ABU DHABI // Najieb Khoory's company grew 3,500 tonnes of vegetables on his farm in Ras Al Khaimah last year.
But no longer. This year, he will grow just 700 tonnes on his 25,000 square metres. The rising costs of water, electricity and labour have forced him to scale back production of strawberries and high-value crops such as iceberg lettuce, celery, leeks and broccoli.
He is one of a growing number of farmers who say they have learnt the hard way that food crops are neither a sustainable nor profitable business in the UAE.
The official view, though, is that farmers' problems are rooted in mismanagement.
"We are not an agricultural country," Mr Khoory asserted. "We don't have the basics of agriculture, which are water, soil and climate. Water needs to be desalinated, soil isn't used in hydroponics and the climate has to be controlled through greenhouses.
"In the past two years, electricity [costs] more than doubled and labour costs increased by 80 per cent - from my 500 labourers, I now have less than half. I don't see any future for agriculture here and I can challenge anybody on it."
Others are equally gloomy. Osha owns a 4,000-square-metre farm in Liwa, where she grows courgettes, tomatoes, okra and cabbage. For the past two years, she has suffered severe financial losses.
"Farming has become unprofitable," she said. "The municipality used to pay me Dh25,000 a month for my produce but now it's not the same and I have no more money."
Her maintenance and labour costs have increased significantly, pushing her into debt.
Agricultural experts agree. Dr Ahmed Moustafa, the regional co-ordinator at the International Centre for Agricultural Research in the Dry Areas in Dubai, said agriculture here faced a "huge" struggle.
"Water, land and climate is everything in agriculture, and there is a lack of adequate technologies [to deal with that]," he said. "It all depends on the technology used on the farm and the management."
Smaller farms sometimes do not have enough money to invest in expensive machinery and without government subsidies, farmers are strapped for cash. The scarcity of natural resources also handicaps food production.
"The groundwater levels are low and the water is too saline," said Hool Abdelaziz Atallah, an agricultural engineer at Bin Hamoodah Agricultural Services in Al Ain. "There are so many factors that come into play, including no protection from the government on prices. There is no more profit in agriculture."
He believes local producers should move from growing crops to raising livestock for eggs, meat and poultry - areas in which the government regulates prices.
"As opposed to [crop] agriculture, you don't need a lot of water for these items and you can buy feed from Brazil or Asia," said Mr Atallah. "They should also look for anything that needs less water, like the production of mushrooms."
Officials insist on promoting the growing of crops and assure producers that the practice is feasible in a country where the arable land is 0.77 per cent of the total area.
"If [producers] are losing money, I don't think it's because of the environment," said Mohamed Jalal Al Reyaysa, the Abu Dhabi Food Control Authority's communications director. "It's because they are mismanaging their farms."
He said farmers should adopt new technologies and the right management methods to make a profit. Liwa, for instance, experienced many success stories with farms generating high quality produce sold on the local market.
"No one thought there would be any agriculture in the UAE but there is now and we have plans that can fit our environment by using less water and different kinds of soil," said Mr Reyaysa. "There are always ways."
Some farmers have already come round to the view that technology is the way forward. Salata runs a 16,000-square-metre farm in Ras Al Khaimah, growing 1,200 tonnes of lettuce, tomatoes, peppers, sweetcorn and herbs annually.
"We are going to invest Dh44 million in greenhouses and build our own power plant in 2013," said Thomas Schwarz, Salata's managing director. "This usually applies to bigger companies, not small farms."
This allows Salata to grow year-round, unlike most small farmers. That, said Mr Schwarz, is the difference between profit and loss.
"If you are [only] producing when everybody is, from December to April, it's very difficult," he said. "But if you are able to produce against the season, it's profitable."
But for Mr Khoory, the only way forward he sees is to all but get out of food cultivation, concentrating instead on his flower business, which requires less labour.
"I need something that I can continuously produce all year round to maintain a cash flow," he said. "Flowers are difficult to grow, but there is definitely more profit in it than the vegetable business."
cmalek@thenational.ae
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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UAE currency: the story behind the money in your pockets
57%20Seconds
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It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Zayed Sustainability Prize
KILLING OF QASSEM SULEIMANI
More coverage from the Future Forum
Mohammed bin Zayed Majlis
Mohammed bin Zayed Majlis
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
POSSIBLE ENGLAND EURO 2020 SQUAD
Goalkeepers: Jordan Pickford, Nick Pope, Dean Henderson.
Defenders: Trent Alexander-Arnold, Kieran Trippier, Joe Gomez, John Stones, Harry Maguire, Tyrone Mings, Ben Chilwell, Fabian Delph.
Midfielders: Declan Rice, Harry Winks, Jordan Henderson, Ross Barkley, Mason Mount, Alex Oxlade-Chamberlain.
Forwards: Harry Kane, Raheem Sterling, Marcus Rashford, Jadon Sancho, Tammy Abraham, Callum Hudson-Odoi.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
RACE CARD
6.30pm Maiden (TB) Dh82.500 (Dirt) 1,400m
7.05pm Handicap (TB) Dh87,500 (D) 1,400m
7.40pm Handicap (TB) Dh92,500 (Turf) 2,410m
8.15pm Handicap (TB) Dh105,000 (D) 1,900m
8.50pm UAE 2000 Guineas Trial (TB) Conditions Dh183,650 (D) 1,600m
9.25pm Dubai Trophy (TB) Conditions Dh183,650 (T) 1,200m
10pm Handicap (TB) Dh102,500 (T) 1,400m
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
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