Saudi Kingdom Agriculture: Trade Liberalization and Global Economy

This report examines the effects of trade liberalization on the agricultural sector of Saudi Arabia within the context of the global economy. The analysis highlights the diversification of food consumption patterns due to international trade and technological advancements in farming. It discusses the Saudi government's financial support through subsidies, interest-free loans, and land distribution, while also addressing the critical issue of water scarcity in the predominantly arid region. The report delves into the current agricultural policies, particularly the shift towards fruit and vegetable cultivation, and its implications for groundwater sustainability. It proposes the implementation of water demand management options, investment in water reclamation, and desalination initiatives to ensure long-term water resource sustainability. The expected outcomes include the prevention of groundwater over-exploitation, sustainable water use, and the avoidance of potential food insecurity. Finally, the report emphasizes the importance of irrigation projects to boost farming outcomes and ensure food security.

Global Economy
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Saudi Kingdom Agriculture 1
The Effect of trade liberalization on agricultural markets
Through globalization, national food consumption patterns have diversified. This
is due to the import and exportation of agricultural produce across countries and continents.
Through globalization, consumers of agricultural products have a large variety of food choices
thus diversified agricultural product consumption habits. Additionally, globalization has brought
about technological advancements such as drones which have eased the farming and production
products. Further, through globalization, advanced research on agro-biodiversity has been
advanced.
Financial support by the Saudi Government to its agricultural sector.
Notably, the Saudi government has supported its agricultural economy through
the introduction of subsidies through the Saudi Arabian Agricultural Bank (Embassy of Saudi
Arabia, N .d).Further, the bank offers loans that are interest free to farmers so that they can
practice agriculture. In an effort to boost agricultural outcomes, the Saudi government partakes
in the distribution and reclamation of land for agricultural purposes hence supporting better
agricultural outcomes. Also, the Saudi government has funded agriculture based research
projects to boost the process of farming, preservation and food production.

Saudi Kingdom Agriculture 2
How to improve its agricultural sector policies.
Owing to the fact that the Saudi Kingdom is largely dry, there is a water shortage for
agricultural practices. Recently, the kingdom’s agricultural policy encourages the farming of
fruits and vegetables over wheat cultivation .In the long term, the policy fails to support
sustainability of ground water resources (Ouda, 2014).For sustainability purposes, the Kingdom
should incorporate water demand management options (Al-Zahrani & Baig,2011).If the
Kingdom manages its water demands then there will be sustainability of water resources for
future generations.
Expected outcomes.
Typically, in the case that demand for water is tamed, there will be no over utilization of
ground water resources. Currently, the agricultural demand for water for agricultural purposes
exceeds the supply. In the Long-term, round water will be over-exploited but with better demand
management, groundwater will be sustainable due to controlled demand .In the case that water
demand is managed, there will be no overexploitation of natural resources hence sustainable of
water use. It is expected that a controlled demand will prevent water shortage in the case that
water supply is not over-exploited hence ground water sustainability.

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How it can improve.
Alongside the management of water demand, the Saudi Kingdom should invest in water
reclamation initiatives and water desalination to increase the supply of water. To initiate better
demand management of water resources, the Kingdom will avoid wastage and over-exploitation
of ground water hence boosting sustainability of water resources to boost agricultural outcomes.
Also, for better agricultural outcomes, the Kingdom should invest in irrigation projects to boost
the farming outcomes for food sufficiency and security reasons.
Foreseen consequences.
Consequently, better management of water demand and supply will prevent the over-
exploitation and overutilization of water resources meant for agriculture. Basically,
overutilization of ground water might lead to food insecurity due to the limited outcomes.
Essentially, water is key for farming and Saudi being largely a dry area, lack of sustainable water
demand and supply system will lead to no food production or animal husbandry thus force
scarcity.

Saudi Kingdom Agriculture 4
References
Al-zahrani, H.K & Baig, B.M. (2011).Water in the Kingdom of Saudi Arabia: Sustainable
management options .Journal of Animal and plant sciences. 21(3);601-604
Embassy of the Kingdom of Saudi Arabia. (N. d).Agriculture and Water. Retrieved from
https://www.saudiembassy.net/agriculture-water
Napoli, C. (2016).Policy Options for reducing water for agriculture in Saudi Arabia. Retrieved
from https://www.kapsarc.org/wp-content/uploads/2016/04/KS-1630-DP024A-Policy-
Options-for-Reducing-Water-for-Ariculture-in-SA.pdf
Ouda, O. (2014).Impacts of Agricultural policy on irrigation water demand: Case study Saudi
Arabia .International Journal of water resource development. 30(2): 282-292