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The latest developments in global economic relations and the competitive race to use energy resources require new international alignments. It also encourages new investment trends and their geographical distribution according to the strategic interests of exporting and importing countries.
Soaring food prices and increasing shortages in staples in international markets are a big source of worry, which led some countries to search for secure imports, especially after countries such as Egypt and India stopped exporting rice to cover local domestic needs.
As a result of these trends, the UAE, Qatar and Saudi Arabia have announced their increased investments in Arab agricultural and animal sectors. Their focus will be in Arab countries where developing this vital sector is possible, such as Sudan.
GCC countries have invested in Arab and developing countries since 1970s. Many such industries, agricultural establishments and animal wealth projects still function successfully. But these projects remained small for several objective reasons.
The absence of laws and legislations securing GCC investments in these countries is an important factor. The current laws do not offer sufficient security for foreign investments, in addition to the instability and deficiency of infrastructure, which is essential in the flow of commodities and facilities inside these markets and abroad.
The UAE and GCC countries have sent a strong message to Arab countries, based on strategic mutual interests, to develop the agricultural and animal wealth sectors in these countries through Gulf investments.
Arab countries were addressed to secure Gulf countries with their basic future food requirements. This issue was also partially touched upon at the India-Arab Forum, which was held in India recently.
Such an attitude is the result of Gulf countries' openness that will also contribute to solve the soaring unemployment problem in developing countries. It will also lead to cultivating vast agricultural lands in Arab, Asian and African countries, which are in dire need of such investments.
The international food crisis may further increase as pointed out by the International Monetary Fund (IMF). The chance offered by the UAE and GCC countries is exemplary, and opens up development horizons in these countries. This is important to GCC countries as well.
How?
Gulf investments in both private and government sectors, backed by increasing oil prices and huge incomes, are ready for these projects.
However, Arab and developing countries in Asia and Africa need to issue legislation, investment protection laws, develop the legal apparatus and address administrative and bureaucratic regulations that impede foreign investments. These countries need to be more transparent.
The infrastructure in these countries must be developed to allow foreign investments to grow and multiply.
Roads, transportation, power supply and airport and ports facility services have to contribute in easing export and import operations.
All these facilities also need to be upgraded and developed. Finance offered by development funds, such as the Abu Dhabi Development Fund, the Saudi Fund, the Opec fund and others, can be put into use here. It is then that these projects and activities will succeed and achieve big profits.
The writer is a UAE economic expert.
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