Saudi Arabia's Public Investment Fund (PIF) and US sustainable agriculture company AeroFarms have signed a joint-venture agreement to build indoor vertical farms in the kingdom and the wider Middle East and North Africa region.
The first farm, in Saudi Arabia, is expected to be the largest one in the Mena region, with an annual production of up to 1.1 million kilograms of crops, using proprietary agricultural technology, the PIF and New Jersey-based AeroFarms said in a joint statement on Wednesday.
The value of the deal was not disclosed.
The initiative will result in “significantly” higher yields while using up to 95 per cent less water compared with traditional field farming, the statement said.
The agreement will help in “increasing regional reliance on locally-produced, high-quality crops grown in a sustainable way using the latest technologies,” said Majed AlAssaf, head of consumer goods and retail for the PIF's Mena investments division.
“The PIF is enabling the growth of the food and agriculture sector and localising technology that can benefit private sector industry participants,” Mr AlAssaf said.
Saudi Arabia, the Arab world's biggest economy, has been enhancing its food growth in view of climate change challenges and a scarcity of water resources.
Saudi Vision 2030, the kingdom's economic diversification programme, has focused its sustainable development efforts on building a sustainable agricultural sector as well as boosting sectors that support food systems and improving agricultural productivity.
Indoor vertical farming, which is the practice of growing produce stacked one above the other in a closed and controlled environment, is a viable way of improving food security.
The global indoor vertical farming market is projected to grow by more than a quarter to about $21 billion by 2030, from an estimated $4.16 billion in 2022, according to data from Grand View Research.
On Tuesday, Abu Dhabi start-up Pure Harvest Smart Farms entered a strategic partnership with Saudi Arabia's National Agricultural Development Company to deliver a large-scale food security project in the kingdom.
The project aims to deliver more than 27 hectares of production in the near term.
Meanwhile, global food prices started to rise in 2020 when businesses shut down after the onset of the coronavirus pandemic, straining supply chains, Deep Knowledge Analytics said in a recent report.
High food prices — exacerbated by Russia's war in Ukraine — have exposed communities around the world to hunger, the UN's Food and Agricultural Organisation has said.
In particular, more than 141 million people in the Arab world face food insecurity, the International Monetary Fund said in October.
AeroFarms aims to “help solve the greatest agriculture challenges and increase food resiliency around the world”, said its co-founder and chief executive David Rosenberg.
Under the partnership, the indoor farms will optimise the use of natural resources, including water and agricultural land, with no need for arable land.
“Several” indoor farms will be built across the Mena region over the next few years, the statement said.
While “growing conditions are challenging with limited access to fresh water and arable land, we envision building together smart indoor vertical farms throughout the broader Mena region”, Mr Rosenberg said.
The PIF, Saudi Arabia's sovereign wealth fund, is at the centre of Riyadh’s economic diversification efforts and a major driver of the domestic economy.
It holds stakes in some of the kingdom’s biggest conglomerates and financial institutions, as well as in global companies such as Meta and Alphabet.
AeroFarms, established in 2004, has already built the world's largest indoor vertical farm and R&D centre in Abu Dhabi, at more than 8,300 square metres.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Jeff Buckley: From Hallelujah To The Last Goodbye
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Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
