Heat, finite water supplies and limited arable lands are the main factors why the desert-laden GCC countries are setting food and water security high on their agendas. While these countries import 85% of their food, they consume approximately $29.5 billion worth per year. Add to that the fact that only 1.7% of all GCC land is arable where renewable freshwater resources are also scarce. With that in mind, GCC states are turning to technology in the farming sector- particularly vertical farming- to boost their food security and local production.
What is vertical farming and what are its benefits?
Vertical farming is the agricultural process in which crops are grown on top of each other, rather than in traditional, horizontal rows. Growing vertically allows for conservation in space, resulting in a higher crop yield per square foot of land used. Vertical farms are mainly located indoors, such as a warehouse, where growers have the ability to control the environmental conditions for plants to succeed.
Vertical farming has the potential to supply large amounts of produce to the region while requiring significantly less land and water than traditional farming methods. It is the practice of growing fruits, vegetables, and other produce in vertically-stacked tiers using artificial light sources.
For countries like the UAE, which depends on imports for more than four-fifths of its food supply, indoor vertical farming can offer unprecedented benefits.
Vertical farms in several countries can also obtain organic certification, offering opportunities for farmers to charge premium prices. Another benefit for vertical farms is that, because they do not take up as much land, they can also be located closer to distribution centers, reducing the cost of transporting output from farm to store, and enabling small-scale producers to participate in agricultural value chains.
Limitations of vertical farming
Despite the benefits, vertical farming faces some limitations. Vertical farms require artificial sources of light, which are typically energy-intensive and thus add an additional cost not required in traditional farming. While many GCC countries are in the process of reducing utility and fuel subsidies, the uncertain economics of power generation is a potential barrier to investment. The initial cost of setting up a vertical farm can also be significantly higher than that of a traditional farm, due to more complex and expensive infrastructure, lighting, and water systems.
Another challenge facing vertical farms is that hydroponic systems (gardening without soil) limit the types of produce that can be grown to leafy greens, excluding plants such as corn, wheat, and root vegetables. At present, 80% of crops grown by vertical farms are either lettuce, spinach, broccoli, cucumbers, or peppers.
What does it take to succeed?
Among other benefits, a strong vertical farming sector could enable the GCC to prevent rising food prices and sidestep the geopolitical issues that plague overseas farmland investments. However, while the market shows significant growth potential, its success will rely on sufficient support from governments, investors, and private sector firms, such as supermarkets. These actors are likely to move quickly into the vertical farming sector, both for their own bottom lines as well as for the future of food security in the GCC region.
