Al Salam in deal with Thai firm

Bahrain-based Islamic bank Al Salam said yesterday it has signed an agreement with Thailand's agriculture and food firm Charoen Pokphand Foods to jointly invest in agricultural businesses.

Gulf Arab states are targeting investments in farmland and agricultural businesses in developing nations after rampant inflation last year highlighted their dependence on imports. "Al Salam and Charoen Pokphand will jointly identify suitable agribusiness ventures that will generate attractive risk-adjusted returns while playing a proactive role in addressing food security in the region," the bank said.

The two companies will target agricultural sectors including livestock, staple food and fish farms and establish an integrated food firm, which will also invest in food packaging and distribution.

A number of Gulf states have expressed interest in livestock and rice farming in Thailand.

 

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