DUBAI: Qatar’s Baladna plans to grow crops in Bulgaria and Romania as the Gulf state boosts its food security in the wake of a pandemic that has exposed the fragility of the global supply chain.
The Doha-listed company also plans to add 1,000 hectares of farm land to grow green crops as it expands its product line ahead of the 2022 World Cup.
Baladna managing director Ramez Al-Khayyat told Bloomberg TV on Wednesday it planned to add 50 more products this year to boost its domestic market while also expanding overseas.
“Today we are exporting to 11 countries from five countries last year,” he said. “In Romania and Bulgaria where we are targeting some backward integration in order to grow our crops there.”
Baladna has expanded rapidly in recent years as a rift between Qatar and some of its Gulf neighbors demanded an increase in domestic production of essential products and basic foods. However the recent thaw in regional relations has increased competition in Qatar’s food sector which is expected to grow rapidly ahead of next year’s FIFA World Cup which may see an influx of more than a million football fans to the country.
The pandemic has exposed the fragility of regional food supply lines and has encouraged Gulf economies to develop their domestic food industries, triggering a slew of investments across the sector.
Abu Dhabi’s ADQ recently bought a 50 percent stake in Al Dahra while the Abu Dhabi Investment Office also invested $100 million in four agritech companies to build facilities in the emirate including vertical farms. Saudi Arabia’s Salic, a food company owned by the Public Investment Fund has also acquired a 30 percent stake in Indian group Daawat Foods, to boost its rice supplies.
A report from the Global Network Against Food Crises released Wednesday said that nearly nearly 20 million more people faced food crises last year amid conflict, the COVID-19 pandemic and weather extremes.
The humanitarian agency warned that acute food insecurity continues to worsen.
“We must do everything we can to end this vicious cycle,” said UN Secretary General Antonio Guterres.
Qatar moves from football to farming in post-pandemic food security push
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Qatar moves from football to farming in post-pandemic food security push
- The Doha-listed company also plans to add 1,000 hectares of farm land to grow green crops as it expands its product line ahead of the 2022 World Cup
UAE non-oil business growth at 1-year high in February: PMI report
RIYADH: The growth of the non-oil private sector in the UAE ticked up to a 12-month high in February, driven by rapid increases in business activity and new work orders, an economic tracker showed.
In its latest Purchasing Managers’ Index report, S&P Global revealed that the UAE’s PMI rose to 55 in February from 54.9 in January.
Any PMI reading above 50 indicates expansion, while a reading below 50 reflects contraction.
The upturn of the non-oil private sector in the UAE aligns with the broader trend observed in the Gulf Cooperation Council region, where countries, including Saudi Arabia, are pursuing economic diversification efforts to reduce reliance on crude revenues.
In January, the Kingdom’s PMI stood at 56.3, the highest in the region, while Kuwait recorded a reading of 54.5.
“The UAE PMI signalled the strongest growth in non-oil business conditions for a year in February, with output increasing rapidly in response to strong inflows of new work. So far, the data points to an encouraging picture for the domestic economy in the first quarter of this year,” said David Owen, senior economist at S&P Global Market Intelligence.
According to the report, stronger output among non-oil sectors was driven by higher demand, successful contract wins, and growth in key sectors including construction, real estate, logistics, and technology.
Additional factors that contributed to this growth include rising tourist arrivals, the expansion of e-commerce channels, and growing demand for AI-related products.
While international orders also contributed to the expansion of the non-oil sector, the increase in export sales remained modest, suggesting that sales growth was mainly driven by domestic demand.
The analysis highlighted that employment numbers rose modestly in February, marking the largest uplift since last November.
UAE non-oil businesses successfully increased their inventories of purchased inputs for the second month running, supported by another rapid improvement in supplier delivery times.
Regarding the future outlook, non-oil firms in the UAE expressed optimism, although the level of confidence declined from the recent high in January.
“The outlook is positive, as demand has continued to pressure business capacity, suggesting additional expansions in output and employment may be necessary,” added Owen.
In the same report, S&P Global revealed that Dubai’s PMI slipped to 54.6 in February from 55.9 observed in January.
Rates of output and new order growth lost momentum, but remained sharp overall, with firms highlighting increased opportunities and new projects.
The release highlighted that demand was also lifted by various factors, including marketing activities, AI adoption, population growth and increased tourism.
