PART THREE: PROSPECTIVE SECTORS FOR INVESTMENT

in the UAE

UAE Agricultural SectorCh 12

UAE Agricultural Sector

• Agriculture, also called farming, is the cultivation of animals, plants, yeasts, and other life forms for food, fiber, drugs and other products used to sustain and enhance human life.

• Agricultural economics refers to economics as it relates to the "production, distribution and consumption of [agricultural] goods and services.

UAE Agricultural Sector

• Crop cultivation: Cropping systems vary among farms depending on the available resources and constraints; geography and climate of the farm; government policy; economic, social and political pressures; and the philosophy and culture of the farmer.

UAE Agricultural Sector

• Geography and climate; In general desert dominates the UAE and the climate of the country generally is hot and dry.

• Government Policy: The agriculture industry in the U.A.E. is diversifying quickly. At the national level, the Ministry of Economy is establishing a strategic food reserve that would help diversify the nation’s agricultural base and protect against any critical food shortages.

• Agriculture accounts for only 3 percent of the UAE's GDP due to the federation's severe climatic conditions, although it accounts for 20 percent of all water consumed, much from rapidly-depleting natural water supplies.

UAE Agricultural Sector

• The UAE's agricultural sector annually produces about 600,000 tons of produce. The federation's chief crops are cereals. Some crops, such as tomatoes, are grown in quantities greater than what the UAE consumes in a whole year. The agriculture sector also produces water-melons, eggs, cucumbers, (egg-plants), green chilies, peppers, and dates.

• Main exports include dates, fish, vegetables, poultry, eggs, and dairy products.

UAE Agricultural Sector

• THE UAE ECONOMY – AGRICULTURE 2013 (Head news)• Organic farming on the rise in the UAE• Sheikh Zayed Award for Agricultural Innovation planned.• Khalifa Fund plans to promote agriculture• Sustainable farming ideas spread across UAE• Abu Dhabi announces winter crop plan for next season• Abu Dhabi to host first Global Forum for Innovations in

Agriculture• Research centre to help Abu Dhabi farmers boost crops• Potato Farmers are planning to increase production in the UAE• Emirati farmers show interest in organic vegetables

UAE Agricultural SectorEconomy (billions in USD)

(01) China 903

European Union 311

(02) India 306

(03) United States 184

(04) Indonesia 125

(05) Brazil 114

(06) Nigeria 90

(07) Russia 83

(08) Turkey 75

(09) Australia 70

(10) Japan 55

Largest countries by agricultural output at market exchange rates according to IMF, 2013

(11) France 55

(12) Mexico 54

(13) Thailand 49

(14) Pakistan 48

(15) Spain 45

(16) Argentina 44

(17) Iran 44

(18) Italy 41

(19) Egypt 39

(20) Vietnam 37

Rest of the World 1,873