BayWa and Al Dahra to set up agribusiness in Abu Dhabi
German agriculture business firm BayWa has partnered with Abu Dhabi-based international agribusiness company Al Dahra Holding to set up a new €30m joint venture (JV) company called Al Dahra BayWa in the United Arab Emirates (UAE).
Al Dahra BayWa will be engaged in the production of vegetables such as tomatoes using greenhouse technologies, which will be marketed across seven-emirate federation, and potential regional markets.
This contract is subject to approval by the competent authorities in the UAE.
Al Dahra Holding vice-chairman and managing director HE Khadim Abdulla Al Derei 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 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.”
The company explained that spending power in the UAE on fruit and vegetables from regional and sustainable production is strong and the nation has a healthy market for premium fruits and vegetables.
Al Dahra BayWa will be headquartered in the UAE capital, Abu Dhabi.
BayWa chief executive officer Klaus Josef Lutz said: "Through our trade network, we have identified the United Arab Emirates as a very profitable market with a large growth potential
"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."
Lutz further explained that BayWa will be focusing on special products for a profitable market segment in regions with strong growth in order to diversify its agricultural business.