Smart tech key to solving Middle East food security crisis

Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources. (SPA)
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Updated 15 December 2024
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Smart tech key to solving Middle East food security crisis

  • Challenge of producing more food without further harming the environment intensifies

RIYADH: Increasing the use of smart technology in farming is critical if the Middle East is going to truly achieve food security, experts have told Arab News.

As agricultural productivity in the region remains vulnerable to supply chain disruption, water shortages, and conflicts, the challenge of producing more food without further harming the environment intensifies. 

Add in the consequences of climate change, and the Middle East needs to act fast — and smart — to ensure food security.

Vertical farms, increased use of data, and cross-country collaboration have all been flagged up to Arab News as key ways to tackle the short and long term challenges.

Abdel Rahman Al-Zubaidi, CEO of Ivvest, a Saudi-based agricultural technology and indoor farming company, emphasized to Arab News how his firm addresses these challenges: “Vertical farming allows exponential multiplication for the amount that can be produced in farms, enabling us to utilize vertical space and changing the way we design the production capacity from two dimensions to three dimensions.” 

He added: “This is essential for getting the best out of our limited arable lands in the Middle East, where, for instance, Saudi Arabia’s arable land was just 1.6 percent in 2021.” Available in Saudi Arabia, Ivvest’s farming “Capsule,” is a smart container farming unit empowered with IvvestOS, an operating system that brings intelligence to the facility. Using this technology, farmers can produce more than 200 plants per sq. meter, all year long, without pesticides, and while consuming 90 percent less water and land, according to the company.

Sanjay Borkar, CEO and co-founder of FarmERP, talked up the importance of innovation in an interview with Arab News, stating: “Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely. By monitoring things like soil health and water levels in real-time, farmers can fine-tune the use of water, fertilizers, and other inputs, minimizing waste and maximizing yields.” Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources.Many countries are adopting climate-smart agriculture, which integrates sustainable practices that improve resilience to environmental stressors while mitigating greenhouse gas emissions.

Water scarcity: A crisis across the region

Water scarcity is perhaps the most pressing environmental issue across the Middle East. Jordan is one of the countries most affected, facing severe water stress due to the combination of traditional irrigation methods and over-reliance on depleted water resources. The UN Food and Agriculture Organization and other international organizations are promoting precision agriculture techniques, such as drip irrigation and soil moisture sensors, to enhance water use efficiency and reduce wastage. 

Vertical farming allows exponential multiplication for the amount that can be produced in farms.

Abdel Rahman Al-Zubaidi, CEO of Ivvest

Ivvest’s Al-Zubaidi explained that “indoor farming isolates the farming environment from the outside, ensuring optimal conditions for crops and reducing water loss from evaporation.” 

He noted that these methods drastically reduce the need for pesticides, further increasing sustainability.

Conflict-driven food insecurity 

While water scarcity is a severe concern, the Middle East’s food security crisis is also driven by conflict.

In correspondence with Arab News, the FAO said: “The ongoing war in Gaza has significantly exacerbated food insecurity in the broader NENA (Near East and North Africa) region by intensifying the already dire humanitarian crisis.”

The organization revealed that this conflict has disrupted supply chains, with the latest reports indicating that 95 percent of Gaza’s population faces high levels of food insecurity and nearly 343,000 people are at catastrophic risk of famine.

Local initiatives, such as urban farming and community-supported agriculture, have provided some relief to conflict-affected populations.

The impact of the Russia-Ukraine war

The global grain market has been severely impacted by the Russia-Ukraine war, with the Middle East feeling the effects more acutely than other regions. Countries including Egypt, Lebanon, and Yemen, heavily reliant on imports from these two major grain producers, are grappling with shortages.

As the conflict continues, food prices have soared, compounding the challenges faced by already vulnerable populations. The FAO’s call for investment in domestic agricultural production and the adoption of sustainable farming practices is particularly relevant for these nations.

The FAO said that hunger in Arab countries reached 59.8 million people in 2022, a 75.9 percent increase since 2000, accounting for 12.9 percent of the population compared to the global average of 9.2 percent. 

Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely.

Sanjay Borkar, CEO and co-founder of FarmERP

Al-Zubaidi addressed how Ivvest can contribute to the region’s food security: “Our technology development started after a failed project with greenhouses, which ignited thorough research. We found that traditional greenhouses, while helpful, are resource-intensive and inefficient in hot climates like ours.” 

He pointed out: “To overcome these risks, we designed and manufactured a full end-to-end indoor farming solution.” Ivvest’s vertical farming system allows producing over 240 plants per square meter, drastically enhancing productivity compared to greenhouses.

Zulfiqar Hamadani, CEO of Tanmiah Food Co., echoed the importance of local production, noting that “we must prioritize sustainable local production and develop resilient supply chains to ensure that we can meet the nutritional needs of our growing population.” 

He highlighted Tanmiah’s commitment to Saudi Arabia’s Vision 2030 food self-sufficiency goals, adding: “Saudi Arabia is taking major steps, including significant investments aimed at enhancing food security and fostering innovation in food production.”

Phil Webster, partner at Arthur D. Little, told Arab News that the greatest adaptation going forward will occur in the areas of agriculture that are growing the most, receiving the largest investments, and offering the greatest overall potential for IoT usage.

“These would be the poultry and aquaculture sectors, the latter of which I gather has grown 183 percent over the last 5 years,” he said.

Webster expected some potential developments in the Kingdom: “Make Saudi Arabia self-sufficient or even a net exporter in more food products, to transform agricultural supply chains through a wholesale shift toward alternative protein, or enabling semi or fully automated indoor or covered farming to maximize productivity and reduce the cost of agricultural production.”

Innovative solutions: a path to resilience

In response to these growing challenges, several countries in the Middle East are investing in innovative agricultural solutions. The FAO emphasized to Arab News the importance of “sustainable and resilient farming practices, including soil and water conservation, waste reduction, and the implementation of nature-based solutions.”

Al-Zubaidi added that the key to sustainability in farming lies in integrating innovations into the broader supply chain. 

Hamadani pointed out that the Middle East must “invest in innovative agricultural technologies such as precision farming, which optimizes resource use and minimizes waste.” He also emphasized the importance of sustainable practices that enhance soil health and water conservation.

Collaboration for a sustainable future

The FAO emphasized that collaboration between regional governments, international organizations, and local communities is crucial for building resilient food systems.

“Promoting climate-smart agriculture, such as diversified cropping systems and sustainable pest management, is crucial for enhancing agricultural resilience,” said the organization.

Al-Zubaidi added that the importance of partnerships between technology providers, distributors, and governments in achieving food security, describing them as “essential for creating a robust and sustainable food security framework.”

Hamadani also stressed the need for government support, noting that “clear policy frameworks that encourage research and development, alongside financial incentives for sustainable practices, are crucial.” He advocated for policies that support sustainable agricultural practices and reduce barriers for startups.

Borkar further elaborated, saying: “Collaborative partnerships between governments, tech companies, and local farmers are essential to share knowledge and ensure technology is accessible.” Grassroots initiatives like urban farming and water-efficient farming techniques can also empower communities and reduce their vulnerability to external shocks.

Partnerships and collaborations play a critical role in promoting the adoption and maintenance of digital technologies in agriculture, according to Webster. “The most important role of such collaborations is to ensure that there is good governance over the data that is collected at all parts of the food chain from farm to fork,” he added.


Oman’s Asyad Group plans to sell at least 20% of shipping unit via IPO

Updated 22 January 2025
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Oman’s Asyad Group plans to sell at least 20% of shipping unit via IPO

  • Offering will be made in two tranches, with 75% made to eligible investors in Oman and qualified institutional and other foreign investors
  • Remaining 25% will be sold to retail investors in Oman

DUBAI: Oman’s state-owned logistics firm Asyad Group plans to sell shares in its shipping subsidiary through an initial public offering, it said on Wednesday, as part of the Gulf country’s privatization drive.
The group, owned by Oman’s sovereign wealth fund, plans to sell a stake of at least 20 percent in Asyad Shipping Co. and float it on the Muscat stock exchange, it said in a document detailing its intention to float.
“The intended listing would provide investors with the opportunity to invest in one of the world’s largest diversified maritime shipping companies and a key player in the Omani economy,” the company said.
Oman is pushing forward with a privatization drive to attract foreign investors.
That strategy, along with fiscal reforms, has helped the sultanate pay down debt and turn its large fiscal deficit of recent years into a surplus since 2022.
Asyad Shipping focuses on transporting liquefied natural gas, crude oil and other products. It lists energy firms BP and Shell, as well as trading firm Trafigura among its customers and partners.
Reuters reported in July last year that Asyad was planning an initial public offering of the subsidiary and had selected Jefferies Group and EFG Hermes as advisers.
The offering will be made in two tranches, with 75 percent made to eligible investors in Oman and qualified institutional and other foreign investors. Of the 75 percent tranche, 30 percent of shares have been earmarked for anchor investors, the firm said, without naming them.
The remaining 25 percent will be sold to retail investors in Oman.
The subscription period is expected to start next month, after the company has received regulatory approval.
Asyad Shipping plans to pay dividends semi-annually, beginning in September 2025 for the first six months of this year.
The company posted an adjusted core profit margin of 69 percent for the first nine months of last year, up from 65 percent over the same period in 2023.
Oman Investment Bank, EFG Hermes, JP Morgan and Jefferies are acting as joint global coordinators. Sohar International is acting as joint global coordinator and as issue manager.
Credit Agricole and Societe Generale are joint bookrunners.


Closing Bell: Saudi Arabia’s main market dips slightly to 12,362

Updated 22 January 2025
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Closing Bell: Saudi Arabia’s main market dips slightly to 12,362

RIYADH: Saudi Arabia’s Tadawul All Share Index was steady on Wednesday, as it marginally shed 7.21 points or 0.06 percent to close at 12,362.39.

The total trading turnover of the benchmark index was SR7.62 billion ($2.03 billion), with 109 of the listed stocks advancing and 122 falling.

The Kingdom’s parallel market Nomu also declined 317 points to close at 31,000.87, while the MSCI Tadawul Index edged down by 0.26 percent to 1,545.02.

The best-performing stock on the main market was Naseej International Trading Co. The firm’s share price surged by 9.96 percent to SR108.20.

Naseej was one of the three Tadawul-listed firms, alongside Saudi Cable Co. and Middle East Specialized Cables Co., to hit their highest levels in a year.

Saudi Cable Co. peaked today at SR128, compared to SR62.9 in March, a 103.58 percent increase.

Middle East Specialized Cables Co. share price jumped from SR21.28 in January 2024 to close at SR47.2 today.

Naseej International Trading Co.’s share price increased 55.7 percent from January last year to close at SR98.4 on Wednesday.

Other top gainers were Jahez International Co. for Information System Technology and Middle East Healthcare Co., whose share prices grew by 6.09 percent and 4.75 percent, to SR33.95 and SR79.40, respectively.

National Medical Care Co. and Al Jouf Cement Co. also saw a positive change, with their share prices surging by 4.12 percent and 4.01 percent to SR161.6 and SR11.92, respectively.  

Elm Co. saw the steepest decline of the day, with its share price dropping 4.03 percent to close at SR1,176.2.  

United International Transportation Co. and Etihad Atheeb Telecommunication Co. declined, with their shares slipping 2.72 percent and 2.66 percent to SR82.30 and SR102.60, respectively. 

On Nomu, Armah Sports Co. was the best performer, with its share price rising by 7.34 percent to reach SR95.  

Quara Finance Co. also delivered a strong performance as its share price rose by 5.26 percent, reaching SR20, while Arabian Food and Dairy Factories Co. recorded a 2.99 percent increase at SR99.  

WSM for Information Technology Co. shed the most on Nomu, with its share price dropping by 6.33 percent to reach SR53.3.  

Saudi Parts Center Co. experienced a 6.25 percent decline in share prices, closing at SR60, while First Avenue for Real Estate Development Co. 6.04 percent to settle at SR9.02. 


Saudi crude output up 1.21% to hit 8.92m bpd: JODI 

Updated 22 January 2025
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Saudi crude output up 1.21% to hit 8.92m bpd: JODI 

RIYADH: Saudi Arabia’s crude oil production rose to 8.92 million barrels per day in November, a 1.21 percent annual increase according to the latest release from the Joint Organizations Data Initiative. 

The report showed a 2.05 percent drop in crude exports, which fell to 6.21 million bpd, although this figure marks the highest level in eight months. 

Refinery crude exports surged 36 percent year on year to 1.14 million bpd in November but declined by 18.65 percent compared to October. 

Key refined products included diesel, motor gasoline, aviation gasoline, and fuel oil.

Diesel exports accounted for 38 percent of refined product shipments, while motor and aviation gasoline made up 24 percent, and fuel oil comprised 11 percent. 

Notably, motor and aviation shipments rose 63 percent annually to 272,000 bpd in November. Diesel exports also increased by 27 percent reaching 439,000 bpd. 

Saudi Arabia’s refinery output reached 2.35 million bpd, a 13 percent year-on-year increase, with diesel representing 40 percent of total refined products, followed by motor and aviation gasoline at 25 percent and fuel oil at 19 percent. 

Domestic demand for refinery products increased by 210,000 bpd year on year, reaching 2.56 million bpd. 

OPEC+ has decided to delay the start of oil output increases by three months until April, and extend the full unwinding of cuts by a year, now set to finish by the end of 2026. 

This decision was made in response to weak global demand and rising production from countries outside the group. OPEC+, which controls around half of the world’s oil production, had initially planned to begin unwinding cuts in October 2024, but delays were caused by global demand slowdowns and growing non-OPEC+ output. 

Direct crude usage 

Saudi Arabia’s direct crude oil burn fell by 119,000 bpd in November to 382,000 bpd, a 24 percent year-on-year decline and a 5.5 percent increase from October. 

The annual reduction can be attributed to the global shift toward cleaner energy sources, such as natural gas, renewables, and electricity, which are gradually replacing crude oil in sectors like power generation and shipping. 

Additionally, improved energy efficiency and stricter environmental regulations have led to further reductions in crude oil use. 

By 2030, the Saudi government plans to phase out the use of crude oil, fuel oil, and diesel in power generation, replacing them with natural gas and renewable energy sources. 

This transition is a key component of the Kingdom’s Vision 2030 initiative, aimed at diversifying its energy mix and reducing dependence on oil, both domestically and in global markets. 

As Saudi Arabia moves toward this objective, natural gas demand is anticipated to rise sharply, driving increased investments in the natural gas supply chain, including exploration and infrastructure development. 


Ogero resumes telecom expansion in Lebanon, boosting connectivity and major upgrades

Updated 22 January 2025
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Ogero resumes telecom expansion in Lebanon, boosting connectivity and major upgrades

  • Ogero connected 221,000 households to fiber-optic Internet in 2024 and plans to add 406,000 new subscribers this year
  • It is is also upgrading from Wi-Fi 5, currently used at Beirut Rafic Hariri International Airport, to Wi-Fi 7

RIYADH: Lebanon’s state-owned telecom company Ogero is working to restore and expand the country’s connectivity after experiencing damages due to the Israeli conflict.

The clashes have significantly disrupted Lebanon’s telecom infrastructure, impeding connectivity and slowing the nation’s digital advancement.

Ogero’s Chairman and Director General Imad Kreidieh announced in a live broadcast that the company’s expansion plans will resume, supported by funding from multiple donors.

According to Kreidieh, Ogero connected 221,000 households to fiber-optic Internet in 2024 and plans to add 406,000 new subscribers to the network this year.

The company is also upgrading from Wi-Fi 5, currently used at Beirut Rafic Hariri International Airport, to Wi-Fi 7. The upgrade will provide speeds of up to 3,500 megabits per second with ultra-low latency of 2—4 milliseconds. 

The network’s backhaul capacity is being upgraded from 20 gigabits per second to 40 Gbps to support enhanced connectivity, according to Kreidieh.

Ogero is also expanding its LTE infrastructure, increasing the number of stations from 97 to 219 by the end of 2025 and 390 by 2026, which translates to better and wider coverage nationwide. 

The LTE-Advanced capacity will be quadrupled from 10 Gbps to 40 Gbps to enhance performance and service quality.

The top official also said that Ogero will build 215 new stations in the southern and Baalbek regions, which were heavily damaged by Israeli strikes, over the next 24 months, allowing users to regain connectivity.

In a move toward sustainability, Ogero is also implementing solar energy solutions for 358 sites, with a 4-megawatt production capacity and 463 kiloampere-hours storage capacity. The $9.6 million project is expected to generate $8.5 million in annual savings, according to Kreidieh.

Ogero serves as the core of the Ministry of Telecommunications, providing essential infrastructure for all telecom networks, including mobile operators, data service providers, and Internet service providers.


Up to 40 Canadian firms eyeing investment in Saudi Arabia’s healthcare sector

Updated 22 January 2025
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Up to 40 Canadian firms eyeing investment in Saudi Arabia’s healthcare sector

RIYADH: Up to 40 Canadian firms are eying investment in Saudi Arabia’s healthcare sector amid efforts to strengthen economic ties between the countries.

The interest was highlighted at a healthcare event organized by the Federation of Saudi Chambers at its headquarters in Riyadh, which showcased various investment opportunities within the sector, the Saudi Press Agency reported.

This aligns with Saudi Arabia’s objective to boost private sector participation in healthcare to 25 percent by 2030, reflecting the rapid growth and expansion of the industry, along with attractive investment incentives. It also underscores the Kingdom’s broader efforts to strengthen ties with Canada, highlighted by the restoration of diplomatic relations in May 2023 after a five-year hiatus.

During the gathering, Chairman of the Saudi-Canadian Business Council Mohammed bin Nasser Al-Duleim highlighted the body’s pivotal role in boosting trade relations and fostering investment between the Kingdom and the North American country.

Al-Duleim also provided an overview of Vision 2030 initiatives and talked up the incentives and support offered by Saudi Arabia to foreign investors.

The Ambassador of Canada to the Kingdom Jean-Philippe Linteau commended the efforts to strengthen economic ties between countries. 

He emphasized the joint business council’s contributions and highlighted the strong interest of Canadian firms in Saudi Arabia’s healthcare sector.

In December, economic cooperation was the focus of a high-level meeting between a senior Saudi official and the Canadian ambassador, reflecting the ongoing progress in relations between the two nations.

The Kingdom’s Minister of Economy and Planning Faisal Al-Ibrahim held talks with Linteau at his department’s headquarters in Riyadh, SPA said at the time. 

Since normalizing relations, Canada is keen to build a “great relationship” with the Kingdom, Linteau said during an interview with Arab News in February. 

His commets came a month after Saudi Arabia and Canada agreed to re-exchange trade delegations, aiming to improve economic relations and increase trade and investment volumes. 

Hassan Al-Huwaizi, president of the Saudi Chambers of Commerce, emphasized at the time that establishing a joint business council would provide a platform for business leaders to promote activities and engage in partnerships, facilitating continuous interaction and information exchange about market opportunities.

In 2022, Saudi exports to Canada stood at $2.5 billion, with imports valued at $959 million, according to online data visualization and distribution platform Observatory of Economic Complexity.