Agriculture

Gulf looks to science to turn desert into farmland

Gulf nations hope science will turn desert areas into arable land to boost food security and avoid the risks inherent in buying farmland abroad, industry insiders said. Farming in the Gulf battles against little water supply, high soil salinity and extreme heat. But many of the countries in the region have the cash to adopt expensive solutions that others could not. Abu Dhabi has conducted a soil survey to identify areas with underground water supplies and soil quality that could be enhanced, said Faisal Taha, who headed the project by the Abu Dhabi Environment Agency. The survey found over 200,000 hectares of land that could be used for agriculture given the right investment, Taha said on the sidelines of an industry conference in Abu Dhabi. Taha said: "We are talking about tens of millions of dirhams in investments ... but it's worth it because with this land vegetable and fodder production could be increased by up to 70 per cent." The areas were in the western regions of Madinat Zayed, Ghayathi and the Eastern region of Al Ain, according to the study. Abu Dhabi aims to fund an AED130 million study that would take two years to indentify other potential agricultural areas in the UAE's northern Emirates. Taha said: "This land will not be able to guarantee 100 per cent food security for the UAE, but the strategy comes at a right time when many of the international agencies are criticizing rich countries for buying land in nations that cant feed themselves and exporting their crops." Over the past year Gulf states mainly reliant on food imports have intensified efforts to buy and lease farmland in developing nations to secure food supplies.

Gulf farmland search switches to richer countries

Gulf nations seeking farmland for food security have shifted their focus to East Europe and Australia after a buying spree in the developing world as they look for land that comes with less political and financial risk. The Gulf is one of the world's biggest food importing regions. It stepped up efforts to buy and lease farmland in developing nations to secure food supplies after global commodity prices rose to record levels in 2007-2008. Gulf investors initially targeted Sudan, Iraq, Pakistan and Thailand, among others. "If you have a look at the countries that have so far been targeted you'll find that all of them have a degree of political risk," said Sudhakar Tomar, managing director of Dubai-based Hakan Agro DMCC, one of the largest food trading companies in the Gulf region. "But there are other options that are commercially attractive, ethically justifiable and legally more secure." Hassad Food, owned by Qatar's sovereign wealth fund, formed a Sydney-based subsidiary in December, Hassad Australia, to buy farmland for wheat and livestock production. It plans to have the capacity to produce 150,000 sheep and 50 tons of wheat per year, the company said. Last year Pharos Miro Agriculture Fund, a joint venture between UAE-based Pharos Financial Group and Miro Holdings International, was launched and aims to develop farmland in Eastern Europe. The US$350 million fund had attracted the attention of Gulf sovereign wealth funds, said Miro Chief Executive Oliver Barnes. "We are looking for land across that area in countries like Romania, Bulgaria and Moldova," he said.