Adoption of Vertical Farming and Hydroponics to Propel UAE Market Beyond USD 4.73 Billion by 2032 at 4.2% CAGR - Coherent Market Insights
UAE Agriculture Market Key Takeaways
- According to Coherent Market Insights (CMI), the UAE agriculture market is projected to exhibit a CAGR of 4.2% during the forecast period, reaching USD 4.73 Bn by 2032, up from USD 3.40 Bn in 2024.
- Crop farming & horticulture segment dominates the UAE agriculture market and accounted for 42.9% share in 2024.
- By end user, commercial segment accounted for 83.3% of the UAE agriculture market share in 2024 and is expected to exhibit a CAGR of 4.3% during the forecast period.
Rising Demand for Food Security Solutions Fueling Market Growth
Coherent Market Insights latest UAE agriculture market analysis offers insights into key factors driving the market growth. Increasing demand for food security solutions is one such key growth factor.
The UAE depends heavily on food imports, leading to increased efforts to boost local food production. Growing consumer demand for fresh, pesticide free, and locally grown produce is encouraging the use of sustainable farming methods like hydroponics and aquaponics.
Government-led programs, like the National Food Security Strategy 2051, are creating chances for agri tech companies to bring in new farming systems. Thus, rising focus on improving sustainable food production is expected to boost growth of the UAE agriculture market during the assessment period.
Read Also: Digital Agriculture Market Size, Share, Trends & Opportunities for 2025-2032
High Production Costs and Water Scarcity Limiting Market Growth
The UAE agriculture market outlook appears promising, owing to rising demand for sustainable food production and increasing government support. However, water scarcity concerns and high production costs might limit the market growth to some extent during the forthcoming period.
The UAE is one of the most water-scarce countries in the world. Agriculture relies heavily on desalinated water and groundwater, which are expensive and unsustainable in the long term. This might slow down the UAE agriculture market growth in the coming years.
In addition, high operating costs and energy requirements for vertical farming, hydroponics, and controlled-environment agriculture remain major barriers. This makes local farming expensive compared to imports.
Adoption of Vertical Farming and Hydroponics Creating Growth Prospects
The UAE agriculture market is seeing new growth opportunities as vertical farming and hydroponics gain popularity. These modern farming methods use less water and land, making them ideal for the countrys arid climate and limited agricultural space.
Farmers who adopt these technologies can produce fresh, high quality crops year round while reducing dependence on imports. This shift toward sustainable and efficient farming is expected to boost the UAEs agricultural output and support food security during the forthcoming period.
Emerging UAE Agriculture Market Trends
- Shift towards innovative farming methods is a key growth-shaping trend in the UAE agriculture market. Controlled environment agriculture practices like greenhouses, vertical farming, hydroponics, and aquaponics are being increasingly adopted across the UAE. These technologies help save water, enable year-round production, and overcome challenges posed by harsh external climates.
- Use of smart irrigation, drones, AI, IoT, sensors, and automation is picking up pace as farmers look to improve productivity and efficiency, as well as reduce overall costs. These advanced technologies have the tendency to monitor crops, optimize resources, and improve yields. Silal, for instance, recently signed an agreement with KEZAD to launch innovative AgTech projects in Al Ain.
- Increasing government initiatives and programs are becoming a game-changer for the UAEs agriculture industry. The government is launching new initiatives and partnering with other businesses to boost AgriTech innovation and boost food security. For instance, the UAEs Ministry of Economy launched an AgriTech Knowledge Hub to ensure the exchange of information. It is also partnering with various entities to invest in agriculture technology and farming.
Also Read: Controlled Environment Agriculture Market Outlook for 2025-2032
Analysts View
The UAE agriculture industry is evolving rapidly as sustainability and food security become top national priorities. Vertical farming, hydroponics, and aquaponics are expected to dominate future agricultural practices, reshaping the market and reducing dependence on imports, said an analyst at Coherent Market Insights.
Current Events and Their Impact on the UAE Agriculture Market
Event |
Description and Impact |
Regional Water Security Crisis and Climate Adaptation |
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Advanced Agricultural Technology Integration |
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Economic Diversification and Investment Policies |
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Competitor Insights
Key Companies in the UAE Agricultural Market Report:
- MEACO Group
- Al Dahra Agriculture LLC
- Pure Harvest Smart Farms
- Agricultural Materials Company LLC
- Elite Agro Projects LLC
- Advanta Seeds
- Al Naboodah Group
- BADIA FARMS
- SGS Gulf Limited
- Gracia Group
- Technical Agricultural Co. LLC
- Aarvee Farm Products
- Emirates Stallions Group
- Al Mubarak Agro Chemicals
- AGRI VENTURES FZE
- Pegasus Agriculture Group
- Emirates International Agricultural Advanced Company (EIAAC)
- Desert Control
- Vacker Group
- Al Dhafra International Group
Key Developments
- In July 2025, AI teamed up with Skyfield Agritech to develop the next generation of smart vertical farms in the GCC. This partnership combines Skyfields hydroponic, greenhouse, and vertical farming systems with INNO Farms. AI robotics, AI, and IoT, creating scalable, sustainable, data-driven farms for arid GCC climates.
- In July 2024, S. vertical farming startup Plenty partnered with UAE’s Mawarid, a part of Alpha Dhabi Holding, in a USD 680 million joint venture. They plan to build indoor farms across the Middle East, starting with a facility in Abu Dhabi.
- In November 2024, Silal signed Musataha Agreement with KEZAD at the Abu Dhabi International Food Exhibition (ADIFE). Under this agreement, Silal will set up two AgTech projects in Al Ain Industrial City focused on sustainable farming and local food production.
Also Read: Smart Agriculture Solution Market Analysis & Forecast for 2025-2032
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