Saudi Arabia has invested $1.3 million in Ukraine farm produce - expert
2013-01-29 15:41:53
The Royal House of Saudi Arabia believes that the purchase of products from countries such as Ukraine will be very timely.
During 2011-2012 alone, according to the central statistics office of that country, $1.3 million was invested in Ukraine, the InvestGazeta reported.
"Saudi Arabia buys from Ukrainian businessmen grain and food in significant quantities. Only our site has registered 1,719 companies specializing in this business," says Ivan Zakrevsky, director of the international online catalog of products and services All.Biz.
In the coming years, according to Eckart Woertz of Barcelona Centre for International Affairs, for Saudi Arabia it would be better to buy food rather than produce it on their own. "In 2012, the kingdom's need for food increased by 13% and will grow in the future. Meanwhile, keeping oil prices high will make it possible to buy the necessary products," the expert said.
As noted, only in the past year, more than 8 thousand inquiries from Saudi Arabia were sent to Ukrainian agricultural companies through All.Biz. And given the fact that the kingdom is the world's largest importer of agricultural products, and the country's needs increase annually, Ukrainian farmers can and should enter this market, expand their presence on it, the analyst concludes.
According to the UN, a program for the conservation of water resources in the country was adopted in Riyadh in 2011, which led to the curtailment of growing crops in their territories. In 2012, the country's wheat crop was reduced by 12.5%. In such conditions, trade and investment cooperation with Saudi Arabia is becoming particularly relevant for Kyiv.
According to experts, the most attractive for Saudi consumers in the coming years will be barley, alfalfa, vegetables and poultry products. If the first two crops go to feed for animals, poultry meat and vegetables will be provided to cities. In particular, last year Saudi Arabia adopted two programs to expand purchases of chicken meat, for which $12 million must be provided in 2013. That is why in the fall of 2011, the Minister of Finance of Saudi Arabia, Ibrahim Al-Assaf visited Kyiv, where he held talks with the government and representatives of the largest agricultural companies. The minister said that a stabilization fund of $800 million has already been created in the Middle East for the purchase of foods, and Ukraine may claim a large portion of these funds.