Posted inTechnology

Why Dubai’s Food Tech Valley is investing in local capacity

Such initiatives are necessary to deliver on food security, sustainability and economic opportunities, said industry experts

Climate change and the inefficiencies of an overreliance on global food supply chains and imports, highlighted last year when borders were shut down during coronavirus, have made food security an urgent worldwide priority.

Industry experts welcomed the announcement made by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Saturday regarding plans to launch the first phase of Food Tech Valley, which aims to triple the UAE’s food production.

“The supply disruptions caused by Covid-19 have made governments acutely aware of the threats to prosperity posed by distant natural disasters (including pandemics) and terrorist attacks, many of which are completely beyond their control,” said Omar Al-Ubaydli director of research at Derasat.

“In an ideal world, countries would outsource as much production as possible in the pursuit of efficiency, but today, such a course of action would be imprudent due to the risks to the local population. By exploring ways of investing in local capacity, the Dubai government is intelligently addressing the very real problems of food security, thereby advancing the interests of those who live in the emirate,” he added.

Omar Al-Ubaydli director of research at Derasat

Both the rising population, expected to reach 10 billion by 2050, and the impact of climate change, which is already affecting food production and availability, make food security an increasingly pressing concern in the region which already suffers from an arid climate, explained Tadhg O’Donovan, head of the School of Engineering and Physical Sciences, Heriot-Watt University Dubai.

Meanwhile, Oxford Economics estimated that the economy of the GCC could be nearly 20 percent smaller by 2050 if temperatures rise by 2°C, compared with a scenario where temperatures remain at pre-industrial levels, Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics mentioned in a column for Arabian Business.

“The combined effect of a rising population and climate change calls for a more efficient and sustainable production and distribution of food across the globe. Regions that are characterised by an arid climate, challenging topography and global logistics are at a higher risk of food insecurity,” said O’Donovan.

“Countries that have been relying on the global food value chain such as the UAE are poised to fare better in the future by taking proactive initiatives such as the Food Tech Valley to support domestic food production and to reduce their reliance on food imports. Such strategic initiatives are required to drive R&D investments, public-private partnerships, and innovation on the path to food security and economic diversification,” he continued.

The new city, the outcome of a partnership between the Ministry of Food and Water Security and Wasl Properties, will spearhead innovation and leverage collaborative networks to lead regional transformation and export knowledge on sustainable food systems globally.

Tadhg O’Donovan, head of the School of Engineering and Physical Sciences, Heriot-Watt University Dubai

“Planning for food security should also consider the dimension of sustainability. Sustainable agriculture is required to offset the many negative consequences of conventional farming that is a major contributor to global greenhouse emissions,” explained O’Donovan.

“In the context of the UAE, a country that is faced with limited water resources and an environment harsh for agriculture, sustainable agriculture is and should be interconnected with future food security. By innovating and implementing cutting-edge food production technologies and systems, such as vertical farming and hydroponics, sustainability becomes not only viable in the long-term, but can also improve the quality of life. Increasing local food production will ultimately reduce the carbon footprint associated with shipping food from around the globe,” he continued.

Food Tech Valley will support the use of technologies and applied research in food processing and agriculture and apply modern farming techniques – such as vertical farming, aquaculture and hydroponics – to accelerate self-sufficiency in fresh food produce and reduce wastage of resources.

“The radical shift to sustainable agriculture and food security will be impossible without the close collaboration between scientists and engineers, producers, policymakers, investors, and other relevant stakeholders. Initiatives such as the Food Tech Valley are necessary to mobilise their cooperation, and to simultaneously deliver on food security, environmental sustainability and economic opportunity,” said O’Donovan.

The new site aims to enhance local food production, diversify investments and advance research to align and influence future food trends and preferences. It will act as a global hub for start-ups, SMEs and international companies with a wide range of expertise to exchange knowledge in the food industry.

“While it is difficult to predict the short-term impact of Food Tech Valley at this early stage, the initiative taps into several key country themes: innovation, entrepreneurism, greater self-sufficiency, and sustainability,” said Robert Mogielnicki, resident scholar at the Arab Gulf States Institute in Washington.

“The economic outlook for the agricultural technology industry is very promising. There is a clear and increasing global demand for smart solutions to food-related needs. The UAE wants to capitalize on this high-potential industry and possesses the commercial infrastructure, namely its expansive system of free zones and other economic zones, to quickly roll out this initiative and accelerate its development,” he continued. 

Food Tech Valley will be home to four main clusters – agricultural technology and engineering, a food innovation centre, R&D facilities, and an advanced smart food logistics hub.

“This is another example of the UAE trying to attract the best and brightest professionals from various industries, with the added benefit of working to improve local food security. But the nascent industry may also become a useful foreign policy tool by supporting the country’s economic statecraft and humanitarian assistance efforts,” explained Mogielnicki.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.