Page 49 - AA 2023 Year Book Website

UAE

UNITED ARAB EMIRATES AGRICULTURE

MARKET ANALYSIS

• Agriculture in the United Arab Emir- According to FAOSTAT, a lot of com- Agriota and developed with India’s
ates is projected to register a CAGR of modities such as tomatoes, production CropData Technology, enables trading
5.2% during the forecast period. fell in the year 2020 by approx 28% as in cereals, pulses, oilseeds, fruits, veg-
• With high per capita food consump- compared to the previous year. Although etables, spices, and condiments.
tion, the United Arab Emirates is the certain greens such as cabbage, and Dubai’s rebounding tourist sector
most promising agriculture market in the broccoli have witnessed higher produc- may enhance demand for food goods,
GCC region. The United Arab Emirates’ tion numbers, which have increased by supporting both domestic production
cereal production is moderately high, 20-30% due to increased commercial- and cereal imports. According to UAE
but the country is not fully self-sufficient ized greenhouse and indoor farms. official figures, Dubai’s tourist industry
in terms of agriculture production. The Further, the country considers food contributes 10 to 15% of the UAE’s over-
United Arab Emirates is still dependent security to be essential to the security all GDP each year and is a key source
on imports of cereals. and well-being of its citizens and resi- of demand for baked goods, processed
• According to FAO, in the United Arab dents. In 2018, the United Arab Emirates meals, restaurants, and fast food chains
Emirates, cereals production in 2020 was launched its National Food Security Pol- that rely on cereals.
15,978 Metric ton, which was very mini- icy to increase production by 30-40% in According to ITC Trade Map, India is
mal. Similarly, fruit production amounted 10 years. The country also aims to prac- the dominant supplier of cereals to the
to 361,471 Metric ton, and vegetable tice sustainable agriculture to improve United Arab Emirates and held a 35.8%
production stood at 233,009 Metric ton the efficiency of its farms, in line with the share in total imports in 2020. The Rus-
in 2020. Along with this, according to UN Sustainable Development Goals. The sian Federation was ranked second
FiBL Statistics (Research Institute of Or- government of the UAE is investing in highest exporter to the United Arab
ganic Agriculture) the organic farming the agricultural sector to increase self- Emirates, with a 17% share of total im-
area in the country has increased by sufficiency. For example, in July 2019, ports. The increasing imports suggest
15% from 4,687 hectares in 2017 to 5,419 the Ministry of Climate Change and En- that opportunities are increasing in the
hectares in 2020. This is due to the gov- vironment (MOCCAE) signed a memo- United Arab Emirates.
ernment’s support and increasing de- randum of understanding(MoU) with
mand for organic products which is one Aswaaq, a supermarket to increase the
of the reasons for the development of the sales of local products grown in hydro-
agriculture sector in the country. With ponic and organic farms in a bid to pro-
the government prioritizing the produc- mote locally grown food products. The
tion of fruits and vegetables, production Ministry of Climate Change and Envi-
is showing positive growth. Hydropon- ronment is partnering with private play-
ics is emerging in this region since the ers for the development of farmers by
process requires less quantity of water supporting the marketing of their prod-
and no land or soil. All these factors are ucts. Lulu Group International, Union United Arab Emirates Agriculture
driving the growth of agriculture in the Cooperative Association, and Majid Al Market News
United Arab Emirates. Futtiam Hypermarkets LLC are some of
the private players promoting market- June 2022: The Abu Dhabi Agriculture
Increasing Crop Production Marking ing. and Food Safety Authority (ADAFSA)
Steady Growth in Agriculture has launched a program to establish a
Import of Major Cereals
Dates are a major crop grown in the gene bank that will help provide inno-
United Arab Emirates. According to According to ITC Trade Map, the im- vative solutions to future food security
Food And Organisation, dates lead the port of cereals was valued at USD 1,189.3 challenges and enhance the food secu-
agricultural crop production, amounting million in 2020, an increase from the USD rity system of the UAE. The Abu Dhabi
to 312,657 Metric tons in 2020. Despite 1,080.3 million recorded in 2019. In- Agricultural Genome Program has been
various unfavorable soil and climatic creased import of cereals is due to high launched in cooperation with some na-
factors, the production of various crops local consumption and a decrease in tional research centers in the UAE, in or-
in the United Arab Emirates is increas- government grain stocks. Among cere- der to apply the best international prac-
ing due to various initiatives by the gov- als, rice is majorly imported. The major- tices in the field of agricultural genetic
ernment, such as free cultivation, 50% ity of UAE rice imports are milled rice, research.
lesser cost of crop protection, veterinary while others include paddy, brown, and November 2022: The Agriculture In-
services, and fertilizers at 50% lesser broken rice. novation Mission for Climate (Aim for
cost. The production of dates amounted As the country seeks to enhance its Climate) in UAE has mobilized another
to 312,65 Metric ton. The date produc- food security amid the disruption of sup- USD 4 billion since it launched last year
tion has slightly declined in 2020 as ply chains caused by the COVID-19 pan- (2021) to build more resilient agricul-
compared to the previous year but it is demic, an agricultural trading platform ture and food systems. This joint UAE-
expected to bounce back given the fa- to connect Indian farmers with food US fund to help prepare the agricultural
vorable policies set forth by the govern- companies in the United Arab Emirates sector for climate change has doubled
ment and the steady demand from the was established in 2020. The Dubai Multi to USD 8 billion.
market. Commodities Centre’s platform, named
Arab Agriculture 2023 47