In an effort to secure food supplies to the region and safeguard against market fluctuations, GCC governments are investing heavily in outside farmland acquisitions and leases and injecting money into the domestic food production industry.
Saudi Arabia is leading the way. The Kingdom is currently investing US$23.1 billion in food security initiatives, including a US$12.3 billion allocation to the development of the food processing sector. It has also furnished US$6 billion in financial and oil aid to Pakistan in return for agricultural land.
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The UAE has recently acquired or leased more than 1.4 million hectares of arable land in Sudan, Pakistan, and Morocco, while investing US$1.4 billion in the country’s value-added food manufacturing sector. This has resulted in 150 food processing plants.
As part of an effort to be completely self-sufficient by 2023, Qatar has invested US$5.1 billion in various food security initiatives, including leasing 400,000 hectares of land in Kenya against a US$3.5 billion loan to the Kenyan government. Qatar has also established a US$1 billion joint venture with Vietnam, 90 percent of the funds will be invested in various sectors, including agriculture.
Ensuring food security remains one of the most important issues for all GCC countries. According to the Economist Intelligence Unit, the six GCC states currently import 90 percent of all food products. High reliance on imports mean the region is particularly vulnerable to price increases when supplies are interrupted.
In its efforts to attain self-sufficiency in the fish and agricultural products sectors, Kuwait allocated US$80 million in 2011 to the newly established Public Authority for Agriculture Affairs & Fish Resources (PAAAFR). Kuwait is also invested in land projects in Sudan, Cambodia, and Vietnam.
Oman, meanwhile, has boosted its fisheries, modern irrigation systems, agricultural production and livestock breeding technologies with US$361 million of investment in the past two years. Bahrain has purchased farmland in India, Pakistan, Philippines, Thailand, Turkey and Sudan, with 112 of their own food manufacturing plants.
Nearly 40.6 million people live in the six-nation GCC region, however this is expected to jump to 50 million by 2020. Food consumption is growing at a rate of 4.6 percent annually to reach over 51 million tons, further adding to the severe strain on the region’s food security. According to a recent report by the Economic Intelligence Unit, the Gulf’s food imports could widen by a massive 105 percent from $25.8bn in 2010 to $53.1bn by 2020.
“For a region such as the Gulf, which imports around 90 per cent of food items to feed its people, there is an added urgency to secure sources that are safe and sustainable,” said Sheikha Lubna Khalid Al Qasimi.
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ANRIC BLATT 