Nurturing UAE Food Security
A Holistic Approach towards Boosting Local Agriculture Production
Introduction
In the pursuit of enhancing food security and reducing dependency on food imports, the United Arab Emirates (UAE) is poised to implement a comprehensive set of strategies and policies aimed at prioritizing domestic agricultural production. This dedicated article delves into the multifaceted approach required to achieve these goals while maintaining economic efficiency and sustainability.
Strategy
In its concerted effort to steer away from oil-centric economic dependency, the United Arab Emirates (UAE) is actively championing the growth of various sectors, with a notable focus on food and agriculture and the diversification of non-oil industries. The UAE has set ambitious targets, with aspirations to amplify the economic contributions of the food and agriculture sector by a substantial $10 billion and generate 20,000 employment opportunities within the forthcoming five years. These strategic measures are integral to fortifying the nation's food security, as recently announced by HE Abdoula Bin Touq the UAE Minister of Economy.
The UAE has achieved an exceptional ranking on the 2022 Global Food Security Index among its regional counterparts in the Middle East and North Africa and has set a National Food Security Strategy for 2051 aiming to be on top of the GFSI by 2051. This has been achieved through the combined efforts of local players and the UAE leadership vision and support to encourage local production, enhance supply chain through an advanced interconnected network and a strategic national and private storage facilities.??
Nevertheless, the food industry faces real and current challenges, particularly in these times of uncertainty that the 2051 National Strategy aims to address through a comprehensive framework comprising seven pivotal pillars aimed at transforming the food and agriculture sector. This transformative strategy places a strong emphasis on fostering domestic innovation, fostering a culture of UAE-first initiatives throughout the food supply chain, and providing farmers with the essential support and resources. These efforts collectively position the UAE to assume a commanding role as a global leader in agricultural technology and sustainability.
INDUSTRY PERSPECTIVE
From an industry perspective, the private sector input for the support and success of these strategies is vital. The resilience and adaptability of the Private Agriculture sector to ist current standing and the practical adaptation of the 7 Strategic Pillars at least from the authors perspective ought to consider the following hands on approach:
Protection of Local Production
The UAE has and will always be a pillar of Free Trade Globally and to that effect it has adopted the open market strategy at the expense of protection of Local Production, our request here is no deterrence from UAE policies but to level the playing fields for UAE growers by:
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The implementation of both practices can ensure protection for local production during our peak production months (winter season) while ensuring fair pricing of goods for end users and growers alike by regulating imports influx and maintaining the safety standards of our food supplies.
Investing in Agricultural Research and Development Centers
The establishment of Agriculture Focused? Research and Development (R&D) centers is pivotal to address specific challenges faced by UAE growers. This has proven successful in many nations as in the case of South Korea.? Research should focus on developing salt-tolerant crop varieties and heat-resistant breeds tailored to the UAE's unique climate conditions. Here are some key ways in which R&D can assist Agriculture in the UAE:
Facilitating Access to Finance for Agricultural Development
While enabling access to finance is a significant step, catering these products and modifying them to meet the local growers requirements and ensure this does not turn into a liability on the Grower. The local production in Medium and High tech Structures is high capital expenditure costs, when paired with the market fluctuations it poses risks to agricultural investments. To counter this, specialized agricultural finance should consider offering subsidized long-term loans. This financial support encourages farmers to invest in medium and high-tech technologies that enhance production efficiency and lower the production cost of crops. The Emirates Development Bank has taken the lead in targeting the industry and coming up with innovative products that would tackle these constraints.
Balancing Local Production with Market Dynamics
Local Production in the UAE has its own particular challenges, from extreme weather conditions to lack of natural resources and open market policies that often oversupplies that market from neighboring countries at prices below the BEP of local producers.??
Avoiding overproduction and price fluctuations within the local market requires a multi-pronged approach:
Summary:
The UAE's journey toward food security through enhanced local agriculture production necessitates a holistic approach that combines? import regulations, innovative research and development, accessible finance options, and a well-coordinated market strategy. By implementing these measures, the UAE can strike a balance between economic efficiency and self-sufficiency in food production, ultimately ensuring a more secure and sustainable future for its citizens & residents.
Hassan Halawy
Director of International Operations | Multi-Award-Winning Leader Collaborating with Governments & Businesses via Key Economic Verticals. Leading 60+ Board of Business & Legal Experts under RG Group of Brands
4 个月Thanks for sharing Hasan. Food security has always been a key agenda for all governments. In the past few years the dynamic shift in tech and current affairs has changed the speed of the industry. The UAE & ME regions are definitely a place of interest for us as a group and our partners. The region's proactive approach is refreshing.
Innovating Agriculture | Operations Fundamentals
1 年Thank you Hassan for bringing this important conversation to the spotlight. Agreeing with your points, I would like to add a few more: 1) Keeping with the open market theme, if we could introduce carbon labels or 'impact' labels, this would also help consumers take better informed produce purchasing decisions, driving more market share to domestically grown produce instead of air freighted imports. 2) We need to immediately stop the wasteful practices in retailers. I've seen up to 60% of freshly grown local produce go in the bin every day, with the full loss being borne by growers here. It's encouraging to see how this conversation has evolved over the years, but until we have a holistic 'ecosystem' approach, aligning policy, growers, retailers, and consumers - we still have a long way to go before domestic growers can build long term successful agribusinesses.
General Manager | MD | CEO | Commercial Acumen | FMCG | HORECA | Catering | Agri-Tech | Hospitality | Partnerships & Collaborations focused. General Manager at Emirates Bustanica
1 年We are lucky to be in a country governed by great visionary dedicated rulers working hand by hand towards the future. I’m proud to call #UAE home.
Board member Group CMO @ SAB Investment | Aim For The sky with Shadow on the Ground
1 年All The Best Hassan Halawy