Global food security stands at a critical juncture.

How are MENA’s agtech start-ups stepping up to the plate?

Taken as a whole, the region has:

1) the world’s lowest level of food self-sufficiency
2) is the world’s largest food importer
3) and boasts the planet’s largest water deficit

Throw climate change into the mix and the urgent need for action is underscored further still.

Okay, but couldn’t the region just invest in more local food production?

Yes… but no.

You see, 85% of freshwater in the region is already used for agriculture so the cost would be 📈

That’s why changemakers are turning to a new generation of agtech innovators 🚜

In a nutshell, agtech’s goal is to boost agricultural productivity.

From innovative seeds/roots (Volcano Plant Genetics, GHIRASS) and hydroponics (Plug'n'Grow, CRYSP VERTICAL FARMS, AeroFarms, Badia Farms) to AI crop monitoring (ZR3i.COM زرعي دوت كوم, FalconViz), smart greenhouses (Pure Harvest Smart Farms, RedSea, iyris - Agri Climate Technology, and business solutions for farmers (Mozare3 | مُزارع, Mahaseel, Decapolis), the common goal is to create a more robust and resilient food system.

By leading from the front on this, the dependency on food imports that has long shackled the region can be overturned.

💰 So, where’s the financial backing?

Investments in MENA agtech start-ups have grown by an encouraging 122% annually from 2018 to 2021, with funding jumping from $97 million in 2021 to $250 million in 2022.

For some perspective, the region’s share of global agtech investments has increased from 1% to 4% during this period.

With the MENA agtech market projected to increase in value by 12.62%  each year up to 2027, it’s clear that the dam has broken.

Here are the start-ups leading the food security charge…

🍅 Say hello to RedSea, the Saudi-based agtech start-up developing sustainable agriculture systems to enable commercial farming in arid climates!

• Co-founded in 2018 by Ryan Lefers, Mark Tester and Derya Baran, the company is tackling food insecurity and reducing carbon and freshwater use in the MENA region's food sector.

💰 Investor low-down: The start-up has raised $36.5 million in funding from influential backers like  KAUST, Savola, Aramco’s Wa’ed Ventures, OlsonUbben, Future Investment Initiative (FII), Global Ventures, AppHarvest and Bonaventure.

💧 Water, water everywhere, nor any drop to… 

Extreme heat, water scarcity, salt-laden soils, drought, and a booming population…

85% of food is already imported.

MENA’s food producers are really up against it, and need all the help they can get.

🌰 In a nutshell

Enter RedSea. They design, build and operate controlled-environment solutions for sustainable fruit and vegetable production.

Their saltwater greenhouse system slashes freshwater usage by 90%, supporting the hydroponic (i.e. soilless, water-efficient) cultivation of organic, pesticide-free produce.

In just three years, the company has expanded to over 58 hectares of tech deployment, and their snack peppers, tomatoes, cucumbers, and strawberries are available in over 300+ KSA supermarkets.

• The startup is active in the UAE and Saudi Arabia, with ongoing projects in Kuwait and Singapore.

⚙️ I wasn’t really familiar with your game

Beyond crop cultivation, RedSea markets and sells cutting-edge agtech, like:

• iyris SecondSky roof - enhancing sunlight use

• Kairos Thermocline system - enabling low-quality water irrigation

• Coretex platform - boosting crop yield monitoring

These technologies are changing the game in 12 countries across 5 continents, helping farmers big and small to overcome food scarcity and climate challenges.

🔮 Flashforward

RedSeas’ sights are set on further tapping into the controlled environment agriculture market ($270.2 billion by 2032), whilst a recent MoU with Saudi Downtown Company will see them design culturally-integrated greenhouses across Saudi Arabia, that leverages their tech.

🌿 Introducing Pure Harvest Smart Farms, a UAE-based ag-tech start-up contributing to food security by growing fresh fruit and veg in climate-controlled, smart greenhouse farms.

Who said deserts can't be green?

• Founded in 2016 by Sky Kurtz, Mahmoud Adi, and Robert Kupstas, Pure Harvest has raised $387 million in total to date, with $180.5 million secured in its last funding round in June 2022.

💰 Investor lowdown: Their last round included backing from global investors like Metric Capital Partners, IMM Investment Corp and Olayan Group.

🌵 The Challenge

Importing 85% of food means the MENA region produces more waste and more emissions due to an extended distribution chain.

What if fresh produce could be grown here, not flown here?

🔬 How you ask? 

Pure Harvest designs, builds and operates high-tech, precision-controlled greenhouses that can replicate a Mediterranean climate anywhere.

🔑 Key differences

1. They don’t grow in soil, they use hydroponics.

2. Sensors carefully monitor everything, from climate and energy to water and photosynthesis, allowing total control over light, water, and airflow.

The result? This precision creates an ideal climate, leading to top-tier yields, pesticide-free produce, and the use of beneficial insects for plant health.

🍓 Beginning in 2018 with only tomatoes, they've since broadened their selection to include capsicums, melons, raspberries, blackberries, an impressive array of over 26 tomato varieties, more than 14 types of greens, and nine different strawberry varieties.

Pure Harvest’s farms boasts:

📈 7 times the efficiency of typical desert greenhouses

💧 85% direct water use in food production

🔄 Year-round harvesting

• They supply retailers such as Carrefour, Spinney’s, and Waitrose, as well as hospitality giants including the Four Seasons and the Hilton Group.

🔮 Flashforward

In October 2023, the company announced three internationally-proven senior appointments signalling a new phase of strategic growth. GCC and Asian expansion are on the cards.

1. 🇸🇦 Saudi Arabia: COGNNA, a cybersecurity startup, has successfully closed a $2.25 million Seed funding round. The round was led by IMPACT46, with contributions from Vision Ventures, Faith Capital, and others. The company leverages AI and advanced data analysis for threat detection in systems and networks

2. 🇲🇦 Morocco: Logistics startup CloudFret, founded by Driss Jabar in 2021, has secured $2.1M from AfriMobility and Azur Innovation Fund. Using AI, the company connects shippers and carriers across the Mediterranean, aiming to double its workforce by 2024 for further expansion.

3. 🇪🇬 Egypt: Edtech startup Akhdar, founded in 2016 by Mohamed Osama, has raised a six-figure sum from Saudi's VMS for expansion into Saudi Arabia. Akhdar, known for its Arabic-language educational content and 1.5 million global users, aims to enhance its presence in the GCC region.

4. 🇦🇪 UAE: SC Ventures and Japan's SBI Holdings have collaborated to launch a $100 million digital assets investment firm. The venture will focus on market infrastructure, DeFi, tokenisation, and the metaverse, and will bolster the UAE's position in the digital asset space.

5. 🇸🇦 Saudi Arabia: Fintech startup LYNK, launched in 2023, has secured funding from Al Fozan and Ramla Holding. Specialising in Shariah-compliant connections between financial institutions and markets, LYNK has its sights set on local and international expansion.

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