UAE given $2bn food funding

12/10/2009 - Dubai Investment News
UAE given $2bn food funding

Posted by Ashley Waterman

The launch of a new agricultural fund in Dubai could provide potential interest with regards to commercial property in the UAE.

The Gulf countries are currently reliant on food that is imported, there has been a conscious effort made to buy developing nation farmland, according to a report by Reuters.

As part of the Arab Agriculture Investment and Development organisation (AAAID), a new agricultural holding company comprising of 20 African and Arab states now exists.

Rajagopal Ramamoorthy, director of financial investments at AAAID, told Reuters – "The $2 billion fund has already been approved since January and the money basically comes from members of the Gulf states ... to buy listed and unlisted food companies in the Middle East and Africa."

He added that the organisation's primary focus is on leasing farmland and obtaining stakes in already established African and Middle Eastern food manufacturers.

Mr Ramamorrthy commented that food security is of paramount importance to the region as a result of the rising commodity prices.

The AAAID aims to achieve its objectives by conducting research, initiating projects and cooperating with regional, national and internationally appropriate organisations.

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