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Saudi-US Partnership to Build Vertical Farms in MENA Region

An employee inspects lettuce growing in a facility that uses vertical farming techniques, in Kyoto, Japan. PHOTO: AFP
An employee inspects lettuce growing in a facility that uses vertical farming techniques, in Kyoto, Japan. PHOTO: AFP
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Saudi-US Partnership to Build Vertical Farms in MENA Region

An employee inspects lettuce growing in a facility that uses vertical farming techniques, in Kyoto, Japan. PHOTO: AFP
An employee inspects lettuce growing in a facility that uses vertical farming techniques, in Kyoto, Japan. PHOTO: AFP

The Saudi Public Investment Fund (PIF) announced a joint venture agreement with AeroFarms, a US-based commercial market leader in vertical farming, to establish a company in Riyadh to build and operate indoor vertical farms in Saudi Arabia and the Middle East and North Africa (MENA) region.

The agreement seeks to optimize the utilization of natural resources, including water and agricultural lands, through the implementation of indoor vertical farming, with no need for arable land, resulting in significantly higher yields and using up to 95% less water compared to traditional field farming.

The partnership is expected to contribute to the provision of high-quality local crops throughout the year through AeroFarms’ smart farming technology, as it aims to establish and operate many farms in the region over the next few years.

The PIF expected that the first farm in Saudi Arabia would have an annual production capacity of 1.1 million kilograms of agricultural crops, which would make it the largest of its kind in the MENA region.

Promising sectors

The agreement comes in line with PIF’s strategy that focuses on developing and empowering promising sectors, including food and agriculture, as well as localizing new agricultural technologies and developing food industries, in partnership with the local private sector. The strategy aims to improve the trade balance and strengthen the Kingdom’s position as a leader in vertical farming in the region.

Majed AlAssaf, Head of Consumer Goods and Retail, MENA Investments Division at PIF, said: “The agreement with AeroFarms will lead to the establishment of indoor vertical farms in Saudi Arabia and the wider MENA region, increasing regional reliance on locally produced, high-quality crops grown in a sustainable way using the latest technologies. PIF is enabling the growth of the food and agriculture sector and localizing technology that can benefit private sector industry participants.”

For his part, Co-Founder and CEO of AeroFarms David Rosenberg noted that the company’s mission was to help solve “the greatest agriculture challenges and increase food resiliency around the world.”

He continued: “We are excited to partner with PIF to build our first large-scale commercial farm in Saudi Arabia, where the growing conditions are challenging with limited access to fresh water and arable land, and we envision building together smart indoor vertical farms throughout the broader MENA region.”

Hydrogen economy

Meanwhile, the Ministry of Industry and Mineral Resources announced the issuance of the first license in Oxagon for the NEOM Green Hydrogen Company (NGHC), a joint venture between NEOM, ACWA Power and Air Products.

This step falls within the Kingdom’s effort to deploy its low-cost hydrocarbons and its strategic location for low-cost renewables.

Once completed, NGHC will be the largest at-scale green hydrogen production company in the world based at Oxagon, home to advanced and clean industries within NEOM, with a next generation port and fully automated and integrated supply chain and logistics network.

Green ammonia

The NEOM Green Hydrogen plant is expected to begin green hydrogen production using 100% renewables in 2026. It will produce up to 1.2 million tons of green ammonia annually, or 600 tons of green hydrogen on a daily basis.

Green ammonia will be exported to global markets, to support the decarbonization of the heavy transport sector, with the aim to reduce carbon emissions.

Wind energy

The plant, which has been described as a multi-billion dollar project, will operate on about 4 gigawatts of wind and solar power, and will produce green hydrogen using 2.2 electrolysis technology.

The Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) had earlier signed an MoU with NEOM Industrial City Oxagon, for the implementation of the Future Factories Program, which aims to build a strong technical system that enables digital and sustainable transformation of the industrial sector in the country.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.