1. Introduction
Date palm, scientifically known as
Phoenix dactylifera, is a staple crop in the arid regions of Gulf Cooperation Council (GCC) countries due to its ability to thrive in hot climates with low water requirements [
1]. Date palm is a cash crop in several Asian countries as well. Date palm production in Gulf countries is of significant social and economic importance. It is a vital sector of the agricultural economy in Gulf countries, contributing to local consumption and export markets. Date palm production in GCC countries is a thriving industry that sustains local economies and preserves the region’s rich agricultural traditions and heritage [
2]. Date palm plays a vital role in the cultural heritage of GCC countries, with the date being an integral part of traditional celebrations, food, various medicines, and official occasions; moreover, the date palm tree itself is highly honored in GCC countries’ societies for its longevity and the multiple uses of its by-products [
3]. Likewise, the date palm crop has a long history of cultivating and harvesting dates [
4]; it presents a vital part of the local diet and a key export commodity in GCC countries.
The production of date palm crops in the GCC region involves precise farming practices, including proper irrigation systems, soil management, pest control, and date palm preservation [
5]. Farmers in GCC countries often apply modern agricultural techniques to increase yields and guarantee the quality of the date palm produced.
When comparing the key facts between GCC countries, significant variations emerge. It is notable from
Table 1 that Saudi Arabia stands out for its large area, covering 2,149,690 square kilometers, while Bahrain is the smallest in terms of area, with 760 square kilometers. Regarding agricultural land, it is noticeable that Saudi Arabia occupies the largest agricultural land (173,637.417 thousand hectares); in contrast, Bahrain has the smallest amount of agricultural land (8.1 thousand hectares). In 2023, the most populated country was Saudi Arabia (33,264.292 people), while the least populated country was Bahrain (1569.666 people). Saudi Arabia is the leader in date palm production among the listed countries. Concerning water use efficiency, Qatar tops regarding agriculture water use efficiency at 1.4051 USDm-3, while Oman marks at 1.0030 USDm-3. Kuwait leads in service water use efficiency at 158.967 USDm-3, with the United Arab Emirates at the limit at 47.340 USDm-3. What is remarkable is that the United Arab Emirates’ industrial water use efficiency is at a high of 4,870.273 USDm-3, while Oman reports a negative value, implying inefficiency in this sector. These comparisons underscore the diverse landscape of GCC countries across various key indicators.
Conversely, date palm production in GCC countries faces several challenges that influence cultivation and production. These challenges involve climate changes, high soil salinity, market competition, and water scarcity [
7]. Water scarcity is a significant issue in the arid climate of GCC countries. GCC countries have limited renewable water resources due to the scarcity of rainfall [
8]. Exploring the impact of water use efficiency on date production in GCC countries not only addresses water scarcity challenges but also has consequences for sustainable agriculture, cost-effectiveness, climate resilience, and regulatory compliance. This contributes towards creating a more effective and environmentally conscious agricultural industry. Enhancing water efficiency can increase date palm production, improve profitability, and boost the overall economic impact of date palm farming.
The evolution of date palm production and water use efficiency for GCC countries from 2000 to 2022 is depicted in
Figure 1. As discussed later, Saudi Arabia is the leading producer of date palm among GCC countries; at the same time, Oman and Qatar have negligible date production compared to other GCC countries (
Figure 1A). Oman and the United Arab Emirates have managed water efficiency well for agricultural and industrial purposes (
Figure 1B,C). Bahrain, Oman, and Saudi Arabia exhibited very low values for water use efficiency in services during the period 2008–2019 (
Figure 1D).
The justification for the examination carried out in this study is that date palm is the crop that consumes the most water for irrigation [
10]. Studying the connection between date palm production and water efficiency benefits GCC countries. It has far-reaching implications for the global economy by enhancing food security, promoting sustainability and innovation, technology transfers, and stimulating trade, investment, and economic collaboration.
The current study aims to examine the variation in water use efficiency on date palm production in GCC countries using the Bayesian model. We also aim to determine the key sector (agriculture, services, or industry) that employs the most substantial impact on date palm production through the analysis of water use efficiency. By studying the variation in water use efficiency on date palm production through a Bayesian model, we aim to provide valuable insights into the complex interactions between water management practices, efficiency of water usage, and date yield, with the predominant goal of promoting sustainable and efficient date palm cultivation practices. Also, identifying the sector with the highest impact on date palm production can help focus our efforts on improving water management strategies in that specific sector to enhance date palm productivity, direct investment decisions, and water resource distributions for maximum economic benefits.
The subsequent sections of this study are structured as follows:
Section 2 reviews the appropriate literature.
Section 3 defines the data used and the empirical methods applied.
Section 4 presents the results with interpretations and discussions.
Section 5 concludes with the main results, policy implications, and recommendations.
2. Literature Review
Several types of research have been conducted worldwide on date palm production, employing various analytical models to address a wide range of the connections between water issues and date palm production [
11,
12,
13]. Among these studies, most of the research focuses on the effects of water irrigation on date palm production. This study examined the impact of controlled deficit irrigation using two modern micro-irrigation systems on the quality of date palms and found that the yield of date palms did not differ significantly between the control and subsurface irrigation systems [
14]. The maximum date fruit yield was observed when 100% irrigation water was used in the subsurface drip irrigation system [
5]. This study aims to explore the impacts of utilizing water of three distinct qualities—freshwater, reclaimed wastewater, and well water. The findings specify that implementing inadequate irrigation on date palm trees cultivated in arid areas can enhance fruit quality while adversely impacting yield [
15].
Concentrating on GCC countries, this research assessed how different irrigation water quantities influenced both date palm productivity and water use efficiency across various irrigation systems in Oman and Saudi Arabia, utilizing the partial budgeting method. The findings implied that employing the surface drip system in date palm cultivation can lead to enhanced water economic profitability [
4].
The fruit of the date palm presents a significant opportunity to enhance human health and food security, owing to its abundant nutritional content [
16]. A study was conducted in Saudi Arabia to estimate how the loss of date palms can affect food security in Saudi Arabia using a partial adjustment model. The findings indicated that date palms are viewed as both a self-sustaining crop and an export commodity, with the state opting to export excess produce rather than storing it for domestic consumption [
17]. A similar study conducted in Saudi Arabia that used simple descriptive analysis and estimated the nutrient indices revealed that the connection between date palm consumption and body mass index (BMI) was low [
18].
Date palm production is harshly affected by climate changes directly and indirectly, with the impact affecting water use. Using a statistical downscaling model (SDSM), this research projected future climate factors affecting the irrigation water requirement for date palm farming. This study proved that climate change has notably increased the irrigation water needed for date palm production [
19]
This study used parametric and nonparametric approaches to optimize the date palm production process by minimizing the amount of energy consumption; the result points out that 10% of input energy can be stored by boosting the efficiency of date palm production [
20].
Several studies used the Bayesian model to examine water sustainability, scarcity, distribution, efficiency, utilities, irrigation, and water poverty [
21,
22,
23,
24]. This study combines Bayesian theory and water footprint (WF) to construct a Bayesian network (BN) for examining agricultural water sustainability in China; the results specified that the agricultural scale is increasing with rapid economic development, but the unsustainability of agricultural water use is increasing [
21].
This study employs a machine learning method via the hybrid Bayesian network model to create a structure for simulating and assessing agricultural water distribution systems. The results indicated the ability to simulate any operating systems in the irrigation [
25]. This study was conducted to compare the efficiency of private water utilities and concessionary water utilities in Chile using Bayesian stochastic frontier analysis (SFA) techniques. The results denoted that both types of water utilities presented considerable cost inefficiency [
26].
A few studies reported in the literature have employed Bayesian models to investigate the relationship between date palms and water. One study applied joint Complementary System Dynamics modeling and the Bayesian network to evaluate the probability of water scarcity risks under various scenarios including climate change, economic, and groundwater policies. The results revealed that water availability is influenced by climate change, and low irrigation efficiency has a stronger effect on water scarcity [
27].
Another study utilized a dynamic Bayesian network (DBN) to evaluate crop water productivity and enhance crop planting in China during restricted water resource allocation. The findings showed that integrating the DBN enhances model accuracy for dynamic forecasting, especially in short-term predictions [
28]. This study utilized a feasible generalized least squares (FGLSs) model to conduct linear and nonlinear panel regression analyses on vegetation cover and the water poverty index. The findings confirmed that vegetation cover significantly influences water poverty [
29].
However, recent research [
30] applied the Bayesian-optimized neural network and Bayesian-optimized boosted Regression Trees to investigate the date palm frond waste biomass-derived producer gas and algal biodiesel as sustainable diesel engine fuels, confirming that the Bayesian-optimized boosted regression trees-based models were more robust for this study.
We concluded that this literature reviews show several estimations of the relations between date palms and water globally [
31] and in GCC countries [
32,
33], handling various issues of water; however, no research considers the relations between date palm production and water use efficiency for several purposes (for agriculture, industries, and services). In this study, the novelty of integrating the Bayesian technique into an investigation on water use efficiency and date palm production lies in its ability to provide a probabilistic framework and to help incorporate strategies and tools into decision-making processes that can support adaptive management practices, enabling effective responses to dynamic conditions, optimizing resource utilization, and enhancing the sustainability of water management and agricultural systems. Moreover, applying the panel-corrected standard error (PCSE) and FGLSs models in this study to test the robustness and verify that water use efficiency significantly affects date palm production is another novelty. This study offers valuable insights for policymakers and stakeholders in the agricultural sector, emphasizing the need for sustainable water management strategies to optimize date palm production
3. Methodology
3.1. Data Sources and Descriptive Analysis
To achieve this study’s objectives, appropriate data were collected, and preliminary econometric estimations were performed. This study also utilized Bayesian random and mixed effects models and robust tests by examining the PCSE and FGLSs estimators.
The dataset for this study includes information on cross-country panel data encompassing six GCC countries, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, over the period spanning from 2000 to 2022. The key variables focus on macroeconomic information, such as date palm production (DAP) measured in metric tons as the dependent variable and water management as a proxy for water use efficiency for agriculture (WEA), industries (WEI), and services (WES), measured in USDm-3 as independent variables. All variables are extracted from the FAO database [
9] and summarized in
Table 2.
The DAP variable was chosen because date palms are a staple food in the region and contribute to food security. Consuming about seven date fruits can supply roughly 13%, 20%, and 25% of the suggested daily intake for energy, dietary fiber, and potassium for adults [
1]. Increased local production can reduce reliance on imports and ensure a stable food supply for the population. This increase could serve as part of the economic diversification efforts in GCC countries, reducing dependence on oil revenues and creating a more sustainable economic base. I chose water use efficiency for various purposes as the predictor of date production because it can help reduce the impact on the environment, such as groundwater depletion or soil salinity, promoting sustainable agricultural practices, and GCC countries can thus better manage their water resources, which are often scarce in arid GCC regions.
Table 2 details two-dimensional descriptive statistics: the ‘within’ (cross-sectional) and ‘between’ (time series) dynamics of each variable.
During the study period, the average date palm production was 337,215.4 metric tons. Saudi Arabia achieved the highest production in 2022 at 1,610,731 metric tons, while Bahrain had the lowest output in 2021, estimated at 8696 metric tons. Regarding the water use efficiency for agricultural purposes, the collective average is 0.755 USDm-3. Qatar registered the highest value (1.7 USDm-3) in 2020, while the United Arab Emirates registered the lowest value in 2007. The lowest negative value of water use efficiency (−40.07792 USDm-3) for the services was observed in Oman in 2022, with the highest value (5898.34 USDm-3) noted in Qatar in 2011. Finally, it was observed that water use efficiency was highly valued in 2016 in Oman (526.49 USDm-3), with the minimum value reported in the United Arab Emirates (47.3403 USDm-3) across 2022, with an overall mean estimated as 128.6177 USDm-3. Also, it was observed that the between-variation exceeds the within-variation for the DAP (SD = 418104.1) and WEI (SD = 70.934) variables, confirming the assumption of notable heterogeneity. In contrast, the opposite is observed for the WEA and WES variables, suggesting a certain degree of homogeneity.
3.2. Econometric Estimations
Before estimating the Bayesian models, I tested the matrix correlation, normality, cross-sectional dependence (CD), homogeneity, unit roots, and panel cointegration tests. Several studies have remarked that panel data exhibit challenging cross-sectional dependence problems stemming from cross-border shockwaves due to economic globalization and shared risk factors [
34,
35,
36].
The slope of homogeneity and the existence of cross-sectional dependence were examined by referring to the test in [
37]. Confirming the existence of cross-sectional dependence, panel unit root checks were achieved by applying the Levin–Lin–Chu [
38] test.
Several studies have applied unit root tests followed by panel cointegration tests [
39,
40,
41]. Two methods of panel cointegration tests were utilized to determine the presence of a long-term equilibrium relationship among the series. In this study, I implemented the panel cointegration tests of Pedroni [
42] and Westerlund [
43] with an Error Correction Model (ECM).
Pedroni [
42] introduced seven test statistics that test the null hypothesis of no cointegration in nonstationary panels with two sets of cointegration statistics: (1) within-dimension approach, comprising four famous statistics: panel v-static, Panel rho (ρ) statistic, Panel PP-Statistic, and Panel ADF-statistic. These statistics aggregate the autoregressive coefficients from various GCC countries for conducting unit root tests on the estimated residuals. (2) The group mean panel cointegration statistics that average the results of individual country test statistics, following the between-dimension approach, consist of three statistics: nonparametric (ρ and t) Group rho (ρ) statistic, Group PP-statistic, and parametric augmented Dickey–Fuller (ADF), and the (v) test statistics are within both groups. These statistics are derived from the averages of individual autoregressive coefficients related to the unit root tests of the residuals for each country within the panel.
Westerlund [
43] proposes four cointegration tests for panel data based on pooling the information regarding the ECM along the cross-sectional dimension of the panel. Categories of group mean statistics are denoted as Gt (Equation (1)) and Gα (Equation (2)); the panel statistics are denoted as Pt (Equation (3)) and Pα (Equation (4)).
The equations of the four Westerlund cointegration models are as follows:
where
is the standard error of
, where
t =1, ..., T and
i =1, ..., N.
To account for small sample sizes, the group mean coefficient statistic could be normalized using the cross-sectional average of the effective number of observations per individual (N) instead of T [
43]. The tests represented by Gt and Gα assume that the entire panel is cointegrated, while Pα and Pa are formulated under the assumption that as a minimum, one factor within the panel is cointegrated. In each case, the null hypothesis states no cointegration. This study employs model measurements with DAP as the dependent variable to compute these statistics.
In contrast, ref. [
42] offers a pooled Phillips and Perron-type test [
44], where the null hypothesis (
) indicates no cointegration. On the other hand, the Westerlund test also considers
as no cointegration, but the alternative hypothesis (
) differs, indicating that certain panels are cointegrated. Westerlund [
45] utilizes the bootstrap method to mitigate cross-sectional dependency effects in these tests.
By exploring the cointegration between date palm production and water use efficiency, investigators can gain a comprehensive understanding of the long-term connection between these variables and their implications for water management, agricultural sustainability, and economic development in GCC countries where date palm cultivation is the prevalent crop.
3.3. Bayesian Model
I apply the Bayesian statistics model relying on a simple rule of probability, Bayes’ rule [
46], which provides a formalism for combining prior information with evidence from the data given. The Bayes rule forms the so-called posterior distribution of the model parameters. This posterior distribution captures updated beliefs derived from observed evidence. Utilizing this distribution, Bayesian analysis computes multiple statistics for model parameters like posterior means, medians, percentiles, Monte Carlo Standard Error (MCSE), and credible intervals. Additionally, all statistical tests concerning model parameters are framed as probability statements based on the estimated posterior distribution.
The simple form of Bayesian takes as a ratio formula the following:
where y is the data, whereas in this study, it can be DAP, WEA, WES, or WSEI.
θs represents unknown parameters. Pr(
y|
θ) is the likelihood function, which is the probability of y assuming θ.
Pr(
θ) is the prior distribution of θ.
Pr(
y) is the marginal distribution of y, and Pr(
θ|
y) is the posterior distribution, which is the probability of θ provided y.
Lemoine [
47] recommends using the normal distribution of N (0, 1) for the observed variables and the distribution of gamma (0.01, 0.01) for the variances (σ2) in the model. The a priori distribution can be rewritten as follows:
~(0, 1) and σ2~(0.01, 0.01).
I follow [
48] for the applied Bayesian random effect (RE) normal regression using Metropolis-Hastings and Gibbs sampling with the simulation of Markov chain Monte Carlo (MCMC) iterations. Its likelihood is assumed to be normal before variance is defined {sigma2}. The Bayesian random effect for this study can be labeled as follows:
whereas LnDAP denotes date palms production; LnWUS represents water use efficiency for various purposes, which are LnWEA, LnWES, and LnWEI. Default priors are used for model parameters (coefficients) and assumed inverse gamma priors for the variance parameters.
The Bayesian analysis begins with the definition of a posterior model [
49]. The posterior distribution has two elements: a likelihood reflecting information on model parameters from observed data and a prior and hyperprior that incorporates pre-existing information on the model parameters before the data observation [
50].
According to STAT software version number (17), the likelihood, prior, and hyperprior take the formulation of
lndap ~ normal(xb_lndap,{sigma2})
Priors:
{lndp1:lnWEA lnWES lnWEI _cons} ~ normal(0,10000)
{U[ID]} ~ normal(0,{var_U})
{sigma2} ~ igamma(0.01,0.01)
Hyperprior:
{var_U} ~ igamma(,)
where _cons serves as a proxy for the mean of the random effects; ID is individuals; Var (σ2) is a proxy for the error variance; σ2 U is a proxy for the variance of random effects; and varies from 100 to 1000 for checking robustness. Where all the model parameters are normally distributed with the zero mean and the same variance of 10,000, the overall variance (sigma2) has an igamma (0.01, 0.01) prior.
Roy [
51] suggests that Markov chains must support convergence to ensure robust Bayes analysis. To ensure that Bayesian inference based on the MCMC sample simulation is a reasonable method with the Gibbs sampler to estimate the posterior distribution, I use the convergence diagnostic of MCMC chains for the DAP model. When MCMC chains converge, Bayesian inference is robust. The testing of the convergence of MCMC chains is performed through trace plots, histograms, autocorrelation, and Gelman–Rubin convergence estimation.
The justification for using the Bayesian analysis is that this study can not only evaluate the strength of the relationships between water use efficiency and date palm production but also quantify uncertainties associated with these relationships. This approach provides a framework for making more informed decisions by considering the full range of possibilities and their respective probabilities of date palm production.
3.4. PCSE and FGLSs Tests
As the autocorrelation and heteroskedasticity have been noticed in this study’s data, the PCSE and FGLSs estimators are examined as robust tests, [
48,
52] confirming that these methods have been shown to give robust and efficient outcomes. Also, these methods are suitable in this case as they are applicable whenever the temporal parameters are smaller than a given number of cross-sections (N < T), as in
Table 2 (T = 23 > N = 6). Beck and Katz [
53] proposed the PCSE method; this method could correct the first-order autocorrelation with the transformation matrix proposed by [
54]. The simple equation of PCSE takes the following form:
The FGLSs estimator was used to estimate panels with heteroskedasticity and the contemporaneously correlated error matrix proposed by [
55,
56]. Likewise, the simple equation of FGLSs takes the following form:
is the natural logarithm of date palm production measured in metric tons as a dependent variable, subscript i stands for the selected six GCC countries, and t specifies the time from 2000 to 2022. α is a fixed term (is the intercept term); β1, β2, and β3 are the slope coefficients of the respective water use efficiency for agriculture, services, and industrial purposes in the model; and denotes the model’s error stochastic term (idiosyncratic error term). i = 1, …, N; t = 1, …, T.
The FGLSs model assumes that E
[
57].
Thus, with this hypothesis, the data support T sets of residuals to estimate the contemporaneous covariance. There is also typical components E along the block diagonal.
5. Conclusions and Policy Implications
Date palm production in GCC countries faces several challenges that influence the farming and production of date palm. These challenges involve climate changes, high soil salinity, market competition, and water scarcity. GCC countries have limited renewable water resources due to the scarcity of rainfall. Therefore, this study aims to provide new empirical evidence on the impact of water use efficiency for various purposes involving agriculture, services, and industrial purposes on date palm production for GCC countries over the period 2000–2022 by adopting annual panel macro data. The data analysis relies on the Bayesian random and mixed effect techniques and its diagnosis environment. Before estimating the Bayesian model, the matrix correlation, normality, cross-sectional dependence, homogeneity, unit roots, and panel cointegration tests of Pedroni and Westerlund with an Error Correction Model (ECM) were tested. In addition, the robustness checks were achieved by examining the PCSE and FGLSs estimators. To homogenize the variable series, all the data were transformed into natural logarithm (Ln) forms. The existence of heterogeneity and a cross-section dependency are observed. The results of the LLC test show that the selected variables are stationary when considering intercept and time trends at both level and first differences.
The cointegration tests confirmed the existence of a long relationship between the studied water use efficiency and date palm production.
The results of Bayesian random and mixed effects indicate that the MCMC algorithm is effectively exploring the relationship between date palm production and water use efficiency, signifying that the outcomes obtained from the analysis are more likely to be valid and reliable. Furthermore, the shape of the histogram stimulating the shape of the probability distributions is consistent. Therefore, it can be assumed that the Bayesian inference is stable. Additionally, the posterior simulation satisfies the conditions of the Bayesian analysis. This result indicates the fit of the model, the validation of the results, and the knowledge that decision-making can suggest water management strategies for date palm cultivation.
The findings from the PCSE and FGLSs models confirm that water use efficiency has a significant impact on date palm production. Higher water use efficiency for industry purposes appears to be linked to increased date production, implying that industrial processes might benefit from optimized water usage practices that enhance output.
Given the significant impact of water use efficiency on date production in GCC countries, this study recommended the regular monitoring and evaluation of water usage in date palm farms. This study also recommends supporting the development of drought-resistant date palm varieties and resilient agricultural systems to enhance the sector’s resilience to water scarcity challenges. Also, providing incentives or subsidies for farmers to adopt water-saving technologies and practices that have been proven effective in improving water use efficiency is highly recommended. By integrating these recommendations into policy frameworks and decision-making processes, policymakers can promote sustainable water use practices in date palm cultivation, enhance agricultural productivity, and contribute to the sector’s long-term viability while safeguarding water resources for future generations. Developing and implementing comprehensive strategies, such as Integrated Water Resource Management (IWRM), that consider the needs of all water users, including agriculture, services, and industry, as well as establishing coordinated water distribution plans to ensure sustainable water use practices across various sectors, are highly recommended for policymakers and stakeholders.
Based on this conclusion, this study acknowledges the need for further research to explore the impacts of climate change on water resources and date production to develop adaptation strategies that enhance the resilience of date palm cultivation. This will help the development of sustainable agricultural practices that balance water conservation with agrarian productivity.
When conducting a study on the impact of water use efficiency on date production, several limitations may arise that could affect the interpretation and generalizability of the findings. The limited availability of data on water use efficiency may restrict the depth and accuracy of the analysis. Furthermore, the findings obtained from this study may be limited to the specific geographic location where this research was conducted, making it challenging to generalize the results to other regions with other environmental characteristics. Also, this study is limited considering contextual variables such as annual precipitation, Standardized Precipitation Index (SPI), technology investments, and palm varieties, as these were not extensively incorporated into the analysis. It is recommended that future studies address this limitation by incorporating these contextual variables to better understand the factors influencing water use efficiency and enhance the robustness of the analysis.