Qudra Holding plans to buy about 400,000 hectares of land in the Middle East, Africa and the Far East by the first quarter of 2009 to boost its agriculture operations, reported The National.

Three new investment funds controlled by prominent Gulf investors will sink at least US$2.8 billion (Dh10.3 bn) into infrastructure, agriculture and hospitality projects in the Middle East and South Asia.

"Initially we asked the Africans how much they wanted in rent. They said it's free, just share the food with us. We made a deal that we only pay $1 per year per acre in rent. At the start we didn't promote the idea because we didn't want people to say we were grabbing land."

Saudi Arabia's new ambassador to Brazilian capital Brasília, Mohamad Amin Ali Kurdi, wants to promote the flow of investments between his country and Brazil. The ambassador even proposed the idea of establishment of an agribusiness multinational with Saudi investment, Brazilian know-how and land and possible future participation by companies in other countries.

Al Qudra Holding, the Abu Dhabi-based investment company, plans to acquire roughly 400,000 hectares of land in the Middle East, East Africa and Far East by the end of the first quarter of next year in a major expansion of its agricultural operations.

Oil-giant Saudi Arabia plans 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, a Saudi official said.

8In a bid to ensure its long-term food security, Bahrain is negotiating a series of import agreements and investing in farmland in South East Asia.

Three of the Gulf's biggest financial house has teamed up to launch three investment vehicles worth $10 billion (Dh36.7bn). The 'strategic' alliance between Gulf Finance House, Ithmaar Bank and Abu Dhabi Investment House covers the infrastructure, agricultural and hospitality sectors and are expected to bring return on investments in 18 months. The agricultural fund is considering Australia, China, the Philippies, India and North African countries for food production and livestock.

“We are investing in land in Sudan, Pakistan and Egypt to secure food supplies without being at the mercy of market fluctuations,” Dr Rashid Ahmad Bin Fahd, Minister of Environment and Water, said at a conference in Dubai yesterday.

Given its unsuitable climate for agricultural development, the UAE must look abroad if it is to significantly expand its agricultural output. Pakistan could be the perfect partner.

Corporate ownership of world food sources may be shifting into high gear. Goldman Sachs, the private equity investment bank of the ultra wealthy and powerful, has announced that it's in the race to scoop up assets related to food production.

While Saudi Arabia sets up its first sovereign wealth fund, ordinary Saudis are more preoccupied with the rising price of food. This is prompting the Saudi government to consider a new direction for foreign investment: buying farms in the poorer parts of the world.