• ALGERIA: The report studied not only food scarcity but how much a household must spend on food to get by. In Algeria, the average family spent 42.5% of their monthly income on food, placing them fifth from the bottom of the global chart. AFP
    ALGERIA: The report studied not only food scarcity but how much a household must spend on food to get by. In Algeria, the average family spent 42.5% of their monthly income on food, placing them fifth from the bottom of the global chart. AFP
  • KAZAKHSTAN: Kazakhstan came fourth from the bottom, with a household spending 43% of their income on food. Anadolu Agency via Getty Images
    KAZAKHSTAN: Kazakhstan came fourth from the bottom, with a household spending 43% of their income on food. Anadolu Agency via Getty Images
  • CAMEROON: A farmer grows mushrooms in to diversify his crop. Cameroon was third from the bottom, with the average household spending 45.6% of their budget on food. AFP
    CAMEROON: A farmer grows mushrooms in to diversify his crop. Cameroon was third from the bottom, with the average household spending 45.6% of their budget on food. AFP
  • KENYA: Despite its position as one of Africa's stronger economies, food shortages left the average family spending 46.7% of their income on food. AFP
    KENYA: Despite its position as one of Africa's stronger economies, food shortages left the average family spending 46.7% of their income on food. AFP
  • NIGERIA: With one of the world's fastest growing populations, Nigeria struggles to feed its 200 million people. It languished at the bottom of the global table, with the average family spending 56% of their income on food. AFP
    NIGERIA: With one of the world's fastest growing populations, Nigeria struggles to feed its 200 million people. It languished at the bottom of the global table, with the average family spending 56% of their income on food. AFP

Middle East and Africa have 'highest levels of food insecurity'


Kelly Clarke
  • English
  • Arabic

The Middle East and Africa have some of the highest levels of food insecurity in the world, according to a new global report.

Findings from the Global Food Security Q2 2022 report by Deep Knowledge Analytics, showed that Yemen and Syria are in the midst of food crises fuelled by war.

On top of the conflict, climate change and water shortages are affecting Algeria, Iraq, and Yemen too, limiting the availability of resources needed for food production and development of agriculture.

Of the 171 countries evaluated, Syria and Yemen were among the lowest scoring, ranking 148th and 160th, respectively. Central Africa remains the most food scarce region.

Russia's invasion of Ukraine in late February dramatically worsened the outlook for food prices
Global Food Security report

The report assessed the drivers of food insecurity focusing on key trends, including food dependency, inflation, and policy developments.

It said the Mena region will remain one of the most "import-dependent regions in the world", with about 50 per cent of its food imported.

However, some progress in the field of agri-food technology is being made in countries such as the UAE and Israel.

The report evaluated all countries based on three main categories: access to food; crisis level; and food system and economic resilience.

The UAE ranked first among Arab countries in the Food System and Economic Resilience section, ranking 19th globally and beating Austria, Switzerland and the UK.

Overall, the UAE ranked 26th globally in the Index with a score of 7.07 out of 10.

Lack of food globally

Looking globally, the report found that 868 million people do not have sufficient food and 25 countries were considered high risk and deteriorating.

Additionally, the report identified a 30 per cent increase in fertiliser prices since the beginning of the year, which contributed to a decrease in crop production around the world.

“Global food prices and fertilisers started to rise in mid-2020 when businesses shut down due to the Covid-19 pandemic, straining supply chains,” the report said.

“Since then, there have been problems with key crops in many parts of the world.

“Russia's invasion of Ukraine in late February dramatically worsened the outlook for food prices.”

People most affected by the rise of food prices live in developing countries, where a larger share of income is spent on food, it said.

Today, 35 countries have food export restrictions in place. This number rose by 25 per cent this year owing to the Russian war in Ukraine.

As of the end of March, 53 new policies affecting food trade had been adopted around the world, 31 of which restricted exports and nine curbed wheat exports.

Major food exporters such as Argentina, India, Indonesia, Kazakhstan and Russia, as well as smaller exporters such as Algeria, Turkey and Serbia, have introduced food export restrictions on products including pasta, oil, sugar and lentils.

With more countries imposing restrictions, the report said there is a greater risk of “price volatility, panic buying, shortages, and hoarding”.

As a result, 15 countries were deemed “unable to produce their own food”, including Afghanistan, Eritrea and Iraq.

Countries that spend least on food?

Of the nations that are most food secure, the US, Singapore and the UK spend the least household income on food.

In the US, about 6.4 per cent of income is spent on food, rising to 6.7 per cent in Singapore and 8.2 per cent in the UK.

“The more developed a country, the less income is spent by its citizens on food,” the report said.

“Developing countries will have even greater food insecurity and hunger levels with the most vulnerable paying more for less food.”

According to the findings, only eight countries in the world spend less than 10 per cent of their household income on food, four of which are in Europe ― the UK, Switzerland, Ireland and Austria.

The remaining four countries are the US, Singapore, Australia and Canada.

Spending most on food is Nigeria, with more than half of household income (56.4 per cent) going towards produce.

There are nine other countries that spend more than 40 per cent of their income on food including Kenya, Cameroon, Kazakhstan and Algeria.

Countries that fared best overall in the Global Food Security Q2 2022 report were the US, Norway and Ireland, respectively.

Coming in last was Somalia, with an overall score of 2.97 out of 10, following by the Democratic Republic of Congo and Mozambique.

UN food supplies – in pictures

  • A Palestinian worker from the United Nation Relief and Works Agency (UNRWA) handles food supplies, in Gaza City. EPA
    A Palestinian worker from the United Nation Relief and Works Agency (UNRWA) handles food supplies, in Gaza City. EPA
  • Displaced Yemenis get emergency food aid provided by a local relief group, Mona Relief Yemen in the western province of Hajjah, Yemen. EPA
    Displaced Yemenis get emergency food aid provided by a local relief group, Mona Relief Yemen in the western province of Hajjah, Yemen. EPA
  • A volunteer of the "Nass el-Khir" association prepares food for meals to be distributed among those in need in Algeria's capital Algiers. AFP
    A volunteer of the "Nass el-Khir" association prepares food for meals to be distributed among those in need in Algeria's capital Algiers. AFP
  • A worker of the United Nations Relief and Works Agency for Palestine Refugees stands in the back of a truck delivering food aid to families in need in Gaza City. AFP
    A worker of the United Nations Relief and Works Agency for Palestine Refugees stands in the back of a truck delivering food aid to families in need in Gaza City. AFP
  • A Palestinian worker at the United Nation Relief and Works Agency (UNRWA) distributes food aid rations for refugee families, in Gaza City. EPA
    A Palestinian worker at the United Nation Relief and Works Agency (UNRWA) distributes food aid rations for refugee families, in Gaza City. EPA
  • A Yemeni boy carries a portion of food aid, distributed by Yadon Tabney development foundation, in Yemen's capital Sanaa. AFP
    A Yemeni boy carries a portion of food aid, distributed by Yadon Tabney development foundation, in Yemen's capital Sanaa. AFP
  • A Palestinian worker at the United Nation Relief and Works Agency distributes food aid rations for refugee families, in Gaza City. EPA
    A Palestinian worker at the United Nation Relief and Works Agency distributes food aid rations for refugee families, in Gaza City. EPA
  • Members of a Palestinian family stand through the door of their home as they receive food aid provided by the United Nations Relief and Works Agency for Palestine Refugees in Gaza City. AFP
    Members of a Palestinian family stand through the door of their home as they receive food aid provided by the United Nations Relief and Works Agency for Palestine Refugees in Gaza City. AFP
  • Displaced Yemenis receive food supplies provided by the World Food Programme, at a school in Sanaa, Yemen. AP Photo
    Displaced Yemenis receive food supplies provided by the World Food Programme, at a school in Sanaa, Yemen. AP Photo
  • Palestinian employees at the United Nations Relief and Works Agency for Palestinian Refugees prepare food aid rations. AFP
    Palestinian employees at the United Nations Relief and Works Agency for Palestinian Refugees prepare food aid rations. AFP
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One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

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.”

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

PSA DUBAI WORLD SERIES FINALS LINE-UP

Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)

Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)

The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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UAE currency: the story behind the money in your pockets
Dubai Rugby Sevens, December 5 -7

World Sevens Series Pools

A – Fiji, France, Argentina, Japan

B – United States, Australia, Scotland, Ireland

C – New Zealand, Samoa, Canada, Wales

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Updated: July 27, 2022, 3:32 PM