Using smart technology to cultivate fresh greens

The Natufia Smart Garden gives households total control over the greens they want to consume without depending on the climate or the seasons. (Supplied)
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Updated 04 March 2023
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Using smart technology to cultivate fresh greens

  • Food tech firm adopts penetrative pricing to drive food security in Saudi Arabia

RIYADH: Saudi Arabia is in overdrive to achieve its ambitious goals of diversifying its economy and further uplifting the quality of life without compromising its commitment to sustainable living.

Its measures have created a rich environment conducive to innovation and investment and witnessed mushrooming startups developing novel ideas supported by different institutions in the public and private sectors.

One of those entities is the King Abdullah University of Science and Technology which has emerged as a beacon for innovative ideas and a home to the most diverse startups in the region.

Its venture, Natufia Labs, is contributing toward ensuring food security in the Kingdom. 

In 2014, the company pioneered a hydroponic kitchen farm that automates plant growth through a self-contained case that provides optimal water, lighting, and nutrients to cultivate fresh greens throughout the year.

Called Natufia Smart Garden, the technology gives households total control over the greens they want to consume without depending on the climate or the seasons.

With the smart kitchen garden, though, you place the seed pods within the nursery of the cabinet to germinate. After about 10 days, the pod turns into a plant. It is then moved to the growth chamber, and 30 days later, you have fresh green produce devoid of pesticides or preservatives.

The technology can sow over 40 varieties of seed pods and can grow almost 32 plants simultaneously, including basil, chilies, kale, lettuce, cherry tomatoes, and chamomile, to name a few. But the technology came with a price.

At $13,000, the product was a luxury and a preserve of the uber-rich. Weighing 270 kg, it was a hardware-intensive technology that commanded huge manufacturing costs coupled with the logistics challenges of sourcing parts from different parts of the world. 

“Our first clients were chefs in France and private clients in California. These were people who loved food and cooking, and for them, Natufia was an extension of their gardens. They told us it was something they wanted for years,” Gregory Lu told Arab News, who set up the company in 2014 in Estonia after spending the better part of his life selling dream homes across Europe.

What also went in the company’s favor was its environmental commitment because here was a product that curbed packaging, pollution, food miles, and toxins.

So, what turned this one-time realtor into an environmentalist? In 2012, after advising high net worth individuals on lucrative real estate opportunities, the law graduate found his true calling as he purchased an olive plantation in Sicily.

“I was able to reconnect with nature and produce olive oil in the most natural way, without fertilizer, pesticide, and excess watering,” said Lu. This enthusiastic embrace of natural living inspired Lu to dream of a farm for every household.

In 2018, Natufia Labs joined the Techstars Dubai Accelerator Opening Class and closed a $1.2-million seed round led by Butterfly Ventures, Techstars, and the Dubai-based Ginco Investments.

I was able to reconnect with nature and produce olive oil in the most natural way, without fertilizer, pesticide, and excess watering.

Gregory Lu, Natufia Labs founder and CEO

However, when the COVID-19 pandemic engulfed the world, it highlighted the fragility of the global supply chains and their impact on food security. It made it harder for farmers and food producers to get their produce to market.

For instance, according to the General Authority for Statistics, food and beverage in Saudi Arabia recorded the highest annual increase of 14.4 percent in July 2020, primarily due to a 19 percent increase in vegetable prices and 18.2 percent in meat prices.

With limited mobility and increased demand for home deliveries, transportation costs also shot up, burdening the food basket further. The July 2020 GASTAT report further revealed that transportation costs in Saudi Arabia increased by 7.3 percent, mainly from a 13.9 percent increase in vehicle prices.

The lightning had struck, furthering Lu’s resolve to reach the masses.

In 2021, Lu finally received a helping hand from the unlikeliest place nearly 4,000 km away from his base camp: KAUST.

It not only awarded $2 million to Natufia Labs through its venture capital investment arm, the KAUST Innovation Fund, but also offered a residency at the KAUST Research and Technology Park. Lu soon perfected the art of production and lowered the price. Later, Lu realized the only way he could push the envelope was by designing a product that was smaller in size and more compact in shape than the Natufia Smart Garden.

In the fall of 2022, it launched Natufia One, a smaller and semi-automated version of Natufia Smart Garden, which was entirely developed at KAUST. Weighing 65 kg, Natufia One ventured into the market.

Lu now plans to raise new investments to increase production capacity and triple the firm’s distribution network before the end of this year. He also hopes to launch a slew of new products in 2024.

The plans are encouraging, considering the Kingdom is on a war footing to localize the country’s food industry by 2030.


Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 23 sec ago
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Saudi-US bilateral accords ‘not that connected’ to Israel normalization

RIYADH: Saudi Arabia’s foreign minister said on Thursday that some of the bilateral agreements the kingdom has been negotiating with Washington are “not that tied” to the normalization of Saudi relations with Israel and are “moving ahead.”

He noted that potential US-Saudi agreements on trade and artificial intelligence are “not tied to any third parties” and “can progress probably quite quickly.”

“Some of the more significant defense cooperation agreements are much more complicated. We would certainly welcome the opportunity to finalize them before the end of the Biden administration's term, but that’s reliant on factors outside of our control,” he said.

“The other work streams are not that connected, and some of them are progressing quite quickly, and we hope to see movement forward.”

Ruling out the possibility of Saudi Arabia recognizing Israel without the establishment of a Palestinian state, Prince Faisal stated that this remains the only viable solution, regardless of Israel’s acceptance.

Speaking at the Future Investment Initiative summit in Riyadh, he emphasized that the creation of a Palestinian state is rooted in international law and UN resolutions.

“In reality, the establishment of a Palestinian state is not tied to whether or not Israel accepts it; it’s tied to the principles of international law,” he said. “The UN resolutions that led to the establishment of the state of Israel clearly envisioned a Palestinian state as well, so we need to make that happen.”

Prince Faisal asserted that normalization of Saudi-Israeli ties is “off the table” until there is a resolution regarding Palestinian statehood. He further highlighted the broader implications, stating, “The security of the region as a whole is at risk if we do not address the rights of the Palestinians.”

Addressing the ongoing crisis in Gaza, he called for a cease-fire, emphasizing the dangers of an Israeli overreaction following the events of October 7th. “We have seen the reality that Israel’s reaction and its continuing military assault have led to a humanitarian catastrophe,” he remarked. He described the situation in northern Gaza as dire, with blockades and no safe zones for civilians, stating, “That can only be described as a form of genocide. It is certainly against humanitarian law, and that is feeding a continuing cycle of violence.”

On the prospects of an immediate cease-fire, Prince Faisal expressed caution, saying, “I hope it’s the case that we can see a cease-fire in the immediate hours, in the immediate short term. I’m not sure that that’s the case. I don’t have the details.”

He acknowledged US efforts to facilitate negotiations, adding, “We are not part of the direct negotiations, but we certainly support the efforts that the US has undertaken to find a pathway to a ceasefire. I hope it comes to fruition.”

He noted that previous attempts at cease-fire negotiations had failed due to new demands from Israel. “In most of those instances where the talks collapsed, it has been because new requirements or demands were added on the part of Israel,” he explained.

Prince Faisal also addressed Saudi Arabia’s position on Lebanon, emphasizing a hands-off approach. “We have never fully disengaged. But we believe it’s up to the Lebanese politicians to seek a direction that puts Lebanon on the right track,” he stated.

He added: “It’s not up to any outside influence, any outside countries, or any outside powers to tell the Lebanese what to do or to influence the political process in Lebanon. That is our opinion.”

Regarding relations with Iran, Prince Faisal indicated that recent discussions focused on regional de-escalation. “I hope that Iran, like us, is working toward regional de-escalation on all fronts, not just in Lebanon. That’s very much the focus of my conversations with my Iranian counterpart,” he said. While he could not be “confident of anything that is in the control of other parties,” he emphasized the importance of avoiding further escalation.

“I have made it clear to our Iranian counterparts that it is important to avoid any further escalation. My sense is that they realize the risks of escalation and would prefer to avoid it. But, of course, they have their own strategic calculations.”


‘Blue tech’ needs private sector boost, says RSG official

Updated 48 min 41 sec ago
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‘Blue tech’ needs private sector boost, says RSG official

RIYADH: Private sector firms need to lead the way and invest in so-called blue tech in order to protect the world’s oceans, according to a leading official at Red Sea Global.

Speaking to Arab News during the Future Investment Initiative in Riyadh, Raed Al-Basseet, environment and sustainability officer at the company, called on businesses to adopt innovative approaches that contribute to environmental preservation. 

This includes blue tech — which refers to refers to any innovation made for the sea.

Al-Basseet also reaffirmed RSG’s commitment to sustainability — and how this reflects on the project’s return on investment. 

He called on the private sector to take “the first steps” and invest in “cutting edge approaches to preserving the environment,” adding: “Enhancing the environment and … conservation is the right thing to do for the private sector, but also when we realize the first benefits out of that, and out of these initiatives, we will also have real return on investment as a developer, as a private sector, from that investment.” 

Al-Basseet was keen to emphasis RSG’s focus on environmentalism, saying the company has “sustainability at its DNA.”

He added: “And that actually, from a practical sense, means that (in) all of our activities, master planning and development, design, construction, delivering on these projects, as well as operating these projects, sustainability is at the core of everything that we do.” 

He emphasized that the long-term success of the projects relies on preserving natural assets, making sustainability integral to achieving favorable outcomes. 

Highlighting key initiatives, Al-Basseet pointed out the company’s significant investment in blue tech, adding: “The investment in technology does require the support of a multitude of stakeholders. Private sector does have a role. Red Sea Global is very proud that they have in the 

Al-Basseet also spoke about the company’s efforts in coral conservation, including supporting research that is happening now within the Red Sea.


Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Updated 31 October 2024
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Saudi-US bilateral accords ‘not that connected’ to Israel normalization

RIYADH: Saudi Arabia’s foreign minister said on Thursday that some of the bilateral agreements the kingdom has been negotiating with Washington are “not that tied” to the normalization of Saudi relations with Israel and are “moving ahead.”

He noted that potential US-Saudi agreements on trade and artificial intelligence are “not tied to any third parties” and “can progress probably quite quickly.”

“Some of the more significant defense cooperation agreements are much more complicated. We would certainly welcome the opportunity to finalize them before the end of the Biden administration's term, but that’s reliant on factors outside of our control,” he said.

“The other work streams are not that connected, and some of them are progressing quite quickly, and we hope to see movement forward.”

Ruling out the possibility of Saudi Arabia recognizing Israel without the establishment of a Palestinian state, Prince Faisal stated that this remains the only viable solution, regardless of Israel’s acceptance.

Speaking at the Future Investment Initiative summit in Riyadh, he emphasized that the creation of a Palestinian state is rooted in international law and UN resolutions.

“In reality, the establishment of a Palestinian state is not tied to whether or not Israel accepts it; it’s tied to the principles of international law,” he said. “The UN resolutions that led to the establishment of the state of Israel clearly envisioned a Palestinian state as well, so we need to make that happen.”

Prince Faisal asserted that normalization of Saudi-Israeli ties is “off the table” until there is a resolution regarding Palestinian statehood. He further highlighted the broader implications, stating, “The security of the region as a whole is at risk if we do not address the rights of the Palestinians.”

Addressing the ongoing crisis in Gaza, he called for a cease-fire, emphasizing the dangers of an Israeli overreaction following the events of October 7th. “We have seen the reality that Israel’s reaction and its continuing military assault have led to a humanitarian catastrophe,” he remarked. He described the situation in northern Gaza as dire, with blockades and no safe zones for civilians, stating, “That can only be described as a form of genocide. It is certainly against humanitarian law, and that is feeding a continuing cycle of violence.”

On the prospects of an immediate cease-fire, Prince Faisal expressed caution, saying, “I hope it’s the case that we can see a cease-fire in the immediate hours, in the immediate short term. I’m not sure that that’s the case. I don’t have the details.”

He acknowledged US efforts to facilitate negotiations, adding, “We are not part of the direct negotiations, but we certainly support the efforts that the US has undertaken to find a pathway to a ceasefire. I hope it comes to fruition.”

He noted that previous attempts at cease-fire negotiations had failed due to new demands from Israel. “In most of those instances where the talks collapsed, it has been because new requirements or demands were added on the part of Israel,” he explained.

Prince Faisal also addressed Saudi Arabia’s position on Lebanon, emphasizing a hands-off approach. “We have never fully disengaged. But we believe it’s up to the Lebanese politicians to seek a direction that puts Lebanon on the right track,” he stated.

He added: “It’s not up to any outside influence, any outside countries, or any outside powers to tell the Lebanese what to do or to influence the political process in Lebanon. That is our opinion.”

Regarding relations with Iran, Prince Faisal indicated that recent discussions focused on regional de-escalation. “I hope that Iran, like us, is working toward regional de-escalation on all fronts, not just in Lebanon. That’s very much the focus of my conversations with my Iranian counterpart,” he said. While he could not be “confident of anything that is in the control of other parties,” he emphasized the importance of avoiding further escalation.

“I have made it clear to our Iranian counterparts that it is important to avoid any further escalation. My sense is that they realize the risks of escalation and would prefer to avoid it. But, of course, they have their own strategic calculations.”


NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

Updated 16 min 55 sec ago
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NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

  • NBK has developed strong connections with key players, including other financial institutions
  • NBK signed four agreements worth $1.6 billion, underscoring the growing demand for sophisticated financial solutions within Saudi Arabia’s evolving market

RIYADH: The National Bank of Kuwait is looking to partner with different companies in Saudi Arabia as the Kingdom’s Vision 2030 opens opportunities for financial partnerships, a senior executive said. 

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh, the General Manager of the National Bank of Kuwait in Saudi Arabia, Anas Al-Ubaid, highlighted that NBK has developed strong connections with key players, including other financial institutions.

“We have a good partnership with a lot of government bodies, corporates, and even private banking or high net worth individuals,” Al-Ubaid said.

He added: “We’re here on the market since 2006. We’re serving the market. We partnered up with the majority of the names in that market, even with banks. Once the opportunities arise, definitely we could partner up with them.”

Al-Ubaid also explained how the bank’s approach goes beyond traditional lending to provide customized financial solutions that meet specific client needs and support their business growth.

“The way we look at it here at NBK, it’s not just about lending. It’s about providing tailored financial solutions for our clients, serving their needs, and also helping them to grow their businesses,” he said.

Al-Ubaid continued: “There is no definite sector that we’re looking at. We’re looking at all areas that we could help with and help our partners in the markets.”

He added: “Our expertise is in tailoring solutions for clients, whether corporates or individuals,” highlighting NBK’s focus on customized financial services that support Vision 2030.

He further underlined that the Saudi market offers significant growth potential for banks, particularly as demand rises for customized financial solutions.

“I would say there’s a lot of opportunities in the markets for banks and financial institutions to grow in that area. Definitely. The market is eager to see more tailored solutions for clients, especially now the clients in Saudi,” Al-Ubaid said.

On the first day of the event, NBK signed four agreements worth $1.6 billion, underscoring the growing demand for sophisticated financial solutions within Saudi Arabia’s evolving market.

One agreement was inked with ACWA Power – worth SR2.6 billion ($690 million) – to support the company’s expansion in energy and water resource sectors across the Middle East and North Africa.

Additionally, NBK established an SR1.8 billion credit facility with Al Gihaz Contracting Co., helping fund the Kingdom’s largest energy storage project.

Agreements were also signed with Pan-Kingdom Holding Group and Alyusr Leasing to further their operational goals, with the deals valued at SR1 billion and SR750 million, respectively.


Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

Updated 31 October 2024
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Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

  • Initiative aligns with Riyadh Air’s goal to serve over 100 destinations by the end of the decade

RIYADH: Saudi Arabia’s Riyadh Air has secured a $1.3 billion credit facility from a consortium of Gulf banks to fund its upcoming launch in 2025, according to the airline’s chief financial officer.

Speaking to Arab News at the Future Investment Initiative in Riyadh, taking place from Oct. 29 to 31, Adam Boukadida described this as the airline’s first corporate finance deal.

This initiative aligns with Riyadh Air’s goal, backed by the Kingdom’s Public Investment Fund, to serve over 100 destinations by the end of the decade through strategic partnerships.

“This is the first corporate finance deal for Riyadh Air. We’re very excited about that. It’s for up to SR5 billion. It’s what is called an accordion structure,” Boukadida said.

He noted that the transaction involves eight financial institutions, with six being Saudi banks, alongside Gulf International Bank and Emirates NBD from Dubai. “So, we’ve got a complement of local and regional powerhouses to support us in our first transaction,” he added.

The CFO explained that the transaction is for 12 months, with an option to roll over and extend, which the company anticipates will occur. The funds will serve as the backbone of the airline’s balance sheet and will be utilized for general corporate purposes as needed.

“It is in Saudi riyals and it’s very well priced. We have a great credit rating, of course. There’s a strong belief from our banking partners about the purpose of this and the importance of being part of the first syndicated revolving credit facility,” he said.

Since the company is currently non-operational, Boukadida mentioned that they may consider various financial instruments in the future, including debt, capital markets, and bonds. “It’s really good financial practice to start and support and build out your balance sheet with what would be called a club or syndicated loan there for working capital benefits and requirements,” he explained.

Boukadida also highlighted that the airline plans to have just 130 aircraft over the next five years. “In aviation, especially with the size and scale we’re looking to achieve at Riyadh Air, we explore many creative financial solutions in the future, whether that be leasing or mortgage-type aircraft financing transactions,” he said.

Regarding a recent agreement with Aramco, which was signed during the FII, Boukadida said, “It’s likely that Aramco will be our biggest fuel supply source.” He said the two companies want to jointly explore ways to make the aviation industry more sustainable.

On sustainable aviation fuel, he said affordability remains a significant challenge. “Generally speaking, sustainable aviation fuel, or SAF, is about three or four times more expensive than normal jet fuel. So that’s something that needs to be addressed for sure,” he remarked.

Shifting to digitization, Boukadida discussed the airline’s ambition to provide an Amazon-like experience. “We’re a digital company that enables travel rather than a traditional legacy airline,” he said. “We will offer, and we announced it yesterday, version 1.0 of what we call ‘offer and order.’ It’s very similar to an Amazon experience or, in the region, a noon.com experience where you do your basket online retail shopping,” he added.