Research on World Agricultural Economy

Globalization, Agriculture and Entrepreneurship in Saudi Arabia: Implications for Economic growth and Sustainable Development

Mohamed NEFFATI

College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia

Fahad Aldubayan

College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia

Mounir Ben Mbarek

University of Gabes Tunisia

Bader Benzaid

College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia

DOI: https://doi.org/10.36956/rwae.v7i2.2644

Received: 17 August 2025; Published: 17 April 2026

Abstract

The evolving discourse on globalization has increased academic and heightened scholarly interest in its effects on economic growth, agricultural transformation, and sustainable development in both developed and developing nations. This study examines the causal relationships between entrepreneurship development, agricultural performance, economic growth, and sustainability in Saudi Arabia over the period 2000–2020. Recognizing the agriculture’s strategic role played in food security, rural employment creation, and environmental balance, the study situates it within the globalization–entrepreneurship nexus to assess development pathways aligned with Saudi Arabia’s Vision 2030. Applying Granger causality within a VAR framework, augmented by impulse response analysis and variance decomposition, the study reveals that entrepreneurship development is a significant driver of economic growth and exerts a positive influence on agricultural value-added and sustainability outcomes. Globalization is shown to boost agricultural efficiency through technological transfer, border market access, and increased investment, thereby supporting long-term sustainable growth. Based on these findings, policymakers should pursue targeted strategies that cultivate sustainable entrepreneurship and promote innovation driven practices in agriculture. The study underscores the interconnected roles of globalization, education, agriculture, and entrepreneurship as key drivers of economic diversification and sustainable development within the Saudi context. By fostering an entrepreneurial ecosystem and promoting knowledge spillovers, the findings point to a path where economic resilience and environmental stewardship reinforce one another, aligning prosperity with sustainable agricultural transformation and broader societal well-being.

Keywords: Globalization; Agriculture; Entrepreneurship Development; Economic Growth; Sustainability; Saudi Arabia

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