Red Sea Farms hopes to hit 30 hectares of desert farm operations by end of 2022

Short Url
Updated 05 June 2022
Follow

Red Sea Farms hopes to hit 30 hectares of desert farm operations by end of 2022

  • Founded in 2018, Red Sea Farms grows fresh produce in enclosed and climate-controlled farms
  • It uses sunlight and saltwater as base resources instead of relying on rainfall, fresh groundwater, or desalinated water

RIYADH: Agriculture technology startup Red Sea Farms is planning to widen the scope of its greenhouse space in Saudi Arabia to 100 hectares in the next three years, said a top executive of the company.

Speaking to Arab News, Simon Roopchand, Red Sea Farms’ new global COO and regional CEO of the Middle East, said: “We have an expansion plan for the Kingdom that will take us to over 100 hectares of greenhouse space in the next three years.”

The company hopes to achieve 30 hectares of desert farm operations by the end of this year and has already started cultivating snack tomatoes and snack pepper in the Kingdom.

“Our objective is to expand the produce business to cater to the region’s market and ensure that we have the right quality of locally grown produce,” said Roopchand.




Red Sea Farms COO Simon Roopchand. (Supplied)

With the low supply of berries in the region, the company is currently experimenting with producing a wide range of locally grown berries in their greenhouses.

Ploughing on sunshine and sea water

Founded in 2018, Red Sea Farms grows fresh produce in enclosed and climate-controlled farms that largely depend on saltwater to cool greenhouses and irrigate crops.

The company uses sunlight and saltwater as base resources instead of relying on rainfall, fresh groundwater, or desalinated water.

Its innovative technology saves 300 liters of freshwater per kilogram of produce — an approach effective in areas where water is sparsely available and arable land is scarce.

“It’s all based on a sustainable food supply that we can deliver in a very sustainable way,” said Roopchand.

Red Sea Farms last month raised $18.5 million from Saudi Aramco’s Wa’ed, The Savola Group, King Abdullah University of Science and Technology Innovation Fund and OlsonUbben to expand its presence in the Gulf Cooperation Council region.

It will also use it to increase its fresh produce line and sell its technology to users in critically water-depleted regions. The company has also earmarked a global expansion plan that is expected to generate its first-generation product sales by the fourth quarter of 2022.

“We want to provide our technology to make it commercially viable for operators and farm growers to grow where it wasn’t possible before,” Roopchand said.

He added that the company aims to be a leading sustainable food business in the GCC, with their products currently being sold in the region.

“One of our challenges is keeping up with the demand. We can see that growing food security is a problem globally, and we are expanding quickly,” he added.

One reaps what one sows

The company has also partnered with The Red Sea Development Co. in the Kingdom as a leading supplier of sustainable fresh food. The ag-tech company will produce a diverse range of fresh leafy greens, herbs, vine crops, vegetables and fruits, including berries.

“We are partnering with TRSDC to produce vegetables and fruits for them sustainably. It’s a huge development,” said Roopchand.

The move assumes significance since The Red Sea Project will welcome 300,000 guests annually by 2023 and upwards of 14,000 employees, which could become a logistical bottleneck, especially in a remotely located and largely arid area.

On the research front, the University of Arizona College of Agriculture and Life Sciences’ Controlled Environment Agriculture Center is evaluating Red Sea Farms’ technology and its potential to produce crops in arid environments.

The university will integrate the company’s technology and study its adaptability for one year before deploying it across the US.

“We are a research-based company, so we won’t stop innovating. We want to feed the world sustainably. To do that, we need to keep reducing our requirements on fossil fuels, monitoring our carbon footprint, and ensuring that we can have local people in harsh environments growing quality crops,” Roopchand said.


Closing Bell: Saudi main market edges up to 10,745 points 

Updated 5 sec ago
Follow

Closing Bell: Saudi main market edges up to 10,745 points 

RIYADH: Saudi equities closed higher on Monday, with the Tadawul All Share Index finishing up 135.69 points, or 1.28 percent, at 10,745.45. 

The MSCI Tadawul 30 Index also advanced, rising 22.21 points, or 1.57 percent, to close at 1,436.31, while the Nomu Parallel Market Index slipped 31.80 points, or 0.13 percent, to 23,586.94. 

Market breadth was positive on the main market, with 216 gainers against 42 decliners, while Nomu saw 42 stocks advancing and 36 declining. 

Trading activity picked up, with 261.7 million shares changing hands, while total turnover reached SR5.10 billion ($1.3 billion). 

Among the top performers, Saudi Fisheries Co. led the gains, closing at SR63.90, up SR5.80, or 9.98 percent. Naseej International Trading Co. rose to SR34.94, gaining SR3.16, or 9.94 percent, while Dar Al Arkan Real Estate Development Co. ended at SR16.74, up SR1.16, or 7.45 percent. 

Zahrat Al Waha for Trading Co. added 6.84 percent to close at SR2.50, and Alamar Foods Co. climbed 5.75 percent to SR42.70.  

On the losing side, Al Masar Al Shamil Education Co. fell 4.36 percent to SR23.90, while Saudi Paper Manufacturing Co. declined 2.82 percent to SR62.05.  

United International Holding Co. slipped 2.36 percent to SR153.40, Saudi Aramco Base Oil Co. dropped 2.09 percent to SR98.60, and United Electronics Co. eased 1.90 percent to SR85.00.  

On the announcement front, Mouwasat Medical Services Co. announced that its board has approved the establishment of a new hospital in Riyadh’s Al-Narjis District, with a planned capacity of 280 beds and a total investment cost of SR900 million.  

The project will be financed through a mix of self-funding and long-term Shariah-compliant bank facilities, with further details on timelines and financial impact to be disclosed at a later stage.  

Shares of Mouwasat Medical Services Co. closed at SR67.95, gaining SR1.40, or 2.10 percent. 

Saudi Arabian Mining Co. reported a net addition of 7.8 million ounces of new gold resources following extensive exploration and drilling activities across multiple sites, alongside the identification of new mineralization opportunities in gold and base metals. 

The company noted that the financial impact of these discoveries has yet to be determined and will be assessed in due course.  

Shares of Saudi Arabian Mining Co. closed at SR67.50, up SR3.05, or 4.73 percent.