UAE accelerates urban farming ambitions to cut food imports and boost resilience

The United Arab Emirates is speeding up its efforts in indoor farming as it aims to cut back on food imports and strengthen its supply resilience. Turning underused urban spaces into controlled-environment farms has moved from being just a concept to a real strategy, supported by public investments, private sector collaborations, and bold masterplans that want to localize at least part of the country’s food supply chain.

The idea of transforming unused or stalled buildings into farms comes from two main pressures. First, the UAE relies heavily, like, the majority, on food imports, a vulnerability made clear during pandemic supply shocks and the rising costs of transport. As a reference, a report by Trowers & Hamlins, quoted in the lead article, suggests that around 80% to 90% of food was imported back in 2019. Second, official policies have set explicit goals for becoming more self-sufficient, certain strategies, like the UAE’s National Food Strategy 2051 and other federal measures, aim not only to improve the nation’s standings on global food security rankings but also to reduce the carbon footprint associated with long-distance supply routes.

Policy, investment, and tech are all coming together in urban AgriTech ventures. Abu Dhabi was among the first to commit funds, backing a USD 100 million program, supported by ADIO, to bring indoor tomato farming to commercial scale, alongside broader research and development into climate-controlled farms. The Food Tech Valley development in Dubai, initiated under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum and managed by Wasl, now hosts the GigaFarm project. According to project plans, GigaFarm broke ground in November 2024 and aims to replace roughly 1% of the UAE’s food imports, spanning over 900,000 square feet of land. Industry watchers consider this a clear signal that the government views large-scale, decarbonized food production as a core part of future policy.

Private companies are also growing fast in this space. Emirates Flight Catering and Crop One collaborated to build an indoor farm called Bustanica, which, by 2023, was said to produce over a million kilograms of leafy greens annually. Similarly, Pure Harvest Smart Farms has drawn significant funding, around $180 million, and expanded its output, with reports highlighting millions of units of fruits and vegetables produced each year. More recently, in late 2024, Crysp Farms announced a partnership with Alesca Technologies to deploy 500 vertical farms across the Middle East over the next five years. Reports on this deal mention that Alesca will provide AI-based monitoring and automation, helping to improve efficiency and diversify crop options for hotel and restaurant clients.

Turning urban skeletons into farms has several logical reasons. Many incomplete developments across Emirati cities provide physical shells that could be turned into vertical farms, equipped with hydroponic systems, climate control, and plant rooms. Using these spaces could shorten supply chains, especially to restaurants and retailers concentrated downtown. Dubai alone has nearly 11,800 food outlets, according to government figures cited in the lead article, meaning proximity significantly cuts down on transit time, emissions, and ensures a steady supply throughout the year by avoiding seasonal gaps.

On the technical side, indoor farms typically rely on soil-less systems. Hydroponics, aeroponics, and aquaponics are all options, each with their own trade-offs when it comes to water savings, energy requirements, and capital costs. Vertical setups are often capable of reducing water usage dramatically; the lead article even claims that vertical farms use up to 95% less water than traditional farming. But energy remains the biggest operational expense, mainly due to LED lighting and climate controls required to operate in the desert climate. Therefore, operators are exploring strategies like better insulation, linking to district cooling systems, and installing solar panels on-site when feasible. AI plays an increasingly important role in optimizing irrigation, nutrients, and lighting, which boosts resource efficiency and consistency in crop yields.

The economic feasibility of indoor farming varies depending on the crop. Leafy greens and herbs tend to be the easiest and most profitable in stacked farms, thanks to their quick growth cycles and low light needs. Growing fruits or heavier crops is technically possible but involves higher costs, leading to more expensive retail prices. Consequently, early focus by developers and investors has been on high-turnover, high-margin products for restaurants and supermarkets, with ongoing research into ways to cut energy costs and expand the variety of crops grown commercially.

Transport and distribution are equally crucial. In September 2025, Dubai announced plans for a 260,000-square-foot logistics hub, developed by Al Ain Farms Group and Food Tech Valley. Reports say this facility aims to boost distribution efficiency by about a third and cut around 2,500 tonnes of CO₂ emissions annually. The project is scheduled to be completed by early 2027 and promises to incorporate cold storage and route optimization systems, reducing waste in the last mile of delivery.

Market forecasts show this sector expanding quickly. A report from late 2025 projected the UAE’s indoor farming market to reach approximately USD 359 million by 2031. This growth is driven mainly by high import dependency, estimated at 86% in that study, and the government’s support for related programs. Should this materialize, it’s likely to attract more investment, spark innovation, and boost synergy between AgriTech clusters, distribution centers, and hospitality sectors.

Of course, challenges remain. Energy consumption is a constant concern, especially given the need for intense cooling in the hot climate. Water, despite some recycling, remains a precious resource, an issue given the high water demands of these systems. While some companies have found success supplying chefs and hypermarkets, scaling up to significantly replace imports requires significant upfront investment and well-orchestrated logistics. Critics also raise points about land-use priorities; converting urban shells into farms could conflict with other housing or commercial development.

That said, the UAE is adopting a layered approach to this transformation. With masterplans like Food Tech Valley, substantial private capital, and operational farms already in motion, indoor agriculture isn’t viewed as just a niche anymore. The phrase “close the gap between farm and chef’s kitchen” is popular among those emphasizing fresher and faster supply chains. Ultimately, for climate tech stakeholders in the Emirates, the real test in the near term will be whether advances in technology, declining renewable energy costs, and smarter distribution networks can make city-centre vertical farms both eco-friendly and financially viable.