- The solvency of the Gulf states makes them much less weak to cost dangers and meals shortages
- By 2050 the world might want to feed a further 2 billion individuals
A specialised report revealed that the Gulf international locations occupy superior positions on the worldwide meals safety index, which incorporates 113 international locations and consists of 100 factors, as Kuwait ranked second within the Gulf and 30 globally with 72.2 factors on this indicator, whereas Qatar topped the Gulf international locations and ranked first within the Gulf 24 globally with 73.6 factors, the UAE ranked third within the Gulf and 35 globally with 71 factors, adopted by Oman within the fourth place within the Gulf and 40 globally with 70 factors, then Saudi Arabia and Bahrain within the fifth and sixth locations within the Gulf and the 43 and 44 globally and at 68.5 and 68.1 factors, respectively. .
This got here within the report “Agricultural Know-how and Meals Safety within the Gulf Cooperation Council”, which was issued within the context of cooperation between the “Oxford Group” and the Arab Group for Agricultural Improvement, and highlights the rising funding alternatives within the subject of agricultural know-how in all of the international locations of the Gulf Cooperation Council, and their motion individually and collectively to seek out sustainable options to the meals safety challenges it faces.
The report mentioned that native meals manufacturing within the Gulf international locations has traditionally been going through obstacles on account of water shortage and the dearth of arable land, challenges which have been exacerbated by local weather change ensuing from greenhouse gasoline emissions. Nevertheless, the monetary situations of the Gulf Cooperation Council international locations allow them to put money into know-how options Revolutionary farming to beat these obstacles.
The Gulf international locations imported 85% of their meals wants earlier than the Corona pandemic, and in 2019 they consumed about 42.9 million tons of meals, and the share of the 2 largest international locations by way of inhabitants, Saudi Arabia and the UAE, accounted for 75% of meals consumption.
This comes whereas meals imports are excessive to cowl wants on account of restricted water and arable land, the comparatively sturdy monetary positions of the Gulf states derived from their hydrocarbon wealth make them much less weak to cost dangers and meals shortages in comparison with internet meals importers.
Home meals manufacturing within the Gulf Cooperation Council international locations helped meet the wants of 31.3% of regional demand in 2019, up from 24.9% in 2014, based on Alpine Capital Funding Financial institution in Dubai. Between 2014 and 2019, native meals manufacturing within the area recorded a progress charge Yearly at a compound annual progress charge of 4.3%, exports elevated at a compound annual progress charge of 4.8% and internet imports decreased at a compound annual progress charge of two.1%, which signifies the progress made by the GCC international locations in direction of their meals safety and manufacturing targets.
The disruption to international provide chains brought on by the pandemic, in addition to the latest invasion of Ukraine by Russia, have emphasised the necessity to put money into home manufacturing capability and supportive know-how options, and whereas importing meals commodities will stay important, the GCC international locations have developed formidable broad-based methods to advertise sufficiency. Self-staple meals within the medium time period.
Regional self-sufficiency charges for fish, dairy and eggs had been already above 70% earlier than the pandemic, fruit and vegetable charges proceed to rise with productivity-enhancing applied sciences, and local weather and geopolitical dangers to provide chains have prompted regional coverage makers to direct more cash towards strengthening the innovation ecosystem in Agricultural know-how and meals manufacturing.
On the identical time, well-established meals corporations are more and more open to mergers, acquisitions, and partnership alternatives to reinforce their manufacturing capabilities and develop market share.
Whereas the potential for funding in agricultural know-how within the GCC is nice, traders ought to take note of the inherent dangers.
With local weather change exacerbated and the already difficult setting for agriculture and the meals business contributing about 30% of world carbon emissions, it’s essential that new options not solely mitigate however assist remove current local weather challenges, and entry to inexperienced finance for sustainable meals and agriculture tasks is taking maintain. On the rise, though additional growth is required to hurry up the transition.
By 2050, international demand for meals might be 56 p.c greater than it was in 2010, and the world might want to feed an estimated 2 billion further individuals.
With international meals techniques underneath strain, the GCC international locations are more and more conscious of the necessity to develop home manufacturing capability to reinforce meals safety and meet the evolving dietary wants of their younger inhabitants.