12 28 July 2015

Food and Water Security in the Kingdom of Saudi Arabia

Madeleine Lovelle
Research Assistant
Global Food and Water Crises Research Programme

Key Points

 Despite its harsh climatic environment Saudi Arabia is currently food and
water secure.
 Saudi Arabia relies on its oil-based economy for food imports and
desalinated water production.
 Groundwater depletion, a high reliance on food imports and a growing
population with steady rates of urbanisation represent challenges to food
and water security.
 Both urban and agriculture water consumption rates are wasteful;
behaviour change is needed in the Kingdom to encourage conservative
water practices.

Summary

The Kingdom of Saudi Arabia has developed policies that integrate its food security with the
global market and seeks alternative water sources to manage its food and water security.
Saudi Arabia’s economic strength has enabled it to import its food needs and create trade-
based food security. The arid country primarily meets water demand through desalination to
ensure long-term water security; however, it must also develop sustainable water
management practices to address wasteful consumption patterns. Managing the demand
and supply of food and water with an ever-growing population is one of the crucial
challenges facing Saudi Arabia to 2025 and beyond.
 Analysis

Population and Employment

By 2050 Saudi Arabia’s national population of 29 million people is predicted to grow by 77

per cent. This population boom will outpace the current rate of food and water production.
The median age of the population is 26 years; with Saudis expected to live to 75 years, high
population growth and prolonged life expectancy rates will put pressure on future food and
water resources. Scarce arable land and natural water resources limit Riyadh’s ability to
meet demand through domestic production; increasing food imports and expanding the
development of alternative water resources will therefore prove critical in ensuring the
country’s long-term food and water security.

Saudi Arabia experiences limited rates of poverty due to generous government handouts. An
increasingly young and unskilled population and limited job opportunities, however, will
place growing pressure on the social welfare system. Currently experiencing a 41.8 per cent
youth dependency ratio, rising unemployment amongst young people is expected to
continue. Many are inadequately prepared to enter a diversifying economy and despite
constituting 60 per cent of university graduates, young women have few employment
opportunities. Youth joblessness rates today may create greater unemployment and
inequality in the future, impacting further upon the country’s capacity to supply food and
water to its people.

Urbanisation

Approximately 83 per cent of Saudi Arabia’s population resided in urban areas in 2014, with
the rate of urbanisation increasing at two per cent annually. Rapid population growth in
urban areas and improved living standards, have influenced food demand preferences and
the demand for water in both the domestic urban setting and the agricultural and industrial
sectors. Urban demand has created pressure on Saudi Arabia’s rural and manufacturing
sectors to supply goods needed for city living. This in turn has placed increasing strain on
Saudi Arabia’s natural water supply. If urban growth outpaces the rate at which growth may
be sustainably supported, Saudi Arabia will experience a heightened threat to food and
water security.

Nutrition

Wealth and globalisation have changed dietary patterns in the Kingdom. A ‘nutrition
transition’ has emerged associated with changes in diet and lifestyle; Saudis have
transitioned to the consumption of more energy-dense diets. Fava beans, wheat, rice,
yoghurt and chicken are staple items for Saudis, yet many are opting for a more diversified
diet with greater Western influence. Changes in lifestyle and Western-style diets are causing
growing obesity issues, with 33.7 per cent of the adult population considered obese in 2014.

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Saudi Arabia’s wealth has underpinned its food security and rising rates of obesity, yet small
pockets of the population do not receive adequate nutrition. Despite the country’s food
security, the prevalence of undernourishment was recorded in five per cent of the
population in May 2015. Riyadh must continue to both reduce inequality and secure
adequate nutrition for the entire population if it is to maintain its food-secure status to
2025.

Saudi Arabia’s Water Security

The Global Food Security Index 2015 notes that despite Saudi Arabia’s harsh desert
environment, 97 per cent of the population has access to potable water. Saudi Arabia’s
average annual rainfall is less than 100mm and high evaporation rates limit the availability of
surface water sources. The over-extraction of groundwater resources and a lack of perennial
rivers have led to the development of extensive desalination facilities.

Six non-renewable aquifers and numerous desalination plants satisfy a majority of Saudi
Arabia’s water consumption needs. Data from NASA’s GRACE satellite mission indicates that
the Arabian Aquifer (underlying Saudi Arabia and other Gulf States) has one of the highest
rates of depletion, particularly from agricultural usage. The extensive withdrawal of water
from fossil aquifers is threatening the security of Saudi Arabia’s non-renewable water
resources.

After locating several large aquifers during the 1970’s, the government drilled thousands of
deep tube wells for both agricultural and urban use. Years of unregulated water extraction
has led to increasing groundwater scarcity. To prevent further environmental damage, the
reliance on deep-tube wells to source precious fossil water must be reversed and alternative
water sources secured.

Urban Water Usage

Saudi Arabia has one of the highest per capita water consumption rates in the world. The
average per capita water consumption rate is estimated at 100-350 litres per day for urban
areas and 15-20 litres for rural areas. Urban dwellers are consuming water at an
unsustainable rate. A greater investment in demand-side management strategies to increase
conservation practices and decrease consumption rates is urgently required.

Agricultural Water Usage

Dams are used to trap surface water runoff during rainstorms that occur in the coastal areas
and southwest highlands. In 2012 Saudi Arabia had an estimated 232 dams in use. Water
from these dams is used for agriculture production and is replenished by the flash floods
that occur from November to April. Low precipitation rates, however, limit surface water
supply.

In 2000, modern irrigation techniques accounted for 66 per cent of irrigation activity while
traditional surface irrigation accounted for 34 per cent. Despite the greater adoption rates of

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modern irrigation technology, inefficient water usage is still common on many farms. The
Saudi Arabian government must consider social policy aimed at targeting irresponsible water
management behaviour to ensure that groundwater supplies are not wasted entirely.

Current Solutions and Gaps

Since 2005, desalinated water has accounted for approximately 70 per cent of the nation’s
water use. While desalinated water has ensured Saudi Arabia has enough water to meet
demand, it does create its own challenges. The process requires high energy input; more
than half of domestic oil consumption is required to run the plants. The high costs and
energy consumption associated with the desalination process have created a scenario where
Saudi Arabia’s desalination capacity, and therefore water security, is closely linked to the
stability of its oil supply. Leakages and transit problems with pipe networks also cause more
than a third of the desalinated water to be lost each year, particularly in the 400 kilometres
between the Gulf coast and Riyadh.

Saudi Arabians only pay one per cent of what it costs the government to produce
desalinated water. Introducing a water pricing system will not only recoup some of the costs
of production, but increase the value of water so that consumers begin to practice better
water management. Greater appreciation of the value of water may lead to a change in
Saudi behaviour; one that sees sustainable water consumption adopted by all.

Recycled water is currently used for irrigation in agriculture and urban parks. Saudi Arabia
reuses approximately 2,367 million cubic meters of treated wastewater per day according to
a General Electric industry white paper on water scarcity in Saudi Arabia. This represents 30-
40 per cent of the country’s wastewater; plans have been announced at a conference this
year to expand that capacity to over 65 per cent by 2020. The National Water Company is
currently developing a plan to privatise wastewater, and plans to use almost half of recycled
water in urban areas for domestic purposes. This development represents a significant
improvement in current wastewater usage and strengthens Saudi Arabia’s current water
security outlook.

Saudi Arabia’s Food Security

Food and Agriculture

Only two per cent of land is arable in Saudi Arabia, and overgrazing and unsustainable
agriculture practices are causing increasing rates of desertification. Despite limited natural
resources and an arid climate, Saudi Arabia produces and exports dates, dairy products,
eggs, fish, poultry, and a variety of fruits and vegetables such as watermelon, citrus,
tomatoes and onions.

Both the government and private sector are also expanding investment in aquaculture. Fish
farms using both sea pens and onshore tanks are becoming increasingly prevalent as a
source of food for Saudi citizens, and as an export product. Shrimp are one of the most

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successful fish to be farmed. Continued support and further development in the aquaculture
industry will increase Saudi Arabian food security.

Saudi Arabia’s Failed Attempt at Self-Sufficiency

Saudi Arabia’s decision to pursue self-sufficiency in agricultural production during the 1980’s
stemmed from several factors, particularly volatilities associated with food imports. Heavy
government incentives allowed the wheat sector to flourish; farmers received subsidies on
grain, fertiliser, and water for irrigation, and a 45 per cent discount on agricultural
machinery. The government sold wheat with artificially lowered prices, despite the
inefficiency associated with producing and exporting a grain it could not sustainably support.
The wheat subsidy programme resulted in poor water management decisions, a drawback
that was compounded by a lack of sewerage development and excessive use of fertilisers, all
of which ultimately led to depleted groundwater and contaminated water supplies.

By 1993, Riyadh had fully recognised the harmful impact its wheat subsidy programme was
having on its already limited water supply, and subsequently abandoned the initiative in
2007. The government plans to cease wheat subsidies altogether by 2016, and is instead
offering subsidies to dairy farmers and those with sheep to use manufactured feed rather
than barley and alfalfa that require large quantities of water to produce. The government is
also encouraging vegetable production in greenhouses rather than open fields where water
evaporates faster, along with drip irrigation systems and sustainable methods of farming.
These methods of agriculture that can be sustained in the Saudi climatic conditions, along
with significant food imports, will continue to ensure food security for the water-scarce
country.

Reliance on Food Imports

Saudi Arabia is increasingly dependent on imported food to meet the needs of its
population. The country’s key bilateral trading partners include the Ukraine, Russia, India,
and Pakistan. Barley, wheat, rice, chicken and sheep constitute Saudi’s top food imports,
with 80 per cent of food requirements imported in 2013. A market-based food supply,
however, creates risks for domestic food security. In the event of, for example, climate-
induced supply shocks with subsequent reductions in global food exports and a rise in food
prices, import-dependent countries will be most vulnerable to food insecurity if contingency
management plans have not been established.

The Strait of Hormuz receives 40 per cent of internationally traded oil, with a large portion
of this petroleum exported from Saudi Arabia. If Iran were to blockade the Strait for an
extended period, Saudi Arabia would experience a threat to its oil revenue; a challenge that
would affect the Kingdom’s food imports. Food imports could also be restricted, adversely
effecting Saudi Arabia’s food security. It is vital that the Kingdom continues to secure a wide
range of trading partners around the world, with a variety of established shipping routes, to
insure against volatility in an insecure region.

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The civil uprising of the Arab Spring did not appear to have affected the country’s demand
for food and water but terrorism in the region could threaten shipping routes and oil
infrastructure. Similarly, the conflict in Yemen has not yet had an adverse impact on food
and water security, yet if terrorist groups such as al-Qaeda in the Arabian Peninsula or
Da’esh gain further strength in the country, Saudi Arabia’s petroleum exports could be
threatened. If Saudi Arabia’s petroleum infrastructure is targeted, the country’s oil revenue,
vital for its food security, will be critically affected.

Riyadh has pursued a policy of outsourcing its agricultural production by purchasing land in
other countries that are more suited for agricultural production, including Sudan and
Ethiopia, and exporting the produce back to Saudi Arabia. Political unrest, natural disasters
and commodity-price inflation, however, threaten that initiative. Furthermore, the policy is a
highly controversial subject internationally, with some referring to the practice as being
similar to the ‘land-grab’ tendencies of colonialism.

The Saudi Arabian Oil Economy

Saudi Arabia is dependent on its oil-based economy; petroleum exports account for 80 per
cent of economic revenue. This has allowed the government to maintain large financial
reserves to support social security. An extended drop in oil prices over the long term,
however, would hinder efforts to subside food and water for a growing population with
increasing rates of unemployment.

Oil revenue enables the country to import almost all of its nutritional requirements. In May
2015, Saudi Arabia was ranked as the 30th most food secure nation in the world by the
Global Food Security Index. Global carbon pricing, unsustainable energy consumption and
the increasing production of shale oil and gas could, however, threaten Saudi Arabian oil
profits. Even though the Kingdom has large financial reserves that enable it to sustain low oil
prices for an extended period, those, like its oil reserves, are not limitless and the market for
oil is volatile. Any threat to Saudi oil revenue, therefore, is a threat to Saudi food and water
security.

The government is currently encouraging economic diversification to enhance food and

water security and encourage domestic employment. By diversifying the economy through
telecommunications, new forms of power generation and natural gas exploration, Saudi
Arabia is able to support economic growth and ensure access to long-term sources of
revenue. This will further enhance food and water security in a country that relies on food
imports and desalinated water for survival.

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Looking Forward: Saudi Arabia’s Food and Water Security Outlook to 2025

The following actions have been identified to secure Saudi Arabian food and water security
to 2025:

 Pursue economic diversification to create alternate and stable sources of revenue

to ensure food and water security. A complete reliance on oil exports places Saudi
Arabia’s food and water security in a weakened position, particularly as the market
for oil is subject to geopolitical disruptions and oil supplies are not infinite.

 Improve education so Saudi youth are equipped with the skills to enter a
diversifying economy, reducing future social inequalities and decreasing pressure
on the government by enabling its citizens to pay more for their food and water
requirements.

 Adopt a water pricing system to ensure consumers are aware of the value of water.
Saudi Arabia is improving its awareness campaign regarding the dangers of water
scarcity but it must continue to stress the importance of sustainable water
consumption.

 Work to integrate both desalinated water and wastewater with aquifer storage
recovery technology to create protected reserves of potable water. The United Arab
Emirates has pursued a similar policy, and now has secure water reserves to last for
90 days. Should supply shocks to water or the oil market occur, Saudi Arabia would
greatly benefit from these water storage facilities.

 Diversify water production by investing in better infrastructure to transport water,

or increase wastewater use. Given that wastewater is a more readily available
water source than desalinated water, Saudi Arabia would benefit from greater use
of recycled water for agricultural production and industry use.

 Partner with stable, well-governed countries for land purchases and food imports.
Saudi Arabia would benefit from investing in countries where political disruptions
are infrequent, and the rule of law is more equitable.

Saudi Arabia must address both its demand- and supply-side management of resources if it
is to ensure its long-term food and water security. Diversifying the economy to reduce its
dependence on oil revenue, and engaging with a broad number of trade partners for food
imports must continue to ensure against volatility and food insecurity. Beyond supply-side
management, Saudi Arabia will greatly benefit from adopting a more holistic approach to
resource management and investing further in demand-side factors that affect food and
water security. Promoting the value of water and natural resources and creating strategies
to target wasteful consumption are critical to support enhanced food and water security
beyond 2025.

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