Market Trends of UAE Agriculture Industry
Importing Key Cereals to Meet Population Demands
According to ITC Trade Map, the United Arab Emirates (UAE) imported cereals valued at USD 1,605.6 million in 2023, reflecting a significant rise from USD 1,187.2 million in 2021. This increase in cereal imports is driven by high local consumption rates and a decline in government-held grain stocks, underscoring the UAE's ongoing reliance on imported staples to meet domestic demand. Among the imported cereals, rice is predominant, with milled rice making up the majority, while other varieties, including paddy, brown, and broken rice, also contribute to the total imports.
In an effort to bolster food security amidst global supply chain disruptions spurred by the COVID-19 pandemic, the UAE launched Agriota, an agricultural trading platform created in partnership with India’s CropData Technology through the Dubai Multi Commodities Centre (DMCC). This platform connects Indian farmers directly with UAE-based food companies, facilitating trade in cereals, pulses, oilseeds, fruits, vegetables, spices, and condiments. By simplifying access to a reliable agricultural supply network, Agriota strengthens the UAE’s position in securing stable food sources and reducing its dependence on fluctuating global supply chains.
Dubai’s rebounding tourism sector has also fueled demand for food products, further supporting cereal imports and stimulating domestic production. With tourism accounting for 10-15% of the UAE’s GDP annually, the sector’s recovery has been instrumental in boosting demand for baked goods, processed foods, and restaurants reliant on cereals. This demand is particularly vital for the food service sector, which serves the UAE’s high influx of tourists and residents seeking diverse culinary options.
In terms of trading partners, India remains the UAE’s largest cereal supplier, accounting for 40.3% of total imports in 2023. Australia follows as the second-largest exporter, holding a 12.3% share of UAE cereal imports. This rising demand and increasing import activity highlight expanding opportunities within the UAE market for international cereal exporters, who are well-positioned to tap into the country’s strong growth in food consumption.
Government Initiatives Aiming to Enhance Self-Sufficiency
Dates are a primary crop in the United Arab Emirates (UAE). According to the Food and Agriculture Organization, date production led agricultural output, reaching over 405,146.2 metric tons in 2023. Despite challenging soil and climatic conditions, crop production in the UAE is increasing due to government initiatives, including free cultivation, 50% reduced costs for crop protection and fertilizers, and subsidized veterinary services. The country has experienced significant growth in vegetable, fruit, and fodder crop production. Notably, tomatoes, cucumbers, lettuce, and strawberries have been successfully cultivated using soil-less farming techniques. The implementation of precision agriculture, including smart irrigation systems and climate-controlled facilities, has optimized resource use and improved crop yields.
The UAE considers food security crucial for its citizens and residents. As a result, the country launched its National Food Security Policy, aiming to increase production by 30-40% over a decade. The UAE also focuses on sustainable agriculture to enhance farm efficiency, aligning with UN Sustainable Development Goals. The government is investing in the agricultural sector to boost self-sufficiency. For instance, in 2023, the UAE Ministry of Climate Change and Environment (MOCCAE) launched the 'National Farms Sustainability Initiative'. This program aims to enhance domestic production by securing purchase agreements, increasing the UAE's self-sufficiency in selected food commodities, and improving farmer incomes without impacting food trade. The initiative's first phase targets increasing the share of purchases by government contractors to 50% of domestic production in 2023, with plans to raise this to 70% by 2025, and ultimately to 100% by 2030.
