DUBAI 26 June 2018: Agriculture and the desert climate of the UAE are not very compatible concepts.
Consequently, there was little interest given the scarcity of water and arable land, high soil salinity, difficult environmental conditions, costly production, agricultural pests and high probability of post-harvest losses.
If one wanted to farm – as some did – they had to implement the newest and latest technologies. Most of their investments went towards retaining water resources, with emphasis on promoting the adoption and installation of modern irrigation systems to replace flood irrigation method, which wastes large amounts of water.
The first efforts were made to develop and upgrade agricultural economy in 1971 when the UAE was born. The number of farms at that time stood at about 4,000. But by 2011, this number had gone up to 35,704 with an area under cultivation of 105,257 hectares.
Thanks to the UAE’s huge efforts, there are now 54 organic farms, three animal production farms and one manufacturing facility. The organic production area in the UAE has increased to 3,920 hectares by the end of 2013.
Agrotechnology
Because of the high technology adoption in UAE, the country has one of the most modern agricultural sectors in the world. When it comes to specifically agriculture and agrotechnology, companies started to invest in UAE with new and more advanced technology. They found ways to create the perfect plant growth environment. They got better at detecting rare bacteria that are harmful for the plants, and found ways to enhance the harvest. Agriculture corporates showcased their innovations at various expos around the world.
Recently, Chinese scientists have been able to produce rice in the desert climate.
The region’s first vertical farm, Badia Farm, has also gone operational in the UAE.
Greenfield Sector
Why is agriculture still a ‘greenfield’ sector in UAE? Because agriculture is difficult when compared to other countries, competition isn’t as high either. There is a lot of room for new technological innovations and ideas and a whole untouched market that is open to new and innovative suggestions.
The government is supportive and under its focus on developing the agriculture sector, plans to find ways to invest more in the agricultural production by adopting sustainable farming and water-conservation techniques.
The government encourages private, local and foreign companies to come to UAE and invest in the agricultural economy.
Seed Capital
For example, last November agri-business start-up Pure Harvest Smart Farms secured a historic $4.5 billion seed investment to help fund the construction of a 3.3-ha farm with a fully climate-controlled greenhouse facility in Nahel, Abu Dhabi.
Abu Dhabi Chamber of Commerce and Industry forecasts that the growth rate of the UAE economy over the coming years is 13%. The UAE has been liberalising policies, encouraging foreign individuals and companies to invest and take part in this new growth process. The absence of taxes is a clear incentives for investors, and draws many foreign companies to establish activities in the free zones.
Why you benefit from investing in the UAE market? Because it has certain advantages in comparison to other countries, such as:
● Strategic location
● State-of-the-art infrastructure
● Variety of business premises
● Political stability
● Social stability
● Ease of doing business
● Protection of intellectual property rights
● Favourable business regulations
● Open economy
● Economic stability
● No corporate tax.
The UAE has some competitive advantages. It is an affordable and stable market, with great local and worldwide connections and it encourages modernism and implements innovation.
The country’s agricultural market is still almost untouched and is awaiting entrepreneurs to step in and create food and wealth..