Saudi Arabia to buy land abroad to offset food shortfall
Saudi Arabia is planning to set up a new investment fund to buy agricultural land overseas in an effort to meet rising food demand in the Middle East's largest economy.
By PTI |
DUBAI: Saudi Arabia is planning to set up a new investment fund to buy agricultural land overseas in an effort to meet rising food demand in the Middle East's largest economy.
"The Saudi government and agricultural firms will invest in the new company," a senior engineer at Saudi Fund For Development Abdullah al-Shoaibi told reporters on Sunday.
"Wheat and rice supply for the domestic Saudi market will be the new fund's initial priorities," Abdullah said.
Pakistan, Sudan and Thailand are amongst those countries being targeted for agricultural land grabs by Gulf planners, reports said.
Oil-rich Gulf countries are rushing to buy land overseas amid rising concerns over food security after a global jump in the price of agricultural commodities.
Rapid population growth across the Gulf is also forcing the region's planners to divert more energy, previously allocated for agricultural production, to feed their booming industrial and domestic economies.
"There's the problem of high food prices and water scarcity," Abdullah said.
Saudi's 28 million population is growing at an annual rate of about 2 per cent and rising prices in the country are causing disquiet because of double-digit inflation.
"The Saudi government and agricultural firms will invest in the new company," a senior engineer at Saudi Fund For Development Abdullah al-Shoaibi told reporters on Sunday.
"Wheat and rice supply for the domestic Saudi market will be the new fund's initial priorities," Abdullah said.
Pakistan, Sudan and Thailand are amongst those countries being targeted for agricultural land grabs by Gulf planners, reports said.
Oil-rich Gulf countries are rushing to buy land overseas amid rising concerns over food security after a global jump in the price of agricultural commodities.
Rapid population growth across the Gulf is also forcing the region's planners to divert more energy, previously allocated for agricultural production, to feed their booming industrial and domestic economies.
ADVERTISEMENT
According to Dubai-based Gulf Research Centre, it takes 1,212 cu m of ground water to produce a metric tonne of barley in Saudi Arabia and the kingdom depends on power-hungry desalination plants for its usable water. "There's the problem of high food prices and water scarcity," Abdullah said.
Saudi's 28 million population is growing at an annual rate of about 2 per cent and rising prices in the country are causing disquiet because of double-digit inflation.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
