Kingdom imports 80% of food products
Kingdom imports 80% of food products
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.
Oil prices rise on signs Iranian oil exports are falling further
SEOUL: Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of US sanctions against Tehran that are set to start in November.
International benchmark Brent crude for December delivery rose 27 cents, or 0.33 percent, to $81.05 per barrel by 0325 GMT.
US West Texas Intermediate crude for November delivery was up 12 cents at $71.90 a barrel.
Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, according to Refinitiv Eikon data. That was down from 1.6 million bpd in September, the data showed.
The October exports are a sharp drop from the 2.5 million bpd exported in April before US President Donald Trump withdrew from a multi-lateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the third-largest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC).
The sanctions on Iran’s petroleum sector will go into effect on November 4.
“Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers,” said Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul.
“Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel,” Hwang added.
With the world’s only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.
Saudi Arabia’s Energy Minister Khalid Al-Falih said on Monday at a conference in New Delhi that the kingdom is committed to meeting India’s rising oil demand and is the “shock absorber” for supply disruptions in the oil market.
US crude stockpiles were forecast to have risen for the fourth straight week by about 1.1 million barrels in the week ended October 12, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the US Department of Energy’s Energy Information Administration (EIA).
The API’s data is due for publication at 4:30pm on Tuesday, and the EIA report is due at 10:30am on Wednesday.