Page 48 - AA 2026
P. 48
UAE
UAE Agriculture Market Size & Share Analysis
The UAE agriculture market size in 2026 is estimated Emirates-based suppliers to increase domestic value
at USD 3.45 billion, growing from 2025 value of USD 3.3 creation. While ministries coordinate implementation to
billion with 2031 projections showing USD 4.28 billion, prevent overlap, the strategy’s effectiveness requires
growing at 4.44% CAGR over 2026-2031. The growth is standardized regulations across emirates to maintain
driven by the federal Food Security Strategy 2051, invest- consistent incentives and minimize bureaucracy.
ments in controlled-environment farming, and initiatives Preferential Financing for Controlled-Environment
to reduce the country’s 85-90% food import dependence. Agriculture (CEA)
The market expansion is supported by vertical farming
adoption, which reduces water consumption by up to The Emirates Development Bank’s AGRIX Accelerator
95%, along with financial support from national banks and program provides 20-week technical boot camps and
investments from Gulf and Asian partners. The implemen- subsidized loans for agricultural producers implementing
tation of salt-tolerant forage trials, blockchain traceability hydroponics, automation, and AI-based crop management
systems, and desalination-powered irrigation subsidies systems. Mashreq Bank offers an AED 1 billion (USD
demonstrates the shift toward efficient agricultural pro- 272.3 million) credit facility through the “Make it in the
duction. While energy cost fluctuations and strict bios- Emirates” initiative to increase access to long-term
ecurity regulations affect growth, continued government capital. The program supports medium-scale growers
and private sector investments maintain the United Arab with flexible collateral requirements and graduated
Emirates’ agriculture market’s growth trajectory. repayment schedules to overcome the initial high costs of
indoor farming. While loan restructuring options protect
Government “Food Security Strategy 2051” Capital against production disruptions, the risk of excessive debt
Outlay remains if technological issues or market changes affect
The UAE’s Food Security Strategy 2051 directs federal projected yields.
funding across 38 initiatives, including the National Bilateral FDI Inflows from the Gulf and Asia into
Agriculture Centre and smart-farming grants. The Abu Agri-Projects
Dhabi Investment Office allocated USD 100 million to
agricultural technology start-ups, generating research United Arab Emirates investors pursue a dual strategy
benefits and attracting private equity investments. of funding domestic greenhouses while securing
The matching-fund structure reduces investment risks international farmland through leasing agreements. Al
and accelerates returns on greenhouse and robotics Dahra’s negotiations for 200,000 acres in Kenya, which
investments. The program implements local-content include USD 800 million in irrigation infrastructure,
requirements in public tenders, favoring United Arab demonstrate the expansion of agricultural capabilities.
46 Arab Agriculture 2026

