The disruption in export flows resulting from Russia's invasion and international sanctions has spurred fears of a global hunger crisis. AFP
The disruption in export flows resulting from Russia's invasion and international sanctions has spurred fears of a global hunger crisis. AFP
The disruption in export flows resulting from Russia's invasion and international sanctions has spurred fears of a global hunger crisis. AFP
The disruption in export flows resulting from Russia's invasion and international sanctions has spurred fears of a global hunger crisis. AFP

War-fuelled global food and energy crisis ‘speeding up’, UN chief warns


James Reinl
  • English
  • Arabic

UN Secretary General Antonio Guterres on Wednesday said the global food and energy price crisis was “systemic, severe and speeding up” as Russia’s invasion of Ukraine causes “economic chaos” and hardship for about 1.6 billion people.

The UN chief said the war in Europe had tightened global finances and caused food and energy price spikes in 94 countries, affecting hundreds of millions of people.

Mr Guterres spoke as new data was released from the UN Global Crisis Response Group on Food, Energy and Finance, and as he works towards a deal to unlock grain and fertiliser exports from Russia and Ukraine, which have been snarled up by blockades, fighting and sanctions.

“Today’s report makes clear that the war’s impact on food security, energy and finance is systemic, severe and speeding up,” Mr Guterres told reporters in New York.

  • Workers at a bakery in the Tunisian capital, Tunis. The war between Russia and Ukraine, both wheat suppliers for Maghreb countries, has sent prices of flour and semolina soaring. All Photos: AFP
    Workers at a bakery in the Tunisian capital, Tunis. The war between Russia and Ukraine, both wheat suppliers for Maghreb countries, has sent prices of flour and semolina soaring. All Photos: AFP
  • A staff member arranges baked goods at the bakery, which is not subsidised by the Tunisian state.
    A staff member arranges baked goods at the bakery, which is not subsidised by the Tunisian state.
  • Flour prices have also risen as people stock up for the Muslim fasting month of Ramadan in April.
    Flour prices have also risen as people stock up for the Muslim fasting month of Ramadan in April.
  • Tunisia imports almost half of the soft wheat used to make bread from Ukraine.
    Tunisia imports almost half of the soft wheat used to make bread from Ukraine.
  • Authorities say the North African country has enough supplies to last three months.
    Authorities say the North African country has enough supplies to last three months.
  • Food prices were on the rise in North Africa even before Russia invaded Ukraine more than two weeks ago.
    Food prices were on the rise in North Africa even before Russia invaded Ukraine more than two weeks ago.
  • To keep prices affordable and avoid a repeat of bread riots that erupted in the 1980s, Tunisia subsidises staples like sugar, semolina and pasta.
    To keep prices affordable and avoid a repeat of bread riots that erupted in the 1980s, Tunisia subsidises staples like sugar, semolina and pasta.
  • For the past decade, Tunisia has set the price of a baguette loaf of bread at six US cents.
    For the past decade, Tunisia has set the price of a baguette loaf of bread at six US cents.
  • Some in the region fear the Russian invasion could lead to hunger and unrest, with memories of how rising food prices played a role in several Arab uprisings in the last decade.
    Some in the region fear the Russian invasion could lead to hunger and unrest, with memories of how rising food prices played a role in several Arab uprisings in the last decade.
  • The price of sugar, which is also important in the baking industry, has also surged in Tunisia.
    The price of sugar, which is also important in the baking industry, has also surged in Tunisia.
  • A staff member serves customers at the bakery. Libya, Morocco and Algeria are also facing wheat price increases.
    A staff member serves customers at the bakery. Libya, Morocco and Algeria are also facing wheat price increases.

“Around the world, the war is threatening to unleash an unprecedented wave of hunger and destitution, leaving social and economic chaos in its wake.”

The UN’s global index on food prices had already reached record highs in February even before Russia invaded Ukraine on February 24. Since then, the index rose further and reached a new high in March.

By the end of the year, the number of people struggling to eat enough calories is set to grow by 47 million to 323 million.

Meanwhile, rising prices for fertilisers have put them out of reach for many farmers, threatening the production of wheat and vegetable oils in the next planting season that could affect billions across Asia and the Americas, the report said.

All economies have been hit by the crises, but major importers across the Middle East and Africa are seen as particularly vulnerable.

About 58 million Africans are set to fall into poverty this year and 2.8 million people in the Middle East will experience extreme poverty, with the Levant and the Maghreb hit the hardest.

Mr Guterres repeated demands for Russia to end its military assault, but with peace talks between the two sides showing little sign of progress, he discussed a “package deal” that aims to circumvent both sanctions and Moscow's blockade on Ukrainian ports.

Top UN officials Rebeca Grynspan and Martin Griffiths are working on a compromise that would allow “for the safe and secure export of Ukrainian-produced food through the Black Sea and unimpeded access to global markets for Russian food and fertilisers”, he said.

Since Russia's invasion of Ukraine, Ukrainian grain shipments from its Black Sea ports have stalled and more than 20 million tonnes of grain are stuck in silos. Mostly western sanctions against Moscow over the invasion have slashed exports of Russian fertiliser and energy.

“Ukraine’s food production and the food and fertiliser produced by Russia must be brought back into world markets — despite the war,” said Portugal's former prime minister.

Earlier on Wednesday, Russian Foreign Minister Sergey Lavrov rejected claims that his country's invasion of Ukraine was behind the global food crisis, saying that Russia “guarantees” the safety of vessels leaving Ukrainian ports.

“We are not presenting any obstacles to the wheat exports,” Mr Lavrov said in a joint press conference with his Turkish counterpart Mevlut Cavusoglu in Ankara, where he discussed UN plans to re-open Ukrainian grain exports.

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SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.

Know your cyber adversaries

Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.

Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.

Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.

Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.

Phishing: Aims to secure personal information, such as passwords and credit card numbers.

Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.

Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.

Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.

Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.

Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.

Zero-day exploit: Exploits a vulnerability in software before a fix is found.

Haemoglobin disorders explained

Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

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.”

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Dubai Rugby Sevens

November 30, December 1-2
International Vets
Christina Noble Children’s Foundation fixtures

Thursday, November 30:

10.20am, Pitch 3, v 100 World Legends Project
1.20pm, Pitch 4, v Malta Marauders

Friday, December 1:

9am, Pitch 4, v SBA Pirates

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The schedule

December 5 - 23: Shooting competition, Al Dhafra Shooting Club

December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq

December 11 - 20: Dates competition, from 4pm

December 12 - 20: Sour milk competition

December 13: Falcon beauty competition

December 14 and 20: Saluki races

December 15: Arabian horse races, from 4pm

December 16 - 19: Falconry competition

December 18: Camel milk competition, from 7.30 - 9.30 am

December 20 and 21: Sheep beauty competition, from 10am

December 22: The best herd of 30 camels

UNSC Elections 2022-23

Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
  • One for Eastern Europe Group

Countries so far running: 

  • UAE
  • Albania 
  • Brazil 
Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Updated: June 09, 2022, 5:18 AM