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Mechanisation and Production in Saudi Agribusiness

In: Business and Economic Development in Saudi Arabia

Author

Listed:
  • J. W. Wright
  • Salah Al-Suhaibani

Abstract

Agriculture in Saudi Arabia has developed greatly in the last ten years as the government has pushed agribusiness to meet the country’s demand for foodstuffs, particularly wheat. The area under cultivation increased nearly four fold between 1975 and 1987, a period when huge government support programmes were made available to farmers wanting to introduce modern agribusiness technology.1 The Saudi Arabian Agricultural Bank (SAAB) initiated the government’s incentive programmes by offering huge subsidies for those adding mechanised equipment to their capital stock. More than 29 000 subsidies were issued for tractors between 1976 and 1983.2 Subsidy contracts for related equipment rose above 98 000. This chapter first examines the increasing mechanisation of Saudi farming and illustrates the level of modernisation achieved by comparing Saudi farms with farms in the United Kingdom and the United States. It then goes on to discuss the Saudi government’s push for farm modernisation and mechanisation, resulting in increased wheat production.

Suggested Citation

  • J. W. Wright & Salah Al-Suhaibani, 1996. "Mechanisation and Production in Saudi Agribusiness," Palgrave Macmillan Books, in: J. W. Wright (ed.), Business and Economic Development in Saudi Arabia, chapter 9, pages 140-151, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-25096-7_10
    DOI: 10.1007/978-1-349-25096-7_10
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