Saudi Arabia raising soybean and corn imports from Brazil

Updated 29 October 2012

Saudi Arabia raising soybean and corn imports from Brazil

JEDDAH: BrazArtis, an import-export company based in Rio de Janeiro, Brazil, is set to expand its soybean and corn exports to the Middle East, a move that is aligned with growing Brazilian grain harvest and exports.
Driven by soybean and corn production, Brazilian grain harvest is estimated to exceed 180 million tons from 170 million last year.
The soybean harvest alone for 2012/13 is set to increase by 20 percent and reach 81 million tons, from 66 million last year.
Ranked as the second agricultural commodity export from Brazil, maize production is set to increase by 7 percent from 66 million tons to 70 million tons.
In the period of January to August of this year, Egypt has increased its purchases of maize by 899.4 percent, from 90,310 tons in 2011 to 902,550 tons in 2012, according to Scot Consultoria.
Saudi Arabia has increased its purchases of corn from 159,770 to 402,190 tons in the same period, an increase of 151.7 percent.
Jan Dabrowa, business development director at BrazArtis, said: “The value of the Brazilian agribusiness has reached a peak, and it is set to reach $ 100 billion in 2012. Current exports of oilseeds are being fueled by changing market dynamics that have set the stage for another successful harvest in 2013. In light of the decreased exports by Argentina and unfavorable weather conditions that affected the US crops, Brazil took up a leadership role as one of the main producer and exporter of soybeans and corn.”
On another hand, corn exports to Iran decreased by 26.9 percent from 951,890 to 695,620 metric tons, but the country still stands as one of the leading importers of Brazilian corn in the region.
The exports of soybeans in 2012 are set to reach 17.5 million tons, a 20 percent boost from 2011.
In 2013, a provision for 10 percent increase in planting and 11 percent improvement in average productivity should result in 27.5 million acres planted and potential harvest of 81 million tons of grain.
Around 48 percent of the total production, equivalent to 39 million tons of oilseed will be destined for export.
It is projected by the Brazilian Ministry of Agriculture that the agribusiness exports will reach a record of $ 100 billion in 2012. In 2010 Brazilian agricultural exports surpassed $ 76.4 billion worldwide, an 18 percent increase from 2009.
They reached a new record in 2011 by totaling $ 94.59 billion, 24 percent higher than in 2010.
Brazil’s exports span across the whole GCC region including the Kingdom, UAE, Qatar, Jordan, Bahrain, Kuwait, Lebanon, Syria and Oman.

Gulf defense spending ‘to top $110bn by 2023’

Updated 15 February 2019

Gulf defense spending ‘to top $110bn by 2023’

  • Saudi Arabia and UAE initiatives ‘driving forward industrial defense capabilities’
  • Budgets are increasing as countries pursue modernization of equipment and expansion of their current capabilities

LONDON: Defense spending by Gulf Arab states is expected to rise to more than $110 billion by 2023, driven partly by localized military initiatives by Saudi Arabia and the UAE, a report has found.

Budgets are increasing as countries pursue the modernization of equipment and expansion of their current capabilities, according to a report by analytics firm Jane’s by IHS Markit.

Military expenditure in the Gulf will increase from $82.33 billion in 2013 to an estimated $103.01 billion in 2019, and is forecast to continue trending upward to $110.86 billion in 2023.

“Falling energy revenues between 2014 and 2016 led to some major procurement projects being delayed as governments reigned in budget deficits,” said Charles Forrester, senior defense industry analyst at Jane’s.

“However, defense was generally protected from the worst of the spending cuts due to regional security concerns and budgets are now growing again.”

Major deals in the region have included Eurofighter Typhoon purchases by countries including Saudi Arabia and Kuwait.

Saudi Arabia is also looking to “localize” 50 percent of total government military spending in the Kingdom by 2030, and in 2017 announced the launch of the state-owned military industrial company Saudi Arabia Military Industries.

Forrester said such moves will boost the ability for Gulf countries to start exporting, rather than purely importing defense equipment.

“Within the defense sector, the establishment of Saudi Arabia Military Industries (SAMI) in 2017 and consolidation of the UAE’s defense industrial base through the creation of Emirates Defense Industries Company (EDIC) in 2014 have helped consolidate and drive forward industrial defense capabilities,” he said.

“This has happened as the countries focus on improving the quality of the defense technological work packages they undertake through offset, as well as increasing their ability to begin exporting defense equipment.”

Regional countries are also considering the use of “disruptive technologies” such as artificial intelligence in defense, Forrester said.

Meanwhile, it emerged on Friday that worldwide outlays on weapons and defense rose 1.8 percent to more than $1.67 trillion in 2018.

The US was responsible for almost half that increase, according to “The Military Balance” report released at the Munich Security Conference and quoted by Reuters.

Western powers were concerned about Russia’s upgrades of air bases and air defense systems in Crimea, the report said, but added that “China perhaps represents even more of a challenge, as it introduces yet more advanced military systems and is engaged in a strategy to improve its forces’ ability to operate at distance from the homeland.”