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Qatar Plans Storage Facility To Secure Sugar, Rice Supplies Amid Boycott

Published on Jul 17 2017 8:20 AM in Supply Chain tagged: Trending Posts / Qatar / food security / Supplies

Qatar Plans Storage Facility To Secure Sugar, Rice Supplies Amid Boycott

Qatar will spend 1.6 billion riyals ($431 million) to build a food-processing and storage facility near Hamad Port in about two years that will more than meet local demand for sugar, rice and cooking oil.

Doha-based Al Jaber Engineering won the contract and has 26 months to design and build the project for the nation’s food security, Jassim bin Saif al-Sulaiti, minister of transport and communications, told reporters Sunday in Doha. Qatar invited companies to bid on the project last year, before the Saudi-led trade boycott against Qatar that began in June.

Food Security

Food security is important in the Middle East because lack of rain and excessive heat make it difficult to grow grains and develop livestock farms. Qatar is in a tougher position because it depended on food coming across the border with Saudi Arabia, which cut diplomatic and trade links with its neighbor last month. Some 38 percent of Qatar’s food used to come through Saudi Arabia, according to Mazen Al-Sudairi, head of research at Al Rajhi Capital.

“This is the first time that these commodities will be processed in Qatar," al-Sulaiti said.

The project will have weekly capacity to produce 300,000 kilograms (300 metric tons) of raw sugar, 600,000 kilograms of rice and 200,000 kilograms of cooking oils, enough to meet domestic demand for 2 years, said Maisar Jamil El-Qutami, project executive director at New Port Project, the government body developing the facility near Hamad Port, about 30 kilometers (19 miles) south of Doha. Some production will be used in animal feed, and about 30 percent of the output may be exported, he said.

Outside Investment

Companies also involved in the project are Switzerland’s Buhler AG, German BIA and Italy’s C.M. Bernardini which specializes in equipment for the oil and fats industry, according to a Qatar press statement.

Transport Minister al-Sulaiti said Qatar is considering investment in ports abroad, but declined to be more specific.

News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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