Arab states need $ 80.65 bn in agricultural investment

Arab communities have been facing several challenges in light of the regional economic blocs in the world that require economic and social integration, according to Sheikh Hamdan bin Rashid Al-Maktoum, deputy ruler of Dubai and UAE minister of finance.
The real growth rate in the Arab region decreased 4.6 percent in 2010 to 2.4 percent in 2011, while the foreign debt rates in some Arab countries ranged between 22 percent to 86 percent and the foreign financial flows dropped from $ 20 billion to $ 16 billion, Sheikh Hamdan said in his address to the two-day Arab finance ministers and central bankers meet that opened at Grand Hyatt here.
“The Arab world needs $ 80.65 billion in agricultural investment to close the widening food gap” he added.
He stressed that food security tops the list of main challenges facing Arab countries, taking into account that Arab agricultural projects did not achieve the targeted increase in productivity to meet the growing demand for food for several reasons, including poor infrastructure, investment environment, financial resources and scientific research in addition to agricultural services, which led to widening food gap to reach $ 41 billion in 2010 and is expected to reach about $ 89 billion in 2020. He pointed out that closing the gap will require agricultural investments estimated at $ 80.65 billion.
The food gap, which stood at $ 41 billion in 2010, is expected to rise to $ 89 billion in 2020, he said.
On the sidelines of the event, Qatari Finance and Economy Minister Youssef Kamal said his government’s budget spending was expected to stay at about this year's level until 2017, after which it could drop. Qatar plans to boost government spending by 18 percent to SR 210.6 billion riyals ($ 57.8 billion) in the 2013-2014 fiscal year that began on Monday as it steps up a big infrastructure building program.
“We have plans to invest our gas wealth abroad during this year all over the world,” but the minister did not specify the countries in which they are going to invest.
Meanwhile, Masood Ahmed, director of the IMF's Middle East and Central Asia department, said that IMF is discussing a new aid program for Yemen.
"Our team has been working with authorities for some time and they made good progress in those discussions," he said ahead of the finance ministers’ meet.
"We are working with the authorities to see how we can support Yemen in future," he added, without saying when an agreement on the aid could be reached, or how much money might be involved.
Over 300 experts from various government and international agencies have been attending the event. Yesterday, (Tuesday) the meeting discussed the mechanisms to strengthen mutual coordination on fiscal policy among Arab countries to face the economic and financial developments, and to unify positions in international forums and meetings, as well as manage efforts in strengthening inter-Arab investments and financial flows to and from the Arab countries.
The meetings serve as an ideal platform to address the latest economic and financial conditions in the Arab region and to promote economic and financial policies of the Arab countries to enhance economic integration, activate the movement of intra-regional trade and to guarantee prosperity and food security. — With input from Agencies