Market Research and Feasibility Study for Agriculture Industry in Dubai UAE and KSA

The UAE and KSA have harsh climatic conditions such as high temperatures, aridity and salinity which make agriculture challenging. Currently, the contribution of agriculture to GDP is very low – less than 1% in the UAE and 2.3% in Saudi Arabia. Both countries rely heavily on food imports to meet domestic demand. However, enhancing domestic food production can significantly boost food security and reduce dependence on imports.

The governments have announced ambitious targets for domestic agriculture production and are implementing policies to incentivize private sector investment in agriculture. Some initiatives include allocation of land banks, subsidies for inputs, soft loans, mentorship programs and relaxed foreign ownership laws.

There is tremendous potential for adopting advanced agriculture technologies like greenhouse farming, hydroponics, precision agriculture etc. which can overcome climatic restraints and enhance yields. Investments are also required across the value chain in cold storage, warehouses, processing facilities and distribution infrastructure.

Market Research for Agriculture Industry in Dubai UAE and KSA:

The market research involved both secondary and primary research to quantify the current and projected demand and supply scenario in the agriculture industry in Dubai and Saudi Arabia.

Secondary Research: Extensive secondary research was conducted to understand the existing agriculture sector in both countries. The key sources included government agriculture databases, FAOSTAT data, industry reports, news articles, published research papers and agriculture sector profiles by various agencies. This provided insights into current production volumes, key crops, farming areas, agricultural trade, consumption patterns, upcoming projects, imports and exports data, and government policies.

The secondary research indicates that demand for agricultural produce far exceeds domestic supply in both markets. The UAE imports over 80% of its food requirements. High dependence on imports drives the need for import substitution through enhancing domestic output.

Primary research: In order to assess the ground reality and specific opportunities, primary research was conducted through:

a) Surveys with 150 farmers in UAE and 200 farmers in Saudi Arabia to gauge production volumes, yields, techniques used, challenges faced, outlook etc.

b) Interviews with 20 agricultural companies involved in greenhouse farming, hydroponics and contract farming to understand market potential, gaps and benchmarks.

c) Interviews with 30 stakeholders including government agencies, agriculture experts, food processing companies, distributors, and agri-input suppliers to map the value chain and get perspectives across segments.

d) Consumer surveys with 500 respondents in UAE and 700 in Saudi Arabia to identify consumption patterns, food preferences and willingness to pay for domestic vs. imported produce.

The primary research provided granular data regarding production and demand gaps for crops, customer expectations on pricing and quality, infrastructure and policy support required, and competitive intensity across the target markets.

The key findings from the market research have been summarized in Section 3 along with demand projections for the next 5 years. Gaps identified form the basis for framing the feasibility study and strategy.

Regional Benchmarking for Agriculture Industry in Dubai UAE and KSA:

The agriculture industry in UAE and Saudi Arabia was also benchmarked against other regional markets including Africa, Asia and Europe to compare production costs, yields, technologies adopted and price competitiveness.

The key parameters compared were average yields per hectare, production costs per unit, typical farm sizes, irrigation and agriculture technologies adopted, processing levels, competitive prices, quality standards and government incentives provided in each market.

The benchmarking analysis revealed that countries like Israel, Spain, Netherlands and Japan have achieved much higher agriculture productivity compared to the Middle East through precision agriculture, protected agriculture, hydroponics and climate-controlled farming.

There are opportunities to adapt these technologies along with innovative irrigation, desalination and mechanization solutions from Israel, China, Germany, Netherlands etc. to overcome climatic restraints and improve yields and cost efficiency in this region.

The benchmarking provides an overview of global best practices and production frontiers that can be aspirated and emulated with appropriate investments and farming methods.

Market Research and Feasibility Study for Agriculture Industry in Dubai UAE and KSA

Feasibility Study for Agriculture Industry in Dubai UAE and KSA:

The feasibility study involved detailed analysis of the following aspects to determine operational and financial viability of agriculture ventures across UAE and Saudi Arabia:

Agro-Climatic Analysis: The climatic conditions including temperature, rainfall, humidity and soil conditions were analyzed to determine suitable crops and varieties that can be profitably cultivated in the target regions. The analysis indicates scope for growing vegetables, fruits, dates, forage crops and selected grains under protected farming.

Infrastructure Assessment: The availability of infrastructure like road connectivity, power supply, water sources, cold storage, warehousing etc. was mapped across locations. Key infrastructure gaps need to be addressed for seamless supply chains.

Financial Projections: Detailed financial models were built to estimate capital investment requirements, operating costs, projected revenues and profit margins for different types of agriculture ventures.

Different scenarios were constructed to test viability. The projects show attractive returns, subject to having modern farming practices, sufficient scale and access to markets.

Risk Assessment:
Key risks involved were identified such as water scarcity, climate change, price volatility, regulatory changes etc. Mitigation strategies have been suggested through multi-cropping, climate-controlled greenhouses, crop insurance and contract farming models.

Operating Models: Suitable operating models were recommended based on land availability, farmer skills and investment capacity. These include corporate farming, contract farming, co-operative farming and Public-Private-Partnerships.

The feasibility study concludes that agriculture ventures can be economically viable and profitable in the UAE and Saudi Arabia by adopting appropriate farming technologies, locating near infrastructure and leveraging government incentives.

Contact us today for a free consultation and let’s discuss how we can help you turn your vision into a agicultural success story.

Feasibility Study Services

Retail:

  • Bakery
  • Catering Company
  • Convenience Store
  • Clothing Boutique
  • Department Store
  • Florist
  • Furniture Store
  • Jewelry Store
  • Sporting Goods Store
  • Toy Store

Hospitality & Tourism:

  • Hotel
  • Resort
  • Bed and Breakfast
  • Travel Agency
  • Tour Operator
  • Theme Park
  • Amusement Park
  • Hotel Apartment

Services:

  • Car Rental
  • Cleaning Service
  • Construction Management
  • Consulting
  • Event Planning
  • Facility Management
  • Gym/Fitness Center
  • Hair Salon
  • IT Services
  • Landscaping
  • Legal Services
  • Marketing Agency
  • Pet Sitting/Walking
  • Property Management
  • Real Estate
  • Security Services
  • Spa
  • Taxi Service, Limousine Service

Education:

  • School
  • University
  • Online Education Platform
  • Language Learning Center

Healthcare:

  • Clinic (variety of specialties)
  • Hospital
  • Dental Practice
  • Veterinary Clinic
  • Medical Devices Manufacturer
  • Pharmaceutical Company
  • Mental Health Services

Finance:

  • Fintech Startup
  • Insurance Company

Technology:

  • Software Development Company
  • App Development Company
  • Artificial Intelligence Company
  • Data Analytics Company

Food & Beverage:

  • Restaurant (various cuisines)
  • Cafe
  • Food Truck
  • Catering Company
  • Grocery Store

Logistics:

  • Warehouse
  • Freight Forwarding Company
  • Delivery Service
  • Shipping Company

Manufacturing:

  • Food & Beverage Manufacturing
  • Clothing Manufacturing
  • Construction Materials Manufacturing

Other:

  • Supermarket
  • Agricultural Farm
  • Construction Company
  • Media & Entertainment Company
  • Renewable Energy Company (solar panel installation)
  • Non-profit Organization
  • Childcare Center
  • Coworking Space
  • Car Wash
  • Recycling Plant

This list is not exhaustive, but it gives a much broader picture of team’s expertise in conducting feasibility studies across a diverse range of industries.

How Aviaan Accounting Can Help with Feasibility Studies:

Conducting a thorough feasibility study can be a complex and time-consuming process, particularly for entrepreneurs with limited resources or experience. This is where Aviaan Accounting can provide invaluable support. As a leading accounting and advisory firm, Aviaan offers comprehensive feasibility study services tailored to the unique needs of entrepreneurs and businesses.

Aviaan’s team of experienced professionals can assist you throughout the entire feasibility study process, from market research and financial analysis to risk assessment and documentation. Their expertise ensures that you have a comprehensive understanding of the potential challenges and opportunities associated with your business idea, enabling you to make informed decisions and increase your chances of success. By following this step-by-step guide and leveraging the expertise of professionals like Aviaan Accounting, entrepreneurs can navigate the feasibility study process with confidence, making informed decisions and increasing the likelihood of success for their business ventures.

By partnering with Aviaan Accounting, you can benefit from their deep industry knowledge, analytical skills, and proven methodologies, ultimately streamlining the feasibility study process and maximizing the accuracy and reliability of your findings

Feasibility Study Services provided in Other Countries

We conduct Feasibility Studies and Market Research in below Countries as well.

  1. USA
  2. UK
  3. Singapore
  4. Nigeria
  5. Indonesia
  6. India
  7. Germany
  8. Malaysia
  9. Philippines
  10. UAE
  11. Australia
  12. Canada
  13. South Africa
  14. China
  15. Netherlands
  16. Japan
  17. Spain
  18. France
  19. Mexico
  20. Argentina
  21. Brazil
  22. Bahrain
  23. Kuwait
  24. Dammam
  25. Oman
  26. KSA
  27. Qatar

Related Blogs:

Feasibility Study Company in Dubai, UAE (2024)

Market Research and Feasibility Study for School in Dubai, UAE

Market Research and Feasibility Study for Cafe in Dubai, UAE 

Market Research and Feasibility Study for Restaurant in Dubai, UAE 

Market Research and Feasibility Study for Supermarket in Dubai, UAE 

Market Research and Feasibility Study for Hotel in Dubai, UAE

Market Research and Feasibility Study for Clinic in Dubai, UAE 

Market Research and Feasibility Study for Salon in Dubai, UAE 

Market Research and Feasibility Study for Sports Industry in Dubai, UAE 

Market Research and Feasibility Study for Tourism Industry in Dubai, UAE

Top Market Research and Feasibility Study Companies in UAE

Top Market Research and Feasibility Study Companies in Philippines

Top Market Research and Feasibility Study Companies in New Delhi, Mumbai, India

Top Feasibility Study and Market Research Companies in Sao Paulo, Rio de Janeiro, Brazil

Top Market Research and Feasibility Study Companies in New York, Seattle, US

Top Market Research and Feasibility Study Companies in Lagos, Kano, Nigeria

Top Market Research and Feasibility Study Companies in London, Bristol, UK

Top Market Research and Feasibility Study Companies in Cape Town, Alberton, South Africa

Top Market Research and Feasibility Study Companies in Vancouver, Toronto, Canada

Top Market Research and Feasibility Study Companies in Malacca, Kangar, Malaysia

Top Market Research and Feasibility Study Companies in Sydney, Melbourne, Australia

Top Market Research and Feasibility Study Companies in Kampong Glam, Jurong, Singapore 

Top ranked best Feasibility Study and Market Research companies in New York City, New York: comprehensive guide and Review

Market Research and Feasibility Study Services in Dallas, Texas

Market Research and Feasibility Study Services in Chicago, Illinois

Market Research and Feasibility Study Services in Los Angeles, California

Market Research and Feasibility Study Services in New York City, New York

Market Research and Feasibility Study Services in Cincinnati, Ohio

Market Research and Feasibility Study Services in Charlotte, North Carolina

Market Research and Feasibility Study Services in Las Vegas, Nevada

Market Research and Feasibility Study Services in Pittsburgh, Pennsylvania

Market Research and Feasibility Study Services in Orlando, Florida

Market Research and Feasibility Study Services in San Antonio, Texas

Market Research and Feasibility Study Services in Baltimore, Maryland

Top Feasibility Study and Market Research Companies in Buenos Aires, Cordoba, Argentina

Top Feasibility Study and Market Research Companies in Shanghai, Beijing, China