ABU DHABI // The UAE will produce its first sturgeon caviar this year, thanks to the world's largest and most technologically advanced caviar farm.
Video: Caviar farming in Abu Dhabi
Last Updated: June 8, 2011 UAE
The Royal Caviar Company served samples of what will be Abu Dhabi's home grown caviar.
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At its farm in Musaffah, the Royal Caviar Company now has about 7,000 Siberian sturgeon in its tanks. The fish, all 18 tonnes of them, were flown from Germany last month.
International officials all but shut down the wild caviar market in 2006, following concerns about overfishing of the endangered wild Caspian sturgeon.
As a result, the total world supply of caviar - about 120 tonnes a year - barely touches the sides of the global hunger for it, estimated at 400 tonnes a year. There is demand in the UAE alone for some 14 to 15 tonnes a year.
To meet that shortfall, sturgeon farms have been set up around the world, in Iran, France, Italy, Germany and Uruguay - and now in Abu Dhabi.
"It is very hard to get wild caviar any more because sturgeon are endangered species," said Robert Harper, the commercial director of Bin Salem, which owns the Musaffah factory.
Bin Salem has teamed up with United Food Technologies, a German company, to launch the farm, which at 50,000 square metres is four times the size of any other.
The factory will receive 120,000 fertilised sturgeon eggs from Germany. When these grow into adults and start producing eggs, the centre will hatch its own fish.
By the time it reaches full capacity, four years from now, the factory hopes to be producing 35 tonnes of caviar and 700 tonnes of sturgeon meat a year.
The plant aims to make maximum use of its produce. Rather than being discarded, all the skin and bones of the fish are used to make fertiliser. "This type of plant is the only one to produce caviar from a sustainable source," said Christoph Hartung, United's chairman.
The Dh420million project includes a recirculation system, which purifies the water in six weeks using a biological filter, and monitors the quality and temperature in a laboratory. It will also use ultrasound to check when the roe are ready.
"It's very important to have different temperatures in these plants: baby sturgeons must live at 15 degrees, fingerlings [about 15 centimetres] at 19 degrees and the final growth at 21 degrees," said Mr Hartung.
The German company has also offered the Abu Dhabi factory 20 rare albino sturgeon from Europe. These sturgeon have no pigmentation and their eggs, "diamond caviar", are completely white - and the most expensive in the world.
The project will have three different pilot operations to test various retail outlets, including hotels and supermarkets.
When it does go on sale in the UAE - expected to be before the end of 2012 - 1g of caviar will cost between Dh14 to Dh22.
Eventually, the factory should be able to produce enough for export to Europe, the Far East and North America.
"The Middle East and the GCC represent an excellent market for us," said Mr Hartung.
"Abu Dhabi also has a good supply of power for the plant and it helps to improve the sturgeon's living environment."
cmalek@thenational.ae
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.
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