Agritech from UAE targets expansion in Saudi Arabia

Veggitech, an Agritech firm based in the UAE and a subsidiary of Saudi's SNASCO Investments, is exploring the potential of broadening its footprint in Saudi Arabia, disclosed a top executive.

With the Kingdom of Saudi Arabia experiencing growth, there's a vision to establish a farm in Jeddah, the base of SNASCO. This would be situated on their owned land of approximately 50,000 sqm, shared by Rami Nairat, Group CFO at SNASCO Investments, in an exclusive chat with Zawya Projects.

In the evaluation phase, the firm is considering investing 15 to 20 million UAE dirhams and exploring various funding avenues, including equity, bank financing, and other alternatives.

Nairat also emphasized their growth ambition is broader than just Saudi Arabia. They see potential in countries like India and Pakistan, where their expertise can be employed, yielding the same production with reduced labor expenses, ultimately reducing import costs.

SNASCO Holdings ventured into the Agritech sphere outside its home by acquiring Veggitech, based in Sharjah, in 2021. Discussing their journey, Nairat explained, "Our initial plan was to operate five farms over six years, but we hit that mark in roughly three years due to rising demand for our products. Today, we own about 360,000 sqm of arable land and aim to acquire one farm annually."

He further mentioned a 200% year-over-year sales growth and a pipeline of projects awaiting execution. The company also plans to augment its existing portfolio of 25 products due to the strong market demand exceeding its supply capabilities.
Veggitech is also engaging with the UAE's MOCCAE and a prominent bank, seeking funds for a pilot project that introduces its new BOT (Build-Operate-Transfer) model.

Valentina Olabi, a Research Specialist at GPCA, highlighted the projected population surge in the GCC to 58.3 million by 2030 and 72.3 million by 2050, underscoring the need for innovative food production techniques in the face of the region's climatic challenges.

Nairat opined that optimizing underused agricultural land can bolster the region's food security strategy. He believes that the proper technological application and expertise could significantly enhance the region's food security initiative, providing a sense of safety to its residents.