How to Start an Organic Farm in Dubai, UAE: A Step by Step Guide
Initiating an Organic Farm In Dubai Offers several benefits. The Organic Farming Market is flourishing, creating abundant opportunities for entrepreneurs to establish a significant market presence. Begin your business with Smart Zones® UAE.
- 100% Foreign Ownership
- Easy Business Setup
- Growing Demand For Organic Food
- Potential For Higher Profits
Internationally, Organic Farming spans 187 countries, cultivating 72.3 million hectares of land by over three million farmers in 2019, as reported by the Food and Agriculture Organization of the United Nations. Concurrently, organic food and drink sales exceeded $114 billion USD. In the UAE, the organic farming sector is on the rise, boasting over 40 operational organic farms in the Emirates, generating a diverse range of more than 60 products.
Why You Should Start an Organic Farming Business in Dubai, UAE ?
Globally, the demand for organically cultivated produce has been steadily increasing, a trend poised to persist as more individuals recognize the benefits of consuming chemical-free produce.
This surge in global organic produce demand is reflected in Dubai, presenting lucrative business opportunities for those interested in establishing organic farms. Initiating an organic farm in Dubai, UAE offers numerous advantages, with a thriving market where supply exceeds demand. The enduring popularity of organic food adds to the long-term viability of this sector.
Types of Organic Farming Businesses in Dubai, UAE
Within the UAE, three primary forms of organic farming are distinguished:
Agricultural Activity
This classification encompasses diverse crop cultivation in the UAE not categorized under aquaculture or livestock farming. It involves various fruits, vegetables, grains, and herbs. Organic farming practices for crops include abstaining from synthetic pesticides and fertilizers, implementing crop rotation, utilizing organic compost and natural pest control methods, and prioritizing soil health through organic techniques.
Livestock Production and Farming
This category centers on the farming of animals and livestock in the UAE, such as cows, horses, sheep, goats, camels, and ostriches. Organic practices in livestock farming involve providing animals with organic feed, refraining from the use of growth hormones and antibiotics, and ensuring ample space and pasture access.
Aquaculture
Aquaculture entails the farming and production of fish and other water-borne animals. The UAE Ministry of Climate Change and Environment (MOCCAE) promotes the cultivation of various fish species, utilizing different aquaculture systems, including sea cage, Recirculating Aquaculture System (RAS), in-land aquaculture, and intertidal.
Benefits of Establishing an Organic Farm Business in Dubai, UAE
Organic farming in the UAE yields numerous advantages for farmers and the broader community, encompassing environmental, health, economic, and social benefits.
- Environmental Benefits: Organic farming, relying on natural processes like crop rotation and composting, enhances soil health, promoting carbon storage, and reducing greenhouse gas emissions for a healthier environment.
- Health Benefits: Organic foods, being fresher and devoid of synthetic preservatives, offer a healthier choice by avoiding harmful chemicals like pesticides and growth hormones, benefiting consumers.
- Economic Benefits: Organic farming proves more profitable than conventional methods, commanding higher prices in the market and allowing farmers to earn a premium. Additionally, organic farmers save on costs associated with synthetic inputs like fertilizers and pesticides.
- Social Benefits: Organic farming fosters a sustainable way of life, cultivating a stronger connection between farmers, the land, and the local community. This engenders a sense of community, cooperation, and environmental stewardship.
- Strategic Location: The UAE's strategic location between Europe and Asia positions it as an excellent hub for exporting organic produce to both continents. Its proximity to major shipping lanes ensures efficient and cost-effective transportation of organic goods worldwide.
- Favorable Climate: The UAE's tropical desert climate, featuring hot summers and warm winters, provides ideal conditions for cultivating a diverse range of fruits, vegetables, and herbs. This climate supports year-round cultivation and diverse crop options.
- Mineral-Rich Soil: The sandy soil in the UAE, rich in minerals, is highly suitable for cultivating various crops. This soil type facilitates nutrient absorption by plants and contributes to their healthy growth.
- Tax Incentives: The UAE offers favorable taxation policies for agricultural businesses, including tax exemptions and subsidies, allowing businesses to retain 100% of profits and investments outside the country for enhanced financial prospects.
- Government Support: The UAE government has implemented initiatives to promote the organic farming industry and provides support for organic farmers. Specific free zones designed for agri-tech businesses further facilitate operations.
- Growing Organic Food Market: The UAE's organic food market reached $37.45 million in 2021, with significant forecasted growth. The country ranks among the top 30 globally in projected growth rate, indicating ample opportunities for organic farming businesses.
Type of License available for Organic Farm Business in Dubai, UAE
When commencing an organic farm in the UAE, the type of license needed depends on the farming type and scale. Consider the following three types of licenses:
Professional License:
Ideal for individual farmers or small-scale operations, covering activities like growing citrus fruits, farming cows, egg production, and cultivating vegetables.
Commercial License:
Required for trading activities associated with organic farming, encompassing seeds trading, animal and bird feed trading, trading of animals, and aquaculture.
Industrial License:
Necessary for large-scale manufacturing operations linked to organic farming, including activities such as organic fertilizer manufacturing and organic pesticide manufacturing.
Business Structure and Planning in Dubai, UAE
Choosing the right business structure is vital when launching a firm in Dubai. Options include:
- 1. Free Zone Company: A free zone company provides foreign ownership, and simplified registration processes, ideal for global operations.
- 2. Mainland Company: Mainland companies adhere to UAE laws and regulations and are suitable for businesses targeting the domestic market.
Consider factors like your business services, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.
Steps to Launch an Organic Farm in Dubai, UAE
Establishing an Organic Farm Business in Dubai, UAE involves several steps:
Embark on the journey of opening a business in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.
Initiate the trade license application process with the Dubai Department of Economic Development (DED), wherein the selection of a business name is a pivotal step. Secure preliminary approval by utilizing the designated channels on the Invest Dubai website or authorized service centers.
Utilize the obtained initial approval certificate to progress with the rental or leasing of land for your organic farming initiative. Acquire requisite authorizations from pertinent authorities, including but not limited to Dubai Customs, the Food Safety Department, and the Environmental Health Section of Dubai Municipality, as deemed necessary.
Submit an application for a farming license from the UAE Ministry of Climate Change & Environment (MOCCAE). Provide the mandated documentation, encompassing trade name certification, lease or ownership contract, site photographs, and environmental/municipal licenses. MOCCAE representatives will conduct an inspection of your production facility, subsequently granting approval or offering pertinent recommendations.
For those concentrating on organic farming, apply for organic certification from the UAE Ministry of Industry & Advanced Technology (MOIAT). Furnish the required documents, including laboratory test results and certification for imported raw materials. The approval process typically concludes within three business days.
Upon obtaining organic farming certification and other pertinent licenses, finalize your application for a full commercial license with the DED. Upload all necessary documents and complete the requisite fee payment through the designated Invest Dubai portal.
Complete the process by opening your corporate bank account for your Dubai Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.
Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Documents Required to Start an Organic Farming Business in Dubai, UAE
Required alongside the finalized application form are the following documents:
- Completed application form.
- Articles of incorporation (if applicable).
- Passport copies for all shareholders.
- Concise descriptions of intended business activities.
- Evidence of any qualifications and accreditations.
- Copies of the passports of all shareholders in the farm.
Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.
Cost of Establishing an Organic Farming Business in Dubai
Commencing an organic farming venture in the UAE entails licensing costs ranging from AED 10,000 to AED 30,000. However, these represent just a fraction of the overall expenditures. Additionally, you must account for expenses related to your facility, personnel recruitment, veterinary services, animal welfare, and any necessary equipment.
For a precise quotation, reach out to Smart Zones® UAE to obtain an updated estimate tailored to your specific requirements. This ensures that you are securing the most competitive rate for the services essential to your business.
Starting an organic farming business in Dubai offers numerous advantages due to the global demand for organically cultivated produce. The thriving market in Dubai, where supply exceeds demand, along with the enduring popularity of organic food, adds to the long-term viability of the sector.
In Dubai, three primary forms of organic farming are recognized: Agricultural Activity involving diverse crop cultivation, Livestock Production and Farming focusing on animals, and Aquaculture for fish and water-borne animals.
Establishing an organic farm in the UAE brings environmental, health, economic, and social benefits. These include promoting soil health, offering healthier food choices, proving more profitable, fostering a sustainable way of life, and enjoying tax incentives and government support.
Three types of licenses are available in Dubai based on the scale and type of organic farming: Professional License for individual farmers, Commercial License for trading activities, and Industrial License for large-scale manufacturing operations.
Business structure options include Free Zone Company for global operations with foreign ownership, and Mainland Company adhering to UAE laws and regulations for businesses targeting the domestic market.
Steps involve partnering with Smart Zones® UAE, initiating the approval process with the DED, securing land leasing and municipal permissions, requesting a farming license, seeking organic certification, applying for a comprehensive commercial license, and opening a corporate bank account.
Required documents include a completed application form, articles of incorporation (if applicable), passport copies for all shareholders, descriptions of business activities, evidence of qualifications, and copies of passports for all shareholders.
Licensing costs range from AED 10,000 to AED 30,000, but overall expenses include facility costs, personnel recruitment, veterinary services, animal welfare, and necessary equipment. For a precise quotation, consult Smart Zones® UAE for an estimate tailored to specific business requirements.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
