In the following discussion, it was said that there are also successful examples of agro investments in Sudan and Egypt. Another discussant opined that Saudi Arabia is not a farming country and will never be for lack of water, so foreign agro investments are needed.
Mr. AlSheikh said that there are two major problems with Saudi foreign agro investments: private investors do not want to have a public sector partner and want to have full ownership while enjoying government guarantees like subsidies and off take agreements. At the same time, government institutions like the Ministry of Finance have not yet given the necessary specifications of such support programs.
One discussant also questioned whether Saudi Arabia has sufficient food quality standards and enforcement. Dr. Baroum answered that as far as Savola is concerned, it has established international best practices but acknowledged that there are still challenges to be met in the Saudi food surveillance system as a whole.
Mr. AlSheikh said that constitutional stability and rule of law are important, while Dr. Baroum stressed the importance of diversity of supply. One discussant mentioned that it would be better to invest in developed agricultural markets like Germany rather than developing countries like Sudan.
Mr. Turki pointed out that subsidized agriculture in Saudi villages also is a means to keep people in villages; it fulfills a socio-economic role.
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