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Middle East Vertical Farming Market Size (2024 - 2029)

The Middle East Vertical Farming Market is poised for significant growth, driven by the region's unique challenges such as water scarcity and limited arable land, which make vertical farming an attractive solution. The market's expansion is supported by increased investments in food security and strategic collaborations between public and private sectors. Companies are actively engaging in partnerships, mergers, and acquisitions to enhance their market presence, reflecting a dynamic and rapidly evolving industry landscape.

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Market Size of Middle East Vertical Farming Industry

Middle East Vertical Farming Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 352.20 Million
Market Size (2029) USD 699.20 Million
CAGR (2024 - 2029) 14.70 %
Market Concentration Low

Major Players

Middle East Vertical Farming Market Major Players

*Disclaimer: Major Players sorted in no particular order

Middle East Vertical Farming Market Analysis

The Middle East Vertical Farming Market size is estimated at USD 352.20 million in 2024, and is expected to reach USD 699.20 million by 2029, growing at a CAGR of 14.70% during the forecast period (2024-2029).

The Middle Eastern region is highly suitable for developing vertical farms due to water scarcity, less arable land, and higher dependency on imports for food requirements. Factors like increased investments in food security, the use of vertical farming in production and delivery, and public-private sector collaborations contribute to market growth. Moreover, companies are focusing on various strategic activities, including partnerships, mergers, and acquisitions, to strengthen their market presence. For instance, in 2023, Saudi Arabia’s Public Investment Fund (PIF) signed a joint venture agreement with AeroFarms, a US-based sustainable agriculture company, to build indoor vertical farms across the Middle Eastern region. The first farm to be built in Saudi Arabia is expected to have an annual production capacity of up to 1.1 million kgs of crops with the country’s USD 620 billion PIF. Furthermore, other players are focused on developing vertical farms in the region. For instance, in July 2022, Crop One Holdings and Emirates Flight Catering opened the world’s largest vertical farm. It is a 330,000-square-foot facility near Al Maktoum International Airport at Dubai World Central. It can produce over 2 million pounds of leafy greens annually.

Middle East Vertical Farming Industry Segmentation

Vertical farming, an innovative agricultural approach, cultivates crops in vertically stacked layers. This method employs soil-less techniques like aquaponics, hydroponics, and aeroponics, all within a meticulously controlled environment.

The Middle East vertical farming market is segmented by growth mechanism (aeroponics, hydroponics, and aquaponics), structure (building-based vertical farms and shipping container vertical farms), crop type (fruits and vegetables, herbs and micro-greens, flowers and ornamentals, and other crop types), and geography (Saudi Arabia, United Arab Emirates, Egypt, and Rest of Middle East).

The report offers market sizing and forecasts in value (USD) for all the above segments.

Growth Mechanism
Aeroponics
Hydroponics
Aquaponics
Structure
Building-based Vertical Farms
Shipping Container Vertical Farms
Crop Type
Fruits and Vegetables
Herbs and Micro-greens
Flowers and Ornamentals
Other Crop Types
Geography
Saudi Arabia
United Arab Emirates
Egypt
Rest of Middle East
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Middle East Vertical Farming Market Size Summary

The Middle East vertical farming market is poised for significant growth, driven by the region's unique challenges such as water scarcity and limited arable land. These factors make vertical farming an attractive solution to enhance food security and reduce dependency on food imports. The market is experiencing increased investments and strategic collaborations between public and private sectors, which are further propelling its expansion. Companies are actively engaging in partnerships, mergers, and acquisitions to strengthen their market presence. Notable developments include Saudi Arabia's Public Investment Fund's joint venture with AeroFarms to establish indoor vertical farms, and the opening of the world's largest vertical farm by Crop One Holdings and Emirates Flight Catering in Dubai. These initiatives highlight the region's commitment to adopting innovative agricultural practices to meet local food demands.

The adoption of hydroponics technology is particularly beneficial in arid countries like the UAE, Qatar, and Saudi Arabia, where it significantly reduces water usage. This technology not only supports the cultivation of mass-consumed crops but also enables the production of rare and high-value plants, such as saffron, which has been successfully cultivated by Veggitech in Sharjah. The UAE's diverse economy and high standard of living have fostered a conducive environment for sustainable agriculture techniques, including smart irrigation and aquaponics, which have improved local produce quality. The country's reliance on imported fresh produce due to low domestic production further underscores the need for vertical farming solutions. The market is characterized by fragmented competition, with key players like AeroFarms, Pure Harvest Smart Farm, and Crop One Holdings investing in product innovation and strategic expansions to enhance their operational capabilities in the region.

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Middle East Vertical Farming Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Focus on Food Security by GCC Countries

      2. 1.2.2 Low Precipitation and Shrinking Area of Arable Land

    3. 1.3 Market Restraints

      1. 1.3.1 High Operational Costs

      2. 1.3.2 Decreasing Fresh Water Available and Increasing Salinity

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Growth Mechanism

      1. 2.1.1 Aeroponics

      2. 2.1.2 Hydroponics

      3. 2.1.3 Aquaponics

    2. 2.2 Structure

      1. 2.2.1 Building-based Vertical Farms

      2. 2.2.2 Shipping Container Vertical Farms

    3. 2.3 Crop Type

      1. 2.3.1 Fruits and Vegetables

      2. 2.3.2 Herbs and Micro-greens

      3. 2.3.3 Flowers and Ornamentals

      4. 2.3.4 Other Crop Types

    4. 2.4 Geography

      1. 2.4.1 Saudi Arabia

      2. 2.4.2 United Arab Emirates

      3. 2.4.3 Egypt

      4. 2.4.4 Rest of Middle East

Middle East Vertical Farming Market Size FAQs

The Middle East Vertical Farming Market size is expected to reach USD 352.20 million in 2024 and grow at a CAGR of 14.70% to reach USD 699.20 million by 2029.

In 2024, the Middle East Vertical Farming Market size is expected to reach USD 352.20 million.

Middle East Vertical Farming Market Report Snapshots

Middle East Vertical Farming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)