Arab States investment in rural economies is one of the fastest routes to long-term food security in the region and globally
Investing in rural economies is an effective route to achieve food security and economic growth necessary for long-term stability in many parts of the Arab world and globally, highlighted Alvario Lario, president of the International Fund for Agricultural Development (IFAD), in a keynote speech today at the conference on food security organised by the Arab Authority for Agricultural Investment and Development (AAAID) during the World Governments Summit 2026.
“Food systems are deeply interconnected: from ultra-modern cities in the Arabian Peninsula, home to some of the world’s most advanced agri-technologies and global supply chains, to the millions of small-scale farmers, pastoralists and food artisans who continue to feed the region using traditional, labour-intensive methods,” underlined Lario. “Investing in small-scale farmers and rural enterprises – together with like‑minded institutions, investors, and agribusinesses – strengthens rural economies, expands employment opportunities, and supports regional and global stability.
Small-scale farmers produce a large share of national food supplies, but are exposed to climate shocks, water shortages, and market volatility. Yet, strategic investments in the “first mile” of food systems can deliver strong economic returns and food security. IFAD’s recent impact assessments show its investments have increased rural incomes by 34%, production by 35% and market access by 34% over three years.
For example, in Morocco, modern irrigation cut water use by 30%, boosted yields by 25%, and raised household incomes by 50% – proof that efficient allocation and technology deliver rapid returns in the water-stressed contexts common in Arab and Gulf states.
President Lario also drew a direct link between rural investment, peace and stability, noting that IFAD’s track record from investments in Ethiopia shows that every 1% increase in land productivity correlates with a 3% decrease in conflict.
Investments that deliver economic growth and security can achieve even more impact through partnerships. The Arab region, as a global hub for finance, innovation, and South-South cooperation, is a strategic partner for IFAD in shaping the future of food systems.
For example, IFAD has worked with AAAID since 2000, combining AAAID’s financial strength and regional mandate with IFAD’s global expertise and grassroots network to unlock finance and galvanize progress.
Working and investing with partners, IFAD turns donor contributions into scaled investments and impact. Beyond donor aid, IFAD projects mobilize domestic resources and crowd in additional public and private investments. President Lario underscored that every US$1 of donor contributions helps generate approximately US$6 of investments on the ground.