The Role of Procurement in UAE’s Agricultural Revolution
Date Posted:Wed, 16th Oct 2024
The recent announcement of the “Plant the Emirates” project by Sheikh Mohammed bin Rashid Al Maktoum marks a pivotal moment for the UAE’s agricultural sector. This initiative involves setting up a national centre to promote domestic farming with the aim of increasing agricultural production by 20% over the next five years.
As a procurement and supply chain professional, It comes as no surprise to me that the UAE is ramping up its efforts to promote food security. With global conflict across the Middle East and in Ukraine, it makes perfect sense that the country wants to shield itself from fragile global supply chains. I see this project as a significant opportunity for procurement professionals to help foster a more resilient and diversified supply chain in the UAE, that is less vulnerable to external shocks.
Enhancing Supply Chain Resilience with Onshoring
Remember when a volcanic ash cloud disrupted air travel across Europe? Or when the Arab Spring disrupted trade routes and logistics networks? These are stark reminders that unexpected events can disrupt global supply chains. This is why it’s important to evaluate how we can build more agile and resilient supply chains for essential goods and services, and why the “Plant the Emirates” initiative is a promising step in this direction.
I’ve long believed that one game-changing strategy is onshoring procurement. This latest initiative supports that belief, as it will see the UAE leverage local resources, reduce supply chain risks, and stimulate the domestic economy. Of course, withdrawing from global markets is not what I am suggesting; it is important that the UAE maintains secure access to global food supply chains and doesn’t rely solely on domestic food production. But given that the UAE’s National Food Security Strategy 2051 aims to source 70% of produce from local farms by 2025, we have a clear roadmap to follow. This strategy not only aligns with global sustainability goals but also ensures that we are better prepared for future disruptions.
Proximity is a competitive advantage, helping supply chains become more agile, and Saudi Arabia is a great example of this. The KSA has been pouring resources and support into its “Saudi Made” initiative for years now, which boosts local SMEs and makes for a more resilient supply chain. I believe this initiative will do the same for the UAE. By focusing on local production, we can build a more self-sufficient food system that supports our communities and strengthens our economy.
Job Creation and Workforce Development
The “Plant the Emirates” project is poised to create a significant number of jobs, particularly in rural areas. The knock-on effect of this is, of course, is the creation of more businesses and SMEs. In line with the objectives of this initiative - of which one is a 25% increase in use of local products in the restaurant and hotel sector in the Emirates – procurement professionals can help integrate these new businesses into the supply chain. SMEs remain vastly underrepresented in our supply chains – and it’s high time this changed. Bringing local SMEs into the fold at a procurement level will mean a more robust and resilient supply chain.
Championing Sustainable Practices
I’ve always said procurement is a leader in many fields, but I feel nowhere is this truer than with sustainability and climate consciousness. Procurement professionals play a crucial role in driving sustainable practices by selecting and partnering with suppliers who prioritise environmentally friendly methods. This leadership is vital as we face the growing challenges of climate change—heatwaves, natural disasters, water shortages, and more—which will increasingly impact crop yields and livestock, making it difficult to maintain supply chains.
This is why the “Plant the Emirates” project is so crucial. It aims to build a more sustainable and self-sufficient agricultural system that can withstand these challenges. Procurement and supply chain professionals will be a driving force in the success of this initiative, ensuring that the benefits of the project are realised for years to come. We are the key connectors from vision to execution, leveraging our expertise to ensure that agricultural methods are both environmentally friendly and efficient.
Overall, I am heartened by the strides the UAE continues to make, and it’s clear that the potential for innovation within the UAE’s agricultural sector is immense. Procurement and supply chain professionals will be a driving force behind this transformation. ensuring that the benefits of the “Plant the Emirates” project are felt for generations to come.
By Sam Achampong – Regional Director, Asia Middle East & Africa for CIPS
