In the heart of the UAE’s burgeoning agritech sector, Armela, a homegrown firm, is making significant strides in the realm of high-tech horizontal farming. The company is in the final stages of planning a state-of-the-art strawberry facility and is actively evaluating the potential production of baby spinach and blueberries.
Avir Shah, the founder and CEO of Armela, shared these insights with Zawya Projects during the Gulf Food event in Dubai. He emphasized that these initiatives will bolster year-round production and distribution, a critical factor in the region’s food security efforts.
Armela’s current portfolio is impressive, with the company commanding an 80-85% share of the UAE’s lettuce market. The company’s expansion strategy includes the acquisition of farms to increase its footprint in kale and cucumber production. Armela’s high-tech facilities in Dubai and Abu Dhabi produce an average of 4.2 tonnes of premium hydroponic lettuce annually, with additional output of kale and cucumbers from lower-tech farms.
The company is also conducting trials for broccoli, a crop it currently imports at scale from Kenya. Shah noted that Armela is among the largest importers of broccoli in the UAE. The company is now testing whether it can grow the crop locally year-round through mid-tech greenhouse solutions.
Armela’s operations are backed by the UAE-based AWR, and the company operates both horizontal and vertical farms. However, Shah noted that high-tech vertical farming requires higher upfront investment, carries higher production costs, and offers limited crop variety compared with horizontal farming. Moreover, the abundance of sunlight in the region makes high-tech horizontal farms more cost-efficient and scalable.
Shah also highlighted that vertical farming is still in the research and development (R&D) stage, with only a few niche products like microgreens that work economically.
Armela’s growth story is a testament to the potential of agritech in the region. Founded in 2016, the company initially operated a small research farm growing herbs, lettuce, and tomatoes. After two years of R&D, Armela converted its facility entirely to lettuce production, selling out within six to eight months and triggering an expansion strategy centered on high-tech horizontal hydroponics.
The company owns and operates all its farms and supplies Tier 1 and Tier 2 retailers across the UAE, wholesale markets, and e-commerce platforms like Talabat. Armela also operates a temperature-controlled logistics fleet of more than 30 vehicles, monitored around the clock.
Looking ahead, Armela plans to fund its expansion through bank financing and potential equity investment. Shah noted that UAE banks have shown an increasing appetite for agritech financing, reflecting growing confidence in controlled-environment agriculture.
As the UAE continues to invest in its agritech sector, companies like Armela are at the forefront of innovation, driving the region’s food security efforts and setting a precedent for sustainable, high-tech farming.