Salmon farming on land, Fitbit-style devices for cattle and acres of greenhouses producing vegetables in a Mediterranean environment — the face of farming in the UAE is changing fast.
With a 70 per cent increase in global food demand expected by 2050, and climate change affecting agricultural production, innovation is proving the key to easing food insecurity.
A campaign by the Ministry of Climate Change and Environment aims to unite businesses with innovation and funding to tackle such issues.
Local farms are at the heart of the National Dialogue for Food Security, which will be supported to become major suppliers in the UAE to help reduce the reliance on imported goods.
There is potential to localise sourcing for many of the UAE's food needs and to do so in a way that is sustainable, economic and environmentally sound
Sky Kurtz,
Pure Harvest chief executive
The project will develop a platform for emerging innovation in food production to improve the use of hydroponic, aeroponic and aquaponic farming that uses minimal resources to produce a high yield of fresh fruit and vegetables while providing a gateway into the mass market.
The drive aims to increase domestic production and self-sufficiency of selected food items and improve the income of UAE farms without compromising food trade.
Under the plan, bodies will increase their purchases of fresh national food products to 50 per cent by the end of this year, 70 per cent by 2025 and 100 per cent by 2030.
Food products and plant varieties identified in the first phase include red meat, poultry, eggs and other dairy products, dates, leafy vegetables, tomatoes, cucumbers, peppers and aubergine. A study is currently being conducted to identify more products for the second phase.
Mariam Al Mheiri, Minister of Climate Change and Environment, Minister of State for Food Security, said recent global crises have underlined the need for promoting food security in the UAE.
"To promote food security, the UAE has taken strategic steps, such as deploying advanced technology to strengthen the local food production sector, enhancing its contribution to closing the food gap and tackling food loss and waste by launching several initiatives, like Ne'ma, to promote the sustainability of national farms," she said.
"These initiatives aim to enhance food security in the UAE by boosting production and marketing effectiveness for local farms, particularly those following a modern and sustainable approach."
Ne'ma — Arabic for blessing — is a campaign aimed at curbing food loss and waste by encouraging responsible consumption.
At a meeting on Monday to discuss the latest developments, it was revealed a farm in Maliha in Sharjah had produced more than 15,000 tonnes of protein-enriched wheat.
It is the latest example of how staple foods can be produced sustainably in the UAE.
The planet’s population is expected to swell to 9.5 billion by 2050, with climate change continuing to cause extreme weather events and drought which heavily impact food production.
With freshwater sources also depleting, scientists have turned to innovation to solve these global issues.
The Ministry of Climate Change and Environment's recent statistics show there are 38,000 farms operating in the UAE.
Total UAE vegetable production is about 156,000 tonnes annually, with more than 500 tonnes of field crops and feed, while fruit production is about 200,000 tonnes.
Domestic production of vegetables currently meets more than 20 per cent of the total demand in the country.
Precision farming, using data science and agricultural engineering, has increased yields, while high-tech greenhouses and vertical farms are reducing the need for water.
In livestock agriculture, gene editing, bio-engineering and smart tech to monitor cattle more closely are being used to increase meat production to keep up with consumer demand and close the food price gap.
Alternative proteins with more food derived from non-animal sources are also likely to become more common, using insects and plant-based meats.
Farming innovation
Health trackers worn by dairy cattle — known as rumination collars — keep track of their health and food consumption, monitoring production and allowing farm managers to oversee a large herd more effectively.
An innovation already in widespread use across the country is salmon farming on land, using huge tanks to replicate the fish’s life-cycle in the wild.
Fish were identified as one of the UAE’s strategic food items under the 2018 Food Security Strategy.
At about 30kg per capita, it has among the fish highest consumption in the GCC, according to the UN Food and Agriculture Organisation.
In 2019, domestic fish made up only 8 per cent of UAE consumption but that is beginning to change, with farmed salmon controlled in freshwater tanks (which are transferred to seawater as they grow) proving an efficient method of sustainable production.
Added to these innovative farming methods, the growing of fruit and vegetables in the arid desert has become one of the biggest success stories.
In huge temperature-controlled farming tunnels and domes, Pure Harvest Smart Farms has created the perfect Mediterranean climate to produce impressive yields of fruit and vegetables in Al Ain.
With temperatures regulated to between 14°C-32°C, tomatoes, green leafy vegetables and berries are produced using only a 30th of the amount of water usually required.
“This shows what can be done,” said Sky Kurtz, chief executive of Pure Harvest, a smart farm producing around 18 metric tonnes of food a week.
“Change [in the way we produce food] will require investment and re-education.
"There is potential to localise sourcing for many of the UAE's food needs and to do so in a way that is sustainable, economic and environmentally sound.”
By the end of this year, the UAE hopes local farms and producers will be able to supply half of some basic food requirements, such as greens, tomatoes, meat and poultry, with an ambition to double that target by 2030.
“This will require a co-ordinated effort between the government and the private sector,” said Mr Kurtz.
"Many of the technology-enabled food production solutions that are necessary to produce food year-round in the UAE require capital, scale and know-how to deliver.
“The more that the government can do to support the many elements that underpin the fundamental business cases of these solutions, the better.”
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
The Byblos iftar in numbers
29 or 30 days – the number of iftar services held during the holy month
50 staff members required to prepare an iftar
200 to 350 the number of people served iftar nightly
160 litres of the traditional Ramadan drink, jalab, is served in total
500 litres of soup is served during the holy month
200 kilograms of meat is used for various dishes
350 kilograms of onion is used in dishes
5 minutes – the average time that staff have to eat
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
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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.”
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
Ways to control drones
Countries have been coming up with ways to restrict and monitor the use of non-commercial drones to keep them from trespassing on controlled areas such as airports.
"Drones vary in size and some can be as big as a small city car - so imagine the impact of one hitting an airplane. It's a huge risk, especially when commercial airliners are not designed to make or take sudden evasive manoeuvres like drones can" says Saj Ahmed, chief analyst at London-based StrategicAero Research.
New measures have now been taken to monitor drone activity, Geo-fencing technology is one.
It's a method designed to prevent drones from drifting into banned areas. The technology uses GPS location signals to stop its machines flying close to airports and other restricted zones.
The European commission has recently announced a blueprint to make drone use in low-level airspace safe, secure and environmentally friendly. This process is called “U-Space” – it covers altitudes of up to 150 metres. It is also noteworthy that that UK Civil Aviation Authority recommends drones to be flown at no higher than 400ft. “U-Space” technology will be governed by a system similar to air traffic control management, which will be automated using tools like geo-fencing.
The UAE has drawn serious measures to ensure users register their devices under strict new laws. Authorities have urged that users must obtain approval in advance before flying the drones, non registered drone use in Dubai will result in a fine of up to twenty thousand dirhams under a new resolution approved by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.
Mr Ahmad suggest that "Hefty fines running into hundreds of thousands of dollars need to compensate for the cost of airport disruption and flight diversions to lengthy jail spells, confiscation of travel rights and use of drones for a lengthy period" must be enforced in order to reduce airport intrusion.
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The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
KILLING OF QASSEM SULEIMANI
KILLING OF QASSEM SULEIMANI