It is generally accepted that biological soil crusts promote the growth of vascular plants. Nevertheless, contradictory results were recently found for annual plants in the extreme desert dunefield of the Negev (average precipitation of 95 mm) during extreme drought years, explained by the lower available water content (AWC) under the low-albedo biocrusted surfaces at the interdune (ID). Trying to assess whether the biomass and fecundity of the annual plants is higher at the non-crusted dune crest (CR) in comparison to ID also during years with near-average precipitation, surface stability, rain, AWC, fine (silt and clay) content (FC), and soil organic carbon (SOC) were measured in a pair of plots established in CR and ID in two dunes and interdunes. The research was conducted for three years (2009/2010, 2013/14 and 2014/15), having a mean precipitation of 109.4 mm. At the end of each winter, sampling of the annual plants (cover, density, species composition, biomass) took place at CR and ID at 30 cm-diameter miniplots (miniplot-scale), while the biomass and fecundity of 50 randomly-chosen individuals that abundantly inhabited both habitats during the same year were measured at parallel transects (individual plant-scale). Significantly higher cover and generally higher diversity characterized the plants at ID at the miniplot-scale, explained by the higher surface stability. Although characterized by lower FC and SOC, significantly higher biomass and fecundity characterized the individual plants at CR, explained by the higher AWC. Biocrusts were found to have a dual effect on the annual plants: positive due to increased surface stability (cover and for most years also diversity) at the miniplot-scale, and negative due to reduced AWC (low biomass and fecundity) at the individual plant-scale. The higher biomass and fecundity of the individual plants at CR point to the cardinal role played by water (rather than SOC) in this low-nutrient extreme desert. As far the annual plants are concerned, these findings also point at the fact that moderate crust destruction (such as by light trampling) may not necessarily be hazardous to the ecosystem, as it may increase fecundity and subsequently germination success.