Saudi Arabia is set to begin investing in rice farms in Thailand by the end of 2008 to ensure a steady supply of rice to the kingdom, which imports 960,000 tons of rice per year, nearly 5% of total global consumption.
According to media reports, both private sector companies and Saudi officials have held talks with Thai investors about setting up joint ventures to buy up or develop rice farms in Thailand.
Under the proposed partnerships, production would be exported to Saudi Arabia, with any surplus shipped on to neighbouring countries in the Gulf region.
In early April, Adnan A Al Naeim, the secretary-general of the Asharqia Chamber of Commerce in KSA, explained that the kingdom is at the mercy of rice producing countries, such as India, which have imposed bans or restrictions on rice exports to protect their own supply, and is looking to ensure long-term food security.
He says: "The Kingdom is not a rice-producing country; we are always under the control of exporters who dictate prices."
According to Al Naeim, the Kingdom's best option "is to become rice producers ourselves by investing in agriculture in countries that still have vast land for rice production."
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