UAE Agriculture Market Overview

Transcription

1 UAE Agriculture Market Overview AccEssMeeting Business Invest Road Show UAE-Russia October 29, 2014 Presented by: Sari Al Abdulrazzak, Head of MEED Insight

2 Table of Contents I Overview of UAE Land Area II Farmland Allocation in the UAE III Vegetable Products Net Trade IV Middle East Investments in Agriculture V UAE Companies Investments in Europe Case Study 1

3 71,024 59,435 UAE Agriculture Market: An Overview 4,027 2,564 2,447 1, % 10% 40% 10% 29% 23% 19% 3% 16% 20% 1.4% of the total land in Abu Dhabi is farmland. Abu Dhabi farmland accounts for 76% of the total farmland in the UAE as the emirate also accounts for ~84% of the total land of the country. The emirate of Abu Dhabi accounts for only ~41% of the Field Crops & Fodders and Vegetables farmland Figure 1: Land Area of the UAE (Sqr Km) Figure 2: Distribution of Land Use ( Sqr Km), % 4% Total = 991 Sqr Km Fruit Trees Field Crops & Fodders Vegetables Temporary Fallow Forests Other Land Figure 3: Share of Abu Dhabi Farmland (% of total land), 2012 Fruit Trees Field Crops & Fodders Vegetables Temporary Fallow Forests Other Land 2 Sources: UAE National Bureau of Statistics 2012; Note: 1 Dunum = 0.1 ha; 1 Dunom = Sqr Km

4 Farmland Allocation From 2010 to 2012, the total production of crop grew at 0.75% while the total farmland area declined by 2.61%. During the same period, cucumber and water melon witnessed the highest growth in production. Figure 4: UAE Production of Crop (Ton) 180, , , , , , , ,000 80,000 60,000 40,000 20, Figure 5: UAE Crop Production Area (Donum) 60,000 50,254 50,181 47,662 Total Others Leafy green Water Melon Cauliflower Cabbage Cucumber Squash Eggplants Tomatoes Total 50,000 40,000 30,000 20,000 10, Others Leafy green Water Melon Cauliflower Cabbage Cucumber Squash Eggplants Tomatoes 3 Sources: UAE National Bureau of Statistics 2012 Note: 1 Donum = 0.1 Ha

5 Vegetable Products Net Trade 21,112 8,831,159 24,297 9,532, , ,919 4,667 1,471,876 5,153 1,477,828 16,061 7,194,852 18,329 7,887,630 UAE is a net importer of vegetable products; imports grew by 5% in weight and 7% in value reaching 9.5 mn MT at AED 24bn ($6.6bn) in 2013 Figure 6: Vegetable Products Trade Statistics (MT) 12,000, ,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Imports Exports Re-Export Net Figure 7: Vegetable Products Trade Statistics (AED mn) ,000 25,000 20,000 15,000 10,000 5,000 0 Imports Exports Re-Export Net 4 Sources: UAE National Bureau of Statistics 2012.

6 Middle East Investments in Agriculture The Middle East governments and agriculture funds have been actively exploring investment in the African continent. African leaders continue to do routine visits to the Middle East to attract further investment into the continent. However, some European governments are also capitalising on the opportunity to attract investments into their countries Table 1: Middle East Cross-border Investments Target region/country Area of farmland (thousand hectares) Target region/country Area of farmland (thousand hectares) Africa Europe Algeria 31 Poland 3 Benin 2 Romania 50 Cote d Ivoire 300 Russia 10 Egypt Serbia 14 Ethiopia Spain 5 Ghana 60 Turkey 20 Liberia 15 Ukraine 33 Malawi 55 South America Mali Argentina Mauritania 2-52 Asia Morocco 700 Indonesia 100 Mozambique Laos 200 Namibia Pakistan Niger 16 Philippines Senegal 5-23 Sierra Leone 10 South Sudan 379-1,010 Sudan 577-2,629 Tanzania 7-50 Uganda 800 Zambia 5 5 Sources: Grain; Landmatrix; MEED (February 2014); Note: Table includes both proposed and finalised deals.

7 Agriculture Investment in Africa Although there are multiple opportunities to invest in agriculture and livestock in Africa, the challenges today are making these investments riskier and thus the UAE and other GCC states are starting to look into Europe to invest Opportunities for Investment in Africa Challenges for Investment in Africa Farming Climate Lack of Regulatory Transparency 1 1 Arable Land 4 Opportunities 2 Existing Investment Drought & Diseases 4 Challenges 2 Poor Infrastructure 3 3 Production Cost Political & Economic Instability 6 Sources: MEED Insight Analysis

8 Agriculture Investment in Europe The opportunities in investing in the European continent outweighs the challenges when compared to investment in Africa especially when it comes to food security Opportunities for Investment in Europe Challenges for Investment in Europe Farming Climate Production Cost 1 1 Arable Land 4 Opportunities 2 Available Infrastructure Currency & Inflation 4 Challenges 2 Logistics Cost 3 3 Favourable Investment Climate Political Instability in Some Eastern European Countries 7 Sources: MEED Insight Analysis

9 UAE Companies Investments in Europe Case Study Al Dahra Agriculture Company signed an agreement in January 2013 for a 300 mn investment with the Serbian government January 2013 Al Dahra Agriculture Company United Arab Emirates Partnership Agreement In Serbia Republic of Serbia Ministry of Finance Republic of Serbia 80% owned by Al Dahra Agriculture Company Al Dahra Agriculture Serbia 20% jointly owned by the Republic of Serbia and the City of Belgrade 300 mn Invest in eight farming companies Agreement Characteristics Develop 14,000 hectares of owned and leased farming land Invest in upgrading of agricultural machineries and technologies Develop existing agricultural lands for various crops cultivation such as wheat, barley, corn, soybeans, sugar beet, citrus fruits and alfalfa Strategic Objectives Long-term food security investment for the UAE Share of the production will be exported to the UAE Some will be sold domestically in the Republic of Serbia The remaining share will be sold to other countries 8 Sources: MEED Insight Analysis, Al Dahra Agriculture

10