New marketplace opens to help Emirati farmers go global and cut waste


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A new online marketplace will allow Emirati date farmers to sell off excess produce at home and abroad, cutting waste in the process.

Agthia Group's Al Fouh subsidiary has created eZad, which aims to help thousands of UAE producers deal with their unsold produce.

The majority of the UAE's 20,000 farms produce dates, harvesting more than 300,000 tonnes every year.

“Many farmers don’t have the expertise to sell and market their dates and sometimes they are not treated fairly,” said Mubarak Huthaili Al Mansoori, chief corporate affairs officer of Agthia Group, based in Abu Dhabi.

We have buyers form India, Malaysia, Indonesia, France, the UK and from different parts of the world - who all buy in tonnes not in kilos
Mubarak Huthaili Al Mansoori,
Agthia Group

“Traders would buy from them and pay them an advance and not pay the rest, for example. It would take them months to collect their credit, so what we have created is a safe channels where we connect traders with buyers both locally and internationally.”

Though dates are popular snacks throughout the year, especially during Ramadan and Eid, farmers always have product left over.

A single palm tree can produce more than 60 kilos of dates per year, making it difficult for farmers to sell all their dates before they spoil.

Subsidies for farmers exist and the government buys off excess produce, but the new platform is a far more efficient system.

More than a 1,200 buyers had already registered on eZad by the time it was launched this week. There was a soft launch of the electronic platform last year to gauge demand.

Farmers can exhibit their dates on the platform every day during the peak season, which runs from August to October, and farmers are paid within two weeks.

Mubarak Al Mansoori of Agthia Group says the new auction marketplace will help farmers to sell more and waste less. Khushnum Bhandari / The National
Mubarak Al Mansoori of Agthia Group says the new auction marketplace will help farmers to sell more and waste less. Khushnum Bhandari / The National

Ali Saeed, who owns a date farm in Ras Al Khaimah, attended the eZad launch in Abu Dhabi. He said new customers would help to make his business sustainable.

“There is absolutely no way that we could sell all our dates if the government doesn’t buy it off of us,” Mr Saeed said.

Agthia's Mr Al Mansoori said local and foreign buyers can check on the quality and condition of the produce before they purchase.

“We have a very rigorous inspection regime at our receiving centre,” he said.

“Then we take quality pictures of the dates so that the buyer anywhere in the world can start making bids within the auction.”

The online auction will be open daily for six hours between 12pm and 6pm

“This time is … suits the international buyers as well as the local ones. We have buyers form India, Malaysia, Indonesia, France, the UK and from different parts of the world — who all buy in tonnes not in kilos,” he said.

Prices of dates all depend on the variety, with bigger, juicier dates costing more.

Costs range from Dh2,500 ($680) per tonne to more than Dh20,000 ($5,450) for the finest on the market.

The next 10 days will be critical to farmers, Mr Al Mansoori said.

“We are optimistic but if we have a heatwave, the fruits are not going to grow too big,” due to a sweltering start to the summer, he said.

This would mean the dates would be smaller and prices would go down.

“The drying happens during July and the harvesting will be in August. These are the last 10 days we have for the fruit to grow before it changes colour and starts drying out and when it dries out it will lose weight,” he said.

“Date farming is not only critical to our food security but is also a strong part of our heritage and culture which we want to preserve.”

EZad is ready to receive dates at all seven Al Foah receiving centres around the emirates, he said.

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Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

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- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

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“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

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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.

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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.

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Updated: June 30, 2022, 4:19 AM