Arab Fund for Economic and Social Development and Kuwait Fund for Arab Economic Development

Joint Technical Meeting Arab Coordination Group Institutions and The OECD Development Assistance Committee
Vienna, Austria, 29-30 April 2010

 The Arab Organization for Agricultural Development defines the concept of food security as follows:

“To provide the quantity and quality of food required to keep, at all times, all community individuals active and healthy, based, first, on domestic production and the comparative advantage each country has in the production of food commodities; and making it available to people at prices commensurate with their incomes and financial means” (Original : Arabic)

Potential for food security in Arab countries  Arable land  Water resources  Other factors 4. Prospects and Requirements for agricultural development.1. . Role of agriculture in the economies of Arab countries. Population indicators for Arab countries 2. Financing agricultural operations in Arab countries 5. 3.

.5 million in 2008. An increase of about 8 million over 2007. Total population of Arab countries estimated at 334.

 Population growth averaged about :  2.55% annually over the period 1985 – 1995  2.36% annually over the period 1995 – 2008  Total population with annual growth of 2.3%  550 million in 2030  870 million in 2050 .

equivalent to about 39.2% of population in 2007  Unemployment rate about 13.7% . Average GDP per capita estimated at US$ 5.858 in 2008  Total labor force about 128 million.

 Average growth of labor force about 3.3% annually over the period 1995 – 2007, and exceeds the average growth of population  About 25.4% of labor force work in agriculture  Share of agricultural worker in value added in agricultural sector amounted to $ 3,600 in 2008.

 Value Of Total Agricultural Production In Arab Countries Increased From $56.4 Billion To $103.4 Billion Over The Period 2000 – 2008  Contribution Of Agriculture Sector To GDP Shrank From 8.3% To 5.4% Over The Period 2000 – 2008.

Country Sudan Syria Egypt Mauritania Morocco Yemen Tunisia Libya, Jordan, Djibouti, Iraq, Algeria, Lebanon GCC Countries: Qatar, Kuwait, Bahrain, Oman, Emirates, Saudi Arabia
Source : Unified Arab Economic Report, 2009

Contribution of Agriculture to GDP (%) 29.3 20.4 12.6 11.1 13.1 10.4 9.7 2.1 – 7.8 1 – 2.3

.3 6.2 Agriculture Contribution To GDP (%) 8.5 2008 103.4 Annual Average Growth (%) (2000-2008) 7. 2009 210 286 319 Remarks •About 80% Of Agricultural Product In Arab Countries Is Produced By 6 Countries: Sudan.3% In Sudan.4 Per Capita Agricultural Product ($) Source : Unified Arab Economic Report.0 5. Morocco. Egypt. Syria. Mauritania.2000 Agricultural Product ($Billion) 56. Yemen •Agriculture Sector Contribution To GDP Varies Widely From 1% In Qatar To 29.4 2007 90.9 Annual Average Growth (%) (2007-2008) 14.

4 1.4 27.8 50.6 Annual Change (%) (2000 – 2008) 5.3 39.8 1.3 Source : Unified Arab Economic Report.9 1.8 1.6 3.0 30.8 3.0 5.3 3.1 2.3 1.3 7.6 26.1 22.4 2008 55.0 24.0 2007 50.7 2.6 3.8 -0.7 2.1 6.6 16.6 3.2 48. 2009 .0 25.3 4.5 3.3 19.(Million Tons) Food Commodities Cereals Wheat Vegetable Oils Sugar Fruits Vegetables Meat Dairy Products Fish 2000 37.0 30.6 7.

6 58.5 1.0 84.3 19.4 6.5 25.8 2008 Gap (%)* Production Consumption Gap (%)* 55.7 2.5 20.6 3.8 45.3 26.7 2.0 63.4 3.2 52.(Million Tons) 2000 Commodities Cereals And Flour Wheat Vegetable Oils Sugar Meat Dairy Products Fish Production Consumption 37.0 48.2 36.3 63.8 6.9 102.8 1.3 3.8 18.0 - * Net imports as percentage of consumption.6 16.2 10. .5 7.0 3.0 9.0 7.7 27.2 70.3 4.0 35.0 13.0 30. Source: Unified Arab Economic Report 2009.0 3.7 54.6 55.

(Million Tons) .

.7% annually.8 billion in 1990 to about $14 billion in 2000.  The deficit increased by about $12 billion between 2000 and 2008. The deficit value of main food commodities increased from about $11. A deficit increase of about 1. An increase of about 8% annually.

Commodities Cereals Vegetable Oils Sugar 1990 (%) 45 68 68 2005 (%) 51 72 62 2008 (%) 56 73 71 Source: Arab Organization For Agricultural Development * Rounded Percentages .

 Arable Land  Water Resources  Rural Development And Agricultural Labor Force  Agricultural Productivity  Agricultural Research And Development  Investment In Agriculture .

5% Of Arable Land) : 15% : 57% : 28% . Total Area Of Arable Land : 197  Cultivable Area  Irrigated Area  Rain-Fed Area  Uncultivated Area Million Hectares : 70 Million Hectares (About 36.

Equivalent To About 63% Of Area Of Arab Countries  Land Threatened By Desertification: About 360 Million Hectares.2 Hectares In 2007 . Desertificated Land Area (2007): About 886 Million Hectares.5%  Arable Land Per Capita Decreased From 0.3 Hectares In Early Seventies To About 0. Equivalent To About 25% Of Area Of Arab Countries  Average Annual Growth Of Arable Land Over Last Two Decades: About 1.

0 55.0 9.(Million Hectares) Rain-Fed and Uncultivated 1990 2000 2007 45. 2008 •It Is Noted That The Irrigated Area Remained Unchanged Over 17 Years .0 56 65 71 Source: Unified Arab Economic Report.5 11.5 60.0 Irrigated Total 11.

 Total Renewable Water Resources: About 338 Billion M3 (About 1% Of World Renewable Resources)  Total Surface Water Resources: 296 Billion M3  Total Ground Water Resources: 42 Billion M3. Of Which:  35 Billion M3 Are Available For Use. .

300 Billion M3 Per Year. Rainfall: About 2.1 Billion M3  Renewable Water Resources Per Capita:  2010 : 965 M3  2030 : 610 M3  2050 : 390 M3  World Average Per Capita (2007): Over 8.5% Of World Rainfall.000 M3 .5 Billion M3  Treated Wastewater : 8.  Desalinated Water : 2. Equivalent To About 0.

Sector  Agriculture  Municipal  Industry  Total Uses Share of Renewable Resources (%) : : : : 89% 6% 5% 100% .

Indicator Efficiency Of Water Transport Efficiency Of Traditional Field Irrigation Percentage Of Land Under Traditional Irrigation Systems Estimated Annual Water Losses In Irrigation (Billion M3) Source: Arab Organization For Agricultural Development 2007 60% 50% 85% 90 .

 Total Renewable Water Resources : 338 Billion M3  Surface Water  Agriculture Use  Agriculture Demand  Deficit In Agriculture  Traditional Surface Irrigation : 296 Billion M3 : 263 Billion M3 : 354 Billion M3 : 91 Billion M3 : 75% Of Irrigated Area .

as well as traditional irrigation techniques.50% This low efficiency is due to use of earth and open irrigation canals. Modern Irrigation Techniques : 25% Of Irrigated Area  15% Sprinkler Irrigation  10% Localized Irrigation  Irrigation Efficiency : 40 . Loss of irrigation water amounts nearly to half of water amount used in irrigation  Improving Irrigation Efficiency to 70% would save as much as 50 Billion M3 .

2009 .Year 2008 2020 2030 Agriculture 330 369 378 Municipal and Industry 24 40 58 Total 354 409 436 Source: Unified Arab Economic Report.

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2 365.9 202.8 1206.4 894.6 441.8 1706. Kuwait Per Capita (M3)/Year 369.9 Country 8209.9 422.7 758.9 1426.5 147.9 1313.8 31.org) .9 2489.4 7 World Average Mauritania Iraq Sudan Somalia Comoros Syria Lebanon Morocco Egypt Tunisia Algeria Source: World Resources Institute (earthtrends.wri.9 Oman Djibouti Palestinian Territories Yemen Bahrain Jordan Libya Saudi Arabia Qatar U.7 1619.5 98.Country Per Capita (M3)/Year 3510.A.7 154.6 93 61.E.8 183.

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. About 50% Of Arab Population Live In Rural Areas  About 25% Of Arab Population Suffer From Poverty. With About 70% Of Them Living In Rural Areas.

 About 25% Of The Labor Force Work In Agriculture  Average Per Capita Income Of Workers In Sectors Other Than Agriculture Ranges Between 3 To 6 Times That Of An Agricultural Worker. .

 Increase In Production Of Cereals In The World Is Attributed Primarily To Modern Irrigation Techniques And Systems. And Contributing To Reducing The Food Gap. .  Scientific Knowledge And Technology Play An Essential Role In Raising Efficiency Of Agriculture And Livestock Sector In Producing Main Food Commodities.

.  It Is Estimated That Less Than 10% Of The Increase In Cereal Production Is Attributed To Horizontal Expansion. While Over 90% Is Attributed To Vertical Expansion. Through Irrigation. And Productivity Increase. Agricultural Intensification. The Main Engine For What Has Been Termed "Green Revolution" Which Took Off In The Late 1960s Depended On Vertical Expansion In The Production Of Wheat And Rice.

2% Of GDP In Arab Countries In 2005.  Research In Arab Countries Has Not Been Accorded The Priority It Deserves. Compared To About 3% In The Developed Countries. Irrigated Crops Became A Source Of More Than 60% Of Rice Production. . The Unified Arab Economic Report (2008) Indicates That Expenditure On Scientific Research And Development Did Not Exceed 0. And About 40% Of Wheat Production In Developing Countries.

 Average Participation Of Technical Staff In Research In Arab Countries Is About One Third Of The World Average. And About 7% Only Of That In The Developed Countries. .

970 2.Average Yield Of Selected Crops In Arab Countries Compared With Other Countries 2000 – 2007 (Kilograms Per Hectare) Countries Arab Countries Developing Countries Developed Countries World Average Source: Cereals 1.620 Beet 37.600 3.550 5.300 Yellow Maize 2.120 36.185 1. 2008. Agricultural Production Data.050 2.650 Arab Organization For Agricultural Development.220 28. .357 2.970 2.330 Wheat 1.680 2.800 Barley 557 1.104 1.420 5. Indicating Potential For Increasing Productivity By 2 To 4 Times Of Existing Level.450 Cotton Flowers 2. Note: Actual Productivity Of Cultivated Land In Arab Countries Ranges Between 25–50% Of Similar Productivity At The Global Level. Food And Agriculture Organization Of UN.320 5.600 2.615 37.100 2.700 2.

Average Yield Of Selected Crops In Arab Countries Compared With Other Countries 2000 – 2007 (Kilograms Per Hectare) .

308 6.066 Cereals Yield (Kg/Hectare) (2003 – 2005) 7.076 429 23.523 2.396 23.621 2.443 Source : World Bank.786 1.545 1.196 719 371 5. World Development Indicators 2007 .916 8. World Development Report 2008 * World Bank.559 5.243 481 * 4.Countries Egypt Syria Morocco Sudan Saudi Arabia Chile Philippines Netherlands United States Agricultural Worker Value Added ($) (2003 – 2005) 497 1.

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Source: Arab Organization for Agricultural Development .

Source: Arab Organization for Agricultural Development .

Namely.  One Factor Affecting Low Level Of Investment In Agriculture Is The Rate Of Return On Agricultural Investments Compared To Returns In Other Sectors. . Real Estate And Services. Among Challenges Facing Agricultural Development Is Inadequacy Of Financial Resources Allocated For Investment In Agriculture.

Thus Limiting Farmers’ Ability To Develop Their Farms. With A Share Of 6% For Agriculture. Intra-Arab Private Investments Amounted To About $ 14 Billion In 2007.  Other Shortcomings Include Financing Policies And Low Percentage Of Medium And Long-Term Loans. . Short-Term Loans Amounted To About 85% Of Total Funding For Agriculture. Which Is Much Less Than The Relative Share Of The Agricultural Sector In GDP In Most Arab Countries.

Investment Climate In Arab Countries. 2008 .Sector Services Real Estate Industry Agriculture Commerce Total Percentage 44 35 12 6 3 100 Source : Arab Investment Guaranty Corporation.

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 Total Cumulative Value Of Financing Development Operations By Arab National And Regional Development Institutions Amounted To $ 96 Billion Up To 31/12/2009. Or 12% Of Total Cumulative Value.5 Billion.  Share Of Agriculture And Livestock Sector Amounted To About $ 11. .

4 61. and balance of payments support Source: Coordination Secretariat of Arab National and Regional Development Institutions .4 100.1 Other Sectors Total Share (%) 100 10.919 Sectoral Share (%) Arab Countries ($ Million) Share Of Arab Countries (%) 23.5 54.0 67.516.0 59.593.0 19.4 61.240.4 Agriculture & Industry & Livestock Mining 11. education.8 64.2 64.9 63.5 * Include health.0 Energy (Electricity.598. and housing services.Transport & Communications Total Cumulative Financing (All Recipients.4 7.9 12.786.091.314.3 26.0 12.892.2 6.0 11.555.4 Water & Sanitation 7.4 18.4 58.2 6.946. $ Million) 22.2 11.8 5.341.7 95.087.6 16. Oil & Gas) 25.848.

 About 60 Million Hectares Of Arable Land Are Available In Sudan.  Arable Land Not Yet Cultivated Amounts To About 126 Million Hectares. . Arab Countries Have A Considerable Potential For Contributing To Their SelfSufficiency In Food. In Addition To Available Water Resources.

.  Livestock In The Arab Countries Is Estimated At About 395 Million Heads. Large Opportunities Exist For Investment In Fisheries.000 Kilometers. With Coastlines That Extend To About 23. With About 44% Exploited.2 Million Tons.  Fish Resources Are Estimated At About 8.

. Arab Countries May Save About 100 Billion M3 Through The Use Of Modern Irrigation Techniques. And Only 25 Billion M3 If Modern Irrigation Techniques Are Applied.  Wheat Food Gap Which Is Estimated At About 25 Million Tons Require About 50 Billion M3 Of Water For Irrigation With Traditional Techniques.

Marketing. While In Developed Countries Similar Ratio Ranges Between 5 – 20%. Including Transport.  Loss Of Fresh Crops In Arab Countries Is Estimated At About 15 – 40% Of Total Production.  Maximization Of Crop Benefits Would Require More Attention And Care To Post Harvest Operations. Raising Irrigation Efficiency To 70% Would Save About 50 Billion M3 Of Water. And Agricultural Processing. Storage. .

 In Their Pursuit To Enhance The Prospects For Attaining Food Security. Arab Countries Need To Focus Their Efforts On The Development Of The Agricultural Sector. .

Among Other Things. Requirements. And Declining Per Capita Share Over Time. Include:  Better Management And Uses Of Scarce Renewable Water Resources.  Development Of Arable Land And Expansion Of Irrigated Area  Introducing Modern Irrigation Practices And Techniques. And Environment . Water Quality. Development of Agriculture Is Essential For Contributing To Food Security. And Adopting Measures to Avoid Negative Impact On Soil.

Based On Implementation Of Laws And Legislations. Recognizing The Vital Role Of Water In Human Life And Development. And Protecting The Environment. It Is Critically Important To Deal With Water Resources And Their Uses Within A Framework Of Policies Leading To Rationalization Of Water Consumption And Curtailing Loss In Various Uses. .

 Augmentation Of Water Resources. . The Latter Is Significantly Important. Because It Can Attain The Twin Objectives Comprising The Uses Of Treated Water For Agriculture. And Expansion In The Area Of Wastewater Treatment and Reuse. Including Through Development Of Water Desalination Technology. And Avoiding The Pollution Impact of Wastewater.

 Scientific And Practical Research Is One Of The Principal Pillars For Agricultural Development. Research Expenditures In The Arab Countries Remains Very Low. . With The Exception Of Some Cases That Contributed To A Large Extent In Improving Productivity Through The Use Of Improved Seeds.

And To Support National. And International Research Centers In Arab Countries. Regional. There Is An Immense Need For Concentrating Efforts To Improve Efficiency. .  More Attention Is Needed For Rain-Fed Agriculture. To Introduce New Agricultural Inputs. And Vertical Expansion To Increase Productivity Through The Use Of Modern Technology And Irrigation Techniques.

And Providing Them With Knowledge To Enable Them Use Modern Technology And Irrigation Techniques. Expansion Of Extension Services For Farmers.  Creation Of An Enabling Environment For Private Sector Participation And Investment In Agriculture. Including Provision Of Long-Term Financing. Upgrading Their Skills. And Adopting Laws And Regulations Conducive To Investment In General. .

With Due Consideration To The Importance Of The Agricultural Sector.  Establishing A Balance In Allocation And Distribution Of Public And Private Investments Among Sectors. According Agriculture Higher Priority In Arab Countries’ Development Strategies And Investment Plans. . Making It Possible For Arab National And Regional Development Institutions To Provide More Support For The Agricultural Sector.

 Provision Of Adequate Infrastructure Such As Roads. Adequate Transport And Storage Facilities. Undertake Necessary Actions To Increase Benefits Of Agricultural Products. By Increasing Value Added. . In Addition To Use Of Modern Irrigation Techniques. Decreasing Losses And Wastage Of Crops. Availability Of Suitable Inputs. Especially During The Post Harvest Period.

. It Is Of Paramount Importance To Ensure The Proper Design Of Agricultural Projects To Take Account Of All Factors And Components Necessary For The Achievement Of The Desired Objectives.  Food Security (Self-Sufficiency) Is Unachievable At The Country Level Due To Limited Arable Land And Scarce Water Resources.

. Enhancing Progress Towards Food Security Requires Integration Of Water With Land In Arab Countries Based On Relative Comparative Advantage.

They Welcome Cooperation With Other National. Regional And International Financing Institutions And Country Donors In Assisting Arab Countries In Their Efforts Toward Achieving Food Security. Arab National And Regional Development Institutions Will Continue To Strengthen Their Support To The Agriculture And Water Sectors In Line With The Development Priorities Of Arab Countries. .

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