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Land and sea

Most of the Arabian Peninsula is unsuited to agriculture, making irrigation and land reclamation projects essential. The narrow coastal plain and isolated oases, amounting to less than 1% of the land area, are used to cultivate grains, coffee and tropical fruits. Goat, sheep, and camel husbandry is widespread elsewhere throughout the rest of the Peninsula. Some areas have a summer humid tropical monsoon climate, in particular the Dhofar and Al Mahrah areas of Oman and Yemen. These areas allow for large scale coconut plantations. Much of Yemen has a tropical monsoon rain influenced mountain climate. The plains usually have either a tropical or subtropical arid desert climate or arid steppe climate. The sea surrounding the Arabian Peninsula is generally tropical sea with a very rich tropical sea life and some of the world's largest, undestroyed and most pristine coral reefs. In addition, the organisms living in symbiosis with the Red Sea coral, the protozoa and zooxanthellae, have a unique hot weather adaptation to sudden rise (and fall) in sea water temperature. Hence, these coral reefs are not affected by coral bleaching caused by rise in temperature as elsewhere in the indopacific coral sea. The reefs are also unaffected by mass tourism and diving or other large scale human interference. The Persian gulf has suffered significant loss and degradation of coral reefs with the biggest ongoing threat believed to be coastal construction activity altering the marine environment.

The fertile soils of Yemen have encouraged settlement of almost all of the land from sea level up to the mountains at 10,000 feet (3,000 m). In the higher elevations, elaborate terraces have been constructed to facilitate grain, fruit, coffee, ginger and khat cultivation. The Arabian peninsula is known for its rich oil, i.e. petroleum production due to its geographical location.

According to NASA's Gravity Recovery and Climate Experiment (GRACE) satellite data (2003–2013) analysed in a University of California, Irvine (UCI) -led study published in Water Resources Research on 16 June 2015, the most over-stressed aquifer system in the world is the Arabian Aquifer System, upon which more than 60 million people depend for water. Twenty-one of the thirty seven largest aquifers "have exceeded sustainability tipping points and are being depleted" and thirteen of them are "considered significantly distressed".