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Grain crops: Russia discusses the creation of an agricultural hub in Qatar

What products are domestic manufacturers ready to supply to Arab markets?
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Photo: IZVESTIA/Eduard Kornienko
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Russia and Qatar are discussing the creation of an agro-industrial hub in the monarchy, and work on the project is continuing, First Deputy Prime Minister Denis Manturov told Izvestia. If specific agreements are reached, the initiative may open up new export opportunities for Russian manufacturers. In 2024, exports of meat and food by-products from Russia to the Persian Gulf countries increased by more than 50% year on year. Why Doha is interested in Russian products and who can compete with Moscow is in the Izvestia article.

Agro-industrial hub in Qatar

The creation of an agro-industrial hub in Qatar may become a new area of strategic partnership between Russia and one of the leading countries of the Persian Gulf. The project is under development, First Deputy Prime Minister Denis Manturov confirmed to Izvestia on the sidelines of Vladimir Putin's meeting with business representatives in the Kremlin on May 26.

"This has been discussed, and we are continuing to work on it," he told Izvestia in response to a question about the current status of the negotiations.

At the same time, according to him, there are no specific agreements yet.

For the first time, the idea of creating a regional agricultural hub in Qatar was presented in March 2025. Then Manturov said that Russia was ready to increase exports of halal agricultural products. The list of products includes beef, poultry, sunflower oil and confectionery.

— Already, the structure of our trade is dominated by cereals, primarily wheat and barley. We are ready to increase shipments of agricultural products, bearing in mind not only ensuring Qatar's food security, but also the creation of a regional agro—industrial hub in your country," he said at the time.

The creation of such a logistics and distribution center could significantly simplify the access of Russian farmers to the markets of the Persian Gulf countries, as well as reduce the cost of transporting products. The idea is in line with the interests of both sides: Russia is looking for new export niches, while Qatar is seeking to diversify food supply sources and strengthen regional logistics chains.

Qatar has presented an ambitious National Food Security Strategy 2030, aimed at transforming the agricultural sector and ensuring the country's food independence. The roadmap provides for a significant increase in local food production: by the end of the decade, it is planned to achieve self—sufficiency in vegetables at the level of 55% and 100% in dairy products and chicken. The Arabian Monarchy aims to strengthen agricultural productivity and increase resilience to external shocks in the global food supply chain.

In 2024, the UAE, India, Saudi Arabia, Turkey, and the United States were the main food suppliers to Qatar. According to the Observatory of Economic Complexity, the volume of food imports into the country amounted to $1.2 billion.

Qatar's advantageous strategic position and active development, especially after the diplomatic crisis of 2017, before which the country received most of its agricultural products from Saudi Arabia, allowed Doha to build a diversified and extensive agricultural supply network, says orientalist Leonid Tsukanov.

— The rapprochement between Moscow and Doha is dictated by the desire of the Qataris to further expand and consolidate the status of an international intermediary in the distribution of agricultural products, which fits into the strategy of expanding Doha's influence on Arab and African states. In addition, in the dialogue with the Russian Federation, the agricultural niche is currently not occupied by other Arabian monarchies (as is the case with the digital and oil sectors), which gives Qatar the opportunity to launch without strong resistance from its neighbors, the expert told Izvestia.

Izvestia reference

The blockade of Qatar, which lasted from 2017 to 2021, became a major diplomatic crisis. Saudi Arabia, the United Arab Emirates, Egypt and Bahrain accused the monarchy of supporting terrorism and excessively close ties with Iran. As a result, Doha found itself in virtual isolation.: Diplomatic relations were severed, borders were closed, flights and trade supplies were suspended. Despite the pressure, the country has adapted: It has intensified domestic production and reoriented its foreign policy.

The conflict ended in January 2021 at the summit of the Cooperation Council for the Arab States of the Persian Gulf, where the parties agreed to restore ties.

Export of the Russian agro-industrial complex to the Persian Gulf countries

The interest in the practical content of economic cooperation between the countries was also demonstrated during the official visit of Qatar's Emir Tamim bin Hamad Al Thani to Moscow on April 17. The heads of state are in regular contact, and they spoke on the phone just a month before the visit.

According to Vladimir Putin, Qatar remains a priority partner for Moscow in the Middle East, including in the energy sector, where it has close ties with Rosneft. Doha has already invested $1 billion in the Russian economy through the Russian Direct Investment Fund.

During the talks between Vladimir Putin and Tamim bin Hamad Al Thani, several documents were signed, including an agreement on the creation of a joint investment platform worth about $2 billion — a billion on each side. Memorandums of cooperation in the field of healthcare, sports and state finances have also been approved.

Against this background, Russian manufacturers are also increasing their presence in the region. The volume of agricultural exports from Russia to Qatar by the end of 2024 increased by almost 75% compared to the previous year, says Leonid Tsukanov.

— A similar trend has been noted across the region — the share of grain in the structure of agricultural supplies to the Persian Gulf region is at least 2/3 of the total volume. Meat, dairy products, and legumes are also considered promising export destinations," the expert emphasized.

According to experts, in 2024, exports of meat and food by-products from Russia to the Persian Gulf countries exceeded 100 thousand tons, which is 57% more than in 2023. Thus, every eighth ton of meat exported by Russia was sent to this region.

"Given that the food market in the region continues to stagnate after the pandemic, Russian companies have every chance to strengthen their presence," Leonid Tsukanov emphasized.

At the same time, he stressed that other major players, India, China, the United States and EU countries, which have their own competitive projects, are also competing for the market of agro—industrial products in the Middle East, especially the Arabian monarchies.

In 2024, Saudi Arabia became the largest buyer of Russian meat products, increasing imports by 66% to 84 thousand tons, followed by the UAE, which supplied over 10 thousand tons of meat - an increase of more than 2.3 times. Iran is also among the top three importers.

The potential hub in Qatar could become a logistical bridge between Russian manufacturers and the Persian Gulf countries, where demand for halal and high-quality products continues to grow.

Переведено сервисом «Яндекс Переводчик»

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