International investments in Agriculture in Arab Countries: an overview and implications for policy

摘要

International investments in agriculture in the Arab region have increased considerably in recent years. This paper reviews foreign direct investment (FDI) in agriculture in the Arab region with an emphasis on Sudan, Egypt, and Morocco. The paper aims to (i) review past and current investment trends in the context of the unique characteristics of the region, including its food security challenges and resource constraints, and (ii) highlight some important policy issues to be addressed. Agriculture has traditionally received a very small share of international investments in the region (1–2% of total FDI), which largely focused on sectors other than primary agriculture. In the past few years, investments in agriculture have grown remarkably; particularly for resource-seeking investments, but information is incomplete as the changes are very rapid. Sudan is the primary destination for resource-seeking investments; Morocco and Egypt for market-seeking investments, mostly in food processing and fruit and vegetable production. Given the paucity of data, it is difficult to develop concrete policy recommendations. However, the analysis presented in this paper may be useful in guiding the development of FDI policies in the region, aimed at maximizing sustainable outcomes for both investors and host countries, with an emphasis on food security.