In the Middle East, agriculture is of high importance, because due to the geographical and climatic features of the region, there is an acute shortage of water and the need for agricultural production. The special attitude of the government of the countries of the Middle East to the agricultural sector is expressed in the active support of various innovative technologies in the field of agriculture, irrigation, water reuse and other things.
Considering a country like Egypt, we can conclude that the agricultural sector of this country is very developed and is concentrated along the main water artery of the country – the Nile River. Agricultural enterprises in Egypt face water management challenges and are actively looking for solutions for efficient water use, water reuse and other technologies that can improve water use efficiency.
In Saudi Arabia and the UAE, projects in the field of ArgiTech are actively encouraged, which also allow increasing agricultural production using a minimum number of resources. This is how “round farm” technologies are actively used, which use groundwater to irrigate crops in a desert area. The UAE is actively developing vertical farms and other agricultural technologies that increase the efficiency of agricultural production.
Agricultural sector of the UAE
The total area of arable land in the UAE is only about 1,600 square kilometers out of a total area of 71,023 square kilometers. Most of this land is used for growing dates, as the country is one of the ten largest producers of dates, providing 6% of world production.
Other crops grown in the UAE include tomatoes, cabbage, bougainvillea, tropical hibiscus, eggplant, mango, citrus and others. Main emirates where local farmers are located: Ras Al Khaimah Emirate, Fujairah coastal areas, Al Ain and Liwa Oasis.
Vertical farms are popular among farmers in the UAE and are being actively implemented and improved, for example, in the summer of 2022, Crop One Holdings and Emirates Flight Catering announced the opening of the world’s largest vertical farm, a joint project called Emirates Crop One. . . With a production capacity of 2 million pounds of leafy greens per year and over 330,000 square meters, the plant is in Dubai close to Al Maktoum International Airport at Dubai World Central. This project was launched in 2018 and the volume of investments in it amounted to 40 million US dollars, most of which was financed on preferential terms by banks.
In the UAE, approximately 80% of food products are imported from other countries. The UAE authorities are striving in every possible way to improve the country’s food security and develop agricultural production, including with the help of modern technologies, since there is very little land used for traditional farming, approximately 2% of the area. country.
Government measures to support agricultural production stem primarily from the National Strategy for Food Security 2051, which was launched in November 2018 with the main goal of using agricultural practices that increase the amount of food produced in a sustainable manner, thereby providing food the security of the country. The strategy consists of 38 both long-term and short-term initiatives. Among the main objectives of this strategy are:expanding local food production.
- expanding local food production.
- entering international partnerships with other countries to diversify food sources.
- developing policies to increase the nutritional value of food.
- adoption of legislation to reduce waste.
- bring the UAE to the top of the global food security index by 2051.
The UAE government has been allocating large funds for the development of vertical farm technology for many years. Such farms do not require special places to be located, usually located near the residential and commercial areas of Dubai and Abu Dhabi, which reduces pollution and transportation costs in the production process and the delivery of finished products.
We recommend considering the Food Tech Valley project, opened in May 2021 to achieve the goals of the National Strategy. Food Tech Valley will be made up of food factories and start-ups and will provide training and research assistance. This project helps solve the agricultural problems facing the country by discovering:
- technological and engineering laboratories.
- research and development center.
- smart food logistics center.
- center of food innovations.
Funds, government organizations and accelerators involved in attracting investment and innovation in Agri Tech
- ADIO (Abu Dhabi Investment Office) this organization is engaged in attracting investments and technologies to the Emirate of Abu Dhabi. If there are innovative technologies that will be attractive to this organization, they can attract investment in the project.
- future gig accelerator. This accelerator was created by an American-Jewish entrepreneur and is regional, working not only in the UAE but also in other MENA countries (Middle East and North Africa). The accelerator is exploring and scaling up AgriTech innovations in desert climates.
- HASSAD is an AgriTech accelerator located in Jordan, but it takes projects from Saudi Arabia and the UAE for acceleration.
- Dubai Food Tech Valley – which we have already mentioned above. The main specialization is vertical farms and attracting investments in innovative technologies in this area. A special economic zone with its own preferences for start-ups is allocated for this project.
- HUB 71 – Abu Dhabi Technology Cluster/Ecosystem with a focus on the priority sectors of AgriTech, FinTech and Artificial Intelligence. Among the advantages, one can single out an easier way to attract investments and donations to a technological project.
- Sharjah Research Technology and Innovation Park – an innovation cluster / ecosystem in Sharjah with a focus on AgriTech and provides special preferences for start-ups (reducing the cost of starting a business, the availability of affordable infrastructure and laboratory facilities).
- DMCC – Free Trade Zone in Dubai with very simple conditions for starting a business and its programs to support innovative projects.
- Negev innovation center – Israeli venture company that attracts investments in innovative and science-intensive projects in the field of AgriTech.
The Agri Tech sector in the Middle East is rapidly developing and supported by governments, attracting a lot of investment and technology. If you have an agricultural or IT business that can introduce new technologies to the agricultural sector, then you need to start your business in the Middle East.
