Of late, there have been quite a few practical steps taken by the Arab states to enhance the Arab Food Security programme, and specifically through projects that combine the GCC’s capital support and the natural resources — such as land suitable for agriculture and adequate water sources — in other Arab countries.

It is within this context that one should see the announcement made in Cairo of the formation of the Canal Company for Sugar, with the UAE putting in investments to set up an industrial-agricultural complex in the Miniah Governorate.

This will include a plant for the production of white sugar at an annual capacity of 400,000 tonnes and requiring capital amounting to $550 million. In addition, the venture seeks to reclaim 150.000 acres of land and provide 40.000 new jobs for Egyptians.

This coincided with Sudan handing over to Bahrain the ownership of the “Bounties of Bahrain” land project, an agricultural venture spread on an area of 100.000 acres on an area in the Nubian Basin and costing $400 million.

The Basin with its renewable water resources covers an area larger than Germany. It forms part of the Organization of Islamic Cooperation’s Food Security project, with Bahrain considered to be the first country to implement such a project in the framework of this initiative. This is despite the fact that there were other initiatives taken up by Gulf states to own land in Sudan.

It is expected that these trends will have many positive results and contribute effectively towards strengthening the foundations of economic cooperation between Arab countries.

This will also encourage more joint venture projects and which have at its core the need to tackle development needs. In particular, this would provide a boost for new jobs and production of food commodities at affordable prices and less prone to fluctuations.

It is well known that the GCC bloc imports nearly 80 per cent of their food needs and have suffered from the extreme volatility in global commodity pricing in recent years.

The success of such projects will mean that the GCC — for the first time — will have ownership of their private agricultural projects abroad, which will in time supply domestic markets with many food grains while ensuring that they do so at competitive prices.

In turn this will solve some of the escalating economic and social problems in Arab countries such as Egypt and Sudan. These economies need a continuation of similar large projects helmed by Gulf capital funding support to raise growth rates and contribute to job creation. They currently suffer from high unemployment rates, especially in the agricultural sector.

Certainly, there are drawbacks related to infrastructure and regulatory for Gulf investments flowing into some of the other Arab countries. There is no guarantee of adequate legislation on protection of foreign-owned investments and there are still laws that limit foreign capital flow.

Gulf countries thus will contribute to the development of badly needed infrastructure that serve and meet the needs of their agricultural and industrial projects.

On their part, Arab countries need to review and develop their legal structures to attract additional Arab and foreign capital and create a reliable environment that can guarantee investments. This way, they will be encouraging not only government-led investments but even private capital, which still remains doubtful on the commitment of many Arab countries to ensure investor the rights of investors.

The Arab League can also adopt the Food Security Arab Fund project along the lines of the Organisation of Islamic Cooperation Fund. The years to come shall witness additional food commodity prices fluctuations. In such a scenario, ensuring stable delivery cannot ever be guaranteed. It means the region collectively needs to support a multi-pronged approach at more than one level and by more than one party.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.