AGRICULTURE GAINS GROUND

Agriculture sector gains grounds in the UAE and it will help reduce dependence on imported products and boost self-sufficiency in food, according to experts.

Industry stakeholders, executives and analysts said the UAE’s growing population, increasing demand for healthier organic products, improved purchasing power and fast progress in the technology are some of the major driving sectors behind the flourishing agri sector in the country.

Shailesh Dash, Founder of Dash Venture Lab, the UAE’s agriculture sector has come a long way in the last decade and is expected to be more than $4 billion by 2029.

“The UAE government has launched the comprehensive National Food Security Strategy 2051, aiming to place the country at the top of the Global Food Security Index by 2051. To achieve this, the strategy encompasses seven key pillars, including fostering local talent and innovation, promoting a UAE-first culture within the food value chain, and providing substantial funding to industry stakeholders,” Dash told Khaleej Times.

In the last five to seven years, he said the private sector has been pretty active in the dairy and farming segments. Farming companies like Pure Harvest, Emirates Bio Farm, Madar Farms, Global Farms, etc have been leading and actually many new upcoming food companies are also in the news headlines having attracted significant private capital.

“While at the same time private sector has been very active in the livestock, fisheries and dairy segment even though the lead has always been by the government enterprises,” he said.

In its latest research report Ascent Partners Advisory also estimated that the UAE agriculture market is growing at a compound aggregate growth rate of 4.30 per cent and will hit $4.1 billion mark in next five years compared to $3.31 billion in 2024. The report also noticed that farming areas increased by 15 per cent from 2017 to 2020 due to government support and rising demand of organic products.

“The government priortises fruit and vegetable production, showing positive growth and hydroponics is emerging due to its efficient water and land use. These factors are fuelling the growth of agriculture sector in the UAE,” according to the report.

Dash, a Dubai-based financier and entrepreneur, said the UAE has set itself in high ESG standard practices which along with significant investments are leading the agri-tech development in the region, prioritising food security in their national strategies.

In the UAE, he said the government is heavily investing in agri-tech companies to reduce imports through vertical farming, hydroponics, and patented technology that monitors harvests. The Abu Dhabi Investment Office (ADIO) established a $200 million fund to support a range of early-stage companies over the coming years, significantly increasing its investment the in last couple of years, he said.

“Factors driving the growth of agriculture in UAE include the growing population of UAE, demand for healthier organic products, improved purchasing power, its own economic growth, government and private sectors increased focus on investments in the food and allied segments and most importantly improvement in the technology today which helps farming in UAE climatic conditions fairly easy,” Dash said.

Ascent Partners Advisory report said the UAE’s proactive food strategy over the past several years has bolstered its resilience despite currently importing 80-90 per cent of its food.

“The UAE is in a stronger position unlike many countries across the Middle East and North African countries struggling to secure shipments of wheat and other essential goods,” it said.

— muzaffarrizvi@khaleejtimes.com