Dubai gears up to boost food imports

UAE is setting its sights on increasing food imports to $400 billion in the next 10 years from $100 billion (Dh367 billion) in 2014.

To secure food supplies in the face of growing demand, the government plans to develop farmland in other countries. The government is also looking to diversify the sources of the food it imports to safeguard against any crisis.

Economy minister Sultan Al Mansouri told Gulf News the UAE has a clear strategic plan to increase its FDI outflows in the agro-food sector to boost its food security program. Most of the countries that obtain these resources, however, are high risk, Al Mansouri said.

In the Arab world, bridging the food gap requires some $5 billion annually, he said. The UAE currently has investments in agro-food in Namibia, South Africa, and in several Arabic countries, including Tunisia, Morocco, Algeria, Sudan, and Egypt.

Morocco is one of the countries with the biggest potential for agro-food investments because of its resources. According to Aziz Rabbah of the Morocco Ministry of Equipment, Transport and Logistics, the country has identified investments in this sector worth $20 billion, the Gulfood News said.

The UAE has undertaken several missions to other regions with agro-food investment potential such as Latin America, Africa, Eastern Europe, and other Arabic countries. Al Mansouri said most of the countries were not ready for investments in terms of rules and regulations and need to improve their laws and ethics to attract foreign investors.

According to Al Mansouri, it would help countries without sound legislative framework but have strong potential for agro-food investment to set up an official commission that can evaluate all challenges for foreign investors and implement solutions accordingly.

“We did set up several businesses but after starting the production we faced a backlash with many obstacles that threatened the stability and profitability of the investment,” Al Mansouri said.