How to start a vertical farming business in the UAE

03 September 2024 - Olivia Baikova

Few business models are so well-suited to their surroundings as vertical farming is to the UAE. With its hot, arid climate and limited water resources presenting a barrier to traditional agricultural practices, roughly 90% of the country’s fresh produce needs have historically been met by foreign imports.

This heavy reliance on external sources has pushed food security to the forefront of the nation's developmental goals. The Middle East and North Africa, particularly the UAE and Saudi Arabia as the largest food importers in the GCC, have vast potential for vertical farming.

With significant government support, tailored subsidies and the availability of strategic public-private partnerships, there is a lucrative opportunity for entrepreneurs to capitalise on this growing market.

This article looks at the practical steps and considerations for setting up a successful vertical farming business in the UAE.

Vertical Farming Market Analysis and Opportunities in the UAE

The increasing demand for sustainable, locally sourced produce is driving rapid growth in the vertical farming market.

Across the Middle East and Africa, the sector is projected to reach $6,225.19 million by 2030. This mirrors increasing food consumption in the GCC, which is expected to rise from 46.8 million tonnes in 2020 to 52.4 million in 2025.

In response, the UAE is investing significantly in its agritech industry, creating abundant opportunities for investors and startups alike. Initiatives like Dubai’s Food Tech Valley and Abu Dhabi's AgTech Park are prime examples of efforts to reduce dependence on food imports while providing essential resources and infrastructure for new vertical farming businesses. These centres equip investors with cutting-edge technologies and expert guidance, helping them get their ideas off the ground and scale quickly.

The UAE government is also offering substantial financial support. Programmes like Abu Dhabi's "Ghadan 21," managed through Hub71have been pivotal in attracting and supporting investors with things like subsidies for farming inputs and financial aid for equipment procurement.

How to set up a vertical farming business in the UAE?

The first step towards starting a vertical farm in the UAE is obtaining legal clearance from the UAE government. The Ministry of Climate Change and Environment (MOCC) is the primary authority regulating agricultural activities, and acquiring an agricultural licence from them is essential. You’ll also need to register your business with your chosen emirate’s local economic Department (DED), choosing either a commercial or professional licence based on your specific activities. A commercial licence is ideal if your operations involve selling the produce you grow, while a professional licence is suited for providing related services such as agricultural consulting or technology solutions.

What are some of the main requirements when setting up a vertical farm in the UAE?

The following are some of the main requirements:

A specified location for the farm, including a map or detailed area description.
A lease contract or proof of site ownership.
Identification documents such as a passport copy and Emirates ID.
An agricultural engineer, which is a requirement for obtaining a professional licence.

Approvals required for vertical farming businesses in the UAE

You may also need additional approvals from any of the following authorities depending on the specifics of your proposed business:

Dubai Municipality Food Control Department
Ministry of Agriculture and Fisheries
Ministry of Climate Change and Environment
Public Health Services Department

Finally, you must adhere to the UAE’s environmental standards This includes compliance with water conservation regulations, ensuring the safe use of any agricultural chemicals, and ensuring all paperwork is in order, including obtaining necessary zoning approvals for urban farming locations.

How Can Sovereign PPG Help?

Setting up a vertical farming business in the UAE involves several crucial steps, from choosing the right technology and systems to navigating the regulatory landscape specific to agritech ventures. The process can be complex, so it's advisable to seek professional assistance to manage these steps effectively.

At Sovereign PPG, we specialise in assisting businesses launch in the UAE. Our team will guide you through the nuances of securing the right agricultural licences, ensuring your facility meets environmental and sustainability standards, and navigating the specific legal requirements unique to agritech ventures. We help streamline the process from concept to operational readiness, ensuring you meet all regulatory standards for a successful launch.

If you need assistance with this or with any other related company setup, restructuring, local partner or PRO support matter in Dubai, Abu Dhabi, the wider UAE, Saudi Arabia, Bahrain, Qatar, or Oman, then please do get in touch with us on +971 (0)4 456 1761 for Dubai, email us at SovPPG@SovereignGroup.com or complete the contact form below and we will be delighted to assist you.