Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources. (SPA)
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Updated 15 December 2024
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Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
  • Challenge of producing more food without further harming the environment intensifies

RIYADH: Increasing the use of smart technology in farming is critical if the Middle East is going to truly achieve food security, experts have told Arab News.

As agricultural productivity in the region remains vulnerable to supply chain disruption, water shortages, and conflicts, the challenge of producing more food without further harming the environment intensifies. 

Add in the consequences of climate change, and the Middle East needs to act fast — and smart — to ensure food security.

Vertical farms, increased use of data, and cross-country collaboration have all been flagged up to Arab News as key ways to tackle the short and long term challenges.

Abdel Rahman Al-Zubaidi, CEO of Ivvest, a Saudi-based agricultural technology and indoor farming company, emphasized to Arab News how his firm addresses these challenges: “Vertical farming allows exponential multiplication for the amount that can be produced in farms, enabling us to utilize vertical space and changing the way we design the production capacity from two dimensions to three dimensions.” 

He added: “This is essential for getting the best out of our limited arable lands in the Middle East, where, for instance, Saudi Arabia’s arable land was just 1.6 percent in 2021.” Available in Saudi Arabia, Ivvest’s farming “Capsule,” is a smart container farming unit empowered with IvvestOS, an operating system that brings intelligence to the facility. Using this technology, farmers can produce more than 200 plants per sq. meter, all year long, without pesticides, and while consuming 90 percent less water and land, according to the company.

Sanjay Borkar, CEO and co-founder of FarmERP, talked up the importance of innovation in an interview with Arab News, stating: “Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely. By monitoring things like soil health and water levels in real-time, farmers can fine-tune the use of water, fertilizers, and other inputs, minimizing waste and maximizing yields.” Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources.Many countries are adopting climate-smart agriculture, which integrates sustainable practices that improve resilience to environmental stressors while mitigating greenhouse gas emissions.

Water scarcity: A crisis across the region

Water scarcity is perhaps the most pressing environmental issue across the Middle East. Jordan is one of the countries most affected, facing severe water stress due to the combination of traditional irrigation methods and over-reliance on depleted water resources. The UN Food and Agriculture Organization and other international organizations are promoting precision agriculture techniques, such as drip irrigation and soil moisture sensors, to enhance water use efficiency and reduce wastage. 

Vertical farming allows exponential multiplication for the amount that can be produced in farms.

Abdel Rahman Al-Zubaidi, CEO of Ivvest

Ivvest’s Al-Zubaidi explained that “indoor farming isolates the farming environment from the outside, ensuring optimal conditions for crops and reducing water loss from evaporation.” 

He noted that these methods drastically reduce the need for pesticides, further increasing sustainability.

Conflict-driven food insecurity 

While water scarcity is a severe concern, the Middle East’s food security crisis is also driven by conflict.

In correspondence with Arab News, the FAO said: “The ongoing war in Gaza has significantly exacerbated food insecurity in the broader NENA (Near East and North Africa) region by intensifying the already dire humanitarian crisis.”

The organization revealed that this conflict has disrupted supply chains, with the latest reports indicating that 95 percent of Gaza’s population faces high levels of food insecurity and nearly 343,000 people are at catastrophic risk of famine.

Local initiatives, such as urban farming and community-supported agriculture, have provided some relief to conflict-affected populations.

The impact of the Russia-Ukraine war

The global grain market has been severely impacted by the Russia-Ukraine war, with the Middle East feeling the effects more acutely than other regions. Countries including Egypt, Lebanon, and Yemen, heavily reliant on imports from these two major grain producers, are grappling with shortages.

As the conflict continues, food prices have soared, compounding the challenges faced by already vulnerable populations. The FAO’s call for investment in domestic agricultural production and the adoption of sustainable farming practices is particularly relevant for these nations.

The FAO said that hunger in Arab countries reached 59.8 million people in 2022, a 75.9 percent increase since 2000, accounting for 12.9 percent of the population compared to the global average of 9.2 percent. 

Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely.

Sanjay Borkar, CEO and co-founder of FarmERP

Al-Zubaidi addressed how Ivvest can contribute to the region’s food security: “Our technology development started after a failed project with greenhouses, which ignited thorough research. We found that traditional greenhouses, while helpful, are resource-intensive and inefficient in hot climates like ours.” 

He pointed out: “To overcome these risks, we designed and manufactured a full end-to-end indoor farming solution.” Ivvest’s vertical farming system allows producing over 240 plants per square meter, drastically enhancing productivity compared to greenhouses.

Zulfiqar Hamadani, CEO of Tanmiah Food Co., echoed the importance of local production, noting that “we must prioritize sustainable local production and develop resilient supply chains to ensure that we can meet the nutritional needs of our growing population.” 

He highlighted Tanmiah’s commitment to Saudi Arabia’s Vision 2030 food self-sufficiency goals, adding: “Saudi Arabia is taking major steps, including significant investments aimed at enhancing food security and fostering innovation in food production.”

Phil Webster, partner at Arthur D. Little, told Arab News that the greatest adaptation going forward will occur in the areas of agriculture that are growing the most, receiving the largest investments, and offering the greatest overall potential for IoT usage.

“These would be the poultry and aquaculture sectors, the latter of which I gather has grown 183 percent over the last 5 years,” he said.

Webster expected some potential developments in the Kingdom: “Make Saudi Arabia self-sufficient or even a net exporter in more food products, to transform agricultural supply chains through a wholesale shift toward alternative protein, or enabling semi or fully automated indoor or covered farming to maximize productivity and reduce the cost of agricultural production.”

Innovative solutions: a path to resilience

In response to these growing challenges, several countries in the Middle East are investing in innovative agricultural solutions. The FAO emphasized to Arab News the importance of “sustainable and resilient farming practices, including soil and water conservation, waste reduction, and the implementation of nature-based solutions.”

Al-Zubaidi added that the key to sustainability in farming lies in integrating innovations into the broader supply chain. 

Hamadani pointed out that the Middle East must “invest in innovative agricultural technologies such as precision farming, which optimizes resource use and minimizes waste.” He also emphasized the importance of sustainable practices that enhance soil health and water conservation.

Collaboration for a sustainable future

The FAO emphasized that collaboration between regional governments, international organizations, and local communities is crucial for building resilient food systems.

“Promoting climate-smart agriculture, such as diversified cropping systems and sustainable pest management, is crucial for enhancing agricultural resilience,” said the organization.

Al-Zubaidi added that the importance of partnerships between technology providers, distributors, and governments in achieving food security, describing them as “essential for creating a robust and sustainable food security framework.”

Hamadani also stressed the need for government support, noting that “clear policy frameworks that encourage research and development, alongside financial incentives for sustainable practices, are crucial.” He advocated for policies that support sustainable agricultural practices and reduce barriers for startups.

Borkar further elaborated, saying: “Collaborative partnerships between governments, tech companies, and local farmers are essential to share knowledge and ensure technology is accessible.” Grassroots initiatives like urban farming and water-efficient farming techniques can also empower communities and reduce their vulnerability to external shocks.

Partnerships and collaborations play a critical role in promoting the adoption and maintenance of digital technologies in agriculture, according to Webster. “The most important role of such collaborations is to ensure that there is good governance over the data that is collected at all parts of the food chain from farm to fork,” he added.


In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets

In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets
Updated 07 March 2025
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In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets

In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets
  • Taxing foreign assets was a concern despite big enthusiasm for new scheme, pundits had told Arab News
  • “This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” Al-Ansari tells Arab News.

RIYADH: President Donald Trump assured that investors entering the US under the newly introduced $5 million “Gold Card” visa program will not be subject to taxes on their foreign assets.

This assurance comes as Trump and his administration seek to attract high-net-worth individuals from around the world by offering a direct pathway to US residency and citizenship.

Addressing Congress on March 4, Trump outlined the program’s structure. “They (investors) won’t have to pay tax from where they came, the money that they’ve made, you wouldn’t want to do that. But they have to pay tax (in the US) and create jobs,” he said.

His remarks came as a reassurance to prospective investors who may have been concerned about the Foreign Account Tax Compliance Act, which has deterred some wealthy individuals from seeking US residency due to global taxation concerns.

Arab News raised this concern in a previous article following Trump’s announcement of the new initiative.

Now that the president has cleared that doubt and reassured investors that their assets abroad won’t be taxed, Salman Al-Ansari, a geopolitical analyst and former US investor, emphasized that the Gold Card exemption is a game-changer.

“This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” he told Arab News in an interview.

Al-Ansari added that this exemption “is a clear indication that his administration is responsive to global investor concerns.”

Salman Al-Ansari. Supplied

However, he noted that despite this strong incentive, long-term concerns about possible changes in US tax policy are likely to remain. “Investors in the region understand that tax policies can change with different administrations, so some may still approach with caution, opting for structures that offer flexibility in case future regulations become less favorable,” Al-Ansari added.


Read: Will Trump strike gold with wealthy Arabs through new residency program?


The new initiative will replace the existing EB-5 visa program, which was originally designed to grant permanent residency to investors who contributed at least $1 million to a US business that created or sustained at least 10 jobs for American workers.

Trump emphasized to Congress that the initiative would address talent retention by allowing investors to fund and support highly skilled graduates from top US universities, preventing them from being forced to leave the country.

The US faces stiff competition from other nations with established golden visa programs, particularly Gulf nations like Saudi Arabia, which have successfully attracted high-net-worth individuals through similar initiatives.

On whether Saudi investors will become more selective about US investments due to domestic taxation under the Gold Card visa, Al-Ansari noted: “The exemption of foreign assets is a strong incentive, but the fact that income generated within the US is still taxable means that Saudi investors will likely be more strategic in their choices.”

He added: “They may favor sectors that offer higher tax efficiencies, such as real estate, energy, or industries benefiting from tax incentives.”

However, Al-Ansari said that as long as the US provides a stable business environment and competitive opportunities, taxation within the country is a reasonable tradeoff.

“The key factor for Saudi investors will be the ease of doing business and whether the Gold Card visa comes with additional facilitations that make investments more attractive beyond the tax benefits,” he concluded.

By structuring the Gold Card visa to exempt foreign assets from US taxation, Trump’s administration is positioning the program as an attractive alternative to other golden visa schemes worldwide.

Investors from the Gulf, who have already benefited from similar residency programs in their home countries, may now see the US as an increasingly viable destination for expanding their businesses and securing long-term financial stability.

As highlighted in a previous report by Arab News, the initiative is being closely watched due to its potential to attract substantial foreign capital, especially from countries like Saudi Arabia, the UAE, and Qatar.

Despite global competition from established golden visa programs, the US remains an appealing destination for investors, due to its business environment, talent pool, and real estate opportunities.

With the added benefit of no taxation on foreign assets, the Gold Card program is seen as a highly attractive option for investors looking to expand their businesses and secure long-term financial stability in the US.


Direct flights from Stuttgart to Jeddah to begin later this year

Direct flights from Stuttgart to Jeddah to begin later this year
Updated 06 March 2025
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Direct flights from Stuttgart to Jeddah to begin later this year

Direct flights from Stuttgart to Jeddah to begin later this year

RIYADH: Direct flights from Stuttgart, Germany, to Jeddah, will begin in the second half of 2025 and operate twice a week, the Saudi Air Connectivity Program has announced.

Inaugurated in collaboration with the Saudi Tourism Authority and Jeddah Airports Co., the route is set to utilize an A321neo aircraft with a capacity of 224 seats, according to the Kingdom’s press agency.

This move aims to increase the capacity of travelers and visitors from Europe to Saudi Arabia, aligning with the government’s aviation goal of transporting 330 million passengers across over 250 destinations, as well as 4.5 million tonnes of air cargo, by 2030.

Majid Khan, CEO of ACP, said the collaboration with German low-cost carrier Eurowings — a wholly owned subsidiary of the Lufthansa Group — is advancing well in enhancing air connections between Saudi Arabia and Europe.

He further expressed confidence in forming a long-term partnership with the airline to broaden the network of flight routes in the future, offering travelers new opportunities to experience the Kingdom’s historical and cultural sites.

This falls in line with ACP’s goal to boost tourism in Saudi Arabia by enhancing air connectivity between the Kingdom and international destinations, broadening existing flight routes, and establishing connections to new global markets.

As the driving force behind the National Tourism Strategy and Saudi aviation strategy, ACP promotes collaboration and partnerships between crucial public and private sector players in the tourism and aviation sectors. Its objective is to enhance the Kingdom’s status as a premier global hub for air travel connectivity.
 


Jordan’s move to ease residency rules will attract investment, say experts

Jordan’s move to ease residency rules will attract investment, say experts
Updated 07 March 2025
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Jordan’s move to ease residency rules will attract investment, say experts

Jordan’s move to ease residency rules will attract investment, say experts

RIYADH: Jordan’s recent move to ease residency requirements for foreign investors is set to drive capital inflows, particularly into real estate, according to industry experts.

A recent decision by the country’s Cabinet will reduce financial barriers for foreign residents and property owners seeking to renew their residency, the Jordan News Agency, also known as Petra, has reported.

Among the key amendments, the government scrapped a 10,000 Jordanian dinar ($14,100) deposit requirement for foreign property owners who have lived in Jordan for more than two years.

Meanwhile, non-property owners applying for a five-year residency will see their required deposit halved to 10,000 dinar.

The changes mark a significant shift in Jordan’s investment strategy, aligning with regional trends that leverage residency incentives to attract long-term foreign capital. The policy adjustments are expected to stimulate real estate activity, benefiting adjacent industries such as construction, legal services, and financial consultancy.

According to Petra, Ali Murad, chairman of the Jordanian-European Business Association stated that the decision is a crucial economic measure that will inject liquidity into the local market and strengthen the real estate sector.

 “Shifting residency requirements from bank deposits to property ownership will incentivize foreign investors to purchase real estate, boosting demand for construction and commercial projects,” Petra reported him saying.

Other experts believe that Jordan’s revised policy could make it a more competitive destination for international buyers looking for investment opportunities beyond traditional financial markets.

Fadi Al-Majali, chairman of the Jordanian Expat Business Association said that removing the deposit hold requirement for property owners enhances the attractiveness of real estate investment in the country, Petra reported.

The statement went on to say that Al-Majali believes  “these amendments will encourage more foreign investors to acquire properties, thereby increasing market demand and supporting the continued development of the real estate and construction sectors.”

Iraqi investors, who have historically played a key role in Jordan’s property market, are also expected to benefit.

Majid Al-Saadi, chairman of the Iraqi Business Council in Amman, welcomed the policy shift according to the Jordan News Agency, emphasizing that it allows investors to allocate more capital into Jordan’s retail, healthcare, and education sectors.

While the new measures are expected to drive investment in the near term, experts argue that Jordan could further enhance its appeal by adopting long-term residency programs similar to the UAE’s “golden visa” initiative. 

Gulf states have successfully used such programs to attract high-net-worth individuals, professionals, and entrepreneurs, creating a stable foreign investor base.


Closing Bell: Saudi main index closes in red at 11,811

Closing Bell: Saudi main index closes in red at 11,811
Updated 06 March 2025
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Closing Bell: Saudi main index closes in red at 11,811

Closing Bell: Saudi main index closes in red at 11,811

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 87.75 points, or 0.74 percent, to close at 11,811.11.

The total trading turnover of the benchmark index was SR7.08 billion ($1.88 billion), as 47 of the listed stocks advanced, while 198 retreated.   

The MSCI Tadawul Index decreased by 9.34 points, or 0.62 percent, to close at 1,490.08.

The Kingdom’s parallel market Nomu dipped, losing 258.75 points, or 0.82 percent, to close at 31,296.73. This comes as 34 of the listed stocks advanced while 49 retreated.

The best-performing stock was Tanmiah Food Co., with its share price surging by 4.7 percent to SR127.

Other top performers included Malath Cooperative Insurance Co., which saw its share price rise by 4.30 percent to SR13.58, and Almasane Alkobra Mining Co., which saw a 3.70 percent increase to SR56.

Mouwasat Medical Services Co. saw the biggest decline of the day, with its share price dropping 9.34 percent to SR75.70.

Walaa Cooperative Insurance Co. fell 8.02 percent to SR18.82, while Al-Majed Oud Co. dropped 7.42 percent to SR132.20.

On the announcements front, Al-Majed Oud Co. released its financial results for 2024, with net profits reaching SR156.9 million, up by 5.5 percent compared to the previous year.

In a statement on Tadawul, the company attributed the increase to a surge in sales through geographic expansion and opening new stores, as well as launching new products and an uptick in the e-commerce business. 

In another announcement, Jabal Omar Development Co. declared its annual financial results for 2024. 

The company’s net profit in 2024 reached SR200 million, up from SR37.4 million in the previous year, marking a 433.8 percent surge.

The firm said in a statement that this surge was attributed to a growth in revenue by SR575 million, driven by the improved operations of two new hotels, Address Jabal Omar and Jumeirah Jabal Omar, along with a significant rise in hotel occupancy and commercial center revenues. 

Additionally, the company recognized SR748 million in other operating income from the sale of land in the Jabal Omar project. This surge was achieved despite a rise in general and administrative expenses.

The firm’s shares traded 3.07 percent lower on the main market to close at SR25.30.

Basic Chemical Industries Co. also announced its financial results for the previous year, with net profits reaching SR40.3 million, down by 8.1 percent compared to 2023.

In a statement on Tadawul, the company attributed the decrease in profit to an increase in general and administrative expenses, zakat tax, and a drop in profits from the sale of fixed assets and other operating income.

The firm’s shares traded 1.56 percent lower on the main market to close at SR28.40.


Saudi Arabia’s M&A market sees 63% rise in Feb

Saudi Arabia’s M&A market sees 63% rise in Feb
Updated 06 March 2025
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Saudi Arabia’s M&A market sees 63% rise in Feb

Saudi Arabia’s M&A market sees 63% rise in Feb

RIYADH: Saudi Arabia approved 26 mergers and acquisitions applications in February, a month-on-month surge of 62.5 percent, highlighting a competitive business climate. 

The Kingdom’s General Authority for Competition confirmed the agreements, spanning acquisitions, mergers, and joint ventures, following comprehensive market assessments to ensure fair competition. 

Acquisitions led the approvals, comprising 73 percent of the total, followed by joint ventures at 19 percent, and mergers at 8 percent, according to GAC data. 

Saudi Arabia mandates economic concentration approvals for M&A deals to prevent monopolies and market distortions. 

The rise in approvals aligns with GAC’s broader strategy to foster fair competition, combat anti-competitive practices, and enhance market efficiency, ultimately boosting investor confidence. 

Among the approved acquisition requests, Spark Education Platform secured all stakes in three educational institutes in the UAE and Bahrain. 

The mergers category included UAE-based Aurora Spirit’s consolidation with US-based Berry Global, while London-based law firm Herbert Smith Freehills merged with US-based Kramer Levin. 

In the joint ventures segment, Ajlan & Bros Mining partnered with Moxico KSA Ltd. to launch a zinc-copper project in Khnaiguiyah, southwest of Riyadh. Additionally, Abu Dhabi Future Energy Co. formed a joint venture with France’s EDF International SAS and Nesma Co. to develop a solar energy project in Madinah.  

This follows a surge in mergers and acquisitions across the country, with 202 economic concentration requests approved in 2024 — the highest on record — marking a 17.4 percent increase and underscoring the Kingdom’s efforts to enhance its competitive business environment. 

The Kingdom’s M&A momentum stands in contrast to the global downturn in deal-making. A December report from GlobalData indicated that worldwide deal volume fell 8.7 percent year on year in the first 11 months of 2024, with the Middle East and Africa region experiencing a relatively modest 5 percent decline. 

GAC continues to evaluate economic concentration requests — including mergers, acquisitions, and joint ventures — to safeguard competitive market dynamics. It also monitors various sectors for potential competition law violations, ensuring a level playing field for businesses.