Dec 5, 2024
There are three numbers to keep in mind before proceeding.
20,000. That's the number of job opportunities the UAE's food industry is expected to generate over the next few years.
$10 billion. That's how much the UAE's food and agricultural sector is projected to add to the country's economy.
10 million. That's the approximate population of the UAE, and it's growing.
This should give you some idea about the challenges, exciting transformations and evolution of the UAE's food sector.
But a hot, dry desert isn't the first place that comes to mind when you think of food production. But, in the UAE, cities like Dubai and Abu Dhabi have shown how food can be grown and distributed even in challenging climatic conditions.
A bit of history
Historically, the UAE relied on traditional forms of agriculture, mainly focused on date palms and some subsistence farming in oases. The arid conditions and water scarcity limited what and how much could be grown. In the mid-20th century, modern agricultural practices were introduced, like groundwater for irrigation.
A milestone was the development of desalination technology. Seawater could be converted into freshwater, which is crucial for irrigating crops. Technology and sustainability were seen as the next big things in food production.
Techniques like greenhouse farming, soilless farming, advanced irrigation, and investments in organic farming have all contributed to the UAE's food landscape and what it looks like today.
Modern landscape
Today, there are over 30,000 farms across the UAE. It's an increase from about 4,000 in the early 1970s. Agriculture is carried out on a total cultivable area of about 160,000 hectares. That's not a lot, considering the population's needs.
For decades, the UAE has been dependent on imports. It has also invested in farms abroad. Since the 2007-08 food price crisis and Russia's invasion of Ukraine, the UAE has amassed 960,000 hectares of farms overseas. These are tightly controlled through a network of ports.
In 2018, the UAE launched a food security strategy through overseas and domestic investments. It was a two-fold plan to involve more overseas farms and increase domestic production. The latter was important since 90% of its food was imported, costing about $14 billion annually. The goal is to cut that down to 50%.
The UAE's reliance on food imports remains a challenge. In 2022, it imported nearly 17 million tonnes of food. Cereals formed a significant portion.
Over the years, governments in each emirate incentivised farmers to increase production. For example, farmers in the UAE get a 50% subsidy on seeds, fertilisers, and pesticides. They also get special loans to buy machinery and equipment. Then came technology to make farming and food production more sustainable with vertical farming, soilless agriculture, etc.
What about imports? The UAE's foreign investments play a crucial role here. For example, in 2022, India and the UAE agreed to set up a "food corridor". It involves setting up "food parks" in India where production will be centralised, processed, and shipped to the UAE. The initial crops will be mangoes, chillis, onions, and rice. There are similar agreements with other Asian countries since the UAE sees the region as ripe for opportunities.
Leading the way into the future
The UAE is the perfect environment for visionary businesses and food entrepreneurs to redefine the future of food systems. It's a new type of food and agricultural revolution as food security has taken centre stage amid global warming and climate change challenges. This is why the UAE has its National Food Security Strategy 2051 and has emerged as the epicentre of F&B innovation. But governments can't go it alone. The private sector is necessary. Here's how they're going about it.
Innovation hub: The government welcomes entrepreneurs who have innovative solutions to maximise food production while not wasting resources. The government-backed technology ecosystem has driven investments in food safety, food security, and agriculture.
New technologies: AI and Machine Learning have come to the fore. The Food Security Dashboard uses AI-powered analytics to measure availability, consumption, and production to inform short-term purchasing decisions and long-term investments.
Help businesses: Apart from agritech startups, restaurants are doing their part with farm-to-table initiatives. They work with local growers and fishermen instead of relying on imports.
At Smart Grow Farms, we're optimistic about the region's role in the global food production landscape. Innovation and technology will ensure food security amid rising economic and geopolitical concerns.
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