Increasing Gulf LATAM Ties

Interesting article in the FT about the increasing ties between the Gulf and Latin America. Agriculture ranks high beside investments in mining and other companies.

Al Gharrafa, a subsidiary of state owned Qatar Holding now holds about 10 percent of the shares of Adecoagra. The company has investments in Brazil, Argentina and Uruguay and Pampas Humedas, an affiliated company of US billionaire George Soros is a major shareholder.

Such investments are part of a larger trend. If Gulf countries actually put money on the table and not just announce investments it is rather in developed agro-markets and in partnership with experienced local partners. In contrast investments in risky developing countries like Sudan have not materialized in many cases.

As Brazil and other developed agro-exporters like Thailand or Ukraine have put limits on foreign land ownership to keep cash producing assets national, partnerships are also the vehicle of choice to participate in their farming operations.

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