Emirati Agricultural Investments: From the Key Builders of UAE Economy.
The agriculture sector is a fundamental pillar of the UAE economy, contributing significantly to sustainable development, food security, and job creation.
The United Arab Emirates places great importance on investment in this sector by:
- Developing its infrastructure
- Encouraging research and development
- Creating new and sustainable markets for local agricultural products
- Enhancing international cooperation
- Driving the sector forward
- Turning it into a key force in the national economy
The UAE Food Security System
The UAE has introduced several initiatives and programs primarily aimed at empowering citizens in the national agriculture sector.
It is also providing support to farmers to expand their activities and increase farm production.
Thus boosting the sector’s contribution to the national economy and achieving sustainable agricultural development.
This is particularly crucial as agriculture plays an essential role in strengthening the country’s food security system.
The nation has made clear efforts over the past decades to build a more capable agricultural sector.
That can contribute to food diversity and the national economy through the empowerment of technology and innovation.
Despite the challenges faced by the agriculture sector in the UAE, such as:
Being located in arid regions, with a desert environment covering more than three-quarters of the country’s total area.
As well as low rainfall, high temperatures, and poor soil quality.
Agriculture, Forestry, and Fishing Contributed AED 13.24 Billion to the UAE’s GDP
The UAE has adopted policies to mitigate the challenges facing agricultural growth by relying on sustainable and climate-smart farming methods.
These focus on optimizing land use, improving the quality of local produce, and enhancing its competitiveness.
They incorporate innovative techniques and solutions such as:
- Precision farming
- Vertical farming
- Soilless farming (hydroponics)
- Organic farming
- The use of greenhouses
Additionally, efforts are being made to enhance pest control programs, reduce food loss and waste along the food supply chain.
And also to expand interest in scientific research in agriculture.
In 2023, agriculture, forestry, and fishing contributed AED 13.24 billion to the UAE’s GDP.
Mentioning that the sector continues to attract increasing interest from investors and companies.
Due to the ongoing government support.
Enhancing Agricultural Capacities: Part from UAE Economy Diversification Strategy
The future of the agricultural sector looks promising, with growing opportunities for development.
In addition to the continued initiatives to enhance national agricultural capacities within the framework of the national economy diversification strategy.
The UAE has further enhanced investment in agriculture by launching the National Sustainable Agriculture System.
The system seeks to introduce proactive changes to food and agricultural systems.
Moreover, it focuses on promoting sustainable products and creating a competitive edge for local produce.
And also on attracting local consumers to purchase sustainable goods and driving improvement across the supply chain.
The system was developed as part of the National Food Security Strategy.
In order to provide effective solutions to increase the efficiency and competitiveness of national food production.
Offering support to stakeholders in the sector and attracting necessary investments to establish sustainable agricultural projects.
Goals of the National Sustainable Agriculture System
The system aims to achieve several goals, including:
- Activating sustainable food production systems
- Employing modern technologies in the field
- Enhancing local agricultural output
The system also targets economic, social, and environmental objectives.
Economically, it seeks to increase the country’s self-sufficiency in targeted crops by 5% annually.
And also to improve farm economic returns by 10% annually.
Socially, it aims to boost the workforce in the sector by 5% annually.
Environmentally, it plans to reduce water usage per production unit by 15% annually.
UAE Economy Empowers Agricultural Entrepreneurs
The UAE is also working to grow the agricultural sector by partnering with the private sector and experts to empower agricultural entrepreneurs.
The community is encouraged and supported to grow successful agricultural projects.
In addition, a financial program was launched in collaboration with the Emirates Development Bank to fund agricultural technology in traditional farms.
With a financing portfolio of AED 100 million.
The UAE’s contributions extend beyond domestic investment.
Major Emirati investment companies have accelerated their agricultural investments globally.
Acquiring vast tracts of land in Europe and Africa for cultivation.
Other companies have established massive food processing factories abroad and contracted to import thousands of tons of grains and fodder.
Storing them in giant silos in the UAE and other countries, ready for re-export.
The 53rd Drop… “Birds of Goodness” Continue to Spread Hope in the Skies of the #Gaza Strip Through 80 Tons of Food and Relief Aid pic.twitter.com/uHrkeARjHh
— UAE Voice (@uae_voiceeng) October 20, 2024
Bolstering Food Security in the UAE
Emirati companies invest in large farms for livestock fattening.
Also many companies specialize in marketing and distributing agricultural products across several continents using highly efficient transportation networks.
These overseas investments aim to bolster food security in the UAE.
Emirati companies have succeeded in securing a strategic stockpile of key goods for the country.
UAE investments have also expanded into re-export operations and opened numerous markets for their products across the globe.
Particularly after acquiring large farming areas in many countries.
UAE agricultural investments abroad include establishing companies, acquiring stakes in existing entities, or owning and leasing large agricultural lands.
These investments specialize in cultivating grains, flour, fodder, fruits, vegetables, and raising livestock and fish.
