Abstract

This study aimed to analyze the economics of foreign trade in agricultural products and food in the Saudi economy from 2005 to 2022, using economic and statistical methods. The results showed a significant increase in the deficit of the agricultural and food trade balance, growing at an annual rate of 5.4%. This deficit was primarily driven by the value of imports exceeding exports, which was exacerbated by the decline in crop area and agricultural production due to water scarcity. The available water for the agricultural sector decreased to approximately 6.2 billion cubic meters, further contributing to the deficit. The value of agricultural exports, imports, and food industry products fluctuated due to instability in local production and average export and import prices during the study period. The average export coverage rate for Saudi imports was relatively low, ranging from 4.7% for plant products to 26.9% for live animals and animal products. Furthermore, the foreign exchange trade in agricultural products and food resulted in a deficit in the years 2007, 2009-2012, 2016-2019, and 2021, while being disadvantageous to the Saudi economy in the remaining years.

Key words: Foreign trade, agricultural products and food, net international exchange rate, Saudi economy.