Agribusiness in the UAE: Challenges and Technological Advancements, A Review
DOI:
https://doi.org/10.54536/ajaset.v9i1.3103Keywords:
Agribusiness in UAE, Economic Diversification, Sustainable Agriculture, Vertical Farming, Water Scarcity SolutionsAbstract
This review comprehensively analyses the agribusiness landscape in the United Arab Emirates (UAE), highlighting the challenges and strategic responses that shape the sector. The UAE’s agribusiness is pivotal for economic diversification and reducing oil dependency. However, it faces significant obstacles due to the harsh desert climate, limited arable land, and freshwater scarcity. Soil salinity and water constraints necessitate innovative agricultural practices. Technological innovations such as vertical farming and hydroponics, alongside government initiatives like the ‘National Food Security Strategy 2051’, are crucial for sustainable agriculture. The paper examined the UAE’s reliance on food imports and the associated risks, including supply chain disruptions and market volatility. It outlines resilience strategies such as crop diversification, supply chain improvements, and continuous innovation. Through case studies of pioneering enterprises like Pure Harvest Smart Farms and Al Dahra, the paper showcases successful applications of climate-resilient crops and advanced farming techniques. These firms demonstrate the potential for successful agribusiness despite environmental challenges. The paper concludes that addressing these challenges is vital for the UAE’s food security, ensuring a stable food supply, and supporting a diversified, sustainable economy. Investment in AgriTech, research, innovation, and strategic policy implementation are key to the future of agriculture in the UAE.
Downloads
References
Abdullah, M. J., Zhang, Z., & Matsubae, K. (2021). Potential for food self-sufficiency improvements through indoor and vertical farming in the Gulf Cooperation Council: Challenges and opportunities from the case of Kuwait. Sustainability, 13(22), 12553.
ADIO allocates $100 million to four agritech companies. (2020). The Arab Weekly. https://english.aawsat.com/home/article/2226256/abu-dhabi-invest-100m-four-agricultural-tech-firms?_wrapper_format=html&page=1
Agri-Tech in the UAE: Industry landscape 2024-2025. (2024). Ollen Group. https://ollengroup.com/en/insights/article/agritech-industry
Agriculture sector in UAE to contribute AED 19.3 bn to GDP by 2025. (2022).
Economy Middle East. https://economymiddleeast.com/news/agriculture-sector-in-uae-to-contribute-aed-19-3-bn-to-gdp-by-2025/
Ahmed, A. (2023). Developing strategy for integrating sustainability in UAE higher education institutions towards UAE strategic initiative net zero 2050. In 2023 International Conference on Computational Intelligence and Knowledge Economy (ICCIKE).
Al-Qodsi, E. M., Jadalhaq, I. M., & El-Maknouzi, M. E. H. (2024). The place of UAE’s food security in the national legislation and its role in supporting global food security. Cogent Social Sciences, 10(1), 2319379.
Al Qubaisi, A. A., Dol, S. S., Khan, M. S., & Azeez, A. A. (2018). Feasibility study and design of floating offshore wind turbine farm in the United Arab Emirates. In 2018 Advances in Science and Engineering Technology International Conferences (ASET).
Alfaki, I., & Ahmed, A. (2017). From oil to knowledge: Transforming the United Arab Emirates into a knowledge-based economy. Routledge.
Amhamed, A., Genidi, N., Abotaleb, A., Sodiq, A., Abdullatif, Y., Hushari, M., & Al-Kuwari, M. (2023). Food security strategy to enhance food self-sufficiency and overcome international food supply chain crisis: The state of Qatar as a case study. Green Technology, Resilience, and Sustainability, 3(1), 3.
Antwi‐Boateng, O., & Al Jaberi, N. H. S. (2022). The post‐oil strategy of the UAE: An examination of diversification strategies and challenges. Politics & Policy, 50(2), 380-407.
Baldwin, R., & Freeman, R. (2022). Risks and global supply chains: What we know and what we need to know. Annual Review of Economics, 14, 153-180.
Barnard, F. L., Foltz, J., Yeager, E. A., & Brewer, B. (2020). Agribusiness management. Routledge.
Bocanet, A., Alpenidze, O., & Badran, O. (2021). Business analysis in post-pandemic era. Academy of Strategic Management Journal, 20(4), 1-9.
Brahimi, T., & Bensaid, B. (2019). Smart villages and the GCC countries: Policies, strategies, and implications. In Smart Villages in the EU and Beyond (pp. 155-171). Emerald Publishing Limited.
Dadashi, Z., Mahmoudi, A., & Rashidi, S. (2022). Capacity and strategies of energy production from renewable sources in Arab countries until 2030: A review from renewable energy potentials to environmental issues. Environmental Science and Pollution Research, 29(32), 47837-47866.
Dadhich, S., Sharma, S., & Kumawat, S. (2023). Price volatility in agricultural market. In Emerging Trends in Agricultural Economics and Agribusiness: An Edited Anthology (p. 248).
Dahan, S. E. S., & El Maknouzi, M. E. H. (2023, October 17). Exclusive: UAE agribusiness in talks to acquire land in Egypt, sources say. Reuters. https://reuters.com/markets/commodities/uae-agribusiness-talks-acquire-land-egypt-sources-2023-10-17/#:~:text=Emirati%20agribusiness%20Al%20Dahra%20is,also%20reignite%20water%20use%20concerns
Davis, J. H., & Goldberg, R. A. (1957). A concept of agribusiness. Harvard University, Division of Research Graduate School of Business.
Degefa, B. (2022). Food security in the UAE. In Facets of Security in the United Arab Emirates (pp. 88-98). Routledge.
Despommier, D. (2020). Vertical farming systems for urban agriculture. In Achieving Sustainable Urban Agriculture (pp. 143-172). Burleigh Dodds Science Publishing.
El-Dukheri, I., & Amer, K. M. (2024). Role of the Arab Organization for Agricultural Development in promoting agricultural development and food security in the Arab region. In Food and nutrition security in the Kingdom of Saudi Arabia, Vol. 1: National analysis of agricultural and food security (pp. 29-64). Springer.
Ellis, J. (2021, July 28). Pure Harvest is not just a vertical farm, but a ‘veridical’ one, says CEO. AgFunderNews. https://agfundernews.com/pure-harvest-smart-farms-grows-veridically-as-well-as-vertically-in-middle-east
Fatnassi, H., Zaaboul, R., Elbattay, A., Molina-Aiz, F., & Valera, D. (2022). Protected agriculture systems in the UAE: Challenges and opportunities. In XXXI International Horticultural Congress (IHC2022): International Symposium on Innovative Technologies and Production (pp. 1377).
FoodTech Challenge. (2021). About FoodTech Challenge. FoodTech Challenge. https://foodtechchallenge.com/about-foodtech-challenge/
Fragaszy, S., & McDonnell, R. (2016). Oasis at a crossroads: Agriculture and groundwater in Liwa, United Arab Emirates. In IWMI Project Publication—Groundwater Governance in the Arab World—Taking Stock and Addressing the Challenges (USAID). IWMI.
Frenken, K. (2009). Irrigation in the Middle East region in figures: AQUASTAT Survey–2008 (Water Reports No. 34). FAO.
Gazdecki, M. (2018). Factors of business relationships change in agribusiness input distribution channel: The case of Polish market. IMP Journal, 12(3), 567-582.
Goh, L. (2022). How agritech is transforming traditional agriculture in emerging markets. In Breakthrough: The Promise of Frontier Technologies for Sustainable Development (p. 125).
Hassen, T. B., & El Bilali, H. (2019). Food security in the Gulf Cooperation Council countries: Challenges and prospects. Journal of Food Security, 7(5), 159-169.
Hebebrand, C., & Laborde Debucquet, D. (2023). High fertilizer prices contribute to rising global food security concerns.
Hussain, M. I., Muscolo, A., Farooq, M., & Ahmad, W. (2019). Sustainable use and management of non-conventional water resources for rehabilitation of marginal lands in arid and semiarid environments. Agricultural Water Management, 221, 462-476.
Indira, D., Aruna, P., Kanthi, S. S., & Kumar, K. (2020). Hydroponics as an alternative fodder for sustainable livestock production. World Journal of Advanced Research and Reviews, 5(2), 87-92.
Innovating for Impact: Creating conditions for growth with Pure Harvest Smart Farms. (2024). Retrieved from https://blog.tranetechnologies.com/en/home/solutions-innovation/creating-conditions-for-growth-with-pure-harvest-smart-farms.html
Innovation and investment in agritech. (2024). Retrieved from https://www.visitdubai.com/en/invest-in-dubai/insights-and-resources/news-insights/food-agriculture-guide/innovation-investment-agritech
Ioris, A. A. (2018). The politics of agribusiness and the business of sustainability. MDPI, 10(1648).
Ismail, S., Rao, N. K., & Dagar, J. C. (2019). Identification, evaluation, and domestication of alternative crops for saline environments. In Research Developments in Saline Agriculture (pp. 505-536).
King, R. P., Boehlje, M., Cook, M. L., & Sonka, S. T. (2010). Agribusiness economics and management. American Journal of Agricultural Economics, 92(2), 554-570.
Knittel, C. R., & Pindyck, R. S. (2016). The simple economics of commodity price speculation. American Economic Journal: Macroeconomics, 8(2), 85-110.
Koch, N. (2019). AgTech in Arabia: 'Spectacular forgetting' and the technopolitics of greening the desert. Journal of Political Ecology, 26(1), 666-686.
Luomi, M. (2015). The international relations of the green economy in the Gulf: Lessons from the UAE's state-led energy transition.
Mac Clay, P., & Feeney, R. (2019). Analyzing agribusiness value chains: A literature review. International Food and Agribusiness Management Review, 22(1), 31-46.
Manikas, I., Sundarakani, B., Anastasiadis, F., & Ali, B. (2022). A framework for food security via resilient agri-food supply chains: The case of UAE. Sustainability, 14(10), 6375.
Mohamed, M. M., & Elmahdy, S. I. (2015). Natural and anthropogenic factors affecting groundwater quality in the eastern region of the United Arab Emirates. Arabian Journal of Geosciences, 8, 7409-7423.
Mrówczyńska-Kamińska, A., & Bajan, B. (2019). Importance and share of agribusiness in the Chinese economy (2000–2014). Heliyon, 5(11).
National Food Security Strategy 2051. (2024). UAE Government. https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/strategies-plans-and-visions/environment-and-energy/national-food-security-strategy-2051
National, T. (2020, April). ADIO allocates $100 million to four agritech companies. Wamda. https://www.wamda.com/2020/04/adio-allocates-100-million-agritech-companies
Roche, J. (2019). Agribusiness: An International Perspective. Routledge.
Saraswat, S., & Jain, M. (2021). Adoption of vertical farming technique for sustainable agriculture. In Climate Resilience and Environmental Sustainability Approaches: Global Lessons and Local Challenges (pp. 185-201).
Shahin, S. M., & Salem, M. A. (2015). The challenges of water scarcity and the future of food security in the United Arab Emirates (UAE). Natural Resources and Conservation, 3(1), 1-6.
Shahin, S. M., & Salem, M. A. M. (2015). Food security in the United Arab Emirates (UAE): The great competition between the agricultural and forestry sector on irrigation resources. International Journal of Research in Science, 1(1), 19-23.
Sharaf, A. (2019). Urban sprawl in arid environments: Contrasting master plans and land use changes in Al Ain City, United Arab Emirates.
Sharma, A. (2023, November 9). Sheikh Hamdan approves initiatives to boost Dubai's industrial and agriculture sectors. The National. https://www.thenationalnews.com/business/economy/2023/11/09/sheikh-hamdan-approves-initiatives-to-boost-dubais-industrial-and-agriculture-sectors/
Sharma, N., Acharya, S., Kumar, K., Singh, N., & Chaurasia, O. P. (2018). Hydroponics as an advanced technique for vegetable production: An overview. Journal of Soil and Water Conservation, 17(4), 364-371.
Sharma, R., Wahbeh, S., Sundarakani, B., Manikas, I., & Pachayappan, M. (2024). Enhancing domestic food supply in the UAE: A framework for technology-driven urban farming systems. Journal of Cleaner Production, 434, 139823.
Sherif, M., Sefelnasr, A., Al Rashed, M., Alshamsi, D., Zaidi, F. K., Alghafli, K., Baig, F., Al-Turbak, A., Alfaifi, H., & Loni, O. A. (2023). A review of managed aquifer recharge potential in the Middle East and North Africa Region with examples from the Kingdom of Saudi Arabia and the United Arab Emirates. Water, 15(4), 742.
Seric, A., & Tagliapietra, S. (2019). Progress and the future of economic diversification in UAE. UNIDO. https://iap.unido.org/articles/progress-and-future-economic-diversification-uae
Sisodia, G. S., Alshamsi, R., & Sergi, B. S. (2021). Business valuation strategy for new hydroponic farm development–A proposal towards sustainable agriculture development in United Arab Emirates. British Food Journal, 123(4), 1560-1577.
U.S.-U.A.E. Business Council. (2021). U.A.E. AgTech sector. https://usuaebusiness.org/wp-content/uploads/2021/02/Technology-Series-AgTech-Report-Draft-4.pdf
Yadav, G. (2023). Agriculture: Meaning, scope, and types. International Journal on Advanced Science, Engineering and Information Technology, 10(2), 1704. https://doi.org/10.18517/ijaseit.10.2.12984