Commodity Online
DUBAI: Saudi Arabia, one of the world’s top rice consumer may invest in rice farms in Thailand by the end of 2008 in a move to boost security of food supply, industry sources and traders said yesterday, Arab News reported.

“A number of private companies and Saudi officials already met last week with Thai investors to discuss possible partnerships,” said a Gulf industry source, who asked to remain anonymous.

“Those interested will be looking at meeting domestic demand and then exporting to neighboring countries, mainly the United Arab Emirates,” he said.

Last year Saudi Arabia imported 960,000 tons of rice, making it the world’s sixth biggest rice importer, according to US Department of Agriculture data.

Around 70 percent of the Kingdom’s rice imports were basmati rice, while Thai rice accounted for 10 percent, Arab News quoting traders said.

The Saudi Cabinet on Monday approved plans to coordinate state and private sector activities, and to increase Saudi investments overseas in fisheries, livestock and food production, Saudi Press Agency reported, without identifying any countries.

“Saudi Arabia is trying to get companies to invest together in rice farms in Thailand, and they are aware that companies here do not want to invest independently,” one dealer said.
“We are expecting a decision to be taken before the end of 2008, and most likely this decision will be a yes,” he said.

The population of the Kingdom, the world’s largest oil exporter, could more than double to 53 million within about 30 years from 25 million now, John Sfakianakis, chief economist at Saudi-British Bank (SABB) bank said on Wednesday.

Since Saudi Arabia is not in a position ot increase its agricultural output domestically, it will have to explore options of planting in foreign lands, a Saudi importer said.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook