Saudi Arabia's desire to secure its sources of food for its citizens by establishing overseas joint ventures in food production has received a positive response from a Philippine trade delegation.
Japan is considering providing loans from a government-owned bank for companies to purchase and lease farmland abroad, Munemitsu Hirano, counsellor at the international affairs department of the Ministry of Agriculture, Forestry and Fisheries, said.
So does this mean farming might now be a good place to make money? Some investors certainly think so, according to ETF Securities.
The issue of food security is getting higher on Riyadh’s priority list.
Some Gulf countries may now be realising the importance of offering direct loans to African countries as a means to increase Arab investment.
"Pakistan has finalised plans to offer ownership of agricultural lands to investors for farming, and is targeting investors from the UAE and other Gulf countries to help with their own food resources."
The Federal Minister of Investment in Pakistan, Waqar Ahmed Khan, said this week that the government plans to sell or lease 1 million acres of farmland to foreign investors, primarily from Saudi Arabia and other Gulf countries. Although the news has yet to gain much coverage, if carried out it could punctuate growing unrest and frustration, given Pakistan’s limited amount of arable land and population of more than 170 million.
The debate over foreign investment is set to expand from the mining industry to agriculture as overseas investors pour billions of dollars into Australian rural properties considered by some to be strategic national assets.
It seemed like the perfect match. Kuwait has a lot of money and needs to import food. Cambodia has a lot of fertile land and wants to attract foreign capital.
GCC countries' initiatives to safeguard food security by investing in agricultural projects abroad had stalled, illustrated by the Saudi Bin Laden Group's decision to postpone a planned $4.3-billion investment in Indonesian rice production.
Food-importing nations from South Korea to Saudi Arabia may step up purchases or leases of overseas farmland to lock in supplies amid concern prices may again surge. “We’re going to see more of this, especially from countries that are quite dependent on imports,” Brady Sidwell, head of advisory at Rabobank Groep NV’s Northeast Asia Food & Agribusiness Research and Advisory Group, said in a Bloomberg Television interview broadcast today.
The issue of land ownership in Africa is very sacred and foreign investors need to be aware of the local sensitivities.
The International Criminal Court’s indictment of Sudanese President Omar al-Bashir for human-rights abuses has not deterred Saudi Arabia’s Hail Agricultural Development Co. from developing 9,200 hectares of land in Sudan or the UAE from investing in agricultural projects in several Sudanese provinces, including a 17,000-hectare farm for wheat and corn.
The problem of food security poses a real threat to global stability. Meeting in Italy last weekend, agriculture ministers of the G8 industrialized countries recognized the extent of the problem. They pledged to continue fighting hunger. But beyond calling for increased public and private investment in agriculture, the final communiqué of the ministerial meeting was short on fresh proposals.
"Il n'y a pas de liberté pour une société qui mange au-delà de ses frontières". Le colonel Kadhafi applique à la lettre ce principe du Livre vert.
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Paraguay: Huge beef farm hits market
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Obsolètes, les réformes agraires ?
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