GCC governments use two-way strategy to address food security concerns 07.03.2012: Outside land acquisition and investment in local food production main priorities ahead of AGRA Middle East

Outside land acquisition and investment in local food production main priorities ahead of AGRA Middle East



Caption:  GCC governments are pursuing a two-pronged strategy in order to secure their food supply and reduce their reliance on food imports ahead of AGRA Middle East, the largest agribusiness trade event in the region.



GCC governments are investing heavily in outside farmland acquisitions and leases, along with injecting money into the domestic food production industry, in an effort to secure food supplies to the region and safeguard against market fluctuations.


Leading the way is Saudi Arabia, which is currently investing US$23.1 billion in food security initiatives such as the allocation of US$12.3 billion to the development of the food processing sector and the provision of US$6 billion in financial and oil aid to Pakistan in return for agricultural land.


The UAE has recently acquired or leased more than 1.4 million hectares of arable land in Sudan, Pakistan, and Morocco, while investing US$1.4 billion in the country’s value-added food manufacturing sector, resulting in 150 food processing plants.


The figures were collated by research analysts Alpen Capital in the build up to AGRA Middle East, which takes place from 2-4 April at the Dubai International Conference and Exhibition Centre.


The region’s largest agriculture business trade event, AGRA Middle East will host more than 180 international manufacturers and suppliers of agribusiness equipment and technology from 30 countries looking to showcase their products to importers, buyers and government officials from across the Middle East.


As part of plans to be completely self-sufficient by 2023, Qatar has invested US$5.1 billion in various food security initiatives, including leasing 400,000 hectares of land in Kenya against a US$3.5 billion loan to the Kenyan government, while also establishing a US$1 billion joint venture with Vietnam to provide 90 per cent of funds for investment in various sectors, including agriculture.


Ensuring food security remains one of the most important issues for all GCC countries; according to the Economist Intelligence Unit, the six GCC states currently import 90 per cent of all food products.  The high reliance on imports mean the region is particularly vulnerable to price increases when supplies are interrupted.


Richard Pavitt, exhibition director for AGRA Middle East said: “Disruption in food imports, either due to policy restrictions by exporting countries or natural disasters, affects the GCC region significantly, thereby emphasizing the importance for the governments in the region to achieve food security in order to reduce their dependence on imports.”


In its efforts to attain self-sufficiency in the fish sector and agricultural products, Kuwait allocated US$80 million in 2011 to the newly established Public Authority for Agriculture Affairs & Fish Resources (PAAAFR), while investment in land projects in Sudan, Cambodia, and Vietnam is ongoing.


Meanwhile Oman has boosted its fisheries, modern irrigation systems, agricultural production and livestock breeding technologies with up to US$361 million of investment in the past two years, while Bahrain has purchased farmland in India, Pakistan, Philippines, Thailand, Turkey and Sudan, with 112 of their own food manufacturing plants.


The increased attention on food security and investment in the GCC is also reflected in the growth of AGRA Middle East, which has tripled in growth since its first year in 2007. The exhibition covers the five main sectors of agriculture including Agribusiness, Poultry and Livestock, Fishing and Aquaculture, Flower and Garden, and Agricultural Machinery and Supplies.


Added Pavitt: “Growing at an average of 50 per cent in exhibitor space every year, AGRA Middle East has established its presence as the must attend event by the Middle East’s agribusiness industry players.  This year’s edition promises to be the largest yet as exhibitor interest remains strong from all the sectors covered by the event.”


Under the patronage of His Excellency Rashid Ahmad Bin Fahad, Minister of Environment and Water, AGRA Middle East is supported by the UAE Ministry of Environment and Water, Dubai Municipality, the Dubai Flower Centre, and the Dubai Biotechnology and Research Park (DuBiotech).


Now in its sixth edition, the exhibition features the Agribusiness Outlook Forum on Monday 2 April, aimed at addressing the region’s food security and water resources; and the Poultry Outlook Forum in association with the World’s Poultry Science Association on Tuesday 3 April. AGRA Middle East is also co-located with Vet Middle East, the region’s premier veterinary trade exhibition and conference.



About AGRAme


Organised by Informa Exhibitions, AGRA Middle East is the largest agribusiness trade event in the region, offering an unmatched platform for international manufacturers and suppliers of agribusiness equipment and technology to showcase the benefits of their products to importers, buyers and government officials from the Middle East region.

- Lindsay Johnston, Total Communications Dubai  also photo