Sector Update: AgriTech is a key target sector for the GCC

AgriTech is top of the list in three important FDI trends: food security, localization and digitalization.
Besides, AgriTech is a main element of a SMART City and Eco-Industrial Park, two significant trends
in SEZ development.

SEZs hosting AgriTech companies accelerate investment needs associated with the Sustainable
Development Goals (SDGs), building resilient food supply chains and reducing farming’s climate
footprint. For AgriTech a big part of this is using digital data and smart farming to upgrade how
agriculture practices are being used.

The private sector drives innovation, playing a vital role in the transition towards more sustainable
food systems. The UAE is applying concerted efforts to improve its domestic production of food,
with agricultural technology ‘AgriTech’ playing an important role. In fact, key targets of the
government’s National Food Security strategy launched in November 2018 are to generate a 30
percent yield improvement from technology-enabled production and for the UAE to become a
world-leading hub in innovation-driven food security by 2051.

Across the Middle East, agriculture plays a pivotal role in transforming economies, alleviating
poverty and fostering economic growth, but increasingly, the region is becoming more reliant on
international markets for its staple food products. In the GCC, more than 90 percent of its food is
imported as arable land water become ever scarcer resources. The issue of food security is one that
plagues many countries around the world and many are using technology as a solution to address
this challenge. AgriTech is increasingly attracting FDI in the Middle East.
Last month, The Hamriyah Free Zone Authority welcomed an AgriTech company to its global base of
investors after signing an investment agreement with Al Aliyo Hydrofarms, the hydroponic fodder
farming industry, at Gulfood 2021.

A combination of vertical and flat farming tackles extreme climate challenges in regions as the UAE,
cultivating high quality vegetables 100 percent pesticide free.

Headquartered in Sharjah Food Park, the company will rent two warehouses extending over an area
of 12,000 sq. ft and is expected to commence operations in May 2021.

It will run the UAE’s first unique project to produce and grow organic fodder for livestock in
hydroponic farms based on an innovative concept using the latest technologies. The entire process is
100% organic; there is no usage of pesticides or fertilizers.

Policy makers are utilizing SEZ as key instruments to create an environment which is conducive to
sustainable cross-border investment with view to accelerating economic recovery, promoting
economic diversification and sustainable growth. SEZs hosting AgriTech companies can tick-off 8 of
17 SDGs: SDG2 Zero Hunger, SDG3 Good Health and Well-Being, SDG8 Decent Work and Economic
Growth, SDG9 Industry, Innovation and Infrastructure, SDG11 Sustainable Cities, SDG12 Responsible
Consumption and Production, SDG13 Climate Action and SDG15 Life on Land.

Sources:
For information on World FZO’s Advisory Services contact: Emirates News Agency
Emirates News Agency
Zoë Harries Wamda
Project Director, World FZO
Wamda
M: +971 58 508 7998
E: zoe.harries@worldfzo.org