Greens on multi-tier growing racks at the world's biggest vertical farm in Dubai. Photo: Emirates
Greens on multi-tier growing racks at the world's biggest vertical farm in Dubai. Photo: Emirates
Greens on multi-tier growing racks at the world's biggest vertical farm in Dubai. Photo: Emirates
Greens on multi-tier growing racks at the world's biggest vertical farm in Dubai. Photo: Emirates

Emirates flight catering unit opens world's biggest vertical farm in Dubai


Deena Kamel
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Emirates has opened the world’s largest vertical farming plant in Dubai, a $40 million (Dh147m) joint venture with US-based Crop One, as the UAE continues to bolster its food and water security.

Bustanica, the 330,000 square-foot hydroponic farm located near Al Maktoum International Airport (DWC), is set to grow more than a million kilograms of leafy greens annually, or about 3,000kg per day, Emirates said in a statement on Monday.

Using 95 per cent less water than traditional farming and saving 250 million litres of water, Bustanica will grow fresh produce without pesticides, herbicides or chemicals.

"Long-term food security and self-sufficiency are vital to the economic growth of any country, and the UAE is no exception," said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Group.

"Bustanica ushers in a new era of innovation and investments, which are important steps for sustainable growth and align with our country’s well-defined food and water security strategies."

Seedlings at world's biggest vertical farm in Dubai. Photo: Emirates
Seedlings at world's biggest vertical farm in Dubai. Photo: Emirates

Bustanica is the first facility for Emirates Crop One, a joint venture between Emirates' flight catering unit and indoor vertical farming firm Crop One.

Emirates Flight Catering, a subsidiary of Emirates group, supplies in-flight food for Emirates and other airlines at Dubai International Airport.

Vertical farming is a technique with a significantly smaller carbon footprint than traditional agriculture. This method grows plants using mineral nutrient solutions, in water and without soil. They are grown in a fully controlled environment — everything from temperature, humidity, lighting, water and nutrients is precisely monitored, maximising growth and yield.

The new farm is in line with the UAE's National Food Strategy 2051 agenda for reliable year-round crop production and stable supply chain that is independent of weather and attacks by pests or fungus.

Bustanica will rely on machine learning, artificial intelligence and advanced methods — and a specialised in-house team of agronomy experts, engineers, horticulturists and plant scientists — to grow fresh produce.

Passengers on Emirates and other airlines can start consuming these leafy greens, including lettuces, arugula, mixed salad greens and spinach, onboard flights from this month.

UAE consumers will also soon be able to add these greens to their shopping carts at the nearest supermarkets, according to the statement.

Bustanica also plans to expand into the production and sale of fruits and other vegetables.

Bustanica will secure Emirates Flight Catering's supply chain and reduce its carbon footprint by bringing production closer to consumption and "reducing the food journey from farm to fork", Sheikh Ahmed said.

Bustanica Exterior, Emirates Flight Catering Opens World’s Largest Vertical Farm in Dubai. Emirates
Bustanica Exterior, Emirates Flight Catering Opens World’s Largest Vertical Farm in Dubai. Emirates

The plant opened after "significant planning and construction" and navigating the unforeseen challenges of the Covid-19 pandemic, Craig Ratajczyk, chief executive of Crop One, said.

"It’s our mission to cultivate a sustainable future to meet global demand for fresh, local food, and this first large format farm is the manifestation of that commitment. This new facility serves as a model for what’s possible around the globe."

The UAE has been accelerating its support of AgriTech companies to reduce reliance on food imports, which is thought to make up nearly 90 per cent of food consumed in the country. Abu Dhabi has launched a number of initiatives, including $41m in grants and incentives worth $545m to support expansion.

UAE residents are already seeing evidence of recent efforts to localise agriculture: locally harvested produce at the market or on dining menus is now a common sight. Much of this has surfaced over the past few years as vertical and hydroponic farming ventures, research and cloud-seeding bear fruit.

Agronomy experts at Bustanica in Dubai. Photo: Emirates
Agronomy experts at Bustanica in Dubai. Photo: Emirates
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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Always use only regulated platforms

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Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Funding:  The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups. 

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Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: July 19, 2022, 3:40 AM