ABU DHABI (ALETIHAD)
AG Group has signed a cooperation agreement with the Abu Dhabi Agricultural Club to expand marketing and distribution opportunities for produce grown by Emirati farmers, according to a statement from Abu Dhabi National Investment and Development (ADID).
ADID is pursuing investments in agriculture and food security through its wholly owned subsidiary QITAF Holding, which owns a 50% stake in AG Group. ADID, formerly known as Abu Dhabi National Company for Building Materials (BILDCO), is listed on the Abu Dhabi Securities Exchange.
The agreement seeks to connect local agricultural production with established commercial distribution channels and improve market access for UAE-grown produce.
AG Group has prepared a production requirements plan for the agricultural season running from December 2026 to May 2027. The plan covers eight categories of fresh vegetables, with estimated combined requirements of between 60 and 100 tonnes a day and a targeted cultivation area of approximately 249 hectares.
Through the partnership, AG Group intends to explore procurement and marketing arrangements with Emirati farmers. Any such arrangements will be subject to produce availability, quality requirements, commercial specifications and mutually agreed contractual terms, the statement said.
The initiative is intended to help farmers align their production with commercial demand and gain access to wholesale and retail markets, supermarkets, hotels, restaurants and institutional food-service customers.
The two organisations will also explore measures to improve the collection, grading, packaging, storage and transportation of produce in line with applicable quality and food-safety standards. These measures are expected to reduce post-harvest losses, improve supply-chain efficiency and increase the commercial value of locally grown products.
The partnership will support small and medium-sized agricultural enterprises, family-owned farms and productive households. It will also seek to expand opportunities for Emirati women and young entrepreneurs involved in agricultural production and related commercial activities.
Established in 1970, AG Group specialises in trading, importing and distributing fresh fruit and vegetables. It operates through a network of suppliers, trading partners, logistics facilities and distribution channels.
The company also owns farms in Kenya, Romania, Azerbaijan and Oman. The partnership will seek to use this international experience to support knowledge transfer in areas including crop quality, production efficiency, farm management, produce handling and marketing.
QITAF Holding serves as ADID’s investment platform for agriculture, food security, agricultural technology, food technology and integrated food-supply chains. Its strategy includes sustainable food production, processing, technological innovation and distribution infrastructure, the statement said.