The Abu Dhabi Government has started a Dh1 billion-programme to back the creation of agricultural technology companies in the emirate, as part of the Ghadan 21 three-year stimulus package, which was declared last year.
The “AgTech” drive forms a part of an accelerator programme to set up the UAE’s capital as a global centre for agricultural transformation in desert environments. The project is being headed by the Abu Dhabi Investment Office, which was established last year to bring foreign investment. It was standardized under legislation acted out in January.
AgTech comprises a rebate on research by companies and development expenses analogous to up to 75% of the total R&D cost – subject to “availability and commercial conditions”, Abu Dhabi Investment Office stated on Monday.
Adio’s aim is to develop clear and specific investment chances for domestic and foreign financers oriented with Abu Dhabi’s economic preferences,” according to Elham Al Qasim, acting chief executive of Adio.
These changes can be in the form of public-private-partnerships or sector incentives like the AgTech package they have started, which will not only develop an active AgTech ecosystem but also encourage the agriculture industry of Abu Dhabi.
Under the programme, the Government will provide a series of cash and non-cash inducement to make it easier for local and global AgTech companies to establish and extend their operations in the coming years.
Apart from the benevolent AgTech packages on offer, Abu Dhabi also providing numerous advantages to businesses and innovators which includes globally competitive tax rates, the ability to handle high-volume commodities, world-class infrastructure, favourable tariff structures, and inexpensive energy sources.
The packages will be given to local and international companies that create technologies to back accuracy farming and agriculture robotics, bioenergy and indoor farming.
These three sectors are specifically assisted by Abu Dhabi’s climate and environment, as they need huge land, natural heat and sufficient sunlight.
The packages would benefit not only the UAE but also other countries across the globe facing arid conditions.