Saudi Arabia achieves firm grip on food security as open-field vegetable production increases to 983,000 tons in 2021 compared to 904,000 tons in 2020, according to data from the General Authority for Statistics.
India has imposed an export tax on onions in an effort to control food inflation as elections approach.
Saudi Arabia's Jadwa Investment has acquired a 35% stake in Kuwaiti fragrance company Gissah Perfumes through its private equity arm, Jadwa Retail Opportunities Fund. The acquisition aims to support Gissah's growth and prepare the company for a potential listing on the Saudi Stock Exchange. The timeline for the listing and the value of the investment have not been disclosed.
Inflation rates in the Gulf Cooperation Council (GCC) countries remain lower than global averages, with declining food costs, energy prices, and dampened global demand contributing to the trend. However, inflation in the housing sector has been felt mainly in the GCC countries, with notable year-on-year growth in Saudi Arabia and Kuwait. In contrast, communication and education sectors have experienced declining inflation rates in most GCC countries.
The Tadawul All Share Index in Saudi Arabia experienced a slight decline, while the parallel market Nomu saw gains in closing for the day. The MSCI Tadawul Index also slightly dropped. The best-performing stock on the main index was Salama Cooperative Insurance Co., while the worst performer was AL Maather REIT Fund. On the parallel market, Mayar Holding Co. experienced significant growth.
India is expected to ban sugar exports for the upcoming season due to a lack of rain that has reduced cane yields. This would be the first time in seven years that the country has halted sugar exports. The absence of India from the global market could increase benchmark prices and trigger concerns about further inflation in global food markets.
Africa is predicted to lead the next phase of global economic growth, with an increasing focus on economic collaboration among BRICS member countries. Intra-BRICS trade has expanded over the past decade, and Africa is seen as the next wave of global growth due to its younger generation, mineral reserves, and other resources.
India has imposed a 20% duty on parboiled rice exports, which is expected to reduce shipments and increase global rice prices, following previous bans on non-basmati white rice and broken rice exports.
The Indian government's efforts to control food prices, such as imposing taxes and export bans, may help contain inflation domestically but could lead to higher prices globally, particularly for rice, affecting countries that rely on food imports.
Erratic climate conditions in India, including a dry August, have led to a significant increase in food prices, with onions alone becoming 25% more expensive since June, causing concern about global food inflation as India is a major exporter of rice, sugar, and onions and is a key supplier to many Asian and African countries.
India has lifted additional duties on American products, including chickpeas, lentils, and apples, ahead of US President Joe Biden's visit for the G20 Summit. The move comes as part of an agreement to settle WTO disputes and eliminate retaliatory tariffs.
