DUBAI AGRICULTURE GUIDE. Sowing the Seeds for the Future

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1 DUBAI 2019 GUIDE Sowing the Seeds for the Future 1

2 CONTENTS OVERVIEW FUTURE GROWTH GOVERNMENT SUPPORT WHY DUBAI? 15 TRADE EVENTS Report dated December

3 OVERVIEW 1 Food consumption in the UAE is currently growing 12% annually, with the value of food imports predicted to increase from US$3 billion in 2011 to US$8.4 billion by 2020 to meet demand. Food imports are expected to rise from US$100 billion in 2014 to over US$400 billion by Around 70% of these imports are re-exported, constituting the UAE as a strategic hub for global food trade. 3

4 OVERVIEW Dubai is further poised to capitalise on its global gateway and re-export hub positioning in this fast-moving sector, with global fresh food sales estimated to rise by 13% by 2020 equating to million tons in volume. In addition, Dubai is also ideally placed to target the worldwide halal industry, forecasted to reach US$3.7 trillion by Currently, the value of the UAE halal food industry is US$18.8 billion whereas overall food consumption in the UAE is growing due to the influx of tourists and population growth. Estimates, indicate the current 9.34 million residents will increase to 11.5 million by As food security and safety becomes an increasingly pressing issue around the world, the UAE is already looking ahead to secure its own food future and lead the world as the most food secure country by 2071, with a plan that includes investing in local farms and the latest agricultural technology, as well as enforcing the strictest standards of food safety. $3.7T Worth of Halal industry worldwide by 2019 UAE POPULATION GROWTH M M GLOBAL FRESH FOOD SALES ESTIMATED TO RISE TO 13% BY MILLION TONS UAE HALAL FOOD INDUSTRY WORTH $18.8B in

5 OVERVIEW FOOD SECURITY IN THE UAE Despite importing 80-90% of its food supplies, the UAE is already considered food secure largely due to its capacity to purchase food on the international market, thanks to its economic and political stability; at the same time it addresses food security challenges by focusing on domestic production, high-tech agriculture, research and development (R&D), subsidisation and stockpiling policies, and food loss strategies % of food supplies in UAE are imported The UAE is FOOD SECURE due to economic and political stability The 5 UAE food focus points domestic production high-tech agriculture research and development (R&D) subsidisation and stockpiling policies food loss strategies 5

6 FUTURE GROWTH 2 The projected food consumption in the Gulf Cooperation Council (GCC) region between will see a compound annual growth rate of 4.2%. Therefore, the UAE is looking ahead to the goal of making the top 20 list of most food-secure countries by 2021 by investing in aggrotech. With less than 7% available arable land and the challenge of a brief farming season, innovation, government support, and new technologies are sowing the seeds for agricultural sector growth in Dubai. Soil-less farming solutions, greenhouse gas technology, and hydroponics are all being harnessed to meet the average 12 per cent per year rise in food consumption in the UAE. PROJECTED FOOD CONSUMPTION IN GCC 4.1% compound annual growth rate by2021 from 48.1M metric tonnes in 2016 HYDROPONIC FARMING 1,000 hydroponic greenhouses in 2016 The UAE has prioritised the use of hydroponic technology among farmers, who rely on nutrient-rich water to grow plants with the use of little or no soil. This revolutionary method reduces water usage by up to 70 per cent while avoiding harmful chemicals and allowing for a longer growing season. Hydroponic technology also requires a smaller footprint area to produce more crops. The technique was first introduced in the UAE in 2009, and the number of hydroponic greenhouses steadily grew to 1,000 by the end of Quality seeds, greenhouses, and research and development services have been offered to farmers to encourage them to adopt hydroponics and organic farming. Emirates Hydroponics Farms (EHF) between Abu Dhabi and Dubai is among the country s largest hydroponic agricultural producers. Other hydroponic experts include Pegasus Agritech in Dubai and Salata Farms in Ras Al Khaimah. 6

7 FUTURE GROWTH VERTICAL FARMING There is also a focus on vertical expansion and growing crops on the roofs of office blocks or in vertical stacks could be a way of feeding the future population of Dubai. Emirates airline will build the world s largest vertical farming facility in Dubai, in a US$40 million partnership with Crop One, a California-based firm. The 130,000 square foot facility will be located near Al Maktoum International Airport at Dubai World Central, and at full productivity it will produce 2,700kg of herbicide-free and pesticide-free leafy greens every day. Launched in May 2018, Badia Farms was the first vertical farm to open its doors in Dubai. The 8,500sqft warehouse uses hydroponic technology to grow in-demand micro-greens and herbs for many restaurants. Projects like Badia Farms hope to not only close the gap between the farm and table but to help Dubai become globally recognised as a fruit and vegetable producer. WORLD S LARGEST VERTICAL FARMING FACILITY To be built in Dubai $40M Partnership Emirates airline + CropOne 13,000ft 2 facility near DWC 2,700kg produce of herbicide-free & pesticide-free leafy greens per day OPPORTUNITIES IN FOOD PROCESSING 6 00 manufacturing firms The food processing industry has emerged as a significant subsidiary in the agricultural sector accounting for over 10% of the industrial production with over 600 manufacturing firms, including small and medium-sized enterprises as well as subsidiaries of global multinationals. 7

8 GOVERNMENT SUPPORT 3 Although the government has traditionally provided financial subsidies for every aspect of farming, new policies have been implemented in an attempt to make farmers more self-reliant. The Ministry of Climate Change and Environment has initiated a new project to survey and map agricultural areas using unmanned aerial vehicles or drones. Cutting-edge technology is being used to generate high-resolution aerial data including topographic mapping, contouring, vector mapping and textured 3D city models. This data will be further analysed to produce accurate statistical information that aids agricultural production. Cutting-edge technology is being used to generate high-resolution aerial data 8

9 GOVERNMENT SUPPORT Also, the UAE Space Agency hosted a Japanese delegation for discussions about the possible application of space technology in farming. This includes the development of survey and mapping satellites that can monitor plant growth, as well as help in early detection of farmland diseases. OFFSHORE INVESTMENT And through an offshore agricultural investment policy to help secure a guaranteed food supply, overseas projects in Namibia, South Africa, and Sudan have been funded with the aim to cease domestic wheat production to conserve water. Investments have been made through 28 agricultural deals covering roughly 1 million hectares of land for agricultural use worldwide. 28 agricultural deals covering roughly 1,000,000 hectares of land for agricultural use worldwide 9

10 GOVERNMENT SUPPORT The government has also launched the Mawroothna privilege card, which offers farmers discounts and other benefits to incentivise them to continue developing their businesses. Since 2011, over 50 organically certified farms in the UAE have been established, with more farms and organic solutions in the pipeline. Dubai s future food sustainability will most likely be rooted in technology, and businesses are actively participating in this drive. While farmers markets such as Ripe Market have moved online, food apps like BonApp are trying to reduce food waste by offering unsold restaurant food at reduced prices. In 2017, Dubai-developer MERAAS joined IKEA and Chef David Chang as an investor in AeroFarms, an indoor agriculture tech startup that uses aeroponic technology. This method involves growing plants in an air or mist environment without the use of soil. Dubai Municipality is developing an app called Food Watch that will oversee over 20,000 food establishments to achieve high levels of safety in the lead up to EXPO 2020 Dubai, the first World Expo to be hosted in the MEASA region. FOOD WATCH app to monitor 20,000 food establishments 1010

11 GOVERNMENT SUPPORT RESEARCH AND TRAINING Dubai-headquartered International Centre for Biosaline Agriculture (ICBA) is also piloting a prototype next-generation greenhouse that uses 90 per cent less water and 50 per cent less energy than a conventional alternative. Researchers at ICBA have identified crops and seeds that could thrive in a desert environment. They are also creating facilities for seed production and training farmers to produce these seeds and handle productive genotypes to adopt them on a larger scale. Dubai launched $1.5B F&B logistics park DUBAI FOOD PARK Most recently, Dubai has launched a US$1.5 Billion F&B logistics park; aptly named Dubai Food Park will be a dynamic food hub creating opportunities for companies around the world to capitalise on global food trading demands. 11

12 WHY DUBAI? 4 LOCATION & CONNECTIVITY Dubai is a key connecting hub between the markets of the East and West Ideally located to bridge the crucial time zone gap between the markets of the East and West to enable 24/7 services and connectivity. Easily accessible through two international airports Dubai International (DXB) and Dubai World Central (DWC) within a 4 hour flight of one-third of the world s population, and within 8 hours of two-thirds. 90 airlines operate 6,500 flights a week from DXB, to 240 destinations. 15 passenger carriers operate an average of 153 flights weekly to more than 30 international destinations across 10 countries from DWC. DUBAI A KEY HUB 6,500 flights a week 240 destinations DXB passenger numbers are projected to reach million by 2020 while passenger traffic across Dubai s two primary airports is forecasted to rise to 200 million by Home to the world largest manmade port Jebel Ali a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expansions currently underway at the Port will bring total handling capacity to 22.1 million TEU by World largest manmade port connecting 140 worldwide With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia. Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the period. $34B non-oil trade value with Africa Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by

13 WHY DUBAI? TALENT POOL Dubai is an incubator for exceptional home-grown talent and a magnet for the world s most ambitious, sophisticated and forward-thinking scientists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world. Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Consulting Group. The Dubai government is implementing talent attraction strategies designed to increase its intake of knowledge workers by 40% by Dubai is home to over 200 nationalities, bringing together one of the world s richest and most diverse pool of languages and skills to suit any business. The UAE ranks 4th globally in availability of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking

14 WHY DUBAI? FOREIGN DIRECT INVESTMENT DUBAI Dubai ranks among the top 10 international cities in attracting foreign investment estimated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innovation and high productivity. Foreign direct investment has played an instrumental role in realising these achievements through its contribution to job creation and technology diffusion. Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as location for AI & Robotics. Top 10 international cities Foreign investment $7.4B in 2017 Increase 7.1% 1414

15 TRADE EVENTS 5 AGRAME 2019 Officially endorsed by the UAE Ministry of Climate Change and Environment, AgraME is the longest running and only show in the Middle East and Africa to bring together four dedicated product sectors - Crop Farming, Animal Farming, Aquaculture, and Animal Health. The event provides a global forum for interaction with manufacturers, suppliers, investors, and government bodies. The event is held annually at the Dubai World Trade Centre AgraME is the only show in the MENA region to offer a diverse mix of products catering for all needs of farming and veterinary professionals. 1515

16 TRADE EVENTS Quality global suppliers offering organic and natural products from over 50 countries are present at the expo MIDDLE EAST ORGANIC & NATURAL PRODUCTS EXPO 6,000 visitors The Middle East Organic & Natural Products Expo is the only dedicated trade fair of its kind in the region. A wide range of organic and natural products are represented at the event, with sectors dedicated to food and beverages, beauty, and the environment. The event has been running for the past 15 years, and 2016 s edition registered more than 6,000 visitors. Attendees can expect three days of networking opportunities with fellow professionals, as well as educational sessions, talks, and seminars led by international experts. The event is held annually at the Dubai World Trade Centre 1616

17 TRADE EVENTS GULFOOD Celebrating its 24 th edition in 2019, Gulfood is the world s largest annual food, beverage and hospitality exhibition which attracts F&B professionals from all over the world to Dubai. Since its launch in 1987, the exhibition has grown to promote F&B trade between more than 180 countries annually. In 2018 Gulfood set records with 97,000 visitors attending and over 5,000 companies from over 185 different countries exhibiting their products. The event is held annually at the Dubai World Trade Centre 97,000 visitors 5,000 companies 185 countries It s clear Gulfood is a worldwide event and a key vehicle to boost exports. The show is a gateway into new markets where we see growing consumer spending power. 1717

18 TRADE EVENTS Demand for food processing machinery in the MENA region will reach US$1.45 billion by 2019 GULFOOD MANUFACTURING 1,600 global suppliers from 60 countries Gulfood Manufacturing is the region s biggest food and beverage processing industry event which connects participants with suppliers from 60 countries showcasing the latest F&B manufacturing business improvement tools. At Gulfood Manufacturing 1,600 global suppliers of latest ingredients, processing, packaging and logistics solutions help visitors solve their biggest production, capacity and automation challenges. The event is held annually at the Dubai World Trade Centre 1818

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