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A STUDY ON THE IMPACT OF THE SAUDI CITIZEN ACCOUNT AS A
COMPENSATION PROGRAM TO ACHIEVE FOOD SECURITY FOR
LOW-INCOME CITIZENS UNDER THE KINGDOM’S VISION 2030
Heba Althawaini
1+
Nagat Elmulthum
2
Hafsa Morsi
3
1,2
Department Agribusiness and Consumer Sciences, College of Agriculture and Food Sciences, King Faisal,
Al Ahsa, Saudi Arabia.
1
Email: 218005133@student.kfu.edu.sa Tel: 00966500121119
2
Email: nelmultham@kfu.edu.sa Tel: 00966559469745
3
Agricultural Economics Department, Faculty of Agriculture, Ain Shams University, Cairo, Egypt.
3
Email: ohafsa2ay@gmail.com Tel: 00201117959297
(+ Corresponding author)
ABSTRACT
Article History
Received: 31 January 2022
Revised: 7 March 2022
Accepted: 22 March 2022
Published: 4 April 2022
Keywords
Break-even level
Expenditure elasticity
Food security
Linear expenditure system
Saudi Arabia
Seemingly unrelated regressions.
JEL Classification:
H5.
This research aims to assess Saudi Citizen Account’s (CA) impact on low- and middle-
income individuals by considering costs from increasing energy and water prices, and
taxes imposed in Saudi Arabia. The minimum total household consumption expenditure
was estimated (before and after the Saudi Vision 2030 economic reforms). The research
covers all the expenditure groups in the Household Income and Expenditure Survey
conducted by the General Authority for Statistics and estimates the linear expenditure
system (LES) using the seemingly unrelated regressions (SUR) method. Results
indicate variations in expenditure in 2013 and 2018. The minimum household
consumption expenditure in 2018 exceeded than that in 2013. Comparing the average
(CA) value and the difference between minimum household expenditures in the two
years on all groups in general, and on food, beverages, health, and education in specific
shows that the financial support the Citizen Account provides, indeed covers financial
burdens that the low-income individuals would bear due to increase in prices.
Contribution/ Originality: This study is probably one of the earliest studies in the Kingdom of Saudi Arabia
that aims to evaluate the "Citizen's Account" program to help the low-income Saudi citizens to combat inflation
resulting from economic reforms and to ensure the maintenance of their purchasing power and food security. It is
one of the studies that reveals the potential impact resulting from the implementation of the monetary support
policy for families with the lowest incomes during the period of economic reforms.
1. INTRODUCTION
Government support is one of the important measures taken by governments during the implementation of
economic reforms in order to reduce the burden on low-income individuals by providing their consumption needs
or increasing the availability of some goods and services without reducing their spending on other goods and
services. Therefore, support programs aim to maintain the purchasing power of low-income families on one hand
and to maintain food security on the other hand, where food is considered as an essential need and obtaining it amid
the continuous and accelerating economic reforms, is a source of concern for low-income families (Elbushra &
Ahmed, 2020).
Asian Development Policy Review
ISSN(e): 2313-8343
ISSN(p): 2518-2544
DOI: 10.55493/5008.v10i2.4461
Vol. 10, No. 2, 77-87.
© 2022 AESS Publications. All Rights Reserved.
URL: www.aessweb.com