This study deals with the analysis of the foreign trade of agricultural requisites, estimation of the density of capital inputs in Arabic agriculture sector in comparison with the world average level, and estimation of the economic efficiency of the agricultural resources using the production function model during the period (2002 —2004). This period covers the completion of the economic reform and market liberalization of the Arab Countries. The indicators of the foreign trade and estimates of the economic efficiency of agricultural production inputs are used to determine which ones should be expanded and which should be limited in application for production increase in Arab countries. The results should that while the foreign trade balance of fertilizers and pesticides have performed a significant surplus, the agricultural machineries balance of trade have should an annual deficit of about 439 million dollars. While adding one hectare under rain fed system would not raise the agricultural production in Arab countries, adding an irrigated hectare would increase the production by about 4520 d:llars. Potash fer'ili7erc application has no significant impact on agricultural production. Additional agricultural labor employment and Phosphate fertilizers application have negative impacts on agricultural production. Therefore, in addition to irrigated land, only mechanization have shown economic efficiency for agricultural production in Arab countries, as the marginal return was 3 dollars for each additional dollar spent n agricultural mechanization. The marginal return of nitrogen fertilizer was less than one dollar for each additional dollar pent on such type of fertilizers. Therefore, the agricultural development in Arab countries on economic bases, expansion of investment in agricultural machineries is recommended and allocation of more chemical fertilizers for export at the expenses of domestic use is recommended. Release of abundant human :abor from affriculture is required. Integrated rural development programs shcu:d eenerate employment opportunities for such agricultural labor surplus