Saudi Arabia, which is making efforts to provide food security for its nationals, can look up to Ethiopia where huge tracts of unutilized agricultural land are available for growing cereals, according to Ethiopian Prime Minister Meles Zenawi.
A food mega-project planned for a vast area in the Papuan district of Merauke is causing concern that indigenous people's land will be taken and their livelihoods destroyed.
Ahmed Al Sadhan, General Manager of the National Office for Industrial Strategies, at the Ministry of Commerce, stressed a desire to maintain a low profile on the feasibility study, for fear that target countries might inflate the cost of farm-land in anticipation of investment.
What’s with farming these days? The humble, even if slightly romantic vocation, is attracting a new breed of participants as investing in farmland and agriculture becomes the latest fad in the world of investments.
One issue reportedly delaying UAE investment in Pakistan is the Gulf state appearing to want “blanket exemption” from Islamabad’s agricultural export policies.
Emerging nations are trying to cash in on the global food crisis by getting big importers of crops to effectively lease their farmlands -- a new trend that is already sparking complaints from farmers in some countries who are concerned about their own food supplies.
A consortium of 15 Saudi Arabian investors is ready to take part in the Merauke Integrated Rice Estate (MIRE), injecting at least Rp600 billion ($65.04 million) into the region. The Agriculture Ministry's Secretary General, Hasanuddin Ibrahim, said each investor wanted to open about 5,000 to 10,000 hectares of land in Merauke, Papua.
The UN’s Food and Agricultural Organization is expanding its Abu Dhabi office tenfold to broker deals with farmers in such areas as the Horn of Africa.
Both public and private sector investors in the Gulf are also looking at ways to improve local food supplies, by investing in a range of outlets from arable farm land in the Sudan, Algeria and Pakistan to introduce new technology to enhance the local production of foodstuffs and grains, livestock, poultry and fish.
The Dubai-based think-tank Gulf Research Centre, in its food inflation report released last month, noted that agriculture production in the six-member Gulf Cooperation Council’s (GCC) countries is on the decline, and its exposure to unstable global food supplies would increase in the future. It called on the GCC to develop links with countries rich in arable land.
The UAE and its food-importing neighbours are “particularly vulnerable” to spiralling costs and should make significant investments in “contract farming” in Africa and Asia, says the UN’s Gulf food chief, Dr Kayan Jaff.
Recent attempts by Persian Gulf countries to invest in farmlands abroad to counter soaring inflation and guarantee long-term food security could prove to be a win-win situation in the short term for both the oil-rich region and its investment-hungry neighbors, but continued high oil prices may neutralize the gains in the long-run, say experts.
