Food insecurity in Arab countries, made worse by recent global crises such as the Russia-Ukraine war and Covid-19, has caused critical levels of hunger and malnutrition, a UN report said.
At an event in Cairo on Wednesday, the UN, alongside other international organisations such as the Food and Agriculture Organisation, the World Health Organisation and Unicef, launched its annual overview of food security in Arab countries.
The review also offered solutions on how to manage it.
The report found that 53.9 million people suffered from severe food insecurity in the Arab region in 2021, a 55 per cent increase since 2010 and a rise of five million people from the previous year.
Moderate to severe food insecurity has also been rising, the report said. It affected about 154.3 million people in 2021, which is 11.6 million people more than 2020.
This year’s report also found that half of everyone living in the Arab world, about 162.7 million people, could not afford a “healthy diet” in 2020.
Since 2017, food prices have increased steadily to reach unprecedented levels towards the end of last year.
The report found that one in five Arab children under the age of five suffers from stunting — defined by the UN as “impaired growth and development that children experience from poor nutrition, repeated infection and inadequate psychosocial stimulation”.
The rate of stunting in the Arab world remains lower than the global average, the report said.
But the rate of wasting, which is characterised by a low body weight for a person’s height, among Arab children is 7.8 per cent - higher than the global average of 6.7 per cent.
Wasting often indicates recent and severe weight loss, although it can also persist for a long time, the report said.
On the other hand, obesity levels in the Arab world have also been on a steady rise and the report found that since 2000, the prevalence of overweight children has steadily increased to reach 10.7 per cent in 2020.
In addition, 28.8 per cent of the region’s adults, 18 and above, are suffering from obesity. The region’s rate is double the global average.
The Arab world had already been short of meeting its nutrition-related UN-submitted Sustainable Development Goals, according to the report.
But in recent months, the situation was exacerbated by global crises such as Covid-19, the war in Ukraine and the ensuing rise in food and energy prices.
A sharp rise in energy and food prices was one of the main consequences of Russia’s war with Ukraine and prices across the region have been on a steady increase.
“These crises have affected the Arab world disproportionately and aggravated food insecurity and malnutrition in the region,” the report found.
However, apart from global crises, rampant poverty and inequality have worsened food insecurity and malnutrition in the Arab world.
The UN said in the report that it does not anticipate the Arab world to achieve its zero hunger targets, which it submitted in 2016 and tried to achieve by 2030.
The report also highlights the importance of trade as essential to increasing the quantity and variety of food available to Arab populations and decreasing its price for net-food importing countries.
Its authors urged Arab policymakers to implement policies geared towards prioritising trade as a solution to food security, which it says they largely have not done.
They also recommended that more effort should be exerted into “reducing trade barriers, developing new free trade areas, promoting digital technologies, reducing non-tariff barriers, harmonising regulatory practices”.
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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