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Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources. (SPA)
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Updated 15 December 2024

Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
  • Challenge of producing more food without further harming the environment intensifies

RIYADH: Increasing the use of smart technology in farming is critical if the Middle East is going to truly achieve food security, experts have told Arab News.

As agricultural productivity in the region remains vulnerable to supply chain disruption, water shortages, and conflicts, the challenge of producing more food without further harming the environment intensifies. 

Add in the consequences of climate change, and the Middle East needs to act fast — and smart — to ensure food security.

Vertical farms, increased use of data, and cross-country collaboration have all been flagged up to Arab News as key ways to tackle the short and long term challenges.

Abdel Rahman Al-Zubaidi, CEO of Ivvest, a Saudi-based agricultural technology and indoor farming company, emphasized to Arab News how his firm addresses these challenges: “Vertical farming allows exponential multiplication for the amount that can be produced in farms, enabling us to utilize vertical space and changing the way we design the production capacity from two dimensions to three dimensions.” 

He added: “This is essential for getting the best out of our limited arable lands in the Middle East, where, for instance, ֱ’s arable land was just 1.6 percent in 2021.” Available in ֱ, Ivvest’s farming “Capsule,” is a smart container farming unit empowered with IvvestOS, an operating system that brings intelligence to the facility. Using this technology, farmers can produce more than 200 plants per sq. meter, all year long, without pesticides, and while consuming 90 percent less water and land, according to the company.

Sanjay Borkar, CEO and co-founder of FarmERP, talked up the importance of innovation in an interview with Arab News, stating: “Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely. By monitoring things like soil health and water levels in real-time, farmers can fine-tune the use of water, fertilizers, and other inputs, minimizing waste and maximizing yields.” Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources.Many countries are adopting climate-smart agriculture, which integrates sustainable practices that improve resilience to environmental stressors while mitigating greenhouse gas emissions.

Water scarcity: A crisis across the region

Water scarcity is perhaps the most pressing environmental issue across the Middle East. Jordan is one of the countries most affected, facing severe water stress due to the combination of traditional irrigation methods and over-reliance on depleted water resources. The UN Food and Agriculture Organization and other international organizations are promoting precision agriculture techniques, such as drip irrigation and soil moisture sensors, to enhance water use efficiency and reduce wastage. 

Vertical farming allows exponential multiplication for the amount that can be produced in farms.

Abdel Rahman Al-Zubaidi, CEO of Ivvest

Ivvest’s Al-Zubaidi explained that “indoor farming isolates the farming environment from the outside, ensuring optimal conditions for crops and reducing water loss from evaporation.” 

He noted that these methods drastically reduce the need for pesticides, further increasing sustainability.

Conflict-driven food insecurity 

While water scarcity is a severe concern, the Middle East’s food security crisis is also driven by conflict.

In correspondence with Arab News, the FAO said: “The ongoing war in Gaza has significantly exacerbated food insecurity in the broader NENA (Near East and North Africa) region by intensifying the already dire humanitarian crisis.”

The organization revealed that this conflict has disrupted supply chains, with the latest reports indicating that 95 percent of Gaza’s population faces high levels of food insecurity and nearly 343,000 people are at catastrophic risk of famine.

Local initiatives, such as urban farming and community-supported agriculture, have provided some relief to conflict-affected populations.

The impact of the Russia-Ukraine war

The global grain market has been severely impacted by the Russia-Ukraine war, with the Middle East feeling the effects more acutely than other regions. Countries including Egypt, Lebanon, and Yemen, heavily reliant on imports from these two major grain producers, are grappling with shortages.

As the conflict continues, food prices have soared, compounding the challenges faced by already vulnerable populations. The FAO’s call for investment in domestic agricultural production and the adoption of sustainable farming practices is particularly relevant for these nations.

The FAO said that hunger in Arab countries reached 59.8 million people in 2022, a 75.9 percent increase since 2000, accounting for 12.9 percent of the population compared to the global average of 9.2 percent. 

Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely.

Sanjay Borkar, CEO and co-founder of FarmERP

Al-Zubaidi addressed how Ivvest can contribute to the region’s food security: “Our technology development started after a failed project with greenhouses, which ignited thorough research. We found that traditional greenhouses, while helpful, are resource-intensive and inefficient in hot climates like ours.” 

He pointed out: “To overcome these risks, we designed and manufactured a full end-to-end indoor farming solution.” Ivvest’s vertical farming system allows producing over 240 plants per square meter, drastically enhancing productivity compared to greenhouses.

Zulfiqar Hamadani, CEO of Tanmiah Food Co., echoed the importance of local production, noting that “we must prioritize sustainable local production and develop resilient supply chains to ensure that we can meet the nutritional needs of our growing population.” 

He highlighted Tanmiah’s commitment to ֱ’s Vision 2030 food self-sufficiency goals, adding: “ֱ is taking major steps, including significant investments aimed at enhancing food security and fostering innovation in food production.”

Phil Webster, partner at Arthur D. Little, told Arab News that the greatest adaptation going forward will occur in the areas of agriculture that are growing the most, receiving the largest investments, and offering the greatest overall potential for IoT usage.

“These would be the poultry and aquaculture sectors, the latter of which I gather has grown 183 percent over the last 5 years,” he said.

Webster expected some potential developments in the Kingdom: “Make ֱ self-sufficient or even a net exporter in more food products, to transform agricultural supply chains through a wholesale shift toward alternative protein, or enabling semi or fully automated indoor or covered farming to maximize productivity and reduce the cost of agricultural production.”

Innovative solutions: a path to resilience

In response to these growing challenges, several countries in the Middle East are investing in innovative agricultural solutions. The FAO emphasized to Arab News the importance of “sustainable and resilient farming practices, including soil and water conservation, waste reduction, and the implementation of nature-based solutions.”

Al-Zubaidi added that the key to sustainability in farming lies in integrating innovations into the broader supply chain. 

Hamadani pointed out that the Middle East must “invest in innovative agricultural technologies such as precision farming, which optimizes resource use and minimizes waste.” He also emphasized the importance of sustainable practices that enhance soil health and water conservation.

Collaboration for a sustainable future

The FAO emphasized that collaboration between regional governments, international organizations, and local communities is crucial for building resilient food systems.

“Promoting climate-smart agriculture, such as diversified cropping systems and sustainable pest management, is crucial for enhancing agricultural resilience,” said the organization.

Al-Zubaidi added that the importance of partnerships between technology providers, distributors, and governments in achieving food security, describing them as “essential for creating a robust and sustainable food security framework.”

Hamadani also stressed the need for government support, noting that “clear policy frameworks that encourage research and development, alongside financial incentives for sustainable practices, are crucial.” He advocated for policies that support sustainable agricultural practices and reduce barriers for startups.

Borkar further elaborated, saying: “Collaborative partnerships between governments, tech companies, and local farmers are essential to share knowledge and ensure technology is accessible.” Grassroots initiatives like urban farming and water-efficient farming techniques can also empower communities and reduce their vulnerability to external shocks.

Partnerships and collaborations play a critical role in promoting the adoption and maintenance of digital technologies in agriculture, according to Webster. “The most important role of such collaborations is to ensure that there is good governance over the data that is collected at all parts of the food chain from farm to fork,” he added.


SME lending in ֱ surges past $112bn

SME lending in ֱ surges past $112bn
Updated 4 sec ago

SME lending in ֱ surges past $112bn

SME lending in ֱ surges past $112bn

RIYADH: Lending to small, medium, and micro enterprises in ֱ reached a record SR420.7 billion ($112.18 billion) by the end of the second quarter of 2025, up 37 percent from the same period last year, official data showed.

This represents an increase of more than SR113.3 billion compared with the second quarter of 2024, when SME facilities stood at SR307.4 billion, the Saudi Press Agency reported, citing data from the Saudi Central Bank, also known as SAMA.

On a quarterly basis, SAMA’s monthly statistical bulletin for August reported that lending increased 10 percent from SR383.2 billion at the end of the first quarter, adding SR37.5 billion in new credit.

It also aligns with Vision 2030’s target to increase SME contributions to gross domestic product from 30 percent to 35 percent. With more than 1.8 million SMEs operating in the Kingdom, supporting this sector financially is not just a policy goal but a macroeconomic necessity.

“The bulletin indicated that the facilities provided by the banking sector amounted to SR402.1 billion, constituting about 96 percent of the total facilities, while the facilities provided by the financing companies sector amounted to SR18.6 billion,” the SPA report stated. 

Medium-sized enterprises received the largest share of bank lending, securing SR198.9 billion, about 49 percent of total banking facilities. Small enterprises, meanwhile, dominated the financing companies’ portfolio, with SR8.5 billion, representing 46 percent of that sector’s total.

Overall, medium enterprises led total SME facilities with SR206.4 billion, representing 49 percent, followed by small enterprises at SR154.2 billion, or 37 percent, and micro enterprises at SR60.1 billion, accounting for 14 percent.

According to the General Authority for Small and Medium Enterprises, medium enterprises are defined as those with revenues between SR40 million and SR200 million or 50–249 employees.

Small enterprises have revenues of SR3 million to SR40 million, or six to 49 employees, while micro enterprises generate less than SR3 million or employ one to five people.


OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General
Updated 18 min 55 sec ago

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

JEDDAH: Global demand for oil is expected to reach around 123 million barrels per day by 2050, with the crude maintaining the largest share of the global energy mix at nearly 30 percent, OPEC Secretary-General Haitham Al-Ghais said.

Speaking at a conference in Kuwait on Oct. 22, Al-Ghais said demand for all types of fuel will continue to rise through 2050 and beyond, driven by population growth, economic expansion, rising urbanization, and the emergence of new energy-intensive industries, the Saudi Press Agency reported.

Al-Ghais added that meeting this projected demand will require massive investments estimated at about $18.2 trillion by 2050.

 


Closing Bell: Saudi main index ends in green at 11,585 

Closing Bell: Saudi main index ends in green at 11,585 
Updated 58 min 51 sec ago

Closing Bell: Saudi main index ends in green at 11,585 

Closing Bell: Saudi main index ends in green at 11,585 

RIYADH: ֱ’s Tadawul All Share Index rose on Wednesday, gaining 40.10 points, or 0.35 percent, to close at 11,585.90. 

The total trading turnover of the benchmark index was SR5.35 billion ($1.42 billion), as 91 of the listed stocks advanced, while only 163 retreated. 

The MSCI Tadawul Index also increased, up 3.47 points, or 0.23 percent, to close at 1,510.94. 

The Kingdom’s parallel market Nomu lost 36.98 points, or 0.15 percent, to close at 25,035.14. This comes as 39 of the listed stocks advanced, while 40 retreated. 

The best-performing stock was CHUBB Arabia Cooperative Insurance Co., with its share price surging 9.91 percent to SR32.84. 

Other top performers included LIVA Insurance Co., which saw its share price rise by 4.57 percent to SR13.50, and ֱn Oil Co., which saw a 3.75 percent increase to SR25.98.

On the downside, Canadian Medical Center Co. saw the largest drop, with its share falling 8.84 percent to SR8.25. 

Tourism Enterprise Co. fell 8.43 percent to SR15.75, while Naseej International Trading Co. dropped 7.04 percent to SR62.70. 

On the announcements front, the Saudi Investment Bank released its interim financial results for the first nine months of the year. 

Net profit reached SR518.4 million, up 0.11 percent year on year and 1.15 percent compared with the previous quarter. The bank attributed the modest annual increase to a decline in total operating expenses. 

In a statement on Tadawul, the bank said that total operating income had decreased by 3 percent, mainly due to a drop in net special commission income and fair value through the statement of income, partially offset by higher exchange income and fee income from banking services. 

SAIB’s shares traded 1.94 percent lower on the main market to reach SR13.67. 


Egypt’s labor reforms aim to attract Qatari investment 

Egypt’s labor reforms aim to attract Qatari investment 
Updated 22 October 2025

Egypt’s labor reforms aim to attract Qatari investment 

Egypt’s labor reforms aim to attract Qatari investment 

JEDDAH: Egypt and Qatar are set to deepen economic ties, with the North African country’s recent labor law reforms aimed at attracting Gulf investment and improving the business environment. 

Egypt’s Minister of Labor, Mohamed Abdel Aziz Gibran, met in Cairo with Mohamed bin Ahmed Al-Obaidli, a board member of the Qatar Chamber, to discuss boosting bilateral economic cooperation and encouraging Qatari investors to enter the Egyptian market.

The two sides also reviewed Egypt’s labor law and discussed ways to tackle challenges facing investors in the country’s labor market, according to the Qatar News Agency.

In mid-April, the two countries agreed to pursue a package of $7.5 billion in direct Qatari investments. The move comes as Egypt steps up efforts to secure funding from Gulf neighbors and other foreign partners to address high foreign debt and a large budget deficit. 

“During the discussions, HE the Minister reviewed the latest amendments to the Egyptian Labor Law, which include the establishment of an emergency fund to support workers and struggling companies, as well as the creation of an entity dedicated to training and upgrading workers’ skills,” QNA reported. 

It added that the Egyptian official said the new law seeks to create a more favorable work environment and promote a stable, secure climate for investors in Egypt. 

The meeting also reviewed the outcomes of Gibran’s recent visit to Qatar, during which he met with representatives of the Qatari private sector. 

“The visit resulted in positive understandings aimed at strengthening cooperation in the fields of labor, training, and employment,” the QNA report added. 

Al-Obaidli praised the strong fraternal ties between the countries, emphasizing the Qatar Chamber’s commitment to broadening cooperation across economic, commercial, and investment sectors. 

Egypt enacted Labor Law No. 14 of 2025, which took effect on Sept. 1, fully replacing previous labor legislation. 

The law introduces a wide range of reforms designed to modernize labor relations, enhance workers’ rights, and align with international labor standards.

It requires employers to provide annual salary increments, recognizes modern work arrangements such as remote work, part-time roles, flexible hours, and job sharing, and obliges them to contribute to a workforce training fund. 

The law also updates notice periods for resignations, extends maternity and paternity leave provisions, allows longer childcare leave, and regulates annual leave entitlements, including special provisions for disabled employees. 


Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 
Updated 22 October 2025

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

RIYADH: Sovereign wealth funds from the Middle East and Asia are driving a resurgence in global mergers and acquisitions, with deal volumes surpassing $3.5 trillion since the start of the year, Asharq Business reported. 

The surge marks a 34 percent increase over the previous year, putting 2025 on track to be the strongest year for M&A since 2021. The third quarter alone saw over $1.3 trillion in deals, driven by a number of mega-transactions, according to data compiled by Bloomberg. 

The flurry of activity has been led by mega-deals involving some of the world’s deepest-pocketed state-backed funds. 

On Oct. 21, Blackstone Inc. and TPG Inc. agreed to acquire medical device maker Hologic Inc. for up to $18.3 billion, including debt. The deal features the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC Pte as minority investors. 

In a separate transaction last week, BlackRock Inc. partnered with MGX, an AI firm backed by Abu Dhabi’s Mubadala Investment Co., in a $40 billion deal to acquire Aligned Data Centers. 

The week prior, Carlyle Group Inc. entered a partnership with the Qatar Investment Authority to purchase the coatings unit of BASF SE in a deal that valued the unit at €7.7 billion ($8.9 billion). 

In a landmark transaction in September, ֱ’s Public Investment Fund, chaired by Crown Prince Mohammed bin Salman, completed the acquisition of video game giant Electronic Arts Inc. to take it private. This leveraged buyout, valued at $55 billion, stands as the largest of its kind in history. 

Beyond participating with private equity, sovereign wealth funds are aggressively expanding their in-house investment teams to execute more direct investments. This strategy allows them to capture profits without paying fees to Wall Street banks. 

They have also become major backers of private equity funds, successfully negotiating privileges that grant them co-investment rights alongside these funds in exchange for their substantial capital commitments. 

Heavy tech and AI focus 

The technology sector has been a particular focus for these funds. In August, ADIA supported Thoma Bravo’s acquisition of HR software provider Dayforce Inc. for nearly $12 billion. 

MGX, backed by the Abu Dhabi government and overseen by Sheikh Tahnoon bin Zayed Al Nahyan, has invested in OpenAI at a $500 billion valuation. It has also supported Elon Musk’s xAI venture and plans to contribute to the “Stargate” project announced by US President Donald Trump. 

Meanwhile, Singapore’s GIC and the Qatar Investment Authority have both invested substantial capital in OpenAI’s competitor, Anthropic. 

Wall Street sees deals continuing

Senior investment bankers anticipate that the M&A wave will persist. Goldman Sachs has predicted that deal activity will accelerate by year-end, with 2026 potentially setting a new record for the M&A market. 

Sovereign funds continue to hunt for new opportunities. For instance, the asset management arm of Mubadala is reportedly considering a bid for outdoor advertising company Clear Channel Outdoor Holdings Inc., which has a market value of approximately $930 million. 

Their investment interests are also expanding beyond direct acquisitions. Qatar Investment Authority recently participated in an over $2 billion funding round for a new company founded by Hollywood super-agent Ari Emanuel, alongside other investors like Apollo Global Management and Ares Management.