Key Takeaways:
- Veggitech, owned by SNASCO Investments, is exploring the potential to expand its operations into Saudi Arabia.
- The company is in the study phase of establishing a farm in Jeddah on a 50,000 sqm plot.
- Veggitech aims to invest between 15 to 20 million UAE dirhams in this expansion.
- The expansion plan also considers opportunities in India and Pakistan for reduced production costs and increased efficiency.
- Veggitech’s innovative farming techniques align with the UAE’s National Food Security Strategy 2051.
Expansion into Saudi Arabia
UAE-based agritech company Veggitech, owned by Saudi Arabia’s SNASCO Investments, is actively studying the possibility of expanding its agricultural operations into Saudi Arabia, according to Rami Nairat, Group CFO of SNASCO Investments. The planned expansion involves establishing a farm in Jeddah, where SNASCO is headquartered.
“The Kingdom of Saudi Arabia is booming, and we see big opportunities to set up a farm in Jeddah. The project will be built on our own land, which spans around 50,000 square meters,” Nairat said in an exclusive interview with Zawya Projects.
The company is currently assessing investment options for the new farm, with estimates ranging between 15 and 20 million UAE dirhams. Funding options under consideration include equity investments, bank loans, and other alternatives.
Collaboration with UAE Authorities
Veggitech is also engaged in discussions with the UAE Ministry of Climate Change and Environment (MOCCAE) and a leading bank to secure funding for a pilot project. This initiative aims to implement a new Build-Operate-Transfer (BOT) model for its operations, further bolstering the region’s food security.
Veggitech’s Groundbreaking Saffron Initiative
In line with its commitment to revolutionizing traditional agriculture, Veggitech recently launched the UAE’s first saffron farm, located in Sharjah. Spanning only 165 sqm, this farm utilizes light-assisted hydroponics, capable of producing yields equivalent to 3.5 hectares of traditional farming.
The saffron farm, dubbed the ‘Red Gold’ farm, features fully integrated smart systems to ensure a sustainable production cycle. The project is part of Veggitech’s broader efforts to support the UAE’s National Food Security Strategy 2051 and promote urban farming solutions.
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