Economic efficiency of desalinated water to be used in agricultural production in the Kingdom of Saudi Arabia
Abstract: This study aimed to measure the economic efficiency of desalinated water used in agricultural production in general, and in the production of dates in particular. This study adopted the use of equations and econometric analysis to achieve its objectives. The prime findings of the study include: (1) desalinated water production increased from 1.13 billion m3 in 2007 to 2.24 billion m3 in 2016; (2) the amount of desalinated water used for drinking increased from 1.07 billion m3, representing 53.97% of the total 1.98 billion m3 of drinking water, in 2007 to 1.95 billion m3, representing 62.22% of the total 3.13 billion m3 of potable water, in 2016. (3) The cost of desalination exceeded the value of productivity per unit of water used in the production of cereals, fodder, olives, citrus, apricots, peaches, pomegranates, figs, mangoes,
bananas, berries, and apples. Productivity exceeded the desalination cost per unit of water used in the production of vegetables, dates, grapes, figs, almonds, pears, plums, and papayas. (4) The trend towards the use of desalinated water in Saudi agriculture lead to a net economic loss of SR 10.86 billion, with a desalination cost of SR 6/m3, in 2015. (5) The marginal return of water used in date production in Riyadh was estimated at SR 0.89/m3. The marginal rate of return for the cost of desalination was 0.148, so the use of desalinated water in date production is not economically efficient. (6) Based on the economic analysis made in study, it is recommended not to expand the use of desalinated water in agricultural production, except when the use of modern desalination techniques (solar and atomic energy) reduces the cost of
desalination to reach the value of the marginal output of water used in agricultural production.

Keywords: Economic efficiency; Water desalination; Dates; Economic gains and losses
Publication year 2018
Pages 101- 110
Availability location Desalination and Water Treatment
Availability number
Organization Name
Web Page
ISSN ISSN: 1944-3994
Author(s) from ARC
External authors (outside ARC)
    عادل محمد خليفة غانم aghanem@ksu.edu.sa كلية علوم الأغذية والزراعة، جامعة الملك سعود
    خالد بن نهار الرويس كلية علوم الأغذية والزراعة، جامعة الملك سعود
    عثمان بن سعد النشوان كلية علوم الأغذية والزراعة، جامعة الملك سعود
Publication Type Journal
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