ABU DHABI: In the past four years, the United Arab Emirates has grown a small but rising share of its own organic tomatoes, aiming to shore up food security in an import-dependent desert country.
The effort — part of a broader push to produce more home-grown food amid fears climate change could trigger instability in the global food trade — started after the country was hit by food export bans during the 2008-2009 financial crisis.
Today, the move to build up food resilience is paying off early in the face of another crisis: the coronavirus pandemic.
When the United Arab Emirates (UAE) went into lockdown in April to contain the spread of the novel coronavirus, residents had the same reaction as millions of others around the world — they started panic-buying.
The instinct to stock up made sense in a country where more than 80% of food is imported, said Ismahane Elouafi, director general of the International Center for Biosaline Agriculture (ICBA).
Nonetheless supermarket shelves have remained fully stocked, partly because the UAE has long had policies in place to ensure an uninterrupted supply of food from abroad, she noted.
But in the face of the pandemic, the UAE’s confidence that it will continue to have enough food is bolstered by its success in growing its own, using innovations like vertical farming and climate-resilient crops, she added.
“Thanks to the work being done to harness the benefits of innovation, agriculture is becoming possible and profitable in a country with harsh climatic conditions,” Elouafi said.
According to data from the World Bank, the contribution of agriculture to the country’s gross domestic product rose from $2.39 billion in 2012 to $3.06 billion in 2018.
The UAE’s Ministry of Food Security declined to respond to a request for comment.
Currently ranking 21 out of 113 countries on the Economist Intelligence Unit’s Global Food Security Index, the UAE aims to be in the top 10 by 2021 and number one by mid-century.
By then, the federal government hopes half the food Emiratis consume will be produced locally, compared to 20% today.
Under the UAE’s National Food Security Strategy — which was officially launched in 2018, but had already been woven into government policy for several years before — the country has worked to boost domestic food production.
It has built infrastructure, including complexes for cattle-breeding — and introduced financial measures, from exempting value-added tax on food produced on local farms to paying subsidies on fodder.
But traditional farming methods can only go so far in a country with limited supplies of fresh water and arable land.
Last year, the World Resources Institute classified the UAE as under “extremely high water stress,” meaning more than 80% of available surface and groundwater supply is withdrawn on average every year.
The bulk of that water is used by the agricultural sector. Combined with a warming climate and a growing population, this is causing available groundwater levels to drop by 0.5 cm (0.2 inches) per year.
To meet the country’s freshwater needs, the government is increasingly turning to energy-intensive desalination methods.
Another challenge is that less than 1% of the UAE’s land is arable, according to the World Bank.
The focus is on finding ways to farm with fewer resources — which is where technology and experimenting with new crops can help, said Sajid Maqsood, associate professor in the College of Food and Agriculture at United Arab Emirates University.
“Urban and vertical farming has to be an important part of the strategy,” he said by phone.
Farming in the UAE has been moving in a high-tech direction over the past decade.
In 2009, for example, the Middle Eastern country had 50 hydroponic farms, where plants are grown without soil using nutrient-infused water. Today, it has more than 1,000, according to the ICBA.
Most of the farming innovations gaining ground in the UAE involve growing crops indoors, in an attempt to tackle one of the main challenges facing the region’s farmers: the climate.
Global warming is expected to lead to less rainfall, fiercer droughts, higher sea levels and more storms in the UAE over the next 70 years, a group of climate experts said in a 2019 paper.
By 2050 the country’s average temperature will increase by about 2.5 degrees Celsius (4.5 degrees Fahrenheit), they noted.
“At least four months of the year are not conducive to traditional agriculture — heat, humidity and dust are challenges to farming in the region,” explained Digant Raj Kapoor, people manager at Madar Farms, a local agriculture tech company.
“It means that yields and quality cannot be controlled or predicted. An indoor facility is able to tackle this by having as much control over growing conditions as possible.”
One project, Pure Harvest Smart Farms, has been producing a share of the UAE’s home-grown tomatoes since it launched in 2016, using the country’s first technology-enabled greenhouse.
With its climate-controlled system developed in the Netherlands, the Emirates-based start-up can grow year-round, producing about 2 metric tons of pesticide-free tomatoes each day on its 1-hectare (2.5-acre) proof-of-concept farm.
Pure Harvest plans to diversify into other fruits and vegetables, expanding to 30 hectares in the next few months.
In recent years, the UAE has also seen a rise in the number of vertical farms, in which crops are grown stacked under LED lighting and watered with mists or drip systems.
In Dubai, the country’s business and tourism hub, airline catering service Emirates Flight Catering and vertical farm operator Crop One Holdings have launched a $40-million joint venture to build the world’s largest vertical farm.
Crop One Holdings says the 130,000 square-foot (12,077 sq m) farm — due to be completed this year — will produce 6,000 pounds (2,721 kg) of pesticide- and herbicide-free fruits and vegetables daily, using 99% less water than traditional farms.
Branching out into new crops is key to the UAE’s quest to become self-sustaining, said the ICBA’s Elouafi.
The Dubai-based ICBA works with local ministries, farmers’ associations and businesses to introduce climate-resilient crops such as quinoa, pearl millet and sorghum to farmers, she added.
“The global food production system is currently dominated by just a few staple crops — this needs to change,” she said.
For Kapoor at Madar Farms, which has been growing leafy greens and microgreens in vertical systems since 2017, the move into tech-enabled agriculture is inevitable to deal with challenges like climate change and the novel coronavirus.
“The world will have to shift toward controlled-environment agriculture,” he said.
UAE’s high-tech food plan pays off in pandemic
https://arab.news/wqune
UAE’s high-tech food plan pays off in pandemic
- Agriculture is becoming possible and profitable in a country with harsh climatic conditions
- ICBA works with local ministries, farmers’ associations and businesses to introduce climate-resilient crops such as quinoa, pearl millet and sorghum
COP29 enters final hours amid key negotiations on climate finance and carbon markets
BAKU: As COP29 nears its conclusion, negotiators are working intensively to finalize agreements that could significantly advance global climate action.
Hosted in Baku, Azerbaijan, the conference has focused on critical issues such as climate finance, adaptation strategies, and the operationalization of carbon markets under the 2015 Paris Agreement.
Although decisions remain in draft form, the discussions signal progress on aligning global efforts with the urgent need to combat the climate crisis.
Saudi Arabia has emerged as a key player, leveraging its growing diplomatic influence and domestic climate initiatives to shape the outcomes.
Push for equitable climate finance
One of the most pressing topics at COP29 has been the New Collective Quantified Goal on climate finance.
Negotiators are seeking to establish a framework that mobilizes $1.3 trillion annually by 2035 to support developing nations in addressing climate change.
This new goal reflects the escalating financial demands of both mitigation and adaptation efforts, with developing countries requiring $215 billion to 387 billion annually for adaptation alone through 2030.
Saudi Arabia has been a vocal advocate for equitable financing mechanisms, emphasizing the need for practical pathways to unlock funds for countries that bear the brunt of climate impacts yet have limited resources.
The Kingdom has supported calls for reforming global financial institutions to reduce barriers such as high borrowing costs and restrictive conditions. This aligns with Saudi Arabia’s broader position that climate finance must be accessible and targeted to the most vulnerable nations.
Domestically, Saudi Arabia has backed its advocacy with action. The Kingdom has committed significant investments to its Saudi Green Initiative, which includes billions of dollars for renewable energy projects, reforestation, and environmental restoration.
These initiatives underscore Saudi Arabia’s dual focus on addressing domestic climate challenges and contributing to global solutions, according to the draft resolution.
“Through initiatives like the Saudi Green Initiative, the Kingdom has committed to reducing regional emissions by more than 10 percent and leading the planting of 50 billion trees across the Middle East to combat desertification and foster environmental sustainability,” the document stated.
Carbon Markets: A Saudi priority
Discussions on Article 6 of the Paris Agreement, which governs international carbon trading, have been another focal point of COP29.
Saudi Arabia has taken a prominent role in shaping the rules for carbon markets, advocating for frameworks that promote transparency and equitable participation.
Under Article 6.2, which covers bilateral cooperation, and Article 6.4, which establishes a centralized mechanism for trading carbon credits, Saudi negotiators emphasized the importance of avoiding double-counting emissions reductions and ensuring environmental integrity.
These safeguards are essential for building trust in the carbon market as a tool for accelerating emissions reductions.
In the draft resolution on financing released by the UN Framework Convention on Climate Change it is outlined that “Saudi Arabia emphasizes the importance of transparency and equitable participation in Article 6 mechanisms, ensuring that developing nations can benefit from international carbon trading frameworks.”
The Kingdom’s engagement in these discussions reflects its broader ambition to become a regional hub for carbon trading. The Kingdom is advancing projects in carbon capture, utilization, and storage, positioning itself as a leader in leveraging market-based solutions to achieve climate goals.
These efforts align with the Saudi Green Initiative’s targets for emissions reductions and renewable energy expansion.
A commitment to adaptation
While mitigation often dominates global climate discussions, COP29 has seen renewed attention to adaptation – an area where Saudi Arabia has also contributed actively.
Negotiators are working to refine the Global Goal on Adaptation by developing measurable indicators to track progress.
These metrics aim to ensure that adaptation efforts are effective and responsive to the needs of vulnerable communities.
“Saudi Arabia continues its focus on promoting energy efficiency, a critical pillar of its sustainability agenda, as highlighted by top officials during COP29 discussions,” reads the draft resolution.
The Kingdom has supported these efforts, emphasizing the importance of integrating local knowledge and traditional practices into adaptation strategies. The Kingdom’s approach aligns with its domestic priorities, which include enhancing resilience to desertification and water scarcity, challenges exacerbated by its arid climate, the document added.
Inclusivity and collaboration
Inclusivity has been a central theme at COP29, and Saudi Arabia has demonstrated its commitment to ensuring diverse voices are part of the climate conversation. The Kingdom supported the draft Baku Workplan, which aims to elevate indigenous peoples and local communities in climate governance.
Domestically, Saudi Arabia has prioritized inclusivity through education and workforce development programs that prepare youth and women for leadership roles in green industries.
These initiatives are part of broader reforms under Vision 2030, which aims to diversify the economy while ensuring equitable opportunities for all citizens.
Regional leadership
Saudi Arabia’s influence extends beyond its national borders. Through the Middle East Green Initiative, the Kingdom is fostering regional cooperation to combat climate change.
The initiative includes ambitious goals to plant 50 billion trees across the Middle East and reduce regional emissions by more than 10 percent.
At COP29, these efforts were presented as examples of how regional action can amplify global progress.
By working closely with other Gulf Cooperation Council countries, Saudi Arabia is also driving investments in renewable energy projects that enhance energy security and sustainability.
These partnerships underscore the Kingdom’s role as a regional leader in climate action, capable of catalyzing collective efforts to address shared challenges.
Challenges and opportunities ahead
As COP29 approaches its conclusion, much remains to be finalized. The draft decisions on climate finance, carbon markets, and adaptation reflect significant progress but also underscore the complexity of reaching consensus among diverse stakeholders.
Saudi Arabia’s contributions to these discussions demonstrate its ability to balance domestic priorities with international leadership. By advocating for equitable solutions, advancing regional cooperation, and showcasing its own climate successes, the Kingdom has positioned itself as a key player in shaping the global response to climate change.
The conference has marked an important step forward in the global fight against climate change. The agreements under discussion – particularly those on finance and carbon markets – highlight the growing recognition that collective action is essential to achieving the Paris Agreement’s goals.
Saudi Arabia’s active participation in these negotiations underscores its evolving role as a climate leader.
Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive
RIYADH: Cement sales in Saudi Arabia saw an annual increase of 4.93 percent in the third quarter of 2024, reaching 12.84 million tonnes, according to recent data.
Figures released by Al-Yamama Cement showed that 96.18 percent of these sales were domestic, with only 3.82 percent being exported.
The data covers 17 Saudi cement companies, with Al-Yamama Cement holding the largest share of domestic sales at 12.47 percent, amounting to 1.54 million tonnes, despite experiencing a 27.18 percent decline during the period.
With the successful acquisition of Hail Cement Company by Qassim Cement Company, QCC now leads the market with the highest share among its peers at 13.37 percent, or 1.65 million tonnes, moving Al-Yamama Cement to second place.
Saudi Cement, Southern Cement and Yanbu Cement held 8.96 percent, 8.49 percent and 8.18 percent shares of the domestic market respectively.
The highest growth in domestic sales was recorded by Umm Al-Qura Cement, which saw a 69 percent increase to 372,000 tonnes during this period, despite holding a relatively small 3 percent market share.
City Cement’s local sales rose by 52.69 percent annually to 739,000 tonnes, while Tabuk Cement experienced a 27.3 percent increase, reaching 429,000 tonnes.
In terms of cement exports, Saudi Cement dominated with 80.45 percent of total shipments, amounting to 395,000 tonnes this quarter. This figure represents a 13.18 percent increase compared to the same quarter last year.
Najran Cement accounted for 11 percent of exports for the quarter, totaling 54,000 tonnes, marking a 24 percent decline. Eastern Cement with 8.55 percent share saw a 133 percent rise in exports, reaching 42,000 tonnes.
Saudi Arabia also exported 1.08 million tonnes of clinker during this period, marking a 41 percent decline compared to the same period last year.
Clinker, a crucial intermediate product in cement production, is commonly exported due to its cost-effectiveness. It is more economical to ship it to other countries for final processing into cement than to produce the finished product and then export.
According to a report by AlJazira Capital, the total utilization rate of the cement sector in Saudi Arabia stood at 72.8 percent in September.
This figure represents the proportion of the cement production capacity that is actively being used to meet demand.
A utilization rate of 72.8 percent indicates that, on average, the cement industry in Saudi Arabia is using just over two-thirds of its available production capacity.
Saudi Arabia is a prominent player in the global cement industry, ranking among the top 10 producers worldwide. The Kingdom’s production capacity has been bolstered by significant investments to meet both domestic demand and export opportunities.
Key factors driving Saudi Arabia’s cement industry include its robust infrastructure development, housing projects, and initiatives under Vision 2030, which aim to diversify the economy and reduce reliance on oil revenues.
Saudi Arabia’s path to decarbonization
In October, Saudi Arabia’s cement sector took a significant leap towards decarbonization with the announcement of a joint venture between the UK’s Next Generation SCM and Nizak Mining Co., a subsidiary of City Cement.
The collaboration is focused on producing supplementary cementitious materials locally, utilizing an innovative, energy-efficient technology.
This new method requires only one-sixth of the fuel compared to conventional cement production and operates at lower temperatures, significantly reducing operational costs and carbon emissions.
The technology already demonstrates a 99 percent reduction in emissions, producing just 8 kg of CO2 per tonne of calcined clay, compared to the global average of 600 kg per tonne.
The joint venture is part of the Kingdom’s broader decarbonization strategy, which is aligned with Vision 2030 and the Saudi Green Initiative.
As part of these proposals, the Kingdom has set an ambitious goal of cutting carbon emissions by 278 million tonnes annually by 2030.
This venture, which will have its first production plant in Riyadh, is expected to produce up to 700,000 tonnes of low-carbon supplementary cementitious materials in its second year of operations, starting in 2025.
The project is also crucial for the domestic production of low-carbon concrete, as traditional SCM alternatives, like fly ash and slag, are not readily available in Saudi Arabia.
The venture will not only help Saudi Arabia meet its sustainability targets but also strengthen its position as a regional hub for low-carbon materials, generating both economic and environmental benefits.
Speaking in October, Majed Al-Osailan, CEO of City Cement, emphasized the long-term impact of the project, stating that it will create jobs, improve access to sustainable building materials, and create export opportunities for the Kingdom.
According to a study by the Boston Consulting Group in September, Saudi Arabia stands to gain a significant competitive advantage in the global cement industry as the sector moves toward decarbonization through carbon capture and storage.
The competitive dynamics of the industry are shifting due to the high costs associated with CCS, which is essential for achieving net-zero emissions by 2050.
One of the primary factors influencing future competitiveness is a plant’s proximity to CO2 storage sites.
Cement plants located within 200 km of CCS hubs could see abatement costs reduced by half compared to those located farther away.
This geographical advantage will be crucial in determining cost competitiveness on a global scale.
Saudi Arabia, with its lower energy costs, is well-positioned to capitalize on this advantage according to the study. The Middle East, in general, benefits from cheaper energy, which could give Saudi plants a $20 per tonne cost advantage in CCS over the global median.
This would allow Saudi Arabia to emerge as a key export hub in the global cement market.
Plants in the Kingdom that can minimize their CCS abatement costs will be internationally competitive, particularly as global trade dynamics shift and demand grows for low-carbon cement.
Moreover, Saudi Arabia’s energy infrastructure and strategic location near key shipping routes bolster its potential as a regional and global supplier of cement.
With substantial investments in CCS technology and renewables, the Kingdom could not only meet domestic demand but also serve international markets more efficiently, securing its position in the evolving global cement trade.
As the cost of CCS implementation rises, the global competitive landscape will be reshaped, with plants closer to CO2 storage hubs and renewable energy sources becoming more attractive.
Saudi Arabia’s competitive edge, therefore, lies in its ability to leverage its energy resources and strategic location, potentially making it a leader in the export of low-carbon cement solutions.
Oil Updates – crude heads for weekly gains as Ukraine war intensifies
LONDON: Oil prices inched lower on Friday, but were on track for a weekly rise of nearly 4 percent, as an intensifying war in Ukraine returned a geopolitical risk premium to oil markets.
Brent crude futures fell 65 cents, or 0.88 percent, to $73.58 a barrel by 4:12 p.m. Saudi time. US West Texas Intermediate crude futures fell by 66 cents, or 0.94 percent, to $69.44 per barrel.
Pressuring prices on Friday, eurozone business activity took a surprisingly sharp turn for the worse this month as the bloc’s dominant services industry contracted and manufacturing sank deeper into recession.
Kazakhstan’s largest oilfield, Tengiz, is scheduled to return to full production in early December, Russian news agency Interfax reported on Friday, while elsewhere Kazakhstan’s energy ministry said it plans to produce 90 million tonnes of oil in 2025, up from 88 million tonnes in 2024.
Both contracts are set for gains of nearly 4 percent this week, as Moscow steps up its Ukraine offensive after Britain and the United States allowed Kyiv to strike deeper into Russia with their missiles.
“The Russia-Ukraine escalation has raised geopolitical tensions beyond levels seen during the year-long conflict between Israel and Iran-backed militants,” Saxo Bank analyst Ole Hansen said on Friday.
He added that rising refinery margins and an incoming cold snap had also supported distillate refinery profit margins, and wider oil prices, this week.
The Kremlin said on Friday that a strike on Ukraine using a newly developed hypersonic ballistic missile was a message to the West that Moscow will respond harshly to any “reckless” Western actions in support of Ukraine.
Ukraine has used drones to target Russian oil infrastructure, for instance in June, when it used long-range attack drones to strike four Russian refineries.
“What the market fears is accidental destruction in any part of oil, gas and refining that not only causes long-term damage but accelerates a war spiral,” said PVM analyst John Evans.
Also supporting prices this week, China announced policy measures on Thursday to boost trade, including support for energy product imports, amid worries over US President-elect Donald Trump’s threats to impose tariffs.
China’s crude oil imports are set to rebound in November, according to analysts, traders and ship tracking data.
Saudi Arabia’s GACA ushers in new era of passenger experience with AI
JEDDAH: Saudi Arabia’s aviation authority is revolutionizing the passenger experience by incorporating artificial intelligence into its services, in alignment with the nation’s strategic aviation plan, a senior Saudi official said.
At the 2024 Global Civil Aviation Forum in Shanghai, Abdulaziz bin Abdullah Al-Dahmash, vice president of the General Authority of Civil Aviation for Quality and Passenger Experience, highlighted the authority’s ongoing initiatives designed to improve passenger satisfaction.
A session dedicated to GACA’s role in enhancing the passenger experience featured international experts and focused on the authority's efforts to align with Saudi Arabia's aviation strategy and Vision 2030.
The discussion underscored Saudi Arabia's use of data analytics and AI to transform the aviation sector, supporting the National Aviation Strategy and the broader Vision 2030 objectives. This approach is part of the Kingdom's goal to achieve excellence in both aviation services and infrastructure.
The National Aviation Strategy serves as a roadmap to solidify Saudi Arabia’s position as a global leader in tourism, business travel, and logistics. Built around three core pillars — empowering national tourism, improving domestic aviation, and aligning with Vision 2030 — the strategy aims to enhance interconnectivity, increase the market share of national carriers, and expand airport infrastructure.
By leveraging its strategic location and investment potential, Saudi Arabia’s aviation strategy directly contributes to Vision 2030, which aims to strengthen services and bolster the travel and logistics sectors.
Al-Dahmash noted that to achieve the National Aviation Strategy’s ambitious goals, which include tripling passenger traffic to 330 million annually by 2030, Saudi Arabia is prioritizing major infrastructure projects.
This includes constructing new airports, such as the King Salman International Airport, and expanding existing ones to accommodate the surge in passenger numbers. Alongside this, there is a strong focus on improving operational efficiency and enhancing the overall passenger experience.
In this context, GACA is actively developing and implementing programs to meet evolving passenger expectations. One such innovation is the introduction of AI-powered systems that manage and monitor passenger flow, tracking wait times across Saudi airports.
Additionally, the “Bagless Traveler” initiative is transforming the travel process by enabling passengers to complete check-in and baggage handling from their accommodation. During its pilot phase, the service successfully assisted over one million passengers, with more than 2 million bags processed without incident.
Al-Dahmash also emphasized the importance of regulatory frameworks that GACA has implemented, noting that these efforts have significantly improved services at Saudi airports, leading to higher levels of passenger satisfaction. This success has garnered recognition, with several airports receiving local and international awards.
Moreover, GACA has presented its innovative passenger experience programs at global conferences, sharing its best practices with civil aviation authorities worldwide, demonstrating how others can leverage these advancements for similar success.
Closing Bell: Saudi main index slips to close at 11,840
- Parallel market Nomu gained 681.17 points, or 2.28%, to close at 30,540.28
- MSCI Tadawul Index lost 4.52 points, or 0.30%, to close at 1,486.82
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 27.40 points, or 0.23 percent, to close at 11,840.52.
The total trading turnover of the benchmark index was SR5.39 billion ($1.43 billion), as 98 of the stocks advanced and 131 retreated.
The Kingdom’s parallel market Nomu gained 681.17 points, or 2.28 percent, to close at 30,540.28. This comes as 63 of the listed stocks advanced, while 23 retreated.
The MSCI Tadawul Index lost 4.52 points, or 0.30 percent, to close at 1,486.82.
The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 10 percent to SR0.33.
Other strong performers included Saudi Reinsurance Co., with a 7.05 percent increase in its share price to SR43.30, and Saudi Chemical Co., which saw its share price rise 5.46 percent to SR10.24.
Saudi Cable Co. recorded the largest decline, with its share price dropping 4.02 percent to SR97.90.
CHUBB Arabia Cooperative Insurance Co. also saw its stock fall 3.13 percent to SR49.50.
Naseej International Trading Co. experienced a 2.64 percent drop in its share price, which fell to SR92.30.
On the announcements front, Saudi Awwal Bank has disclosed its intention to issue an SR-denominated Additional Tier 1 Sukuk through a private placement in the Kingdom, as part of its SR20 billion Additional Tier 1 Sukuk issuance program.
According to a Tadawul statement, the bank has appointed HSBC Saudi Arabia as the sole lead manager for the proposed offer. The statement said the purpose of the issuance is to strengthen the bank’s capital base and support the achievement of its long-term strategic objectives.
The amount and terms of the sukuk will be determined at a later stage, based on market conditions at that time.
Saudi Awwal Bank closed the session at SR31.40, down 0.63 percent.
The Saudi Investment Bank has announced the completion of its US dollar-denominated Additional Tier 1 capital sustainable sukuk offering under its Additional Tier 1 capital sukuk program.
A bourse filing revealed that the offer is valued at $750 million, comprising 3,750 sukuk with a par value of $200,000 each and a return of 6.275 percent.
The sukuk have a perpetual maturity, callable after five years. Settlement of the sukuk issuance is scheduled for Nov. 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market.
Saudi Investment Bank closed the session at SR13.88, down 0.29 percent.
