What ADF asks for
The Agricultural Development Fund finances farming across the Kingdom, from small development loans for farmers to large specialised projects. Specialised project loans, which cover new projects, rehabilitation and expansion, require an economic feasibility study and a licence from the Ministry of Environment, Water and Agriculture. The repayment period is set from the project's cash flow, the study and the fund's credit analysis.
The fund's law itself requires that financing is set according to an approved feasibility study, so the study is what the loan amount is built on.
What goes in the study
ADF's guide for beneficiaries sets out the general requirements for specialised agricultural projects. The study runs in five parts:
- Project definition: the activity, location, owners and what is being financed
- Marketing study: demand, supply, prices and how the product will be sold
- Technical study: production system, capacity, equipment, inputs, water and energy
- Financial study: investment cost, operating cost, revenue and cash flow
- Evaluation: profitability, payback and the project's ability to repay
ADF also publishes its own guide to preparing an economic feasibility study, updated in 2026. We work to it.
Where agricultural studies go wrong
- Yields and mortality rates taken from a supplier's brochure rather than local operating data
- Water and energy costs understated, or water availability not addressed at all
- Prices assumed flat when the product is seasonal or exposed to imports
- Working capital for feed, seed or fingerlings missing from the first-year cash flow
- No downside case for disease, a bad season or a delayed start
We build the model around the biology and the seasons, and test it against the risks an ADF credit officer will raise.
Security for the loan
ADF loans must be covered by eligible collateral, which can include real estate, project assets, bank or corporate guarantees, investment portfolios and assignment of proceeds. The financing plan in the study needs to show what security is offered and how it covers the amount requested.
Questions we're asked
Does every ADF loan need a feasibility study?
No. Smaller development loans for existing farmers have their own, simpler requirements. Specialised project loans, which finance new projects, rehabilitation and expansion, require an economic feasibility study.
Do I need the ministry licence before the study?
You need it for the loan application. The study and the licence often progress together, and the technical study can support the licence application.
Can you prepare the study in Arabic?
Yes. We can deliver the study in Arabic, English or both, with the financial model in the same language.
We already farm. Can the study use our existing figures?
Yes, and it should. Real yields, mortality and costs from your own operation are the strongest evidence you can give the fund.