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Estimating the Expected Commercial Potential of Saudi Date Exports to Middle Eastern Countries Using the Gravity Model

Author

Listed:
  • Yosef A. Alamri

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Mohamad A. Alnafissa

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Alaa Kotb

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Fuad Alagsam

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Abdullah I. Aldakhil

    (Advanced Agricultural & Food Technologies Institute, King Abdulaziz City for Science and Technology, P.O. Box 6086, Riyadh 11442, Saudi Arabia)

  • Imad Eldin Alfadil

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Mohammad H. Al-Qunaibet

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

  • Sharafeldin Alaagib

    (Department of Agricultural Economics, King Saud University, Riyadh 11451, Saudi Arabia)

Abstract

Date production farms account for 10% of total income in the agricultural sector. Although Saudi exports of dates reach many countries, they are still of lower quantity compared to the size of their production. This study investigates the possibility of expanding external marketing of date exports by increasing the marketing efficiency of the existing market, which is expected to lead to increased returns. Therefore, this research uses the gravity model to identify the most critical factors affecting Saudi date exports to Middle Eastern countries. The results indicated the positivity of the per capita GDP in Saudi Arabia, the common border in influencing the increase in date exports, and the opposite effect of membership in the Gulf Cooperation Organization (GCC). In estimating the potential and expected trade capabilities with the Middle Eastern countries, the study results show that the actual value of date exports to the countries of the Middle East represents about 83.37% of its expected potential date trade, and it is possible to increase the export value by 16.63%, or USD 12.75 million. The study provides recommendations to improve date trade further.

Suggested Citation

  • Yosef A. Alamri & Mohamad A. Alnafissa & Alaa Kotb & Fuad Alagsam & Abdullah I. Aldakhil & Imad Eldin Alfadil & Mohammad H. Al-Qunaibet & Sharafeldin Alaagib, 2024. "Estimating the Expected Commercial Potential of Saudi Date Exports to Middle Eastern Countries Using the Gravity Model," Sustainability, MDPI, vol. 16(6), pages 1-11, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2552-:d:1360496
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    References listed on IDEAS

    as
    1. Al-Abdulkader Ahmed M. & Al-Kahtani Safar H. & Ismaiel, Sobhy M. & Elhendi Ahmed M. & Saad Ali I. & Alamri Yosef A. & Al-Dakhil Abdullah I., 2016. "Enhancing Marketing Efficiency of the Saudi Dates at the National and International Markets," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 1-53, August.
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