UAE Fruits And Vegetables Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

UAE Fruits And Vegetables Market Trends and Insights

Climate-controlled greenhouse proliferation

Capital-intensive greenhouse projects are transforming yields and cost structures across the UAE's fruits and vegetables market. Emirates Flight Catering acquired Bustanica in February 2024, gaining a vertical farm that produces more than 1 million kg of leafy greens annually while using 95% less water than field production. ReFarm’s GigaFarm, slated for 3,000 metric tons by 2026 after a USD 326.7 million outlay, illustrates the scale and investor confidence underpinning next-generation facilities. Improved light-emitting-diode (LED) efficiency and automation are cutting labor costs by roughly 50%, positioning greenhouses as the backbone of year-round supply. Silal’s 34-hectare Innovation Oasis provides phenotyping labs and Internet of Things (IoT) sensors that fine-tune crop performance under extreme heat.

Government food-security mandates

Federal policies in the UAE are establishing a strong domestic demand for locally grown fruits and vegetables. The National Farms initiative requires 70% of fresh produce sourcing in retail, hospitality, and foodservice to come from domestic producers by 2025, increasing to 100% by 2030. This policy creates a stable market for fruit and vegetable farms through multi-year purchase agreements, reducing market volatility and supporting expansion in tomato, cucumber, and pepper production. The Plant the Emirates program, initiated in October 2024, supports production growth by offering direct grants and subsidized loans for greenhouse technologies, hydroponics, and desert-adaptive farming systems. These financial incentives focus on high-yield fruit and vegetable segments, targeting a 20% increase in output within five years.

Expansion of desalination-powered irrigation

The UAE's agricultural transformation is driven by its increasing use of alternative water sources. Currently, 53% of freshwater comes from desalination and treated wastewater, with the country's network of over 70 desalination plants supporting large-scale crop irrigation. This infrastructure enables the cultivation of water-intensive crops, including cucumbers, leafy cucurbits, peppers, and berries, while preserving natural aquifers. The Water Security Strategy 2036 aims to achieve USD 110 productivity per cubic meter of water, encouraging farms to optimize their desalinated water usage. Fruit and vegetable producers are implementing precision irrigation, closed-loop hydroponics, and desalination-linked fertigation systems to enhance water and nutrient efficiency. Technology companies play a crucial role in this development, with organizations like Desolenator implementing solar-thermal desalination units that reduce power costs and enable profitable off-grid farming operations. The Silal-Desolenator pilot project in Abu Dhabi demonstrates the potential for water-efficient tomato and cucumber production in desert conditions, providing a framework for medium-scale agricultural operations.

Post-harvest cold-chain investments

The UAE's fruit and vegetable sector has faced challenges with produce spoilage due to high temperatures, limiting market access. The expansion of integrated cold-storage facilities across Dubai's logistics corridors addresses this issue through temperature-controlled warehouses, vacuum cooling units, and blockchain traceability systems. These improvements reduce post-harvest losses and increase shelf life for products like tomatoes, strawberries, cucumbers, and citrus fruits. Government initiatives support this transformation by subsidizing cold-chain investments, making advanced storage systems accessible to cooperatives and small-scale farmers. This infrastructure allows farms to expand beyond local markets while maintaining product freshness. Grocery chains and hypermarkets have increased their stock of UAE-grown produce, supported by improved quality, consistency, and traceability.

Water scarcity and high irrigation costs

Water scarcity and rising irrigation costs are the most significant constraints on the UAE’s agricultural expansion, with groundwater depletion and reliance on energy-intensive desalination driving expenses beyond sustainable levels for many producers^{[2]Source: UAE Government, “The UAE Net Zero 2050 Strategy,” u.ae}. The water table is declining by about 1 meter annually, pushing farms toward costly desalinated water. Electricity tariffs for agriculture further add pressure, with escalating rates increasing the burden on energy-intensive irrigation. The UAE Water Security Strategy 2036 aims to cut water demand by 21% while boosting productivity to USD 110 per cubic meter, highlighting the scale of efficiency needed to sustain farming. Vertical farms face even higher costs, with energy use 4–10 times greater than greenhouses due to LED lighting and climate control. 

Limited arable land

The UAE’s limited arable land restricts agricultural expansion, as desert geography and urbanization pressures push farming into costly controlled-environment facilities. Of its 83,600 sq km area, most is unsuitable for conventional farming, forcing competition for premium coastal and oasis land. The National Strategy to Combat Desertification 2030 targets restoring 80% of degraded land, but requires major investment in soil and water infrastructure. Urban farming, though advanced, faces high setup costs, while the concentration of viable land in a few emirates adds logistical and diversification challenges^{[3]Source: UAE Government, “The National Strategy to Combat Desertification,” u.ae}.

Segment Analysis

By Crop Type: Fruits Lead Market Share Despite Vegetables’ Growth Acceleration

Fruits commanded 52.05% of the UAE fruits and vegetables market share in 2025, thanks to entrenched date-palm cultivation and robust citrus channels. The segment benefits from an export ecosystem that generated USD 324 million in date shipments, equal to 14.5% of global trade, reinforcing its dominance. Meanwhile, vegetables posted a stronger 7.74% CAGR outlook through 2031, mirroring heavy capital deployment into vertical farms that supply leafy greens to retail and food-service customers. The vegetables submarket gained visibility after Emirates Flight Catering integrated Bustanica’s facility, proving scale economics in a desert environment.

Consumer preferences are shifting toward fresh, locally sourced produce; A 2025 study in the UAE revealed that 67% of residents plan to increase their consumption of fresh food, while 60% are willing to pay premium prices for produce grown in the Emirates.. This trend amplifies investment in greenhouse peppers, cucumbers, and tomatoes alongside high-margin herbs. ReFarm’s USD 326.7 million GigaFarm, slated for 2026 launch, will further expand vegetable output and improve year-round supply resilience. Fruits continue to supply regional markets via well-established processing and cold-storage infrastructure, yet vegetables are closing the gap through volume gains and differentiation strategies aligned with health and sustainability narratives.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Abu Dhabi leads production through the AgriFood Growth & Water Abundance Cluster (AGWA) cluster, which aims to contribute USD 24.5 billion to GDP by 2045 and generate 62,000 jobs. The northern emirates combine traditional oasis-based cultivation with modern greenhouse farming, supported by Silal's Innovation Oasis in Al Foah, which operates across 34 hectares of research and development facilities. The National Farms initiative strengthens the market by requiring 70% local procurement by 2025 and 100% by 2030, creating a stable demand base and encouraging investments in controlled-environment agriculture.

Dubai serves as the country's primary logistics and re-export center, connecting domestic producers to international markets. The establishment of the world's largest fresh food hub in July 2024 has strengthened its position, managing USD 9.18 billion in food exports and USD 9.26 billion in imports in 2023. The emirate's infrastructure, including cold-chain facilities, blockchain-based traceability systems, and dedicated fresh-produce corridors at Jebel Ali Port and Dubai International Airport, supports both domestic distribution and re-exports to Gulf countries, Africa, and South Asia.

Water availability and energy efficiency determine geographic distribution patterns across the UAE. Coastal emirates use 70 desalination plants that provide 53% of freshwater, while interior regions focus on controlled-environment systems like hydroponics and vertical farms. The UAE Water Security Strategy 2036 targets 21% demand reduction and USD 110 productivity per cubic meter of water, promoting advanced irrigation and fertigation systems. The Federal Decree-Law No. 11 of 2024, effective May 30, 2025, implements mandatory greenhouse gas reporting across all emirates, encouraging farms to adopt energy-efficient greenhouses and renewable-powered cold storage. These regulations support sustainable agricultural growth while maintaining the UAE's environmental commitments.