Food Trading (imports & export) in the Gulf region
The percentage of Food export in Gulf Countries in 2019 is extremely low and the imports is relatively high comparing to exports. Gulf countries exhibited a notable disparity between food exports and imports, with food exports being exceedingly low and food imports substantially higher. Qatar, Kuwait, and Saudi Arabia, in particular, heavily relied on food imports to meet their consumption needs. This underscores a regional dependence on international food sources and highlights the importance of addressing food security to ensure stable access to essential resources in the Gulf.
Impact of Tax rate on Import and Export
The tax rates in Gulf countries as seen in the map can linked to the imports and exports, reveal an interesting correlation. Lower tax rates, such as those in Qatar and Kuwait, can encourage trade and potentially offset their low food exports and high food imports. Conversely, higher tax rates, as seen in Oman, might contribute to higher food import figures. The relatively lower tax rate in the UAE supports its role as a regional trade hub, which is reflected in its balanced import and export figures. The interplay between tax rates and trade statistics underscores the significance of fiscal policies in shaping the trade landscape of these Gulf nation
Agriculture & Industry
Influence of Water Withdrawals in Agriculture and Industry on food imports and exports
The water withdrawals data indicate the extent of agriculture and industrial activity in Gulf countries. Higher agricultural water withdrawals, as seen in Saudi Arabia and Oman, suggest self-sufficiency in food production. Meanwhile, countries with lower agriculture withdrawals, like Kuwait, may rely more on food imports. These water withdrawals can be linked to food import and export dynamics, influencing food security and trade strategies in the region.
Influence of Employment in Agriculture and Industry on food imports and exports
Higher Agricultural Employment & Food Trade:
Oman and Saudi Arabia, with higher agricultural employment, might have a more significant capacity for domestic food production. This could relate to their lower food imports and potential for food exports despite modest industrial growth.
Lower agricultural employment in Bahrain, Kuwait, Qatar, and the UAE could imply a heavier reliance on food imports due to limited domestic agricultural output, aligning with their higher food import figures.
Industrial Employment & Food Trade:
Qatar’s high industrial employment might suggest a lesser emphasis on agriculture, potentially leading to higher food imports despite economic diversification.
Other countries, with varying industrial employment rates, might showcase different levels of agricultural emphasis, influencing their food import-export dynamics.
Solutions
Investment in Agricultural Innovation: Encourage technological advancements and innovation in agriculture to boost productivity, creating more jobs and improving food self-sufficiency..
Tax Reform: Implement tax policies that incentivize investment in both agricultural and industrial sectors, promoting growth and job creation in these areas.
Education and Skills Development: Invest in education and training programs to equip the workforce with the necessary skills for employment in agriculture, industry, and other emerging sectors.
Sustainable Resource Management: Implement sustainable water and land management practices to support agricultural growth without compromising environmental resources, thereby ensuring long-term economic stability.
UN Goals
Goal 8: Decent Work and Economic Growth:
Employment in Agriculture and Industry: The distribution of employment in agriculture and industry reflects the economic structure of countries. Goal 8 emphasizes the importance of decent work and employment opportunities for sustained economic growth.
Food Import-Export Dynamics: Countries with higher agricultural employment might have stronger domestic agricultural sectors, impacting their trade balance in food. Conversely, higher industrial employment might affect the reliance on food imports due to potentially reduced emphasis on agriculture.
Tax Policies: Tax structures impact economic activities and employment opportunities. Favorable tax policies can stimulate growth in both agricultural and industrial sectors, contributing to Goal 8’s aim of fostering economic growth and decent work.
By focusing on inclusive economic growth, job creation, and enhancing productivity in both agriculture and industry, countries can contribute significantly to achieving Goal 8, ensuring sustainable and equitable economic development.
UN Goal Link – Goal 2: Zero Hunger:
Food Import-Export Dynamics: Countries with high food imports or low food exports often face challenges in achieving food security. Goal 2 aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture.
Agricultural Practices: Stronger agricultural sectors (linked to lower food imports or higher exports) directly contribute to achieving Goal 2. Sustainable agriculture practices, as encouraged by the goal, can enhance food production and reduce dependency on imports.