Arab farming needs $100b

Published: 00:00 May 9, 2010

Riyadh : The Director-General of the Arab Organisation for Agricultural Development (AOAD), Dr Tariq Bin Mousa Al Zedgali, said that the Arab world needs to invest more than $100 billion (Dh367 billion) in agriculture over the next 20 years, in order to meet food demand for the population.

Estimates expect the population to reach 550 million people by 2030.

Speaking to the media in Jeddah yesterday, Al Zedgali stressed that the private sector must provide half of this investment, otherwise the Arab world would face a food gap of $71 billion by 2030.

Local production

He said that in the short term, the Arab world would need $27 billion until 2015 to fill the gap in the local agriculture.

Arab countries as a whole produces 47 per cent of their need for grain and import the rest, and they import two thirds of their needs of sugar and cooking oil.

Al Zedgali, who arrived in Saudi Arabia for a meeting on food security organised by the Jeddah-based Islamic Development Bank expressed his optimism that the problem of the food shortage in the Arab world could be overcome with greater investment in agriculture.

"We do not expect to attract more than $100 billion, but if we could attract 75 per cent of this amount, we will be able to bridge the food gap to a fair extent," he said.

"Everyone talks about the risks of investment in agriculture, but was there a greater risk than our inability to import our food two years ago while we had enough money to buy it?" he said.

"I did not see anyone talking about the risks in investing in Arab stock markets, which collapsed one after the other, but when it comes to agriculture, talk begins about risks," he said.

Infrastructure

He called on the Arab countries to develop their infrastructure as part of the efforts to bridge the food gap.

"Arab countries have weak infrastructure, particularly in ports, silos and the ability to produce electricity.

"I do not expect investors to come to build silos, ports and power stations," he said.

"Arab development funds and the Islamic Development Bank invest heavily to develop infrastructure in the Arab world, but the governments of the region must invest $33 billion at least until 2030 in order to make the emergency Arab food security programme successful."

"The level of the use of technology in Arab agriculture is too low and farmers should be motivated to use technology by granting them seasonal loans to help them buy seeds, fertilisers and equipment," he added.

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