A lack of food in Gaza means more than a quarter of its population are at 'catastrophe' levels of hunger, a UN and EU-led report says. Getty Images
A lack of food in Gaza means more than a quarter of its population are at 'catastrophe' levels of hunger, a UN and EU-led report says. Getty Images
A lack of food in Gaza means more than a quarter of its population are at 'catastrophe' levels of hunger, a UN and EU-led report says. Getty Images
A lack of food in Gaza means more than a quarter of its population are at 'catastrophe' levels of hunger, a UN and EU-led report says. Getty Images

Gaza's hunger tops list of Middle East food crises affecting 37 million people


Tim Stickings
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A hunger crisis facing everyone in wartime Gaza tops a list of worsening food issues affecting 37 million people in the Middle East, a report has found.

Syrian refugees in Jordan, Egypt and Lebanon are also among the hardest hit by trends of poverty, instability and soaring food prices, the UN and EU-led Global Report on Food Crises says.

It found the entire population of Gaza was at "crisis" levels, with more than a quarter at the highest "catastrophe" stage – both unprecedented proportions.

Experts fear the north of Gaza could slip into famine at "any time", potentially affecting more than a million people, between now and July.

The report, which found more than 280 million people living in high food insecurity worldwide, was described by UN Secretary General Antonio Guterres as a "roll call of human failures".

"The conflicts erupting over the past 12 months compound a dire global situation," said Mr Guterres, who addressed a launch event at the Food and Agriculture Organisation's Sheikh Zayed Centre in Rome.

"Humanity can and must do better."

Cindy McCain, head of the UN's World Food Programme, said the goal of ending global hunger by 2030 was "slipping further out of our reach".

"Conflict has plunged millions more people into acute food security in Gaza and Sudan," she said. "Famine is a real, real possibility in the months ahead."

UN Secretary General Antonio Guterres said the new food report was a 'roll call of human failings'. AP
UN Secretary General Antonio Guterres said the new food report was a 'roll call of human failings'. AP

The report said more than 500,000 people in Gaza face an "extreme lack of food, starvation and exhaustion" as hostilities with Israel continue.

That puts them at the highest "catastrophe" level on a five-tier scale, which covers 26 per cent of Gaza's population.

A full 100 per cent are in either "catastrophe" or the next two stages of "emergency" and "crisis", all of which are considered high levels of food insecurity.

Israel has repeatedly been urged to allow more aid to reach Palestinians, while efforts to broker a ceasefire have yet to bear fruit.

The report said the risk of famine increases "each day" that there is intense fighting and a lack of humanitarian access to Gaza.

Palestinians gather to receive aid outside an UNRWA warehouse in Gaza city. Reuters
Palestinians gather to receive aid outside an UNRWA warehouse in Gaza city. Reuters

It said fighting in Gaza since October had only worsened what was already a picture of high unemployment and reliance on aid in Gaza due to a prewar Israeli blockade.

Israel denies obstructing aid supplies, saying Hamas is to blame for the dire humanitarian toll and accusing aid agencies of not doing enough.

Beyond Gaza, the report warned of rising instability, growing poverty, high unemployment, soaring food prices and widespread displacement fuelling hunger across the region.

Syrian refugees were the worst affected outside Gaza – with 69 per cent of those in Jordan living in the higher tiers of food insecurity, and 62 per cent of those in Egypt.

Many refugees are living in countries going through hard economic times and funding for the Syrian crisis is dwindling, experts warn.

Syrian refugees living in Lebanon are among those facing food insecurity linked to economic strife in their host countries. EPA
Syrian refugees living in Lebanon are among those facing food insecurity linked to economic strife in their host countries. EPA

In Syria itself, 55 per cent are living in high food insecurity, fuelled partly by economic strife spilling over from Lebanon, where the figure is 42 per cent.

Lebanon had by far the region's highest inflation in food prices, with a rate of more than 350 per cent, coupled with fuel shortages.

While Lebanon's forecast has improved slightly for 2024, this assumes that tensions at its southern border with Israel will not escalate into a broader conflict.

Meanwhile, Yemen remains the scene of the region's biggest food crisis, with 18 million people – about 60 per cent of the population – facing acute insecurity.

The Gaza conflict is also affecting food security in the occupied West Bank, the report said, due to an increased Israeli military presence, road closures and acts of violence.

The outlook for the year "depends on whether geopolitical tensions in the region escalate and on the dynamic of hostilities in Palestine", the report said.

It warned that if regional tensions continue to rise, shipping and insurance costs in the Red Sea could further reduce food imports and push up prices.

In total, about 36.7 million people in nine countries and territories in the Middle East are facing high levels of food insecurity.

In Gaza, the conflict "makes it difficult and sometimes impossible to reach affected people", WFP official Gian Caro Cirri said.

"We need to scale up massively our assistance ... but under the current conditions, I'm afraid the situation will further deteriorate."

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: April 24, 2024, 2:52 PM