Plenty to build vertical farms with Mawarid in $680m venture

• Partnership intends to build five farms over next five years, with the initial investment of approximately $130 million funding the construction of an indoor farm in Abu Dhabi.

US vertical farming startup Plenty is teaming up with UAE’s Mawarid, a subsidiary of Alpha Dhabi Holding, in $680 million joint venture to establish a network of state-of-the-art indoor farms across the Middle East, promising to redefine the region’s agricultural landscape.

The collaborative effort between these two entities is a strategic move to address the pressing challenges of food security and resource scarcity in the region.

By leveraging the expertise and innovative technologies of Plenty, the partnership intends to build five farms over the next five years, with the initial investment of approximately $130 million funding the construction of an indoor farm in Abu Dhabi.

The facility is expected to break ground early next year and could be operational by 2026, marking a significant milestone in the region’s journey towards sustainable food production.

The flagship farm in Abu Dhabi is poised to revolutionise the local strawberry industry, with a projected annual output of over 4.5 million pounds of premium berries. These strawberries will not only cater to the domestic market but also be exported to other Gulf Cooperation Council member countries, showcasing the far-reaching impact of this venture.

The decision to pre-sell the farm’s strawberry production to Driscoll’s, a leading global player in the berry market, further underscores the confidence and strategic planning behind this partnership.

Vertical farming, the core technology driving this initiative, offers a sustainable and efficient alternative to traditional agriculture.

By cultivating crops in controlled indoor environments, vertical farms can maximise productivity while minimising the use of land, water, and other resources. The approach aligns perfectly with the UAE’s vision of enhancing food security and diversifying its agricultural capabilities, particularly in the face of scarce land and water resources.

The financial backing for this joint venture, which includes debt financing from a local bank, represents a significant shift in the funding landscape for the indoor farming industry.

Historically, the capital-intensive nature of these projects has been a significant barrier to scaling production, with the industry relying heavily on venture capital investments.

However, the partnership’s ability to secure debt financing from a regional bank highlights the growing confidence and interest in the potential of vertical farming, particularly in the Middle East.

Arama Kukutai, CEO of Plenty, is optimistic about the venture’s financial prospects, projecting returns of over 20 per cent – significantly higher than traditional agriculture. This ambitious target underscores the transformative power of vertical farming and the confidence in the region’s ability to embrace this innovative solution.