Import-dependent nation also aims to capture profit margins in metal and agricultural trading
The Middle Eastern emirate of
Abu Dhabi plans to set up a trading house with a capital base
of several hundred million dollars in a bid to secure food
supplies for the import-dependent nation, the Financial Times
Citing people familiar with the plans, the newspaper said
the government-owned Abu Dhabi Sources also aims to capture
profit margins in metals and agriculture trading.
For the past three months, it said, the firm has been
wooing senior traders in the European trading hubs of London
and Geneva to build up staff.
The move is designed to secure Abu Dhabi's flow of imports
even in the event of disruption in the Strait of Hormuz, the
Gulf's key waterway, which could be affected by any military
confrontation with Iran, the paper said.
Abu Dhabi, home to 95 percent of the hydrocarbon reserves
of the United Arab Emirates, is transforming itself into a
global city and has kicked off ambitious infrastructure plans
worth more than $300bn that require a huge flow of raw
As part of its food security strategy, Abu Dhabi is
building silos in the smaller emirate of Fujairah, the paper
added, but it was not clear if the new firm would trade in oil.
Commodities prices have rocketed in the past six years,
fuelled by demand from China and other emerging markets,
driving up metals such as iron ore 38 percent this year, with
foodgrains such as corn and wheat up 28 percent and 17 percent
It would be nice to have a primary trader in the Emirates. Would open up a good trade platform for the region