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JEDDAH: ��������’s herbal sector is expanding despite regulatory and safety challenges, with commercial registrations rising by 15 percent in 2024, driven by increased digital marketing and strong investor interest. 

Speaking to Al-Eqtisadiah, experts said the sector is shifting from traditional retail to digital sales, both domestically and internationally, noting that young entrepreneurs are also launching branded, packaged products to capture market share. 

Herbalism is one of the oldest professions in the Arab and Islamic world, with a rich cultural and medical heritage. In Saudi herbal shops, medicinal herbs such as sage, chamomile, and thyme are displayed alongside spices such as cinnamon, cardamom, turmeric, and black pepper. 

The global spice market is estimated at around $20 billion in 2024 and is projected to reach $30 billion by 2032, growing at an annual rate of 5 percent, according to Fortune Business Insights. Meanwhile, the herbal medicine market, valued at $71 billion in 2023, is expected to surge to $330 billion by 2030, with a compound annual growth rate of 21 percent between 2024 and 2030, according to Grand View Research. 

While spices and herbal medicines are sold together in Saudi and Gulf outlets, they are separated in the US and Europe, resulting in distinct market sizes. US-based McCormick leads the global spice industry with $7 billion in fiscal 2024 sales, followed by Singapore’s Olam Group, an agribusiness and trading firm with a significant share of spice sales. 

The Saudi Food and Drug Authority told Al-Eqtisadiah that it monitors herbal retail outlets through regular inspection campaigns conducted jointly with multiple government agencies. However, experts and consumers have called for clearer regulations and staff training to ensure quality and build consumer trust. 

The SFDA clarified that it does not license herbal shops or register raw herbs, adding that only processed herbal products — manufactured in pharmaceutical-style preparations — are registered after evaluation of manufacturing quality, safety, and efficacy. 

The authority emphasized that its inspections have revealed recurring violations, including the sale of pharmaceutical products not permitted in herbal outlets and cosmetic products lacking required warnings or not listed in the authority’s registry. 

The Ministry of Commerce told Al-Eqtisadiah that commercial registrations for the sale of nuts, spices, and herbs rose from around 28,000 at the end of 2023 to 33,000 by the end of 2024, a 15 percent increase. 

The ministry added that Riyadh led with 10,000 registrations, followed by Makkah with 9,800, the Eastern Province with 4,000, and Madinah with 2,500. 

Jeddah Municipality confirmed that it enforces health regulations for herbal shops issued by the Ministry of Municipal and Rural Affairs and Housing, which prohibit the sale of unlicensed traditional blends. 

Abdullah Al-Eisa, CEO of Bayt Al-Hikmah, said the sector remains “marginalized,” dominated by untrained labor lacking detailed knowledge of herbs and their benefits. 

He noted that herbal shops typically carry over 500 herbs, 200 spices, and 100 types of nuts, all requiring specialized expertise to differentiate quality and varieties. 

Al-Eisa highlighted that many shops display products openly without proper packaging, increasing the risk of fraud. “Some even mix spices with other powders to increase volume, damaging the sector’s reputation,” he said. 

He emphasized the need for staff training and work permits similar to those in the restaurant sector, noting that poor hygiene and lack of expertise limit market competitiveness, particularly in unregulated shops. 

Regarding the practice of grinding spices in front of customers, Al-Eisa said separate mills would be required for each spice to prevent cross-contamination, posing significant logistical and cost challenges. 

Munir Meyajan, general manager of Meyajan Herbal, said demand has increased with the growth of e-commerce locally and internationally. 

He added that Saudi companies now receive online orders from countries including France, Germany, Egypt, and Iraq, which are shipped promptly through specialized logistics providers. 

“Demand is particularly high for rare Saudi herbs used in treating bone and internal medicine–related conditions,” he said, noting that herbal knowledge is a vast field, divided into marine and wild herbs, and forms an essential part of modern medicine and pharmacy, with many plants and herbs used in contemporary drug formulations. 

Spice production is heavily concentrated in Asia, home to most aromatic plants and natural flavorings, with India accounting for more than 70 percent of global output — producing black pepper, turmeric, cardamom, cumin, coriander, and red chili — largely from regions such as Kerala and Tamil Nadu. 

China ranks second, with large volumes of ginger, ginseng, dried garlic, red chili, and unique spices like Sichuan pepper. Indonesia, the third-largest producer, is known for its historic Spice Islands, such as Maluku and Sulawesi, producing nutmeg, cloves, and Indonesian cinnamon. Meanwhile, Vietnam is the world’s largest producer and exporter of black pepper. 

RIYADH: More than $250 billion in deals have been signed through the Future Investment Initiative platform since its launch less than a decade ago, according to Yasir Al-Rumayyan, governor of the Public Investment Fund and chairman of the FII Institute.   

Opening the ninth edition in Riyadh, he said this year’s gathering seeks to elevate the initiative’s global effectiveness.  

Al-Rumayyan described FII as the world’s largest forum convening leaders, decision-makers, and investors to influence the trajectory of the global economy, Al Arabiya reported.

He said attendees from government and the private sector collectively represent significant capital and responsibility, alongside greater opportunities to help shape economic outcomes.  

Al-Rumayyan urged participants to act with that responsibility in mind and to capitalize on the opportunities at hand.   

Over the past year, he noted, investor and corporate ambitions have shifted amid rapid economic and technological change.   

He argued traditional economic models are no longer sufficient and called for governments and businesses to operate as true partners to advance a new model of international cooperation and global prosperity.  

PIF serves as a cornerstone of ��������’s Vision 2030 economic transformation strategy, driving diversification and sustainable growth beyond the oil sector.   

As one of the world’s largest sovereign wealth funds, PIF manages assets exceeding $1.15 trillion, up from about $925 billion a year earlier, according to official data.   

The fund’s investments span multiple sectors and geographies, with a growing focus on technology, infrastructure, and green energy.   

PIF’s mandate aligns with the Kingdom’s broader ambition to position �������� as a leading global investment destination, supported by large-scale projects and international partnerships designed to accelerate non-oil gross domestic product growth.  

Al-Rumayyan said FII has become the venue where global leaders and investors discuss shared opportunities and challenges.   

He pointed to a widening gap between individuals’ optimism about their personal futures and their pessimism about the world’s outlook, adding that technology can help bridge this divide if deployed inclusively.   

He cautioned that artificial intelligence could widen educational disparities unless governed fairly and responsibly.  

He identified inequality as a major impediment to human progress and cited expectations that around 10 percent of the global population could be living in extreme poverty by 2025.  

Nonetheless, he expressed confidence that the leaders gathered at FII can convert today’s challenges into opportunities that benefit society.  

Addressing Saudi Vision 2030, Al-Rumayyan said the program has set a new global benchmark for economic transformation.   

He noted foreign direct investment in the Kingdom has grown 24 percent to $31.7 billion, and said �������� has emerged as a major global destination, supported by its megaprojects and preparations to host Expo 2030 and the 2034 FIFA World Cup.  

He urged that true wealth is measured by the prosperity of people rather than numbers, and encouraged participants to use the three-day forum to forge cross-border partnerships that unlock transformative opportunities for the benefit of humanity.  

Richard Attias, acting CEO of the FII Institute, highlighted the growing scale and inclusivity of this year’s edition, which brought together more than 9,000 participants, including delegates, members, and media representatives from around the world.  

He emphasized that the 2025 program builds on the institute’s mission to foster collaboration across sectors, with discussions centered on artificial intelligence, health, and human development under the theme “The Key to Prosperity.” 

Attias said: “Our dream at the inception of FII Institute was simple: to bring together world decision makers not to compete but to collaborate, not just to talk about the future, but to shape the future.”