March 25, 2008

Gulf council's imports hit US$10 billion

The Gulf Cooperation Council's (GCC) food imports have amounted to US$10 billion due to high global crop shortages, the Gulf News reported.

The Middle East has witnessed a dramatic rise in prices of basic goods including wheat and dairy.

The UAE imports over US$4.6 billion worth of food each year, making it the second biggest food and beverage market in the GCC, next to Saudi Arabia.

Food prices have risen by 75 percent since 2000 in the global markets, with wheat prices escalating by 200 percent.

The cost of staples such soy also hit record highs, while corn was at its most expensive in 12 years.

Prices have been dictated by internal and external factors in Dubai, a huge importer of almost all food commodities. Transportation costs have also played a major role in the hike of food prices in the region.