This research measures the impact of water scarcity on agricultural economic development and economic development indicators in the Kingdom of Saudi Arabia during 1995–2018. By examining the current status of available water resources and their uses, and estimating a model to study the impact of water scarcity on agricultural economic development. The study relied on descriptive and standard economic analysis to estimate the proposed regression model. It found that a 10% change in the amount of water resources available leads to a 5.1% change in the same direction of the crop area. A 10% change in the estimated crop area results in a 1.5% change in the same direction of the total agricultural output value. A 10% change in employment and agricultural loans leads to a change in the same direction of the aggregate agricultural output value of 5.1% and 7.2%, respectively. A 10% change in the total value of the estimated agricultural output leads to a 2.9% change in the same direction of GDP. Thus, a lack of water resources will decrease the crop area and have a negative impact on the value of agricultural output, thereby impacting GDP. We therefore include policy recommendations for the conservation of water resources: The government should stop the export of virtual water, particularly for water-depleting products; an economic accounting framework for water should be introduced to monitor the amount of water in excess of the water codification for various crops prevailing in the crop composition.
The goal of this study was to look at the economic relationship between energy, water use, and plant and animal food production in Saudi Arabia from 1995 to 2020. The results showed that about 55.5%, 82.4%, and 2.5% of changes in the index of plant and animal food production were related to changes in the consumption of water, electricity, and diesel, respectively, using an econometric analysis and the partial correlation coefficient of the second order. The proposed model demonstrated that a 10% change in predicted water, power, or fuel consumption resulted in a 1.97%, 2.78%, and 0.73% change in the index of plant and animal food production, respectively. In light of the Green Middle East Initiative, which intended to minimize carbon emissions, and Saudi agriculture’s goal of rationalizing water use, the country’s total consumption does not exceed 8 billion m3 of renewable groundwater. This is intended to reduce the use of fuel and increase the use of electricity in the agricultural sector. This rationalizing water consumption, reducing diesel consumption, and expanding electricity consumption affects the production of plant and animal food. In light of the strong interdependence between water, energy, and food production, the agricultural policy has become necessary to increase the amount supplied or available for water to be used in food production, in addition to expanding the production of clean energy and its use in the agricultural sector.
5 April 2021 in Environment, Development and Sustainability
This study aimed to measure the impact of domestic and foreign direct investment, along with other factors, most notably the value of Saudi exports, on the economic growth rate during the period 1990-2023. This study used econometric analysis and estimated the proposed model consisting of three behavioral equations. The results showed that a 10% increase in the value of estimated domestic investments, estimated foreign direct investments, and the total value of Saudi exports leads to an increase in the economic growth rate by 1.16%, 2.78%, and 12.87%, respectively. In light of the factors determining both domestic and foreign direct investment, a gradual decline in these investments is expected through 2030. Despite the decline in domestic and foreign investments, the increase in the value of Saudi exports from SAR 2,098.5 billion in 2025 to SAR 3,023.0 billion in 2030 will lead to an increase in the Kingdom of Saudi Arabia's economic growth rate from 5.0% in 2025 to 7.3% in 2030. To achieve the targeted economic growth rate, it is necessary to maintain domestic and foreign direct investment rates and increase the value of Saudi exports of goods and services until they reach SAR 3,023.0 billion in 2030.
Given the growing concerns over water scarcity and the state’s emphasis on livestock sector development, this study aims to evaluate the effect of variations in livestock units (camels, cattle, goats, and sheep) on domestic red meat production and food security during the period 2000–2023, using economic equations and econometric analysis. This study revealed an increase in red meat production from 159.6 thousand tons in 2000 to 297.5 thousand tons in 2023, representing an annual growth rate of 2.9%. Sheep ranked first in red meat production, accounting for 47.0%, followed by camels at 23.1%, then cows and goats at 16.3% and 13.6%, respectively, during the period 2000–2023. Livestock development will also increase the number of animal units to 12.56 million by 2030, thereby increasing local red meat production from 345.01 thousand tons in 2024 to 578.47 thousand tons in 2030. Given the daily local consumption, the production sufficiency period is expected to increase, thus reducing the period of import coverage for local consumption. Livestock development will also increase both the strategic stock and the food security coefficient for red meat by rates of 110.4% and 51.6%, respectively. Finally, this study recommends the continued development of livestock through the Agricultural Development Fund’s provision of loans for livestock breeding and fattening, in addition to expanding the import of fodder grains and the manufacture of animal feed.