Emirates Development Bank (EDB) in the UAE is offering loans of up to Dh5 million to both Emirati and expat farmers, with the option to repay in instalments over several years to support the country’s food security sector. This initiative aims to help farmers expand and upgrade their farms with new technology, contributing to overall food security. The loans are structured in a way to support farmers and understand their challenges, with a payment schedule that matches their feasibility studies and a long period of Return on Investment (ROI) of ten to twelve years.
A panel discussion at the global vertical farming show in Dubai highlighted the importance of innovation in vertical farming. Amit Grover, CEO of Grover Venture, emphasized key trends driving the industry such as robotics, automation, artificial intelligence, machine learning, and IoT implementation to reduce labor costs and optimize crop production. These innovations will make it easier to mass-produce agricultural commodities and increase yields through genetic optimization. This cutting-edge research is currently happening in various countries like the Netherlands, Germany, and Australia, with plans to expand to the Middle East.
To ensure the success of vertical farming, government support is crucial. Panelists emphasized the need for policies and frameworks to support vertical farms, including regulations on land use and certification for environmentally friendly produce. Halim Ben Haj Salah, Director of the Technical Support Department at the Arab Authority for Agricultural Investment and Development, highlighted the importance of protecting agricultural land prices for vertical farms setting up near cities. He also called for the introduction of certifications for products from vertical farms, similar to organic certifications, to address consumer preferences for environmentally conscious products.
The EDB’s financing initiative not only supports farmers but also contributes to the growth of the food security sector in the UAE. By providing loans with flexible repayment options and a focus on innovative technologies, the bank is helping farmers enhance their operations and increase productivity. The shift towards vertical farming and the adoption of advanced technologies like robotics and AI will further optimize crop production and meet the demand for sustainable agriculture. With government support and industry collaboration, vertical farming in the UAE is poised for continued growth and success in ensuring food security for the nation.
Overall, the UAE’s initiative to provide loans to farmers for vertical farming projects is a significant step towards enhancing food security in the country. By supporting innovative technologies and sustainable agricultural practices, the UAE is positioning itself as a leader in the region’s food production sector. With continued government support and industry advancements, vertical farming has the potential to revolutionize the way food is grown and distributed, ensuring a more resilient and secure food supply for the future.
