Touch the Soil News #838 (Feature photo – Saudi Coat of Arms)
Unlike the economics of the past as envisioned by the World Trade Organization (WTO) – fostering global trade often for the benefit of the big traders, a newer form of trade – if you will – is festering. It is trade designed specifically for food security of specific nations.
Saudi Arabia (population 33 million) and the United Arab Emirates (population 9.5 million) are working together to secure food from other nations specifically for export to their nations. The two nations just announced they are creating a special financial pool of $1.3 billion dollars to buy farmland, logistics and storage in 10 Eastern European nations (including Russia) bordering the Black Sea. Saudi King Salman recently met with Russian President Vladimir Putin to discuss other deals worth several billions of dollars.
Water scarcity for agriculture in the Middle East is a primary driver to find water and grow crops in other nations for the benefit of Saudi Arabia and the UAE. Let us not forget, food is a powerful political motivator.
Following is a video in Russian that is not understandable. However, the short video clip is interesting in how these two divergent cultures are working out deals of a size and scope that has waves around the world.