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The region is getting five indoor farms, courtesy of a new Mawarid JV: California-based vertical farming startup Plenty formed a USD 680 mn joint venture with Alpha Dhabi’s Mawarid to develop five indoor farms across the region over the next five years, the companies told Reuters. One of the farms will be in Abu Dhabi, and will require an initial investment of USD 130 mn.
Details: The farm is expected to break ground early next year and could be operational by 2026. It aims to produce more than 4.5 mn pounds of premium strawberries annually for local consumption and export to GCC countries. The firm has already pre-sold its strawberry production in the UAE to US berry retailer Driscoll, according to Plenty.
An unnamed local bank will also be providing part of the financing through debt, alongside the JV, a rare move in the indoor farming sector which typically depends on venture capital funding.
Seeking high profitability: “We are targeting returns north of 20%, which is significantly higher than traditional agriculture. In that context, we think there’s a lot of capital for the space,” Plenty CEO Arama Kukutai said.
The high costs of constructing new vertical farms has significantly hindered scaling production, and funding for indoor farming has dropped to just a fifth of its 2021 peak, according to PitchBook data.
Vertical farming has long been a priority for the UAE: Dubai’s Badia Farms partnered with Bahrain’s Edamah to invest several mn USD for a sustainable farm in Hamala, while Abu Dhabi’s Masdar City has launched an indoor vertical farm with Singapore’s Alesca Life. Additionally, Dubai’s Crysp Farms raised USD 2.25 mn to expand domestically and into new markets.
OTHER INVESTMENT NEWS-
Beeah to invest AED 500 mn in Egypt: State-backed sustainability firm Beeah plans to invest AED 500 mn in Egypt’s waste management and sustainability, according to a statement. The firm wants to build multilateral partnerships with local and foreign partners and work with investment funds to reduce risk. This came during a meeting between company representatives and Egyptian Environment Minister Yasmine Fouad, during which they discussed potential investments available in the Egyptian local market, including medical waste management and agricultural waste recycling.
Beeah is no stranger to Egypt: The firm was tapped in December to develop the solid waste management infrastructure in Egypt’s new capital. The firm, together with the Egyptian Administrative Capital for Urban Development, plans to allocate up to EGP 1 bn to the first phase of the project.
