Facebook SDK

Saudi Arabia’s Neom seeks international partnerships to increase agri production

Saudi Arabia’s Neom seeks international partnerships to increase agri production

Saudi Arabia has partnered with a Dutch greenhouse company to create a "synthetic climate" aimed at turning the desert into a flourishing oasis. The endeavor involves establishing a horticulture oasis on the outskirts of Neom, a brand-new city being constructed along the Red Sea coast, extending into the desert. This venture represents a significant food-tech investment for Saudi Arabia, a country historically reliant on imports due to its arid terrain and extreme summer temperatures.

The initial phase of the project involves Dutch horticulturist Van Der Hoeven, whose $120 million contract with the Saudi government includes designing and constructing two test facilities on Neom's outskirts. These facilities are intended to operate as a synthetic climate, enabling year-round plant growth in challenging outdoor conditions.

Michiel Schoenmaeckers, the CEO of Van Der Hoeven, explained, "We are creating an artificial climate where conventional outdoor cultivation is challenging." The objective is to achieve continuous crop production, even in adverse conditions. This initiative is driven by the priority of ensuring food security in Neom, a key element of Crown Prince Mohammed bin Salman's ambitious $500 billion project to transform a desert area the size of Belgium into a cutting-edge region that could eventually accommodate millions of residents.

The significance of food security has escalated following global events such as the pandemic and geopolitical tensions, which exposed vulnerabilities in supply chains and highlighted risks to food security in the Middle East.

As part of its broader efforts, Saudi Arabia's sovereign wealth fund has joined forces with US-based AeroFarms to establish an indoor vertical farming company in Riyadh. Additionally, a Saudi state entity recently invested in Brazil's leading poultry producer and acquired stakes in other agri-related businesses.

Drawing from the expertise of the Netherlands, a global leader in agriculture despite its size, Saudi Arabia aims to leverage advanced agricultural solutions to meet the demands of Neom and potentially become a regional food hub.

Juan Carlos Motamayor, CEO of Neom Food, emphasized that this project has far-reaching goals. It aims not only to provide sustenance for Neom but also to serve as a model for other nations grappling with food security challenges in the face of climate change.

Following the completion of two pilot greenhouses, the project is set to expand significantly. Motamayor revealed plans to scale up to hundreds of hectares with various types of greenhouses. The overall objective is to establish over 300,000 tons of fruit and vegetable production within the next eight to 10 years.

Employing cutting-edge horticultural technologies, including AI-driven crop cultivation and advanced water filtration systems, the Dutch company plans to commence operations at the first site by August of the following year. Innovative measures such as a solar and seawater-driven cooling system are being introduced to manage extreme summer heat and reduce water consumption from the local grid.

Furthermore, a quarantine greenhouse will be erected to introduce perennial crops to Neom's ecosystem. The selection of Neom for this pioneering initiative underscores the Saudi crown prince's ambition to diversify the nation's economy away from oil dependence and to position the city as a testing ground for transformative technologies.

However, transitioning Neom from conceptualization to reality has encountered challenges, including limited foreign investment and obstacles in constructing a city with minimal existing infrastructure and unprecedented technological requirements.

Juan Carlos Motamayor underscored the uniqueness of the endeavor, stating, "No other place in the world is attempting to develop and implement agriculture for arid conditions on the scale we envision."

Source: Bloomberg 

Post a Comment

0 Comments