Persian Gulf: Small States, but Big Money for Wheat
Reading time: 2 minutes
Gulf states, like other countries in the MENA region, are still heavily involved in the global commodities trade. Qatar and the UAE import around 50% of their Wheat from Russia and Ukraine. Saudi Arabia imports 50% of its Wheat from Russia and Ukraine and is also the world’s largest importer of barley, of which 33% combined comes from Russia and Ukraine. While the Gulf states rely on food imports, their wealth, agriculture policies, and investments have made them less vulnerable to rising food prices than poorer countries in the Middle East.
Gulf states have long diversified their agricultural investments domestically and internationally. Realizing this vulnerability during the 2008 financial crisis, some Gulf states decided to increase their food reserves through enhanced storage capacities and increasing Government financial assistance to domestic agricultural production.
They have diversified their food suppliers and expanded agricultural investment in regions with significant arable land. GCC member states set their sights on sub-Saharan Africa, which accounts for 60% of the world’s arable land. Recently, Gulf states have stepped up in aiding the Egyptian economy as they struggle with food shortages. Egypt is the world’s largest Wheat importer from Russia and Ukraine and relies heavily on subsidized imports.
Since Russia’s invasion of Ukraine, Saudi Arabia, the UAE, and Qatar have pledged billions in investment and aid to support the Egyptian economy. Saudi Arabia deposited $5 billion into Egypt’s central bank and promised $10 billion in future investments from the Public Investment Fund.
Qatar signed $5 billion in investment deals, while Abu Dhabi approved $2 billion. Similarly, Saudi Arabia sent $50 million in aid to Jordan in April. Resource-rich Gulf states can use their wealth and influence to aid their neighboring MENA countries, turning the tide of commodity shortages and price hikes.
Wheat Import of Some Small Gulf States
In terms of territory, Qatar, Kuwait, and Bahrain are the smallest countries in the Gulf. In 2021, Qatar imported Wheat worth $54.4 million, becoming the 100th most significant importer of Wheat in the world. In the same year, Wheat was Qatar’s 130th most imported product. Qatar imports Wheat primarily from: India ($34.8 million), Australia ($19.2 million), the United States ($150k), Oman ($134k), and Yemen ($88k).
The fastest-growing import markets in Wheat for Qatar between 2020 and 2021 were India ($29.3 million), Australia ($7.11 million), and Oman ($109k).
In 2021, Kuwait imported Wheat worth $136 million, becoming the 69th largest importer of Wheat in the world. In the same year, Wheat was Kuwait’s 53rd most imported product. Kuwait imports Wheat primarily from: Australia ($125 million), Canada ($10.4 million), Ukraine ($200k), India ($144k), and the United States ($65.2k). The fastest-growing import markets in Wheat for Kuwait between 2020 and 2021 were Australia ($10.3 million), Ukraine ($149k), and the United States ($49.4k).
In 2021, Kuwait exported Wheat worth $163k, making it the 82nd most significant exporter of Wheat in the world. In the same year, Wheat was Kuwait’s 466th most shipped product. The leading destination of Wheat exports from Kuwait is Jordan ($144k) and Saudi Arabia ($18k). The fastest-growing export market for Wheat in Kuwait between 2020 and 2021 was Saudi Arabia ($18k).
In 2021, Bahrain imported Wheat worth $27.9 million, becoming the 124th most significant importer of Wheat in the world. In the same year, Wheat was Bahrain’s 103rd most imported product. Bahrain imports Wheat primarily from: Australia ($24.6 million), the United Arab Emirates ($3.1 million), and India ($159k). The fastest-growing import markets in Wheat for Bahrain between 2020 and 2021 were Australia ($3.51 million) and the United Arab Emirates ($3.08 million).
Other sources: ARAB NEWS
Try AgFlow Free
Access Free On Updates for Corn, Wheat, Soybean,
Barley, and Sunflower Oil.
No Credit Card Required & Unlimited Access In Time