German group partners with Emiratis on 15 ha greenhouse in Abu Dhabi

German-based BayWa, with agriculture as one of its core businesses, has tied up with the Abu Dhabi-based Al Dahra Holding LLC, a leading international agribusiness company, to set up a new project in the UAE.

BayWa AG and Al Dahra Holding LLC today unveiled the €30 million project. The new entity, Al Dahra BayWa LLC, will operate in the production of premium vegetables like tomatoes using latest greenhouse technologies as well as in the marketing of the produce in the seven-emirate federation, and potential regional markets. This contract is subject to approval by the competent authorities in the UAE.

Spending power in the UAE on fruit and vegetables from regional and sustainable production is strong and the country has a healthy market for premium fruits and vegetables. Al Dahra BayWa LLC will have its headquarters in the UAE capital, Abu Dhabi.

Commenting on the new company, HE Khadim Abdulla Al Derei, Vice Chairman & Managing Director of Al Dahra Holding LLC, said: “We are pleased to make this announcement which comes as part of the strategy of food security in the UAE and contributes to consolidating our initiatives in that direction”.

“Al Dahra BayWa LLC has a great potential for growth in the region, and we are confident that this collaboration has the elements of success in this continuously growing business segment”, he added.

The joint venture is part of the specialties strategy in BayWa's Agriculture Segment. "Through our trade network, we have identified the United Arab Emirates as a very profitable market with a large growth potential", explained Klaus Josef Lutz, the Chief Executive Officer of BayWa AG. "On an international scale, we are observing a growing interest to close the value chains between from growers to consumers – this development is reflected in our decision-making." Mr. Lutz emphazised that BayWa does not refer to standard products like wheat, corn and soy when talking about the expansion of its value chain, but instead focuses exclusively on special products for a profitable market segment in regions with strong growth in order to diversify its agricultural business.

The climate-controlled greenhouse will be constructed on a site with an area of 15 hectares. In a first step, the venture will produce up to 5,000 tons of premium tomatoes per year to be marketed to local food retailers. In the controlled climate of the facilities, vegetables can be harvested throughout the year. Water-efficient technologies will be used, and compared to traditional greenhouses, the system will save 60 percent of water used for irrigation.

For more information:
Thomas Berger
BayWa AG
Tel: 0049 (0) 89/92 22 36 92
thomas.berger@baywa.de