Middle East Vertical Farming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Middle East Vertical Farming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Middle East Vertical Farming Market size is estimated at USD 352.20 million in 2024, and is expected to reach USD 699.20 million by 2029, growing at a CAGR of 14.70% during the forecast period (2024-2029).

The Middle Eastern region is highly suitable for developing vertical farms due to water scarcity, less arable land, and higher dependency on imports for food requirements. Factors like increased investments in food security, the use of vertical farming in production and delivery, and public-private sector collaborations contribute to market growth. Moreover, companies are focusing on various strategic activities, including partnerships, mergers, and acquisitions, to strengthen their market presence. For instance, in 2023, Saudi Arabia’s Public Investment Fund (PIF) signed a joint venture agreement with AeroFarms, a US-based sustainable agriculture company, to build indoor vertical farms across the Middle Eastern region. The first farm to be built in Saudi Arabia is expected to have an annual production capacity of up to 1.1 million kgs of crops with the country’s USD 620 billion PIF. Furthermore, other players are focused on developing vertical farms in the region. For instance, in July 2022, Crop One Holdings and Emirates Flight Catering opened the world’s largest vertical farm. It is a 330,000-square-foot facility near Al Maktoum International Airport at Dubai World Central. It can produce over 2 million pounds of leafy greens annually.

Middle East Vertical Farming Market Trends

Hydroponics Is The Preferred Technique For Vertical Farming

Hydroponics is ideal for crop production in arid countries, such as the United Arab Emirates, Qatar, and the Kingdom of Saudi Arabia, where there is low availability of arable land. It significantly reduces water consumption within a less agricultural area. Subsequently, vertical farms that adopt hydroponics technology are on the rise across the countries in the region, clearly showcasing the growth potential of the segment in the market. Moreover, the region beholds the production of rare and expensive crops in the hydroponics system. With light-assisted hydroponics systems, farmers not just effortlessly grow mass-consumed food crops but also rare and exotic plants and foods of high value, which drives the adoption of the technology. For instance, Sharjah-based agricultural technology company Veggitech cultivated and harvested the world’s most expensive spice, saffron, also known as red gold. After a few years of experiments with smaller quantities of saffron bulbs, the teams at Veggitech cultivated roughly 150,000 crocus Sativa bulbs by growing them in vertical farms in Al Zubair in 2022.

Vertical Farming Is Widely Adopted In The United Arab Emirates

The UAE economy is diverse, with consumers having a high standard of living. Despite the environmental challenges in producing agricultural commodities, the country has made tremendous efforts over the last decade by adopting sustainable and smart agriculture techniques, such as hydroponics, smart irrigation, and aquaponics. Thus, the optimum utilization of arable land and the quality of local fresh produce improved.​

Vertical hydroponics is gaining popularity among farmers in the United Arab Emirates, especially for growing local fruits and vegetables with minimal water resources. Due to low domestic production, the country heavily depends on imports to cater to its local demand for fresh fruits and vegetables. The arid climate and scarcity of water force growers to rely on other water resources, such as seawater desalination, for agricultural production, which favors market growth.

Companies are shifting their activities in the United Arab Emirates due to cheaper electricity prices, which is essential for their operations and eager investors. The lower electricity prices are being provided as part of the initiative by the United Arab Emirates to strengthen local production capabilities, with Abu Dhabi introducing its own Abu Dhabi Industrial Strategy to encourage domestic manufacturing in line with the country's goals.

Middle East Vertical Farming Industry Overview

The vertical farming market in the Middle East is fragmented. Aerofarms, Pure Harvest Smart Farm, Crop One Holdings, Kalera Farms, and Mowreq are some of the major players operating in the market. The players are investing in product improvisation for business expansions. They have also been expanding their business by adopting various strategies such as acquisitions and partnerships.

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• The market estimate (ME) sheet in Excel format
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