Saudi Arabia: Buying the farm

Feeding its own people more cheaply

WHILE Saudi Arabia sets up its first sovereign wealth fund, ordinary Saudis are more preoccupied with the rising price of food. This is prompting the Saudi government to consider a new direction for foreign investment: buying farms in the poorer parts of the world.

Inflation in Saudi Arabia is running in double digits, its highest rate for three decades. Last December, 19 prominent Saudi clerics gave warning that inflation constituted a crisis that would lead to social unrest and crime. Since then, the poorest Saudis have got poorer, with prices going up across the board because of rapid monetary growth. Food and housing costs are rising fastest.


The Saudis