UAE aims to triple food production by 2030 to boost food security
The United Arab Emirates (UAE) is making significant strides in bolstering its food security, aiming to triple domestic food production by 2030, according to a new report released by CBRE.
Food security has long been a top priority for UAE leaders, with the Gulf region as a whole particularly vulnerable to supply challenges. This vulnerability was highlighted during the coronavirus pandemic, when global supply chain disruptions compounded existing issues such as rising demand.
With a harsh desert climate that does not lend itself well to producing large amounts of food, the UAE has long been a net food importer, relying on imports to meet local demand. Despite that, the UAE does produce large amounts of dates, along with limited amounts of vegetables, dairy, and poultry.
The UAE’s food and beverage exports rose by around 20% in the first half of 2024, a trend that is expected to continue. China, India, and the United States are the Emiratis’ top bi-lateral trade partners, with most trade being in metals, electrical equipment, vehicles, plastics, and other goods.
“The UAE is now playing an increasingly important role in servicing the needs of the Middle East region as a growing food processing and re-export hub,” said Matthew Green, head of research at CBRE.
“However, the country has also established itself as a growing testbed for AgTech and F&B-Tech (food and beverage tech) firms amidst the government’s push to attract global entrepreneurs and start-ups.”
Trade partnerships
The report highlights the UAE’s proactive approach to addressing food security challenges, driven by its 2051 Food Security Strategy. This strategy focuses on a two-pronged approach, which entails investing heavily in cutting-edge agricultural technologies and also forging strategic international trade partnerships.
The UAE’s push for increased domestic production involves embracing innovative techniques like vertical farming and hydroponics, while also improving the efficiency of traditional agricultural practices.
Recognizing the importance of raw material access, the UAE has also prioritized establishing strong trade relationships. A prime example is the Comprehensive Economic Partnership Agreement (CEPA), which is designed to reduce trade barriers and enhance market access for goods and services. This particularly benefits the food processing sector.
Looking beyond only domestic interests, the UAE is also focusing on strategic investments overseas. For example, the governments of the UAE and India signed an agreement in 2022 to develop the India-Middle East Food Corridor, which allows the UAE to buy and import food directly from food parks built in India at a cost of around $20 billion.
The UAE’s commitment to boosting food security coupled with the investments being made in innovative agricultural technologies indicate that the country is well-positioned to become a leader in food security solutions, which can also be deployed in other high-growth markets in the MENA region.
“The UAE’s food and beverage sector offers immense infrastructure opportunities across production, manufacturing, and trade,” said Harish Rajagopalan, director at CBRE.
“With its strategic geographic location connecting global markets, world-class logistics systems, and increasing investments in innovation and sustainability, the UAE is transforming into a hub for food production and manufacturing.”
