributes to making investment decisions based on clear and reliable data.