A verdant Qatar

THE World Economic Forum, in its 2013 Arab Competitiveness Report, ranked Qatar as the most competitive Arab nation as a result of its sustained improvement in its macroeconomic environment, efficiency of its markets for goods and services and its institutional structures, not to mention the state’s impressive oil and natural gas reserves. According to Alpen Capital, GCC nations, with a combined population and GDP of approximately 41.7 million and US$ 1.1 trillion respectively, are amongst the world’s richest in terms of oil and gas reserves and per capita wealth. From 2004-2010, the GCC’s population increased at a CAGR of 3.9%, whilst its per capita income increased at a CAGR of 9.2 5%. With this background, as well as a robust economic outlook and growing private consumption, food demand in the GCC is expected to rise at a CAGR of 5.0% in 2012-2017, says Alpen Capital in its GCC Food Industry 2013.

Owing to its natural endowments and low population levels, Qatar has the highest per capita income in the world. But what comes across as an alarm is that it has the highest water consumption per capita, too, with virtually no indigenous water resources.

Add to that, the country’s dependency on food imports – close to 90% imported - threatens its viability from any standing viewpoint. Well aware of the impending dangers of limited domestic food and water resources, the government has been working with a number of regional and international projects with key partners, to address the issue.

Whilst the country has the funds to counter the equation, it doesn’t exemplify a long-term sustainable solution. In 2008, the government launched the Qatar National Food Security Programme (QNFSP) to boost the state’s self-sufficiency for food and water with the aim to draw regional and international and non-government organisations to develop strategies and methodologies for optimal use of resources in the agricultural sector. Alpen Capital in its Food Report suggested that the Qatar government intends to formulate a Food Security Master Plan which includes an Agro-Industrial Park to promote the food processing sector. The country invested $US5.1 billion in its 10-year plan of gaining self-sufficiency and gaining food security. Hassad Food Company, established by Qatar Holding in 2008, seeks to invest $629 million across several countries to meet the rising demand for food in Qatar. Recently, the company acquired Bush Foods International in India for about $100 million.

Reliance on organisations

Qatar has many partners, mostly international organisations, from which to draw expertise in developing agriculture and indigenous food and potable water. One example is the Sahara Forest Project AS, a Norwegian company which also works with Yara International AS and QAFCO to combat the impending food security issue. The Sahara Forest Project is designed to utilise what the world has enough of to produce what we need more of, using deserts, sunlight, saltwater and CO2 to produce food, water and clean energy. The Sahara Forest Project offers commercial opportunities for renewable energy production and agricultural production in Qatar.

Current levels of Qatar’s domestic agricultural output satisfy no more than 10% of total national food consumption needs. The Sahara Forest Project has demonstrated solutions to expand some of the domestic agriculture production to increNUESTRAS MARCAS