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 Rivers State Government has reiterated its resolve to create an enabling environment to enhance rice production and processing, as well as promote and protect other agricultural business interests in the state.

The cooling domestic equity and bond markets has prompted endowments and foundations to give niche alternatives, such as farmland, a closer look.

“Look at the colour, what a beautiful crop,” says Richard Spinks, pointing to wheat and rapeseed fields that his company sowed this season in western Ukraine. “If all of Ukraine’s farms could produce the yields we are getting, this country could play a big role in feeding the world and establish itself as a geopolitical power,” says the British chief executive of London-listed Landkom.

A new joint strategy for agricultural investment will be launched by the GCC soon, it was announced in Bahrain yesterday.

The Arabian Peninsula is currently flooded with petrodollars, giving the Gulf Arabs a wide array of investment options abroad. But while these countries are winners in the oil market, they are losers in the food market. As a result, the Gulf Arabs - with Saudi Arabia at the fore - are pursuing a strategy to buy their food security through overseas agribusiness investment.

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.

UGANDA is to benefit from $100m contribution by Kuwait to support food production and agri-businesses development, James Mugume the permanent secretary in the foreign affairs ministry has said.

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.

Bahrain is eyeing a major food production programme with the Philippines in a bid to ensure food security in the Kingdom.

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.