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In 2014, the Khalifa Fund for Enterprise Development (KFED) launched the Zaarie (زرعي) programme with the clear task of supporting agricultural projects in Abu Dhabi, which is home to one of the harshest climates on the planet.
The Zaarie initiative is an investment grant and project designed to support Emirati farmers invest in new technology, such as hydroponic systems, with interest-free loans capping at AED 1 million (1% p.a. admin fees to the bank, and a minimum contribution of 5% to be paid upfront). The maximum grace period for these loans is 24 months and the maximum repayment period is 60 months. The goal is to make these advanced agricultural techniques available to farmers across the emirate of Abu Dhabi.
Since Zaarie’s launch, the Khalifa Fund provided loans to 159 farmers. 88 projects have activated their loans with 86 projects being operational and 2 still in development. The target is to reach 200 projects, with a focus on hydroponics.
The initiative revolutionised the way fresh produce is cultivated in the region. Hydroponic greenhouse technology has resulted in production output being constant throughout the year, a truly remarkable feat in a part of the world where temperatures verge on 50°C.
The initiative’s technological advances were matched with an extensive and complementary marketing programme which gave local farmers a brand under which to sell their high-quality produce, ensuring that the product is sold at competitive prices that allows for a positive turnover for farmers.
Zaarie’s cohesiveness and advanced methodology has allowed for the establishment of a market competitive industry in a part of the world where only 21% of farms were operational beforehand. The programme benefits farmers and also helps increase food security in a nation heavily reliant on imports. This revolutionary project remains a regional benchmark of successful agricultural practice and industry planning in extreme conditions.
Hydroponics offered the ideal solution
Hydroponics technology has always been a priority for the Zaarie project. The Zaarie team’s challenge was to implement a comprehensive plan that helped boost farmers’ operations in all aspects.
A task like this needs a highly adaptable and innovative agricultural solution. Hydroponics proved to be the perfect match for the conditions present in the Arabian desert. Our high tech state of the art greenhouses would allow local farmers to effectively and efficiently battle the two main obstacles to obtaining successful yields in the region: high soil salinity and lack of water.
Hydroponics allows for the cultivation of plants without soil within a controlled environment. In this process, water and nutrients are provided to the plants through a nutrient-infused water supply. Hydroponics processes have the potential to cut irrigation water consumption by up to 80% and eliminate virtually all soil-related issues including many pest problems.
The challenges
Some farm owners within the Zaarie programme are not dedicated to the project and have limited interest in their farms’ operations, while other farms face management constraints, and some are facing technical and marketing problems. The Zaarie team is working closely with farmers and other stakeholders to facilitate proper management and provide technical, marketing, and financial support.
Zaarie’s services
The Zaarie programme provides farmers with training and conducts site visits to assess their farms for approval (as a prerequisite to granting loans):
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The following services were agreed with Abu Dhabi Farmers' Services Centre (ADFSC) onboarded as a partner:
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Supervise all projects.
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Set the production plan for each project and ensure that the projects execute the plan properly and as per specification, liaising with system vendors as per the set specification.
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Market all the products of all projects through the outlets of the ADFSC or the outlets cooperating with it.
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Certify Zaarie farms for GAP certification.
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Marketing the products of Zaarie members to different outlets like Union Coop.
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Facilitate contract management agreements with different greenhouse and hydroponics specialists.
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Facilitate logistic services for farmers via Massar Solutions.
Image: Gracia Group
Success stories
Among all of Zaarie’s beneficiary projects, 18 are highly successful and extended their activities. Several projects have cold packhouses (grading and packaging activities with branding).
In fact, many success stories can be heard from the farmers themselves. Among all of them, 20% run successful projects, 65% run moderately successful projects, while 15% are running projects that are still progressing.
Among these successful projects is Gracia Group, founded by entrepreneur Hamed Al Hamed.
Gracia Farms is the first UAE hydroponic farm in the region using next-generation sequencing (NGS), which is cutting-edge technology within the agricultural sphere. Through this project, we are aiming to spread the culture of healthy food, the love of planting in order to reach food security, and attain global excellence in agriculture.
Image: Gracia Group
The company has a varied scope of focus:
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Producing an assorted variety of fresh produce crops
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Greenhouse and hydroponics systems production lines
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Contract Farming
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Sales and logistics services
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Training and youth education programmes in agriculture technology
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Research and development of high-tech agriculture products
Another of Zaarie’s successful beneficiaries is VIP farms, founded by entrepreneur Hassan Al Zaabi. VIP farms’ goal has been to modernize and update their practices, with a strong focus on hydroponics. They have since succeeded, ensuring consistent crop output throughout the year.
You can reach out to the Khalifa Fund on this number: +971 600 500506
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