Kingdom imports 80% of food products

Updated 19 April 2014
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Kingdom imports 80% of food products

Saudi Arabia is importing 80 percent of its food requirements from foreign countries while the remaining 20 percent of foods are locally produced, local media said quoting a report released by the World Bank.
On average, the GCC (Gulf Cooperation Council) countries are importing 90 percent of food products from other countries. Qatar topped the GCC in terms of their dependence on foreign imports at 97 percent, followed by Bahrain at 92 percent, Kuwait (91 percent), and the UAE and Oman at 89 percent each, the report said.
Meanwhile, experts said political developments in Ukraine have a negative impact on the prices of agro commodities, as it produces 16 percent and 9 percent of global maize and wheat exports, respectively, the report said.
Accordingly, prices of maize and wheat have increased by 20 percent and 13.5 percent since the beginning of the current year, the report said.
On the other hand, the rate of self-sufficiency in the GCC countries is expected to drop in the next few years. The cost of supporting wheat production in Saudi Arabia exceeded SR5 billion annually in the period 1984-2000, the report said.
Poor soil condition, water scarcity and bad weather conditions have raised wheat production costs to become four times higher than global levels though the Kingdom remained the 6th largest wheat exporter in 1992, according to the report.
However, due to depletion of ground water by farmers, the Saudi authorities were forced to abandon the policy of increasing domestic production and, accordingly, production began to decline as from 2008 and expected to cease fully by 2016, the report said.
Taking into consideration the above facts, development of a sustainable agro sector is highly costly and ineffective, and the GCC countries have to look for other alternatives to increase food security, the exports said.
Among these alternatives are storing food products and acquisition of agro lands outside the region. Africa, notably the Sudan, captured the concern of investors, be they individuals or corporate.
The GCC investors purchased more than 2 million hectares of lands in the Sudan between 2006 and 2012, or three times of lands they bought in Australia, the second largest recipient of Gulf investments, the report said.


Microsoft beats Wall Street targets on cloud services revenue

A Microsoft logo is seen in Los Angeles, California US, in this November 7, 2017 photo. (REUTERS)
Updated 51 min 52 sec ago
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Microsoft beats Wall Street targets on cloud services revenue

  • Revenue for the company’s LinkedIn business and job network grew 37 percent from the year-ago quarter, while its Dynamics 365 online business application suite posted a 61 percent increase
  • Net income rose to $8.87 billion, or $1.14 per share, from $8.07 billion, or $1.03 per share, in the year-ago fourth quarter

NEW YORK: Microsoft Corp. on Thursday posted quarterly profit and revenue that beat analysts’ estimates, as more businesses signed up for its Azure cloud computing services and Office 365 productivity suite.
The company’s flagship Azure cloud product recorded revenue growth of 89 percent in the fourth quarter ended June 30. Its shares rose nearly 4 percent in after-hours trading.
Much of Microsoft’s recent growth has been fueled by its cloud computing business, which has benefited from companies rushing to shift their workloads to the cloud to cut data storage and software costs.
“The combination of the cloud, which is a megatrend that’s going to last for years to come, and the execution, this is company that knows how to sell and be innovative — it’s hard to argue with anything here,” said Tom Taulli, InvestorPlace.com analyst.
Microsoft shares have risen 180 percent since Satya Nadella took over as chief executive in 2014, refocusing the company on cloud computing rather than PC software. Its market cap edged above $800 billion for the first time earlier this month.
Azure has a 16 percent share of the global cloud infrastructure market, making it the second-biggest provider of cloud services after Amazon.com Inc’s Amazon Web Services, according to April estimates by research firm Canalys.
Revenue at Microsoft’s productivity and business processes unit, which includes Office 365, rose 13.1 percent to $9.67 billion, topping analysts’ average expectation of $9.65 billion, according to Thomson Reuters I/B/E/S.
“This was another gem of a quarter from Microsoft as Nadella’s cloud vision is coming to fruit on the heels of massive Azure growth and secular tailwinds,” said Daniel Ives at research firm GBH Insights.
Revenue for the company’s LinkedIn business and job network grew 37 percent from the year-ago quarter, while its Dynamics 365 online business application suite posted a 61 percent increase.
The combination of those two services highlights Microsoft’s rise as an alternative to Salesforce.com Inc, which dominates the customer relationship management market, said Johnny Won, founder of Hyperstop, a tech consultancy firm.
“It seems like this is actually a formidable threat to Salesforce,” Won said.
Overall, the Redmond, Washington-based software maker’s revenue rose 17.5 percent to $30.09 billion, above expectations of $29.21 billion.
Net income rose to $8.87 billion, or $1.14 per share, from $8.07 billion, or $1.03 per share, in the year-ago fourth quarter. https://bit.ly/2uOF9W1
Excluding certain items, Microsoft earned $1.13 per share, while analysts had expected $1.08.