UAE Approves 74 New Agricultural Business Activities to Boost Economic Diversification

Abu Dhabi Transforms Farms Into Multi-Use Economic Hubs With 145 Approved Activities

Abu Dhabi has dramatically expanded its vision for agricultural land use, approving 74 additional economic activities that can now be conducted on farms across the emirate. This brings the total number of permitted farm-based activities to 145, signaling a strategic shift toward diversified agricultural investment and agritourism that could reshape the region's food security and rural economy landscape.

Sweeping Regulatory Changes Target Agricultural Diversification

Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Chairman of the Abu Dhabi Agriculture and Food Safety Authority, issued Decision No. 5 of 2025, amending the original 2023 framework that first opened farms to commercial activities beyond traditional farming.

The newly approved activities span six key categories: 41 plant production activities, 9 plant production support services, 8 food support activities, 12 industrial support activities, 2 general support activities, and 2 recreational activities. This expansion reflects a calculated move to maximize land utilization while maintaining agricultural priorities.

Flexible Land Use Rules Signal Investment-Friendly Approach

The updated regulations introduce more flexible building area requirements, allowing farm owners to utilize space according to specifications set by competent emirate authorities rather than rigid predetermined limits. Licensed farm owners and facilities in Abu Dhabi can now operate these economic activities provided the farm continues to serve its designated agricultural purposes.

Strategic Context: Food Security Meets Economic Diversification

This policy evolution aligns with broader Gulf Cooperation Council trends toward agricultural self-sufficiency and economic diversification. The UAE has invested heavily in food security initiatives following global supply chain disruptions, with the country ranking 21st globally in the 2021 Global Food Security Index.

The timing is particularly strategic as the UAE aims to produce 70% of its food locally by 2051, up from the current estimated 20%. By allowing farms to generate revenue through multiple streams, the government is essentially subsidizing agricultural development through market mechanisms rather than direct funding.

Market Impact: Early Results Show Strong Adoption

The original 2023 decision has already demonstrated measurable success, with 482 farms benefiting from the expanded activity permissions. Of these, 333 farms obtained new licenses for diverse economic activities, 120 modified existing licenses, and 29 received permits for holiday home operations.

This adoption rate suggests strong market demand for diversified agricultural investment opportunities, potentially attracting both local and international investors seeking exposure to the UAE's growing agritech and sustainable tourism sectors.

Agritourism Potential Mirrors Global Trends

The inclusion of recreational activities positions Abu Dhabi to capitalize on the global agritourism market, which reached $69.2 billion in 2019 and continues growing despite pandemic disruptions. Countries like New Zealand and Australia have successfully integrated farm-based tourism with food production, creating sustainable revenue models that Abu Dhabi appears to be replicating.

Investment Implications and Regional Competition

For investors, this regulatory framework creates opportunities in agricultural real estate, agritech startups, and sustainable tourism ventures. The policy essentially transforms farms from single-purpose agricultural assets into diversified commercial properties with multiple revenue streams.

Regionally, this positions Abu Dhabi ahead of neighboring emirates and Gulf states in agricultural innovation policy. While Dubai focuses on vertical farming and Saudi Arabia invests in large-scale desert agriculture, Abu Dhabi is pioneering the integration of traditional farming with modern economic activities.

Regulatory Coordination Ensures Sustainable Growth

The multi-agency coordination involving the Department of Economic Development, Department of Municipalities and Transport, and Department of Culture and Tourism demonstrates comprehensive planning. This integrated approach should prevent the regulatory fragmentation that has hindered similar initiatives in other emerging markets.

Dr. Tariq Ahmed Al Ameri, Acting Director General of the Abu Dhabi Agriculture and Food Safety Authority, emphasized that the decision supports the emirate's sustainable development vision while enhancing its position as a leading center for agricultural and economic innovation. The success metrics already achieved suggest this framework could serve as a model for other regions balancing food security with economic diversification.