Agricultural Trade Performance and Food Security in Saudi Arabia

Abstract

Saudi Arabia relies heavily on food imports because of a lack of adequate agricultural resources. This study examines the connection between agricultural trade performance and food security in the country. The analysis of trade performance shows a significant positive difference between the period after Saudi Arabia joined the WTO and the period before, in terms, of the value of exports and imports, as well as their share in the GDP. The country’s overall trade share in the world market has also expanded since joining the WTO. The measured overall openness index indicates an improvement in the country’s integration in the world market following its accession to the WTO. However, the total export growth decreased during the second period after joining the WTO, while total import growth increased. This decline in export growth was mainly due to a sharp decrease in oil prices. As for agricultural trade, the share of agricultural exports in total exports decreased after joining the WTO, although the value of both agricultural exports and imports increased. Saudi Arabia remains a net importer of food products, and this situation has worsened since joining the WTO. The comparative advantage of the agricultural sector has deteriorated more after the WTO accession, but this is mainly due to other factors, such as a shortage of underground water and changes in agricultural policy, rather than the accession to the WTO.