It’s Tuesday, and today we’re discussing Arable, a company in the hydroponic farming space. Based in Saudi Arabia and founded by Lawrence Ong and Christina Khalife, the company raised $2.6 million in seed funding earlier this year.

I think there are two basic points worth acknowledging to understand why Arable is in a unique position to develop hydroponic farming in the region. First, Saudi Arabia is uniquely bad for growing any kind of vegetable. But second, the government knows that — and actually wants to do something about it.

Saudi Arabia is the 12th-largest country in the world by land area — but it ranks just 63rd in arable land. Only 2% of its land is farmable, one of the lowest shares globally. Rainfall is minimal, with some regions receiving less than 100 mm annually. There are virtually no freshwater sources, which has made Saudi Arabia the world’s top producer of desalinated water. Daytime temperatures regularly hit 50°C, and according to one study, temperatures here are rising 50% faster than in the rest of the Northern Hemisphere — which could lead to an 88% increase in drought frequency by 2050.

So yes, building an agricultural sector in the desert is incredibly difficult. But that’s only half the story — the real challenge lies in the effects that underdeveloped agriculture has on a country.

The most direct consequence is that Saudi Arabia relies heavily on imports to feed its population. In fact, 80% of its food is imported.

That leads us to the second-order effects. There are many, but let’s hit on a few:

To put a finer point on it: Saudi Arabia isn’t just facing high food costs. Those costs drive unhealthy eating, put pressure on government spending, and create systemic vulnerabilities in food security.

That being said, unlike many other countries — including those in the developed world — Saudi Arabia offers financial tools to improve the situation. You can’t change geography, but you can adapt. And for that, you need cash — which Saudi Arabia has, or at least is willing to spend.

Under the Vision 2030 banner, the country launched a program called Reef Saudi in 2019, aimed at providing financial and technical support to farmers and small-scale producers. A total of $2.9 billion has been allocated to eligible recipients through the program.

Another initiative came from the Agricultural Development Fund, which provided $533 million in loans to support meat and poultry producers, greenhouse operators, aquaculture ventures, and cold storage facilities.

And then there’s NEOM’s own futuristic agricultural project — Topian — which features high-tech greenhouses, closed-containment systems for aquaculture, and an integrated ecosystem for food production.

All of these efforts are designed to reduce the Kingdom’s reliance on imports, aligning with Vision 2030 goals. And considering Saudi Arabia has already achieved self-sufficiency in categories like fresh dairy products and eggs, these ambitions may very well be within reach.

Arable aims to embed sustainable, efficient, and high-quality farming into Saudi Arabia’s agricultural space. To do that, it builds hydroponic farms.

Which begs the question: what are hydroponic farms?

Hydroponics is a farming method that allows you to grow fruits and vegetables without soil. Instead, nutrients are delivered directly to the plants through a water-based solution. Because the delivery is targeted, there’s less need for fertilizers, pesticides, or other chemistry-altering additives. The roots dangle freely in the nutrient solution, which is circulated by small pumps. In greenhouses, sunlight provides the energy; in indoor “vertical farms,” LED lamps deliver light at the right color and intensity.

Arable operates such horizontal hydroponic systems which, according to the company, offer several key benefits:

Today, Arable grows several leafy greens — including different types of lettuce, kale, arugula, basil, and chard — and delivers them to local restaurants and hotels.

For the second week in a row, we’re looking at a startup where the natural environment doesn’t just shape the business — it creates a real competitive advantage.

We’ve already covered how hard it is to farm in Saudi Arabia. But the country also has environmental features that make it especially well-suited to hydroponic farming — and those directly influence how Arable operates. There are two big points here:

So the first two things that make Arable run more efficiently have to do with nature’s attributes.

But there’s a third unlock: localization. Instead of relying on Western components — like glass greenhouses unsuited to 45°C heat — Arable uses locally sourced materials designed for local conditions. That approach cuts both setup and operating costs. No shipping fees, cheaper materials, and lower maintenance. The company claims setup time and cost are 4x lower, and operating costs 2.5x lower, compared to traditional operators.

Localization also enables speed. With most materials coming from local suppliers, expansions can happen faster. Today, 80% of Arable’s materials can be sourced inside Saudi Arabia.

Arable’s go-to-market strategy starts with the premium segment — targeting high-end restaurants, hotels, and fine dining. The plan is to eventually expand into retail and supermarket channels so regular consumers can also access locally grown produce.

Maybe it’s selection bias, but there does seem to be a steady stream of vertical farming startups shutting down. And there’s a common thread in most of these cases (one, two, three): they raised a ton of capital, scaled operations, but not fast enough to reach profitability. Then they needed more funding — and didn’t get it.

That’s what gives me pause with Arable. Can they scale quickly enough before the money runs out?

It’s telling that they’re starting with high-end restaurants and hotels — customers that don’t need huge volumes and aren’t as price-sensitive. Even though Arable talks about lower costs, it doesn’t mention lower prices anywhere on its site. Some of that might be positioning — but it might also be that hitting price parity with imports would require a lot more capital.

So the real questions are:

Natural advantages don’t disappear. Saudi Arabia will continue to have an abundance of land and sun. And the government seems committed to supporting technologies that make the country more self-sufficient. Arable fits that narrative perfectly.

With that kind of backing — whether direct or indirect — the company may be able to overcome the scale hurdle. And once it does, the upside is — Arable can scale its product offerings and expand into other geographies.

And the geographic angle is especially compelling. Other GCC countries share Saudi’s climate conditions and many of its food security ambitions — making regional expansion a very natural next step.

Hydroponic farming seems like something that should be widespread, yet it hasn’t scaled globally. That makes me think it’s a much tougher business to run than it first appears. I also wonder whether hydroponic farming has a real role to play in combating hunger, or if the tech will never reach the right price point. Or maybe it’s because these farms tend to focus on crops like kale rather than calorie-dense staples — which makes them a poor fit for tackling global hunger.