G20 Agriculture Ministers: Coronavirus Measures Should Not Disrupt Food Supply

A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
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G20 Agriculture Ministers: Coronavirus Measures Should Not Disrupt Food Supply

A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)
A woman wearing a protective mask picks vegetables at a market during the nationwide quarantine in response to the spread of coronavirus in Caracas, Venezuela March 31, 2020. (Reuters)

Agriculture and food ministers from the Group of 20 countries agreed at a virtual meeting on Tuesday that emergency measures to stop the spread of the new coronavirus must not upend global food supply chains.

Their extraordinary meeting came as coronavirus lockdowns across the world slow global food supply chains, leaving some farmers unable to get their produce to consumers and major producing countries restricting exports.

"We agree that emergency measures in the context of the COVID-19 pandemic must be targeted, proportionate, transparent, and temporary, and that they do not create unnecessary barriers to trade or disruption to global food supply chains, and are consistent with World Trade Organization (WTO) rules," a final statement emailed by the group said.

Saudi Arabia's minister for environment, water and agriculture, Abdulrahman al-Fadhli, said his country would work with other states and organizations to make sure food supply chains remained resilient as the battle against COVID-19 continues, the ministry said.

"The coronavirus crisis is a wake-up call for the whole world - joint action and solidarity are what is needed at this time," UAE minister of state for food security Mariam bint Mohammed Almheiri said at the meeting, adding that global food supply chains were facing "serious disruptions."

The ministers also cautioned against food waste, saying it could "exacerbate food insecurity and nutrition risks and economic loss."

Lockdowns have hit some farmers hard as demand from restaurants and other buyers vanished, and trashing crops has in some cases became more economically viable than paying for labor and transport to sell it.

A senior World Bank official, Mari Pangestu, also warned at Tuesday's meeting against import barriers and export restrictions, urging global cooperation to avert food crises.

The G20 ministers said they would guard against any measures leading to excessive food price volatility in global markets or that threaten food supply.

Staple grain supplies are plentiful globally but some producing countries have indicated they would limit their sales abroad to prioritize domestic supply.

The limitations come as major food importers strive to beef up their own reserves by upping purchases from abroad.

Russia, the world's largest wheat exporter, said last week it would suspend grain exports to July 1 once an export quota it had set of 7 million tons was exhausted, an event now likely to happen in mid-May.

If Russia's quota is depleted by that date it could upend purchases made by Egypt last week to up its stocks.

Egypt, the world's largest buyer of the grain, booked 180,000 tons of Russian wheat in two purchasing tenders in its quest to up its reserves.



Saudi Arabia Targets Bureaucracy to Attract Foreign Investment

The King Abdullah Financial District in Riyadh, Saudi Arabia. (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh, Saudi Arabia. (Asharq Al-Awsat)
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Saudi Arabia Targets Bureaucracy to Attract Foreign Investment

The King Abdullah Financial District in Riyadh, Saudi Arabia. (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh, Saudi Arabia. (Asharq Al-Awsat)

Saudi Arabia is making serious efforts to cut through the red tape that blocks foreign investment by continually updating its regulations.

The Saudi Ministry of Investment, for example, has announced new and streamlined investment rules designed to facilitate foreign investment in the Kingdom.

These updated regulations are part of an effort to attract more international investors by simplifying the investment process and creating a more favorable business environment.

The ministry emphasized that the revised rules will remove the need for numerous licenses and prior approvals, significantly cutting down on paperwork and reducing bureaucratic obstacles.

In addition, Saudi Arabia has recently launched an e-visa service for business visitors, known as the “Investor Visitor” visa. This service is available worldwide and is part of the Kingdom’s broader Vision 2030 plan, which seeks to attract more global investors, improve the investment environment, and facilitate business operations.

Saudi Arabia has also introduced a new investor business residency program for those interested in investing in the Kingdom. The program provides residency for investors and their families, including parents, spouses, and children. Benefits include no fees for expatriates and dependents, family visit visas, and the ability to conduct business and own property.

In December 2023, the Ministry of Investment, along with the Ministry of Finance and the Zakat, Tax, and Customs Authority, rolled out a 30-year tax incentive package. The initiative aims to attract global companies to set up their regional headquarters in Saudi Arabia by simplifying the process and offering appealing benefits.

The program, a collaboration between the Ministry of Investment and the Royal Commission for Riyadh City, aims to make Saudi Arabia the top choice for regional headquarters in the Middle East and North Africa by providing various benefits and support services.

Saudi Arabia has unveiled a 30-year tax exemption for companies setting up regional headquarters in the country. This includes a 0% tax rate on income and withholding taxes for approved activities. The benefits will be available from the date the regional headquarters license is issued.

Moreover, Saudi Arabia updated its investment system in August 2024, which will take effect in early 2025. This reform aims to attract global investments, improve the investment environment, support economic diversification, and create jobs in line with Vision 2030.

The new system, approved by the Cabinet and part of the National Investment Strategy launched by Prince Mohammed bin Salman, Crown Prince and Prime Minister, aims to attract over $100 billion in foreign direct investment annually by 2030.

Key changes include enhanced investor rights, better protection of intellectual property, and streamlined procedures.

The system replaces the old investment license with a simplified registration process, providing more protection and flexibility for investors. It treats local and foreign investors equally and aims to resolve disputes efficiently.

The National Investment Strategy, launched in October 2021, supports the goals of Vision 2030. These goals include increasing private sector GDP contribution to 65%, boosting foreign direct investment to 5.7% of GDP, raising non-oil exports to 50% of non-oil GDP, reducing unemployment to 7%, and improving Saudi Arabia’s position in global competitiveness rankings.