Qatar SWF food unit eyes PAVA stake, seals Sudan deal

By Tamara Walid

DOHA (Reuters) - Qatar's Hassad Food is eyeing a stake in Russia's PAVA and has signed a deal potentially worth $1 billion to develop land in Sudan as it looks to grow through acquisitions and joint ventures, its chairman said on Thursday.

The agricultural arm of Qatar's sovereign wealth fund is bucking the Gulf Arab trend of buying farmland abroad to secure food supplies by investing in companies globally to help provide food security mainly for Qatar, the Middle East and North Africa region, Nasser Mohamed Al Hajri told Reuters.

The firm also aims to conclude as many as six deals by year end, including in Latin America and is scouting Africa to set up joint ventures or buy firms to develop land.

Hajri said Hassad was in talks with the Russian grain processing firm and buying a stake in the company would fit its strategy.

"We think there's an opportunity for us. We have some inquiries so we are in the stage of evaluation," he said, declining to be more specific.

PAVA told Reuters on October 6 it hoped to attract $147.3 million of investment from the Gulf Arab region through a share sale that offers access to sought-after farmland.

Gulf Arab states, heavily reliant on food imports, have been buying farmland in developing nations to ensure food security. Foreign land acquisitions, also labelled land grabs, have aroused criticism from worldwide groups and farmers.

In April, the United Nations expressed concern that farmers' rights in developing nations may be compromised as rich countries buy farmland to secure food supplies.