Kingdom imports 80% of food products

Updated 19 April 2014

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.

Dubai’s Al-Habtoor Group to open representative office in Israel

Updated 20 September 2020

Dubai’s Al-Habtoor Group to open representative office in Israel

  • Al-Habtoor and Fogel both welcomed the landmark agreement that was signed on Sept. 15 in the US
  • The tycoon revealed his plans to open a representative office in Israel

DUBAI: Dubai’s Al-Habtoor Group (AHG) plans to open a representative office in Israel its chairman said, following an historic peace deal signed last week between the UAE and Israel to normalize relations.

Khalaf Ahmad Al-Habtoor, who is AHG founding chairman, welcomed Ampa Group’s co-owner, chairman and CEO Shlomi Fogel at the hospitality conglomerate’s Dubai headquarters. Ampa Group deals in real estate, finance and industry. 

Al-Habtoor and Fogel both welcomed the landmark agreement that was signed on Sept. 15 in the US. 

The UAE and Bahrain signed the Abraham Accords in a ceremony overseen by US President Donald Trump. The two Gulf countries join Egypt and Jordan as the only Arab nations to have full relations with Israel.

“I have been looking forward to this day for a very long time,” Al-Habtoor said. “I have always believed that Emiratis and Israelis have a lot in common. Both peoples are business-oriented and have relied on human talent and ambition more than their countries’ natural resources to build robust, innovative economies. The opportunities that this deal will present are great for both sides. I am confident this will open up new doors and lead to stronger economies, and closer cultural ties between the peoples.”

The tycoon revealed his plans to open a representative office in Israel and said that there was a lot of interest in collaboration.

“We have received a large number of inquiries for collaboration in several fields, ranging from AI and technology, to agriculture, hospitality and trading. The possibilities are endless for both sides in our diversified fields and new ones, and we want to be present to grasp them.”

He previously disclosed that AHG had started talks with Israeli domestic carrier Israir Airlines to open direct commercial flights, “and we are preparing to reveal a few collaborations in the coming days.”

Fogel said that peace would be cemented through successful business collaboration and trade. “Together with our Emirati counterparts we will show the way to live in peace to the rest of the world,” he added.

Fogel was accompanied at the meeting by Ampa Group executives, including Erez Katz and Saar Bracha.

AHG was represented at the meeting by Mohammed Al-Habtoor, Ahmad Al-Habtoor, Maan Halabi, Sanjeev Agarwala and other members of senior management.