Food security is an increasing concern across the Middle East because many countries throughout the region are heavily dependent on foreign imports. Some buy significantly more food from other countries than they export. In order to overcome food supply and security challenges, Middle Eastern nations are increasingly turning to agricultural technologies (agritech) to get on the path to sustainable agriculture and food independence.
Take, for example, Saudi Arabia, which even before the arrival of Covid-19 imported $10.5 billion in agri-food products in 2019. That same year, the Kingdom exported just $1.7 billion in agri-food products, equating to a deficit of some $8.8 billion. Experts suggest that agritech could potentially provide a long-term solution to such deficits, making food supplies more reliable while simultaneously stimulating innovation.
Obstacles on the Road to Food Independence
In many Middle Eastern countries, agriculture is hampered by a variety of economic, policy, and environmental challenges. A common problem is underdevelopment of the sector’s capabilities, as well as a lack of agricultural labor. Soil salinity is a significant issue for countries across the MENA region, as is low yields. Shortages in water, feed resources, and arable land are also major hurdles to overcome, and climate change is poised to worsen these issues. Although many of these challenges are longstanding, the pandemic exacerbated them. In addition, geopolitical instability and environmental factors have deepened food insecurity problems throughout the Middle East.
In Jordan, drought is taking a serious toll on the economy. Yemen is in the midst of a dire humanitarian crisis, with millions of people going hungry. In Syria, the price of tea almost tripled in 2022. Meanwhile, Egypt has grappled with a #RevolutionOfTheHungry—comments about soaring food prices went viral on social media under that hashtag last year. Food shortages have plagued parts of the region as well.
Since 1950, the population of the MENA region has quadrupled, and it is tipped to reach 600 million by 2050. On average, Gulf Cooperation Council (GCC) countries import around 90% of their food products from overseas, with Qatar topping the list in terms of dependence on foreign imports at 97%, followed by Bahrain at 92%, Kuwait at 91%, and Oman and the United Arab Emirates at 89%.
Agritech Offers Potential Solutions
Agriculture is a thirsty business. Globally, about 70% of the planet’s freshwater is used for agriculture. However, the MENA region is the most water-scarce in the world—it is home to 6% of the global population but only 2% of its renewable freshwater, according to UNICEF.
Agritech companies are experimenting with technology that allows them to grow food more efficiently, using less water, arable land, and other scarce resources. Startups across the region are also developing new fertilizers and seeds; harnessing the power of robotics and AI to increase crop yields; and using drones to manage and monitor crops. Swathes of companies are using vertical farming techniques to grow produce locally. Others are taking advantage of recent advancements in artificial intelligence (AI) and greatly expanded computing capacity to create technologies that would increase the resilience of regional food systems.
One example is the Saudi startup Red Sea Farms, which is working to reduce the need for freshwater to grow food. Using solar power, saltwater, and AI technology, the company grows cucumbers, peppers, and tomatoes. They have achieved impressive savings of 300 liters of freshwater per kilogram of produce grown.
Led by the UAE and Saudi Arabia, the Middle Eastern agritech sector is blossoming. Across the region, companies and startups have attracted a flurry of investment. As a sector, agritech saw a 122% compound annual growth rate between 2018 and 2021, according to reports, with funding increasing rapidly since 2020.
Gulf countries are ramping up their agritech initiatives as well. In Riyadh, the Saudi capital, the government has been relying on a mix of public and private partnerships to invest in agritech innovations in line with Saudi Arabia’s Vision 2030 plan. Saudi Aramco’s venture capital arm, Wa’ed, has invested $18.5 million in Red Sea Farms. In 2020, ADQ, a strategic investment fund of the Abu Dhabi government, announced the launch of a new company called Silal which was created to diversify food sources and increase locally produced food. Companies from abroad are also taking notice of the region’s growing identity as an agritech hub. Natufia Labs, maker of the world’s first smart indoor garden, relocated from Estonia to Saudi Arabia in 2021.
Middle Eastern countries have a long way to go before they can achieve food independence, and the obstacles on the way to this goal are considerable. Meanwhile, climate change has arrived—droughts, scorching heat, and desertification are becoming more frequent and are playing havoc with the food systems the region has long relied upon. Agritech has a key role to play in helping Middle East countries adapt to this new normal and produce enough food to feed their populations.