The UAE agricultural market is undergoing significant growth. Despite its arid climate and limited farmland, the sector is projected to expand from USD 3.31 billion in 2024 to USD 4.09 billion by 2029.
This growth aligns with the UAE’s goal to improve its global food security ranking from 35th to a top ten position, creating promising opportunities for companies entering the market today.
Why you should consider starting an agricultural company in the UAE?
As the UAE seeks to reduce its reliance on imported foods, the government actively supports agriculture through direct subsidies and free land grants.
Simultaneously, a new type of consumer is emerging—one who prioritizes shopping locally and values sustainable produce, even at a premium. A recent survey revealed that 92% of UAE residents prefer locally grown produce, with many willing to pay up to 20% more for quality.
These factors combine to make the UAE an attractive market for agricultural businesses. However, the government strongly emphasizes safety, heavily regulating all aspects of food, livestock, and crops.
As a result, registering an agricultural business in the UAE involves more steps compared to industries like IT or service providers. With that in mind, here’s a practical overview of the key steps involved:
Step 1. Choose between Free Zones or Mainland registration
The first step, like for any type of business setup in the UAE, is deciding where to establish your company: on the mainland or in a free zone.
Each option has its advantages and drawbacks:
- Mainland registration allows you to operate anywhere in the UAE, bid for government contracts, and trade directly with the local market without the need for intermediaries.
- Free zones offer benefits such as simplified import/export procedures and access to specialized facilities, like KEZAD’s Serviced Land Plots, where you can set up spaces for vertical farming. Keep in mind that not all free zones support agricultural activities.
It’s a good idea to consult with a professional business advisor to fully understand the details of each option and how they apply to your specific situation. One key factor to consider is how this decision impacts your capital requirements and operational costs.
For mainland LLCs, capital requirements depend on the emirate and the type of activity, usually ranging from AED 50,000 to AED 300,000. For free zone companies, the requirements vary by zone, typically between AED 50,000 and AED 150,000.
For agriculture specifically, Dubai Food Park, RAK Economic Zone, and Abu Dhabi’s KEZAD offer specialized advantages tailored to your needs.
2. Obtain initial approval from the Economic department or relevant authority
To start, select the specific agricultural activity you plan to undertake. The UAE categorizes these activities into areas:
- Crop farming
- Hydroponics
- Livestock breeding
- Aquaculture
- Seed production
- Agricultural technology services
Be clear about your choice, as it determines the permits and licenses you’ll need. Some activities, like hydroponics or livestock breeding, require additional approvals or specific site conditions.
Next, apply for initial approval. If you register on the mainland, submit your application to the Department of Economic Development (DED) in your emirate. For free zones, approach the relevant free zone authority (e.g., KEZAD or RAK Economic Zone). Provide essential documents such as your passport copy, proposed trade name, and a brief description of your business activity.
Once submitted, approvals typically take 2-5 working days. This approval signifies that your chosen activity aligns with local laws, allowing you to proceed with land acquisition and environmental clearances.
Step 3: Select a trade name that complies with UAE naming conventions
Your business name must align with UAE naming regulations, which are designed to ensure clarity, cultural respect, and avoid confusion with existing entities.
Submit your proposed trade name to the Department of Economic Development (DED) for mainland businesses or the free zone authority for free zone companies.
Provide multiple name options in case your first choice is unavailable. The name must be unique within the UAE and not duplicate existing registered names. A quick name search can save time.
After approval, the name is reserved, typically for 6 months. This step ensures your chosen name is secure while you complete the registration process. Fees for trade name registration vary by jurisdiction, but the fee system is dynamic. For example, names in non-Arabic languages or those including terms like “international” or “global” are more expensive.
Step 4: Secure land zoned for agricultural use
Once your trade name is approved, acquire land suitable for your agricultural activity.
- For mainland businesses, approach the municipality of your chosen emirate to lease or purchase land zoned for agricultural use. Popular locations include Al Ain in Abu Dhabi or Al Khawaneej in Dubai, known for their agricultural infrastructure and resources.
- For free zone businesses, work directly with the free zone authority to secure land or facilities.
Many zones offer specialized agricultural spaces, such as vertical farming plots or greenhouses, tailored for modern farming techniques. Examples include KEZAD in Abu Dhabi or Dubai Industrial City for agriculture-related processing.
Before finalizing a lease or purchase, make sure the land meets your operational needs, such as soil conditions, water availability, and infrastructure for irrigation or cold storage. Conducting a feasibility study or site inspection can help avoid costly problems down the road – and if you’re not sure how to go about it, consider working with a business consultant who can set up these checks and prepare reports for you.
Step 5: Obtain environmental clearance and agricultural permits
Environmental clearance is essential to ensure compliance with UAE’s environmental laws.
- Mainland businesses need to apply to the Ministry of Climate Change and Environment (MOCCAE).
- Free zone businesses will work with the environmental department of their specific zone authority, such as KEZAD or RAK Economic Zone.
You’ll need:
- A detailed business plan outlining your agricultural operations.
- Environmental impact assessments (if required for large-scale farming).
- Technical details about your water use, waste management, and pest control measures.
Other documents specific to your activity, like pesticide usage permits or aquaculture licensing.
After submission, the relevant authority reviews your application to ensure your business will not harm the environment. Processing times vary but typically range from 1-3 weeks, depending on the complexity of your operations.
Step 6: Apply for licenses and permits
With environmental clearance in place, apply for the necessary licenses. For mainland businesses, this involves submitting your application to the UAE Ministry of Agriculture or the Department of Economic Development (DED). Free zone companies will apply through their respective free zone authority.
Key documents typically include:
- Environmental clearance certificate.
- Proof of land ownership or lease agreement.
- Trade name registration certificate.
- Business plan detailing your agricultural operations.
Licensing authorities may also conduct inspections of your premises to verify compliance with safety and operational guidelines. The license processing time generally ranges from 2-4 weeks.
Step 7: Set up a corporate bank account and deposit minimum capital
Once your business license is approved, the next step is to open a corporate bank account in the UAE. Choose a bank with experience in serving agricultural businesses or SMEs, such as Emirates NBD, Mashreq Bank, or Abu Dhabi Commercial Bank.
To open the account, provide the following:
- Trade license and company registration documents.
- Shareholder information, including passports and visa copies.
- Proof of business address, such as a tenancy contract.
- Business plan and projected financial statements.
Some business structures, like LLCs, require a minimum capital deposit to activate the account. This amount varies by activity and jurisdiction but typically ranges from AED 50,000 to AED 300,000.
Emirati banks are notorious for their lengthy KYC (Know Your Customer) and AML (Anti-Money Laundering) checks, as well as their cautious risk management.
It is common for businessmen to face delays of weeks, if not months, during this process. Banks, often apprehensive about onboarding new clients, especially in high-risk sectors, may even require an unreasonably large deposit as a guarantee. This is where working with a business consultant can significantly streamline the process.
A skilled business consultant typically has connections with major banks. They can introduce you as a VIP, increasing the likelihood of securing better terms and expediting the account-opening process.
After opening your account and depositing the required capital, you will receive a bank confirmation letter, which you’ll need to secure insurance and register with the Chamber of Commerce.
Wrapping up
Let’s recap the main steps for starting an agricultural business in the UAE:
- Decide between mainland or free zone registration based on your business needs.
- Select your agricultural activity and obtain approval from the appropriate authority.
- Choose a unique, compliant trade name and register it.
- Acquire suitable land for farming through the municipality or free zone.
- Apply for environmental approvals to comply with regulations.
- Submit documents to obtain your business license.
- Open a corporate bank account and deposit the required capital.
As you can see, the process involves several steps, and it can feel overwhelming at first — especially without guidance. Agriculture in the UAE is heavily regulated, making it more complex to enter compared to other industries, where a straightforward online application may suffice.
Hopefully, this article has clarified how the application process works. However, if you’re still feeling uncertain, consider working with a business consultant. They can guide you through each step, assist with document preparation and submission, and simplify challenging aspects, such as arranging on-site inspections, selecting the right land plot, and opening a bank account.
Whether you choose to navigate the process independently or with a consultant, the UAE is undoubtedly a promising destination for your agricultural venture.
