Global food prices soared as much as 28% in 2021 to the highest level in ten years, driven by poor weather, rising commodities prices and supply chain disruption, according to figures from the UN Food and Agriculture Organization (FAO).

Little respite: Prices fell back slightly in December, but according to FAO this is unlikely to signal an immediate trend reversal, with current market conditions expected to continue into 2022. “The high cost of inputs, ongoing global pandemic and ever more uncertain climatic conditions leave little room for optimism about a return to more stable market conditions even in 2022,” said senior economist Abdolreza Abbassian.

US replaces Qatar as world’s biggest LNG exporter: The US eclipsed Qatar to become the world’s largest LNG exporter for the first time in December amid a rise in shipments to Europe, whose energy supply crisis is driving prices to new record highs, according to Bloomberg.

Spiraling fertilizer prices took a breather in the US, where they fell back from a record high last week, seeing their biggest daily drop since 2009 on Friday, according to Bloomberg. But the break in the months-long fertilizer rally — which has helped drive global inflation — will likely be short-lived, with major urea producers including Egypt sold out through February, one analyst said.

Abu Dhabi’s wealth fund is creating the UAE’s biggest healthcare provider: Abu Dhabi sovereign wealth fund ADQ has agreed to merge five companies — Abu Dhabi Health Services Co. (SEHA), National Health Ins. Co. (Daman), Tamouh Healthcare, Yas Clinic Group, and Abu Dhabi Stem Cell Center — with Pure Health, Bloomberg reports. Pure Health, which has partnered with the UAE government to conduct covid screening at the country’s airports, will now become the country’s largest healthcare provider, with ADQ as its biggest shareholder. The company is also gearing up to go public.

PMI IN THE REGION-

• The UAE’s non-oil private sector registered another month of strong growth in December amid Expo 2020 and an easing of travel restrictions. PMI registered 55.6 (pdf) – down from 55.9 in November but still well above the 50.0 threshold that separates growth from contraction.
• Qatar’s PMI (pdf) was also “well into” expansion territory last month, registering 61.4 — only slightly down from November’s record-high of 63.1 in November — as new orders and output continued to register rapid growth.

THE CLOSING BELL-

The EGX30 rose 0.5% on Wednesday on turnover of EGP 1.17 bn (7.3% below the 90-day average). Foreign investors were net sellers. The index is up 0.8% YTD.

In the green: Madinet Nasr Housing (+4.1%), Credit Agricole Egypt (+3.2%) and Raya Holding (+2.8%).

In the red: Egypt Kuwait Holding-EGP (-2.3%), AMOC (-2.3%) and CIRA (-1.9%).