UAE gives non-interest loan to farmers to reduce import

The Khalifa Fund for Enterprise Development, managing the loan system, said interested farmers working in the agricultural sector will be provided with training and marketing services but warned that the programme is restricted only to indigenes of the Emirate who constitute less than 25 percent of the growing population. The programme is a collaboration between […]

The Khalifa Fund for Enterprise Development, managing the loan system, said interested farmers working in the agricultural sector will be provided with training and marketing services but warned that the programme is restricted only to indigenes of the Emirate who constitute less than 25 percent of the growing population.
The programme is a collaboration between the fund and the Abu Dhabi Farmers’ Services Centre under the guidance of Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council.
Chairman of the Khalifa fund, Hussaini Jassim Al Nowais, said the programme is aimed at empowering indigenous farmers in the Emirate to enhance agricultural production, marketability of their products, profitability and efficiency through cutting edge technology; “For instance by switching to innovative methods that reduce water consumption.”
Noting shortage of water in the Emirate where rain falls on the average of twice a year, Al Nowais said under the programme, farmers will be given incentives to go for modern agricultural methods by adopting a hydroponics system that can reduce water consumption by up to 80 per cent.
“This will in turn lead to an increase in the number of productive farms, as land that was previously considered non-productive becomes more viable to farm. That will also reduce the negative effects of soil salt on agricultural products, and contribute to the transfer of sophisticated water management technology in the agricultural sector.
“By so doing, there will be a reduction in electricity consumption in the agricultural sector, as an improvement in the nation’s food security would lead to a reduction in the country’s food imports,” Al Nowais said.
He said only farmlands measuring up to 2,000 square meters will be captured under the programme adding that, eight greenhouses will be irrigated, and a minimum contribution of not less than 5 per cent of the farmer’s total expenses for services and facilities would be made.
“The Khalifa Fund will finance applicants who fulfill all conditions with a loan of up to Dh1 million (or N45 million) interest-free. The Fund will also provide additional facilities, and give a grace period of up to two years before repayment starts. A flexible schedule of payments will be offered, spanning up to 60 months.
“The Fund has designed packages of services including organizing training and knowledge transfer in collaboration with Abu Dhabi Farmers’ Services Centre for services and non-financial facilities to potential farmers likely to benefit. The specialized training courses will include accounting skills and the preparation of budgets, resource management among others.
“The farmers will be exempted from several types of fees from relevant authorities in order to boost them and help their farms thrive. The Khalifa Fund will also provide a marketing services programme which will include a package of marketing facilities to help the farmers sell their produce at the best possible prices and obtain the most attractive returns through smart partnerships with a number of major retail outlets,” he said.
Al Nowais said the farmers captured under the programme will be exempted from registration fees applicable to other suppliers, they will receive preference in low prices and will also be able to collect their payments within two weeks instead of the normal 90 days which will improve their cash flow and minimize the cost transfer from the farm to the retail outlets.
UAE that sits on desert has not been active in agricultural production due to lack of farmland and minimal rainfall. Fishing which is the most likely form of agricultural activity that can be easily practiced in the region was contributing less than 4 percent to the Emirate’s GDP.
The Emirate’s 160,000 hectares of cultivable farmlands spread across Diqdaqah in Ras al Khaymah, Falaj al Mualla in Umm al Qaywayn, Wadi adh Dhayd in Sharjah Al Awir in Dubayy and the coastal areas of Al Fujayrah are mainly taken over by date palm plantations when visited by this reporter.
At Umm Al Qaywayn, a fish farm at the National Mariculture center that produces most of the fish used for local consumption is backed by the traditional fishing activities of some farmers who are also supported by government to enhance fishing activities in the Emirate.
The government has supported traditional fishing in the rich waters of the UAE, an activity that has provided livelihood for centuries along the coast. The government offers a 50 percent subsidy on fishing boats and equipment, provide marine workshops that repairs and maintains fishing boats for the fishermen free of charge and the government links the farmers with corporate buyers of the fish.