GCC

Thai rice farmers and exporters strongly oppose the Gulf Cooperation Council's interest in investing in the Thai farming sector

Gulf oil producers are considering plans to invest in farming projects in the Philippines to face a steady increase in domestic food demand and reduce a painful import bill, said the region's private sector leader.

A memorandum of understanding and cooperation will be signed between the Federation of GCC Chambers of Commerce and Industry and the Philippine Chamber of Commerce and Industry.

“We have finalised plans for the corporate farming project and we have the capabilities to meet the food requirements of the GCC countries," said Senator Waqar Ahmad Khan, Investment Minister of Pakistan. “They will be able to export 50 per cent of the crop while the 50 per cent would be sold in Pakistan,” adding that 6.65 million acres of land for agriculture is available in Pakistan.

Some Gulf countries may now be realising the importance of offering direct loans to African countries as a means to increase Arab investment.

GCC countries' initiatives to safeguard food security by investing in agricultural projects abroad had stalled, illustrated by the Saudi Bin Laden Group's decision to postpone a planned $4.3-billion investment in Indonesian rice production.

The issue of land ownership in Africa is very sacred and foreign investors need to be aware of the local sensitivities.

Essentially, the Middle East is left with two choices. “The region has to import. The question is, invest abroad or rely on the free market?” said Dr Eckart Woertz, program manager in economics at the Gulf Research Center in Dubai.

Countries in the Gulf and in Africa can form mutually beneficial partnerships, with Africa supplying fertile arable land and the Gulf investing in technology, fertiliser and other agricultural inputs.

Gulf governments, entrepreneurs and sovereign wealth funds have spent vast sums buying or leasing farmland across Asia and Africa to try to secure cheaper imports and keep supermarket prices low. But the World Bank and UN want them to put more money into development aid.

Africa could be the breadbasket for the GCC, providing valuable water and food supplies to the entire region, a Bahraini expert claimed yesterday.

Investment opportunities between Africa and the GCC are ripe for the picking, says a top government official.