ADAFSA approves 5 agro investments worth $142mn

The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), as part of its goal to attain sustainable agricultural development, has approved five investment projects worth $142 million on a total land and sea area of approximately four million square meters.

The investment opportunities, identified and managed in cooperation with the Abu Dhabi Investment Office (ADIO), will be developed by private sector companies to set up fish, vegetable, fruit, cattle and poultry farms.

ADAFSA has signed two Musataha contracts with Aqua Fishers Company and Mirak Agricultural Services Company which gives both the firms real property rights.

Under the agreement, Aqua Fishers Company will establish a farm to produce 5000 tons of fish at a total cost of $29.9 million and will build fishponds, administrative offices, fish handling and packaging facilities and laboratories at Delma Island.

The second Musataha agreement signed with Mirak Agricultural Services Company is to set up a farm to produce vegetables and fruit using advanced technology for growing plants in controlled environments. Further the project also includes establishing refrigerated warehouses and a laboratory to sanitize and freeze products, for $38.14 million.

Another three projects were awarded to Alfafa Company, Al Nahdha Farm and Emirates National Poultry Farms. Under the agreement Alfafa Company will establish a farm to grow plants, including hybrid seeds, using a drip irrigation system and the latest farming techniques, which would be worth about $1.03 million.

The Oman-based Al Nahdha Farm has secured approval for establishing a new farm for breeding calves to market their meat locally. With this project the farm’s production of calves will be increased by 470 percent. The $23 million worth of farm will build barns, administrative buildings, a clinic and worker accommodation.

ADAFSA has granted the Emirates National Poultry Farm the approval to start a poultry farm and slaughterhouse with a production capacity of 30,000 birds per day in the Al Dhafra region. The total cost of the poultry farm and the slaughterhouse is estimated to be $40.8 million.

“ADAFSA has developed a strategy that aims to create promising investment opportunities in agricultural and food sectors, introduce partners and investors to available investment opportunities in Abu Dhabi, advance local investments, build partnerships with investment funds, investors and the private sector in areas of its activities, and ensure those investments are aligned with government objectives. Launching more projects in Abu Dhabi’s agriculture sector creates new investment opportunities, promotes sustainable agricultural development and supports the UAE’s efforts to stimulate investment and diversify income sources.”

ADAFSA and ADIO have been closely working to enhance investment across the emirate’s agriculture sector and to increase local production.

Dr. Tariq bin Hendi, Director-General of ADIO, said, “As part of our commitment to spur private sector investment, ADIO is committed to working alongside entities to facilitate commercial success, and through Musataha agreements and other forms of support, we will back the growth of promising projects, innovations and businesses in Abu Dhabi.”

Early this year, ADAFSA and ADIO had awarded a $20.4 million worth pipeline investment opportunity to four major local companies by signing long-term Musataha agreements. With the five new awards, the total number of private sector collaboration of the authority has reached 10, worth $163 million.