World Bank: $12 Billion Needed Annually to Turn Food Security into an Economic Opportunity

Ousmane Dione to Asharq Al-Awsat: Saudi Arabia is Well Positioned to Strengthen its Role as a Regional Hub

TT

World Bank: $12 Billion Needed Annually to Turn Food Security into an Economic Opportunity

Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Afghanistan and Pakistan region, speaks to Asharq Al-Awsat. (Turky Al-Agili)
Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Afghanistan and Pakistan region, speaks to Asharq Al-Awsat. (Turky Al-Agili)

Food security in the Middle East, North Africa, Afghanistan, and Pakistan is no longer merely a question of how much food is available on people’s tables. It has become a broad test of the region’s ability to manage scarce resources, diversify trade, attract investment, create jobs, and withstand geopolitical and climate-related shocks.
In a region where more than 142 million people face food insecurity and 42 percent of the population cannot afford a healthy diet, the challenge becomes increasingly complex: How can more food be produced in one of the world’s most water-scarce regions without exhausting its natural resources?
With food demand expected to rise by about 67 percent by 2050, the World Bank says meeting this demand will require a fundamental shift in how the region manages its resources, particularly water, as well as increased investment in irrigation efficiency and agricultural innovation. The Bank estimates that the region needs approximately $12 billion annually for more efficient irrigation systems and agricultural innovation.
In an interview with Asharq Al-Awsat, Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Afghanistan and Pakistan region said these challenges could be transformed into major economic opportunities if they are addressed as part of an integrated system encompassing agriculture, water, trade, logistics, manufacturing, technology, and the private sector.

Water at the Heart of the Food Equation
According to Dione, any discussion about the future of food in the region must begin with water. Agriculture consumes approximately 87 percent of the region’s water resources, while many countries already face severe water scarcity, with per capita water availability in some cases falling below 500 cubic meters per year, a threshold that reflects acute water stress.
For this reason, the World Bank does not see the solution as merely finding additional water sources. Instead, it calls for rethinking how water is used.
Dione highlights the need to move toward what is known as “closing the loop,” a concept that treats water as part of an integrated economic cycle. Rather than using water once and discarding it, wastewater is collected, treated, and reused in agriculture, industry, and other appropriate sectors, while efforts are made to reduce losses and improve the efficiency of water and irrigation networks.
In this way, water ceases to be a consumable resource and becomes one that can be recycled and reused multiple times, effectively increasing the amount of water available to the economy without increasing natural supplies.
Dione said the region has made significant progress in desalination, but that alone is not enough. Water must be managed as a strategic economic resource rather than merely an agricultural input.
“Every drop of water” in the region, he said, should be used multiple times in pursuit of a closed-loop approach.
Efficient water use also extends beyond food production to preserving food that has already been produced. Every unit of food that is lost or wasted represents wasted water, energy, land, and other resources used in its production, transport, and storage.

A water desalination plant in Iraq. (X)

Producing More with Less Water
Dione believes technology will play a central role in reshaping the food-water nexus, from adopting drip irrigation and reducing leakage and waste to using artificial intelligence and data analytics for more precise agricultural resource management.
Modern technologies can help determine crop water requirements, measure consumption rates, identify crops best suited to specific climatic and geographic conditions, and optimize production cycles for maximum returns with minimum water use.
The World Bank therefore views technology not merely as a productivity-enhancing tool but as a means of redesigning the region’s agricultural map: What should be grown, where it should be grown, how much water should be allocated, and which technologies should be used.
This issue is particularly important in a region where agricultural production cannot simply be increased by extracting more groundwater, as that would place additional pressure on one of its scarcest resources.
The goal, therefore, is not to maximize production at any cost, but to produce more food from every drop of water and generate greater economic and nutritional value from available resources.
“Virtual Water”: Trade as a Tool for Food Security
Dione also introduces an important concept in food security management: Importing food is not necessarily a sign of weak food security.
Imported agricultural products effectively carry with them the water used to produce them in their country of origin, a concept known as “virtual water.”
As a result, it may be more economically and environmentally efficient for a country to import water-intensive crops rather than deplete its own limited water resources producing them domestically.
The challenge arises when dependence on imports becomes excessive and concentrated among a limited number of countries or trade routes.
This is where water security intersects with trade resilience. Countries that rely on imports for part of their food supply must diversify sources and transport routes and ensure their trade systems can withstand external shocks.
The disruptions to global grain trade following the war in Ukraine demonstrated how trade shocks can quickly translate into higher food prices and increased pressure on vulnerable populations.
Consequently, the World Bank argues that the correct approach is not choosing between local production and imports, but creating a more resilient mix: Producing crops that can be grown efficiently in terms of water and resources, importing products that are more water-intensive to grow domestically, diversifying suppliers, and strengthening storage capacity, logistics, and strategic reserves.

Container terminals at Hamad Port in Qatar. (QNA)

Food Waste: Resources Lost Before Reaching the Table
The region faces another major challenge in the form of food loss and waste.
The World Bank estimates that around one-third of food is lost or wasted at various stages of the supply chain, from production and storage to transportation, processing, distribution, and consumption.
These losses are particularly significant in water-scarce regions because wasted food also means wasted water, energy, and land resources.
Reducing waste, therefore, becomes a form of water conservation. Saving food from being lost means extracting greater value from the resources used to produce it without placing additional pressure on those resources.
Efforts to reduce waste begin long before food reaches consumers. They include improving storage facilities, cold-chain infrastructure, transport systems, silos, packaging, and food processing, all of which also represent potential investment opportunities.
Hormuz and the Test of Food Resilience
This issue becomes even more critical given disruptions to regional trade, especially risks related to the Strait of Hormuz.
Dione said disruptions to trade routes threaten not only food availability but also increase food costs, making diversified import sources, transportation routes, and strategic reserves essential components of food security.
Countries therefore need resilient systems capable of withstanding trade disruptions through diversified suppliers, improved ports, warehouses, silos, cold storage facilities, transport networks, and strategic stockpiles that provide time to adapt when supply chains are interrupted.
$12 Billion Annually... Where Will the Investments Go?
But building this system requires substantial capital.
Dione notes that the region needs about $12 billion in additional investment every year, a figure that cannot be achieved through government spending alone. He believes that attracting private-sector participation begins with improving the regulatory and legislative environment, then directing investment toward areas that generate the highest added value.
The issue is not limited to agriculture itself, but to what happens after products leave the farm: storage, processing, packaging, transportation, services, and distribution.
According to Dione, building this integrated value chain is what can make agricultural investment more attractive and generate economic spillover effects across other sectors.

People queue at a bakery in Cairo. (AFP)

From Food to Jobs
The importance of these investments goes beyond food provision and extends to the labor market. The region has a young population, but Dione warns that this “demographic window” will not remain open indefinitely, especially as some countries begin to face population aging.
As a result, developing the food system can create jobs that extend beyond direct agricultural work, including food processing, storage, transport, logistics, services, trade, and technology.
The World Bank estimates that approximately 63 million jobs in the region are currently linked to agrifood systems, with the potential to create an additional 5 million jobs by 2050 through further development of these systems.
Dione argues that agriculture can become a source of income and wealth, rather than merely an activity for producing food, if it is effectively connected to finance, technology, markets, and value chains.
Smallholder Farmers... Into Value Chains
Another challenge, Dione says, concerns smallholder farmers. Large farms generally have greater access to financing and technology, while smallholders often struggle with access to finance, markets, storage facilities, mechanization, and infrastructure.
This is where the World Bank’s AgriConnect initiative comes in. The program aims to help hundreds of millions of smallholder farmers worldwide transition from subsistence farming to more organized, productive, and profitable agricultural production.
Dione explains that organizing farmers into cooperatives can strengthen their ability to obtain financing, purchase inputs, adopt technology, and access markets. However, he emphasizes that the success of this process also requires improving the supporting infrastructure around them, particularly storage, cold-chain facilities, transportation, and processing capabilities.

Vehicles travel along a highway on the outskirts of Kuwait City. (AFP)

Morocco and Jordan... Lessons from Experience
Dione points to examples within the region to demonstrate that increasing agricultural production while reducing water consumption is not merely a theoretical goal.
He cites Morocco, where cooperation with the World Bank has helped develop agricultural areas that rely on modern irrigation technologies and stronger market linkages, while improving water-use efficiency.
He also highlights Jordan, one of the most water-scarce countries in the world, where World Bank-supported projects use advanced water-management and drip-irrigation technologies while achieving high levels of productivity.
The lesson, according to Dione, is that water scarcity does not necessarily mean a scarcity of opportunities when sound policies are combined with technology and investment.
Saudi Arabia... An Opportunity to Build a Regional Hub
At the center of these transformations, Dione believes Saudi Arabia possesses unique advantages that position it to play a regional role in the food system.
He points to the Kingdom’s strategic location, bordered by the Red Sea to the west and the Gulf to the east, giving it a pivotal position in regional trade and logistics connectivity.
In his view, Saudi Arabia’s role need not be limited to importing food for its domestic market. It could expand into processing, packaging, storage, distribution, and re-export activities.
Dione says the Kingdom has the potential to become a regional hub where food products are processed, manufactured, packaged, and then distributed across regional markets. He sees this role as closely aligned with several pillars of Vision 2030, including investments in artificial intelligence, technology, desalination, energy, infrastructure, and logistics.
He adds that Saudi Arabia’s abundant energy resources could provide a strong foundation for developing manufacturing and processing industries, while its geographic location offers significant opportunities for logistics services linked to food flows.
Dione notes that manufacturing, logistics, and distribution could become major sources of job creation, highlighting Saudi Arabia’s opportunity to strengthen its regional leadership in these sectors.
In this context, enhancing food security does not necessarily require producing every type of food domestically. A more efficient approach may be to combine local production where it is economically and water-efficient with diversified imports, strategic food reserves, food processing, and robust logistics infrastructure.

A Saudi farmer harvests wheat on his farm in the southern Asir region. (Asharq Al-Awsat)

Regional Cooperation... Integrating Resources and Markets
Dione believes that some of these challenges cannot be addressed by individual countries acting alone.
Greater regional integration, he argues, would allow for a more efficient allocation of resources: Some countries possess agricultural potential, others have energy resources, advanced infrastructure, ports, logistics capabilities, or large consumer markets.
Improving trade connectivity, strengthening logistics links, making better use of existing infrastructure, and promoting the exchange of knowledge and technology could make the region as a whole more resilient to food and water shocks.
Here, the connection between water, food, and trade again comes to the forefront. A country that lacks sufficient water resources to produce all of its food needs can compensate through trade, provided it diversifies its import sources, maintains flexible transport routes, and holds adequate strategic reserves.
Conversely, countries with abundant water resources, energy supplies, or advanced technologies can focus those assets on higher value-added activities rather than depleting resources to produce goods that can be imported more efficiently.

Pakistani fishermen prepare their nets at the Port of Karachi in Pakistan. (EPA)

From Managing Scarcity to Creating Opportunity
Ultimately, Dione argues that the real challenge facing the region is not only how to feed its population by 2050, but how to build a food, water, and trade system capable of functioning in an increasingly uncertain world.
Limited water resources demand greater efficiency; conflicts require more resilient trade networks; population growth increases demand; and a young population creates pressure to generate jobs. At the same time, technological innovation opens the door to more efficient production models.
In this equation, investments in water, agriculture, storage, processing, logistics, and technology become investments in economic resilience itself.
For Saudi Arabia, the opportunity lies not only in securing its own food supplies but also in leveraging its strategic location, energy resources, infrastructure, and technological capabilities to become a central player in the region’s food system.
Through a combination of technology, desalination, water reuse, smart importing strategies, advanced processing industries, and logistics development, the Kingdom can build a model focused not on producing everything domestically, but on securing food efficiently, adding value, and linking regional markets together.
In this framework, food security becomes more than a consumer concern; it evolves into an economic and investment opportunity, while water security becomes an essential prerequisite for sustaining that opportunity.
In other words, the region’s food-security challenge will not be won solely in the fields. It will also be determined in water networks, ports, warehouses, factories, laboratories, and supply chains.



'Handful' of G20 Countries Reject US Stance on Excess Industrial Capacity

US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
TT

'Handful' of G20 Countries Reject US Stance on Excess Industrial Capacity

US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)

A "handful" of Group of 20 trade ministers rejected US calls to curb excess industrial capacity and "non-market" policies, the US Trade Representative's office said on Friday, exposing divisions within the group of major economies.

The US, this year's G20 chair, issued the statement a day after a trade meeting in Milwaukee that revealed that only two countries — Mexico and Argentina — signed on to a US-led statement calling for more work and cooperation to eliminate goods produced with forced labor from supply chains, Reuters reported.

The rejection from the vast majority of G20 countries follows the Trump administration's imposition of ‌tariffs of 10% or ‌12.5% on goods from 59 countries and the European Union over allegations ‌that ⁠they fail to ⁠adequately enforce bans on forced labor.

USTR also is conducting a second "Section 301" tariff investigation into 16 trading partners that show signs of excess industrial capacity. The probe is widely expected to lead to new duties in coming months.

The USTR statement did not name countries that objected to the excess-capacity statement. But China had objected to a similar G20 statement denouncing forced labor and non-market economic policies that lead to excessive exports at a finance leaders' meeting a month ago in North Carolina.

"The draft ministerial statement was supported by all but a handful ⁠of members, a few of whom firmly rejected creating this pathway toward cooperative ‌action" on excess capacity, the statement said, adding that this "severely ‌disappointed" the US G20 presidency.

China's excess industrial capacity and industrial subsidies have been key themes of the US-led G20 ministerial ‌meetings so far this year. Beijing has rejected claims that its industrial policies have created excess capacity, ‌accusing Western countries of using the issue to justify protectionist measures.

The US said that G20 trade ministers reached consensus on denouncing the weaponization of food trade, with members agreeing that trade in food or agricultural inputs should not be used as a tool for economic or political coercion.

In that G20 joint statement, the ministers defined the weaponization of ‌food as measures to "slow, stop, block or direct the flow of food and agricultural inputs" to exert coercive pressure to extract unrelated geopolitical concessions.

"We ⁠condemn food weaponization, as ⁠it poses a significant humanitarian and economic threat," the G20 trade ministers said.

After pressure from US President Donald Trump that included the threat of a US diesel export ban, Group of Seven countries on Friday agreed to release some 100 million barrels of diesel reserves to try to drive down record-high US diesel prices. The fuel is widely used in agricultural production.

TARIFF STRUCTURE DISCUSSIONS

US Trade Representative Jamieson Greer said on Thursday that he did not seek a joint statement on a fourth discussion topic, reforming the "most favored nation" system of published, unconditional global tariff rates that underpin the World Trade Organization. MFN tariffs have defined the global trading system since the end of World War Two.

Greer has argued that the MFN principle has been abused by non-market-oriented economies such as China that have subsidized industries, but it does not allow these countries to be treated differently.

The US statement said some G20 members had expressed a willingness to consider changes to MFN, including expanding exceptions to the principle and issuing new legal interpretations to enable greater use of existing exceptions.


DOJ Will Not Reopen Criminal Probe into Fed's Powell

(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
TT

DOJ Will Not Reopen Criminal Probe into Fed's Powell

(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)

The US Justice Department is not reopening a criminal probe into former Federal Reserve Chair Jerome Powell for cost overruns related to the central bank's building renovation project, a DOJ spokesperson said on Friday.

Attorney General Todd Blanche, in comments to Bloomberg News, which first reported the development, said he ‌has not ruled out ‌continuing to look into ‌the ⁠project's oversight and potentially ⁠take action if evidence of wrongdoing came to light.

The Fed's Inspector General on Wednesday said it found no grounds for a criminal referral or evidence of administrative misconduct tied to the project cost overruns, ⁠but its conclusion there was lax ‌oversight drew a ‌fresh call from President Donald Trump for Powell's ‌resignation. Powell has remained at the ‌Fed as a governor since stepping down as chair in May.

His successor Fed Chairman Kevin Warsh said on Thursday he would hire an independent ‌auditor to "verify accuracy and compliance" for all of the project's costs.

Blanche told ⁠Bloomberg ⁠News that if this new review finds any evidence of criminal wrongdoing, the Justice Department could investigate.

At his final press conference as Fed chief in April, Powell said he would not leave the Board "until this investigation is well and truly over, with transparency and finality."

A Fed spokesperson had no immediate comment on Blanche's statements.


Copper Crawls Higher on Softer Dollar and Supply Issues

FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
TT

Copper Crawls Higher on Softer Dollar and Supply Issues

FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo

Copper prices edged higher on Friday, supported by a weaker dollar and supply issues, but gains were modest due to worries about high oil prices hitting demand.

Benchmark three-month copper on the London Metal Exchange rose 0.5% to $14,319 a metric ton in official open-outcry trading. That marked a decline of 2% since the end of last week.

"Metals have seen light turnover again so far this session with copper finding some support with a slightly softer dollar, but the broader tone remains cautious," Neil Welsh, head of metals at broker Britannia Global Markets, said in a note.

"High energy costs stemming from the ⁠ongoing US-Iran conflict and ⁠signs of industrial weakness in China have weighed on sentiment across the complex."

The dollar index hit its strongest in 17 months this week, but weakened on Friday, making commodities priced in the US currency cheaper for buyers using other currencies.

LME copper has gained 16% over the past six months, largely due to a large shift in ⁠inventories to the US attracted by the prospect of tariffs there, creating shortages elsewhere.

Stocks in warehouses monitored by the Shanghai Futures Exchange <CU-STX-SGH> have slumped by 79% over the past four months to 38,744 tons, their lowest since January 2024.

The SHFE was closed for China's National Day and will reopen on October 8.

The prospect of less output in the world's largest copper producer Chile has also underpinned the market, with data on Wednesday showing production fell 12.8% year-on-year in August.

Supervisors at Chile's Escondida copper mine, the world's largest, rejected a collective ⁠contract offer, ⁠paving the way for a potential strike and adding to supply fears.

"This adds to an overall slump in output, as the industry struggles to maintain aging infrastructure amid difficult operating conditions," Reuters quoted Daniel Hynes, senior commodity strategist at ANZ, as saying in a note.

Among other metals, LME aluminium dipped 0.1% in official activity to $3,121.50 a ton and nickel also shed 0.1% to $15,620.

Zinc rose 0.2% to $3,732.50, lead ticked 0.3% higher to $1,863 and tin was little changed at $54,350.