UN warns: Food prices endanger crisis of 5 million people in Arab countries

An increase of 20% of global food prices could lead to a food crisis for about 5 million people from middle and poor levels in Arab countries, the UN Economic and Social Commission for Western Asia (ESCWA) announced today.

The UN's latest report highlights that the situation is fragile and could deteriorate, especially in the poorest or involved in conflicts, dependent heavily on food imports and do not have the capacity to cope with economic shocks.

Oil exports from the Gulf have dropped 7550% since the beginning of the US-Israel conflict, while the price of oil has gone above $112 per barrel. This has increased transportation costs and exacerbated the budget deficit.

Some 40 million people in the region depend on water processed from the Gulf, making them very sensitive to infrastructure damage or pollution. Furthermore, Arab countries import most of the wheat and have reserves for just a few months, which makes the food system extremely poor.

E The SCWA calls for urgent action, including the establishment of strategic reserves, diversification of trade routes and investments in more sustainable infrastructure. Without immediate intervention, the conflict could increase poverty, social tensions and undermine economic development.

According to a previous report, losses for Arab economies could reach up to $150 billion within just one month.