Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The UAE is aiming to triple its food production by 2030 to achieve several strategic economic and security goals, according to new research by US investment firm, CBRE.
The report found that, in line with its 2051 Food Security Strategy, the country was investing big in the fields of food processing, agriculture and logistics in an attempt to make the nation more self-sufficient and further diversify the economy.
"With 80% of the GCC's food reliant on imports and global demand set to soar by 2 billion more people by 2050, food security is at the top of our agenda," Abdulla Al Hashmi, COO of Parks and Zones at DP World GCC said in the report.
Rapid population growth, coupled with the UAE's status as a commercial centre, has driven the rising demand for fresh produce, dairy, meat and other agricultural products.
The report estimates that almost 85% of all consumed products arrive in the country through land and sea. This reliance on global supply chains has served the country well in many respects but also exposes the UAE to international market fluctuations and potential disruptions.
However, the country's Food Strategy has an ambitious target of reducing reliance on imports to 50% by 2031 - a goal that is complicated by the nation's limited arable land and harsh desert climate.
To overcome this, the report details how the UAE has sought to bolster innovation, investment and collaboration between government entities, research institutions, and private sector players.
The end goal is to not only bolster food self-reliance but also to develop a modern, high-tech agricultural sector that can serve as a model for other arid regions.
One of the primary pillars explored in the report is the country's plans to increase production by leveraging cutting-edge agricultural technologies. This includes hydroponic systems - where plants grow in nutrient-rich water solutions without soil ¬- and investment in alternative meat substitutes.
Aquaculture farms will replace protein imports like sea bream, grouper and salmon.
The report cites initiatives like the KEZAD Ag – Tech Park in Al Ain, Dubai Food-Tech Valley as examples of this investment in action.
It also highlights how the sector is being incentivised through the increasing number of funds available for entrepreneurs and innovators in the field of agriculture and food processing.
This included programmes available through Khalifa Fund for Enterprise Development, as well as ADQ's, Dh551 million "Silal" agricultural development fund and the Emirates Development Bank's "AGRIX" Accelerator.
The report also details how the UAE is investing in food and beverage (F&B) processing, as means to bolster its position along the food production supply chain with countries like India.
With F&B representing around 25% of the country's total manufacturing output, according to the UAE F&B Business group, building higher food processing output is seen as a central driver of economic diversification, with the country's position as a logistics hub making it ideal for expansion in food processing.
"We have also seen strong interest from global players setting up in Abu Dhabi, not only to meet local demand but also to leverage the UAE's strategic location as a hub to support food demand in other markets," Mohamed Al Khadar, CEO Khalifa Economic Zones at KEZAD Group, said in the report.
"According to the USDA, Sub-Saharan Africa is projected to see the highest growth in food demand at 3.9% per year over the next decade, followed by the Middle East and North Africa.
"With the UAE's growing roster of Comprehensive Economic Partnership Agreements (CEPAs), the country is exceptionally well-positioned to act as a central hub, facilitating food security solutions across these high-growth markets."
