GCC food imports soar

As global crop shortages and the rising price of oil push food prices ever higher, the Gulf Cooperation Council's (GCC) food imports rose to a record US$10bn over the past year, prompting fears of soaring inflation rates across the region.

The problem has been exacerbated by multi-billion dollar developments in the hospitality sector that have been made in recent years in the region. Data from the IMF indicated that food prices have jumped by 4 to 10% in the GCC over the past three years, due primarily to rising farm costs in countries that the GCC relies on for food supplies.

"As global prices rise, the problem is particularly acute for Arab countries as they import at least US$10bn worth of food products per year, placing enormous pressure on consumers and regional economies," said Jim Meltz, director for AGRA Middle East.

Rising food costs are most acutely felt in the United Arab Emirates, the largest importer in the Middle East, where food prices soared by 5.5% in 2006 and 8% in 2007, according to the Central Bank.