Agriculture in the UAE accounts for only 0.9% of the country's GDP and 1.7% of the employed population, which is due to extremely unfavorable conditions for the development of this sector.
Only a small part of the territory is suitable for agriculture due to the aridity of the local climate, high average annual temperatures, lack of water resources and poor soil quality. As a result, the UAE is a country heavily dependent on agricultural imports. Supplies from abroad provide about 80% of food consumption. Nevertheless, the state takes an active part in stimulating the development of agriculture in order to strengthen the food security of the country's population. In particular, efforts are being made to introduce modern irrigation infrastructure that would allow more efficient use of available water resources.
Special attention is paid to the development of hydroponics, the use of which preserves up to 70% of water, while increasing the duration of the growing season and does not require the use of harmful chemicals. Moreover, the Government provides financial support to farmers by providing subsidies for seeds, fertilizers and pesticides, as well as preferential loans for the purchase of agricultural equipment and machinery.
The basis of the UAE's agriculture is the cultivation of dates, the production of which in 2021 amounted to 383.0 thousand tons (+9.0% by 2020). The average annual growth rate for 2017-2021 was 2.7%. The country is one of the ten largest date producers in the world. The cultivation of this crop has been one of the priorities for the development of agriculture in the UAE since the 1970s. Dates are among the fruits most adapted to the arid climate of the Arabian Peninsula, which makes it possible to increase production volumes annually, regardless of weather conditions.
The active development of modern irrigation systems also allows the country to increase the production of various vegetables. In 2021, the total volume of grown products amounted to 339.4 thousand tons, which is 0.8% more than in 2020. On average, in 2017-2021, the indicator increased by 10.7% per year. The main crops grown are cucumbers, tomatoes and cabbage. Cucumber production in 2021 reached 114.3 thousand tons, which is 8.0% more than in 2020, on average for 2017-2021 volumes increased by 20.7% per year. At the same time, tomato production for 2017-2021. it demonstrated unstable dynamics and varied in the range of 60-80 thousand tons. In 2021, the volume of grown products amounted to 78.2 thousand tons, which is 2.4% less than in 2020. Harsh climatic conditions complicate production, and the government continues to encourage the introduction of new technologies to increase yields. Cabbage production in 2021 decreased by 6.8% compared to 2020, amounting to 33.1 thousand tons. Despite this, in 2017-2021, the indicators increased significantly, demonstrating an average annual growth rate of 29.7%.
The livestock sector plays an important role in ensuring the country's food security. In particular, production in the dairy cattle segment has increased significantly over the past decade. Nevertheless, in the last few years, the dynamics have been unstable. For 2017-2021, the total volume of raw milk production varied between 228-257 thousand tons. In 2021, the indicator amounted to 238.7 thousand tons, which is 7.2% less than in 2020. Camel milk occupies a large part of the structure of dairy cattle breeding, the production of which in 2021 amounted to 78.3 thousand. tons (-8.3% by 2020). In 2021, 75.9 thousand tons of goat's milk and 52.6 thousand tons of cow's milk were also produced (-7.0% and -5.9% by 2020, respectively).
The total production of meat and offal in 2021 amounted to 213.5 thousand tons, which is 3.5% more than in 2020, the average annual growth rate for 2017-2021 was 1.9%. Goat meat, poultry meat and camel meat occupy the main share in the structure.
In 2021, 63.2 thousand tons of goat meat were produced in the country (+5.2% by 2020), on average for 2017-2021 the indicator increased by 3.5% per year. Poultry meat production in 2021 amounted to 56.0 thousand tons, which is 3.5% more than in 2020. The development of the poultry industry is complicated by high production costs associated, in particular, with rising prices for imported fodder crops. Camel meat production in 2017-2021 increased annually by an average of 3.9%, reaching 39.1 thousand tons by 2021 (+4.0% by 2020).
In 2021, the production of fish and seafood in the UAE, according to FAO estimates, amounted to 69.5 thousand tons. Aquaculture in the country is poorly developed, and most of the production is provided by catch. Fish in the UAE remains one of the most popular products. Since the UAE is a coastal state, fishing has always been a significant area of activity for the national economy.
The state is also directly involved in the development of this industry. Local fishermen are provided with specialized equipment and equipment for fishing.
Import of agricultural products
In 2021, imports of agricultural products of the UAE amounted to 18.92 billion US dollars, an increase of 10.6% (+1.81 billion US dollars) relative to 2020. The average annual growth rate of agroimport for 2017-2021 was 0.8%.
The structure of imports of agricultural products of the UAE is highly differentiated. In 2021, poultry meat (4.9%), beef and by-products of cattle (3.9%), rapeseed (3.8%), milk powder (3.4%) and sugar beet and cane (3.4%) occupied the largest share in the value structure of imports. The top 10 product categories accounted for 33.3% of the value of imports of agricultural products of the UAE.
In 2021, the largest increase was shown by purchases of beet and cane sugar by 55.8% (+227.4 million US dollars) and rapeseed seeds by 42.3% (+211.4 million US dollars).
The main exporting countries of agricultural products to the UAE in value terms in 2021 were India (11.1%) Brazil (8.1%) and the USA (6.8%). They accounted for 26.0% of the value of imports of agricultural products of the UAE, and the top 10 countries accounted for 50.6% of the country's agricultural exports.
Export of agricultural products
In 2021, the volume of exports of agricultural products of the UAE reached 15.13 billion US dollars, an increase of 11.8% (+1.6 billion US dollars) compared to 2020. The average annual growth rate of agricultural exports for 2017-2021 was 22.3%.
In 2021, cigars and cigarettes accounted for the largest share of exports of agricultural products in value terms (29.2%). The top 3 exported agricultural products in 2021 also included beet and cane sugar (4.6% of value exports), as well as milk powder (4.2%). In total, the top 10 positions accounted for 54.6% of the country's agricultural exports.
The largest increase in 2021 compared to 2020 was demonstrated by cigars and cigarettes (+10.9% or +433.2 million US dollars), beet and cane sugar (+17.8% or +106.0 million US dollars) and rapeseed oil (+26.3% or +99.8 million US dollars).
In 2021, the main importing countries of agricultural products from the UAE were Saudi Arabia (11.3% of value exports), Iraq (8.4%) and Oman (7.8%). In total, the top 10 countries accounted for 58.2% of the UAE's agricultural exports in 2021. Most of all during the period under review, the UAE increased the supply of agricultural products to Saudi Arabia (5.1 times) and China (11.0 times).
