IFAD President Calls for Rural Investment to Drive Food Security and Stability in Arab Region

Lario stressed that strategic investments at the “first mile” — where food is produced — can deliver powerful economic and food security returns.

Investing in rural economies is one of the most effective pathways to achieve food security, economic growth and long-term stability across the Arab world and beyond, International Fund for Agricultural Development (IFAD) President Alvario Lario said today.

Speaking in a keynote address at a food security conference organized by the Arab Authority for Agricultural Investment and Development (AAAID) during the World Governments Summit 2026, Lario highlighted the central role of small-scale farmers and rural enterprises in strengthening food systems and supporting peace and prosperity.

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Rural Economies at the Heart of Interconnected Food Systems

Lario emphasized that food systems stretch across highly diverse landscapes — from ultra-modern Gulf cities deploying cutting-edge agri-technologies to rural communities where traditional labour-intensive farming continues to feed millions.

“Food systems are deeply interconnected,” he said.

“Investing in small-scale farmers and rural enterprises… strengthens rural economies, expands employment opportunities, and supports regional and global stability.”

Small-scale farmers produce a large share of national food supplies, yet remain highly vulnerable to:

• Climate shocks

• Water scarcity

• Market volatility

• Rising input costs

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High Returns from Investing in the “First Mile” of Food Systems

Lario stressed that strategic investments at the “first mile” — where food is produced — can deliver powerful economic and food security returns.

IFAD’s recent impact assessments show that its investments have achieved, over three years:

• 34% increase in rural incomes

• 35% increase in production

• 34% improvement in market access

These gains demonstrate the multiplier effect of rural development investments in fragile and water-stressed contexts common across the Arab region.

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Morocco Example: Irrigation Innovation Delivers Rapid Results

Lario cited Morocco as a strong example of how technology and efficient water management can transform livelihoods.

Modern irrigation systems supported through IFAD:

• Reduced water use by 30%

• Increased yields by 25%

• Raised household incomes by 50%

This, he said, shows that targeted investments can generate rapid returns even under severe resource constraints.

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Rural Investment Linked to Peace and Stability

President Lario drew a direct connection between agricultural productivity and conflict reduction.

Referencing IFAD’s experience in Ethiopia, he noted:

“Every 1 per cent increase in land productivity correlates with a 3 per cent decrease in conflict.”

This underscores that rural development is not only an economic strategy, but also a foundation for peace, resilience and stability.

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Arab Region a Strategic Partner for Global Food Systems Transformation

Lario highlighted the Arab region’s growing importance as a hub for:

• Finance

• Innovation

• South–South cooperation

• Agricultural investment

He described the region as a key partner for IFAD in shaping the future of sustainable and inclusive food systems.

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Longstanding Partnership with AAAID Unlocking Finance

IFAD has worked with AAAID since 2000, combining AAAID’s regional mandate and financial strength with IFAD’s grassroots reach and technical expertise.

Together, the partnership helps unlock investment and accelerate progress toward food security goals.

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Every Donor Dollar Mobilizes Six Dollars of Investment

Lario emphasized the power of partnerships in scaling impact.

Beyond donor aid, IFAD projects mobilize domestic resources and attract additional public and private investment.

“Every US$1 of donor contributions helps generate approximately US$6 of investments on the ground,” he said.

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Investing in Rural People for a More Secure Future

Lario concluded that supporting rural communities is essential to build resilient food systems, create jobs, reduce poverty and ensure long-term stability.

By investing in small-scale farmers, rural enterprises and climate-smart agriculture, governments and partners can achieve both economic growth and greater food security for the region and the world.