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.

The Saudi government announced that it would co-ordinate with local private-sector companies and invest in strategic agricultural interests in key producer countries such as Brazil, Ukraine, Thailand and India, guaranteeing for itself supplies of cereals, meat and vegetables. It is already in advanced negotiations with Thai investors and a deal on rice farms in Thailand is likely before the end of the year.

A big chunk of land in Sudan has been set aside for Korea to invest in crop production, the Sudanese ambassador said.

The Kingdom of Saudi Arabia is in talks with Sudan and other countries to grow grains to meet its strategic food needs.

Saudi Arabia has unveiled plans to develop large-scale overseas agricultural projects to secure food supplies, revealing that Riyadh is in discussions with Ukraine, Pakistan, Sudan, Turkey and Egypt.

As food crisis worsens, some nations are desperate for arable land

Abu Dhabi is preparing to launch a large-scale agricultural project in Sudan to develop more than 70,000 acres of land as part of the oil-rich Gulf emirate's efforts to secure food supplies.

To break the runaway inflation that is fuelled by high food costs, Gulf rulers have a new strategy: they are buying unused agricultural land in poor countries like Pakistan, Thailand and Sudan, and becoming large-scale farmers.

Gulf oil producers need to set up agricultural projects in fertile Arab countries to achieve self-sufficiency and to bridge a massive farm deficit that exceeded $12 billion (Dh44bn) in 2006, a Gulf group said yesterday.

Egypt, Jordan and Kuwait are among the Arab countries who invest in agriculture in Suda. Also there are some private Saudi investors working in this field in the country.

Investors in Saudi Arabia, one of the world's top rice buyers, are looking for joint ventures with Thai partners to invest in rice farming in Thailand and Africa.

The Jordanian Prime Minister Nader Dahabi said his country will cultivate lands allocated for his country in Sudan as part of his government strategy to deal with rising prces of food items on the international market.