Gulf oil producers have abandoned long-standing nationalistic policies of achieving food self-sufficiency and switched to a more realistic approach of using their strong financial muscle to invest in farm projects in fertile countries.
Qatari Diar Real Estate Investment Co. plans to invest in Georgia, including the purchase of farm land, following a fact-finding trip in April.
The lack of systematic collection of data and categorising private and official investments from the Gulf has made it difficult to reach an accurate estimate of total investments, made so far.
Minerals Energy Commodities Holding (MEC) is in talks with Indonesia to lease 100,000 ha of farmland in East Kalimantan for UAE's food security.
Reports indicate that the Gulf States have acquired more than 150,000 hectares of land in Balochistan near Mirani Dam to begin mechanised farming.
The worldwide financial crisis has reportedly stalled several agricultural deals between Gulf countries and overseas partners, including two between Bahrain and Pakistan.
Pakistan will press ahead with plans to lease or sell farmland to foreign investors despite United Nations concern over such deals, arguing the land would otherwise lie fallow, Pakistan's foreign minister said.
The fund is in the process of leasing 50,000 hectares of land in Tanzania which will be complete by the end of this year and will mainly be for rice production.
This three years memorandum is not only setting a framework of cooperation but it includes some specific steps such as mutual beneficial arrangements in the agricultural sector (e.g. investment and provision of grain, development of a grain terminal)
The United Arab Emirates has decided to make robust investments in Pakistan’s energy agriculture, education and health sectors, which need huge investment, official sources said yesterday.
Which option is better? Letting the status quo prevail? Or taking advantage of opportunities offered by oil producing countries searching for safe food sources?
“We are in big trouble with the government of Madagascar,” said Shin Dong-hyun, the general manager of planning and finance at Daewoo Logistics Corporation.
