Photo: iStock
Otília Sári
31/03/2025 22:07
This is particularly true for the food industry, as most of the country lacks arable land suitable for traditional agriculture, and extreme weather conditions further hinder production. As a result, the UAE imports approximately 85 per cent of its food, primarily from India, Brazil, the UK, and the US. During the pandemic, authorities had to assess food stock levels and calculate how long the reserves would last. The crisis disrupted distribution channels and underscored the need for a more strategic and resilient food storage plan to mitigate future geopolitical tensions, pandemics, and supply chain shocks—an issue that quickly became relevant again with the Russia-Ukraine war and rising tensions in the Red Sea, leading to longer and more expensive shipping routes.
In response, the UAE accelerated the implementation of its National Food Security Strategy 2051, launched in late 2018, which aims to ensure that 50 per cent of the country's food supply comes from local production by 2051. This strategy takes a holistic approach to food security by diversifying import sources, reducing food waste, and enhancing food safety and quality.
The country's rapid response to the crisis was particularly evident in its investments in agricultural technology, spearheaded by state-owned enterprises. The UAE is home to Bustanica, the world’s largest indoor vertical farm, which produces over 1 million kilograms of fresh vegetables annually, using 95 per cent less water and completely eliminating the need for chemicals. Emirates airline passengers benefit directly, as fresh produce from Bustanica is served onboard. In 2024, the facility became part of Emirates Flight Catering. Meanwhile, Carrefour, the UAE’s largest supermarket chain, has introduced indoor hydroponic mini-farms, allowing customers to witness fresh produce growing in-store.
The government is also actively supporting agritech startups. The Abu Dhabi Investment Office (ADIO) has allocated $200 million to fund early-stage agritech companies, while the Emirates Development Bank (EDB) has launched innovative financing solutions, including an agritech loan program for emerging startups.
The UAE’s food security strategy is not just about reducing import dependency—it also aims to promote local production. More local products are appearing on supermarket shelves, reducing reliance on imports, creating jobs, boosting GDP, and shortening supply chains, ensuring fresher food for consumers.
One of the most ambitious initiatives is Food Tech Valley, a massive 18-million-square-meter project designed to establish a comprehensive food security ecosystem for local, regional, and global producers. It will encompass everything from cultivation and R&D to logistics and waste management. The GigaFarm project, which will be housed within Food Tech Valley, is set to produce over 3 million kilograms of crops annually using AI-driven vertical farming technology developed by IGS.
With a global population of 8 billion, food security remains a critical challenge, and the UAE has positioned itself as a key player in food trade. Dubai is already a global hub for food commerce, and its ambitious plan aims to double the size of the fresh produce market. In 2024, a major agreement was signed to establish the world’s largest food-trading logistics hub, operated by DP World.
The UAE exports food primarily to neighboring countries such as Iraq, Saudi Arabia, Kuwait, Oman, and Iran, and the food sector is projected to grow at a 4.89 per cent CAGR from 2024 to 2028. The region’s strong purchasing power, favorable tax policies, and efficient logistics infrastructure make it an attractive market for food producers, acting as a bridge between East and West. While the UAE offers a strategic entry point for businesses looking to expand in the region, competition is fierce. Success requires innovation, strategic planning, and market adaptation.
The author is the deputy head of the commercial department at a Dubai-based conglomerate