The Abu Dhabi Government has launched a Dh1 billion-program to support the establishment of agricultural technology companies in the emirate, as part of the Ghadan 21 three-year stimulus package, announced last year.
The “AgTech” initiative is part of an accelerator program to establish the UAE’s capital as a global centre for agricultural innovation in desert environments. The project is being led by the Abu Dhabi Investment Office, which was set up last year to drive foreign investment. It was formalized under a law enacted in January.
AgTech includes a rebate on research by companies and development expenses equivalent to up to 75 per cent of the total R&D cost – subject to “availability and commercial conditions”, Abu Dhabi Investment Office said on Monday.
Under the program, the Government will offer a series of cash and non-cash incentives to make it easier for local and global AgTech companies to set up and expand their operations in the coming years.
The packages will be awarded to local and international companies that develop technologies to support precision farming and agriculture robotics, bioenergy and indoor farming.
These three sectors are particularly aided by Abu Dhabi’s climate and environment, as they require plentiful land, natural heat and abundant sunlight, said Adio.
The UAE, like other GCC countries, is looking to expand its activities in the burgeoning agribusiness, or agricultural production sector, to ramp up food security.
The agreement will allow private companies from the Emirates to invest in agricultural production and development in the African country.
Ghadan 21, which translates as “Tomorrow 21” in English, is the banner name for a series of reforms to stimulate investment, create jobs, encourage innovation, improve the quality of life, as well as cement the UAE as a growing world power.
The disbursement of the Dh50bn package will be spread over three years.
SOURCE: The National