Doing Business in the UAE Aquaculture in the United Arab Emirates Prepared by: NordOest – representative office for Innovation Norway in the Middle East Abu Dhabi – March 2015 Abu Dhabi - October 2012 1
Contents 1. UAE Overview 1.1 Key Facts and Figures 1.2 Climate 1.3 Geography 1.4 Demographics 1.5 Economy 1.6 Imports 2. Seafood Data 2.1 Fish catches in the UAE 2.2 Imports, exports and re-exports of seafood 2.3 Catches, Imports, exports and re-exports of seafood 2.4 Imports, exports and re-exports of seafood - Countries 3. UAE Aquaculture 3.1 Why is Aquaculture important to the UAE? 3.2 Aquaculture – Present Situation 3.3 Locations of Fish Farms 3.4 Is Aquaculture feasible in the UAE/GCC region? 3.5 Investments and Projections 3.6 Challenges for developing aquaculture 4. UAE Aquaculture – Species 4.1 Aquaculture development plans 4.2 Concerned fish species: Hamour (Orange Spotted Grouper) 4.3 Concerned fish species: Cobia 4.4 Concerned fish species: Gold lined Seabream 4.5 Concerned fish species: Yellow Fin Tuna 4.6 Concerned fish species: Abalone 5. UAE Aquaculture – Regulations 5.1 Aquaculture in the UAE – Legal Frame Work 5.2 The Ministry of Environment and Water – MoEW
5.3 Applying for an Aquaculture License – MoEW 5.4 Aquaculture in Abu Dhabi – Legal Frame Work – EAD 5.5 Aquaculture in Abu Dhabi – Legal Frame Work – Draft Environmental Policy on Aquaculture 5.6 Aquaculture in Abu Dhabi – Legal Frame Work – Draft Environmental Policy on Aquaculture: Definitions 5.7 Aquaculture in Abu Dhabi – Government’s Responsibility for Best Practices 5.8 Aquaculture in Abu Dhabi – Licensing for operating fish farms : 1st Phase 5.9 Aquaculture in Abu Dhabi – Licensing for operating fish farms : 2nd Phase 5.10 Aquaculture in Abu Dhabi – Establishment of an aquaculture coordinating Committee 5.11 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Coastal aquaculture systems (RAS) 5.12 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Intertidal Aquaculture 5.13 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Inland Aquaculture 5.14 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Sea Cage Aquaculture
6. UAE Aquaculture – Investments 6.1 Aquaculture Investment Climate - Public Sector Involvement 6.2 Aquaculture Investment Climate - Public Sector Future Plans 6.3 Aquaculture Investment Climate – Marine Environmental Research Center (MERC) 6.4 Aquaculture Investment Climate – Sheikh Khalifa Bin Zayed Al Nahyan Marine Research Centre 6.5 Aquaculture Investment Climate - Private Sector Involvement 6.6 Private Infrastructures: ASMAK 6.7 Private Infrastructures: Mubarak Fisheries 6.8 Private Infrastructures: Fish Farm LLC 6.9 Private Infrastructures: Emirates Aquatech 6.10 Private Infrastructures: Al Jaraf Fisheries 6.11 Investment in Infrastructures: Emirates Star Fisheries 6.12 Abu Dhabi Fishermen Cooperative Society 6.13 Dubai Fishermen Cooperative Association 6.14 ANAF - Advanced National Aquaculture and Fisheries 7. Summary 7.1 Summary from interviews 7.2 SWOT analysis for Norwegian companies 7.3 Recommendations for market entry
1. UAE Overview 1.1 Key facts and figures Capital
Abu Dhabi
Area
83,600 sq km 77,700 sq km exc islands 97% of which is desert
Natural Resources
Petroleum, Natural Gas
Government
Federation of seven emirates with the Federal National Council as the advisory body
Head of State
H. H. Sheikh Khalifa bin Zayed Al Nahyan
Emirates
Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah
Languages
Arabic – Official English – Widely spoken
Population
8 Million
Working days
Sunday - Thursday
Religion
Islam (Other beliefs tolerated)
Currency
United Arab Emirates Dirham – AED Pegged to the dollar at a rate of 1USD = AED 3.6725
UAE Flag and Emblem Moto: God, The Homeland and The President
1. UAE Overview 1.2 Climate Subtropical – arid climate Hot summers and warm winters Coastal areas: (Home to the bulk of the population) Summer (May - October): Very hot and humid / Temperatures of up to 46°C Humidity of up to 100% Winter (December-March): Temperatures of between 14°C and 23°C Interior: Desert climate, with cool winter and hot arid summer Average annual rainfall is 42 mm Ras al-Khaimah is more temperate, with 150mm average annual rainfall
1. UAE Overview 1.3 Geography Borders West and South: Saudi Arabia 475km South East: Oman 410km North: Persian Gulf East: Gulf of Oman Islands More than 200 Elevation Extremes Lowest: 0m - Sea level Highest: 1737m - Jabal Jais in Ras Al Khaimah Coastline Over 800km
1. UAE Overview 1.4 Demographics
1. UAE Overview 1.5 Economy Continuous efforts on diversification plans, lower costs on importing / exporting, faster procedures and less red tape, to boost economic performance and improve business environment make the UAE a more attractive destination for business investment Rank of Ease of Trading Across Borders: 8 Rank of Ease of Doing Business: 22 Actual UNITED ARAB EMIRATES Real GDP Growth (%) Population (m) GDP per head (thousand US$ at PPP) Inflation Exchange Rate US$:AED Source: Economist Intelligence Unit, February 2015 (* EIU forecast)
EIU Estimates
EIU Forecasts
2012
2013
2014
2015
2016
4.7 7.5
5.2 7.9
4.6 8.4
3.3 8.9
3.4 9.2
71.4*
71.9*
71.6
71.2
71.5
0.7 3.67
1.1 3.67
2.3 3.67
2.1 3.67
2.8 3.67
1. UAE Overview 1.5 Economy •
Efforts to diversify the UAE’s economy away from oil
•
The non-oil sector has experienced accelerated growth during 2013 mostly through services and the reactivation of construction projects
•
The recovery of the construction sector has been possible due to Dubai gaining the right to host the World Expo 2020
•
This growth is forecast to remain at an annual average of 4.1% for 2015-2019
•
Both the emirates of Dubai and Abu Dhabi will be spending on new construction projects and to further enhance infrastructure
•
In its World Investment Report 2014 the United Nations Conference on Trade and Development reports Foreign Direct Investment in the UAE increased by 9% in 2013 to US$10.5 billion making the UAE the second largest recipient of foreign direct investment after Turkey
1. UAE Overview 1.6 Imports Data made available by the UAE National Bureau of Statistics indicate that the total value of imports to the UAE for 2013 amounted to $241.4 b
Main Origin of UAE Imports - 2013
6% 11%
Others China
14% 54%
India US
15%
UK
2. Seafood Data 2.1 Fish catches in the UAE Quantities of fish caught by Emirate (tonnes) 100,000
UAE Total Fish Catches 120,000 100,000
80,000
Fujairah Ras Al - Khaimah
60,000
80,000
Umm Al - Quwain Ajman
40,000
Sharjah
60,000 40,000
Dubai 20,000
Abu Dhabi
0
20,000 0
2007 2008 2009 2010 2011 2012 2013
2007
2008
2009
2010
2011
2012
2013
Data indicates there was a sharp fall (~25%) in the amount of fish caught in 2008 Catches have remained between 72,000 and 79,000 tonnes per year since then The largest amount of fishing remains in the emirates of Sharjah and Ras Al – Khaimah The quantity caught in these two emirates forms ~47% of the total amount caught in the country
2. Seafood Data 2.2 Imports, exports and re-exports of seafood UAE Seafood Imports, Exports and Re-Exports by weight (tonnes) 200,000 180,000 160,000 140,000 120,000
Imports
100,000
Exports
80,000
Re-exports
60,000 40,000 20,000 0 2006
2007
2008
2009
2010
2011
2012
2013
Estimates by FAO suggest demand for fish in the UAE will grow at a rate of 8% per year until 2030 By 2030 there will be a demand for 900,000 tonnes
2. Seafood Data 2.3 Catches, imports, exports and re-exports of seafood Seafood in the UAE - 2013 (tonnes) 27,000
46,000
20,000 Catches Imports
Imports
Re-exports Exports
164,000 The majority of seafood consumed in the UAE comes through imports Aquaculture is still a small percentage of the total seafood produced • • •
Total fish catches were 73,000tonnes for 2013 out of which 27,000tonnes were exported Total seafood imports: 184,000tonnes – 20,000tonnes re-exported This means 210,000 tonnes consumed locally
2. Seafood Data 2.4 Imports, exports and re-exports of seafood - Countries Seafood import origins - 2013
Top 10 destinations of UAE seafood exports - 2013
Top 10 destinations of UAE seafood re-exports - 2013
SAUDI ARABIA TAIWAN IRAN THAILAND CHINA
TAIWAN
BAHRAIN
SUDAN
AFGHANISTAN
QATAR
TAIWAN
USA
QATAR
MOROCCO
PAKISTAN INDIA
HONG KONG…
OMAN
SRI LANKA
EGYPT
BANGLADESH
MYANMAR
SRI LANKA
OMAN
VIET NAM
VIET NAM
OMAN
BANGLADESH 0
20,000 40,000 60,000 80,000
IRAN (ISLAMIC… VIET NAM 0
5,000,000
10,000,000
0
The UAE imported seafood from 95 countries in 2013 The charts show the top 10 countries seafood was received and sent to for 2013 Exports went to 59 countries and re-exports to 55 The majority of exports and re-exports were sent to the rest of the GCC countries and further East
5,000,000
10,000,000
3. UAE Aquaculture 3.1 Why is Aquaculture Important to the UAE? -
The UAE imports approximately 80% of its food
-
Over 50% of seafood globally is farmed through aquaculture which the UAE plans to meet up with (FAO predicts will reach 62% by 2020)
-
Some of the Gulf’s wild fish stocks have declined by 80% in the last 40 years(Hamour, Shaari, Farsh)
-
Hamour, a member of the Grouper family and a local favorite, has decreased to 90%
-
National food security is a key concern (priority area) for the government of Abu Dhabi
-
Alleviating pressure on wild fish stocks is a priority for Environmental Agency (EAD), who is in charge of managing the fisheries sector
-
Aquaculture can provide employment economic opportunities in rural areas
-
Will help conserve ground water resources
and
3. UAE Aquaculture 3.2 Aquaculture - Present Situation -
Total fish production: 75,000 tonnes a year .[𝟏]
-
Rank amongst GCC countries: 3rd Place
-
Aquaculture based fish production: 788 tonnes for 2014 (1% of total fish production)
-
Average per capita consumption: 28 kg per year .[𝟐]
-
Production trend: Down 25.2% in recent years .[𝟑]
UAE Fishery and Aquaculture Production 140000 Total Production
120000
Investment required to catch up: than AED 1.3 billion .[𝟓]
100000 80000
60000
Aquaculture Production Quantity (tones)
-
40000 20000 0 1940
1950
1960
1970
1980
Year
1990
2000
2010
2020
3. UAE Aquaculture 3.3 Location of Fish Farms
3. UAE Aquaculture 3.4 Is Aquaculture Feasible in the UAE/GCC region? •
Although strictly speaking Aquaculture in the UAE has existed since the ‘80s in the form of producing fingerlings to restock the sea, it still relatively new and under development
•
Currently there are a few farms operating successfully
•
Onshore fish farming minimizes the impact on the environment as seawater can be used and recycled
•
This method poses no stress on precious freshwater resources
•
Warm waters result in fish stocks maturing quickly
•
Meeting seafood consumption demands through farming will allow dwindling wild stocks to recover
3. UAE Aquaculture 3.5 Investments and Projections -
More than $15 billion worth of aquaculture projects are planned in the GCC for the coming decade
-
According to the MoEW there are currently ten registered farms in the UAE - Five are still under development
-
UAE production through aquaculture was 330 tonnes – Capacity stands at 4,903 tonnes
-
Total current market valuation of investments in to the UAE aquaculture sector stands at $321 million according to the Ministry of Environment and Water - $20 million of this is invested in the Sheikh Khalifa Bin Zayed Al Nahyan Marine Research Centre
-
Projections by the World Bank indicate aquaculture in the MENA region will rise 75.9% by 2030 - Reaching a production of 1.9 million tonnes by 2030
-
Saudi Arabia will invest $10.6 billion into aquaculture projects - Aim to produce 1 million tonnes of fish in the next 16 years
-
Oman is also planning to invest $1.3 billion in fisheries development leading up to 2020
3. UAE Aquaculture 3.6 Challenges for developing Aquaculture •
High salinity of water – 45ppt
•
Water security is as big an issue as food security
•
High temperatures, especially during the summer months water temperatures can reach 40 degrees
•
It can take years for fish farming to become a profitable business • Costly and complex process to setup facilities • Reliance on imports for equipment, fish feed, medication • Banks are reluctant to offer financing especially during the hatchery stage due to high production uncertainty
•
Governmental support is essential especially for research and the hatchery stage
•
Regulations and licensing procedures are just starting to become more clear • Many authorities involved in the process of obtaining a licesne
•
Environmental threats, i.e. 2008 coasts of Oman and the UAE were affected by red tide algae[1]
•
Ballast water from tankers may carry foreign species of aquatic organisms including algae which when emptying the tank are released into the Gulf Sea • The warm waters of the Gulf Sea are a perfect ground for these organisms to grow and multiply • These organisms may be harmful for and overtake indigenous species • This would have a very negative effect in the case of cage farming
4. UAE Aquaculture - Species 4.1 Aquaculture Development Plans 25 species reviewed for their suitability for farming [1] 9 species have been cultured successfully during pilot studies [2] Scientific Name
Common Name
Arabic Name
Epinephelous coioides
Orange spotted Grouper
Hamour
Sparidentex hasta
Silvery black porgy
Subaity
Siganus canaliculatus
Rabbit fish
Safi
Liza macrolepsis
Large scale mullet
Biah
Rhabdosargus
Gold lined Sea Bream
Gabit
Acanthopagrus latus
Black sea Bream
Shaeim
Plectorhinchus schotaf
Sordid sweetlips
Yenam
Lethrinus nebulosus
Spanged emperor
Sheri
Panaeus indicus
White shrimp
White shrimp
4. UAE Aquaculture - Species 4.1 Aquaculture Development Plans 5 species were produced commercially for 2014 Species
Scientific name
Production (Ton)
Sea Bream
Sparus Aurata
Black Tilapia
Acipenser baerii
10
Red Tilapia
Oreochromis niloticus
30
White Shrimps
Penaeus indicus
350
Sturgeon
Oreochromis mossambicus
108
290
Governmental aids with quality fingerlings
Other governmental involvements are in the form of policy and regulation, permitting, monitoring and enforcement are underway
4. UAE Aquaculture - Species 4.1 Aquaculture Development Plans – Prospective Species Prospective species for culture include: • • • • •
Cobia Sea Bream Hamour Yellow Fin Tuna Abalone
The Sheikh Khalifa Marine Research Centre aims to produce 10 millions fingerlings over the next three years. Specifically the Centre will work on the following species: Silvery black porgy - Subaity Orange spotted Grouper – Hamour Gold lined Sea Bream – Gabit Black sea Bream - Sheim
4. UAE Aquaculture - Species 4.2 Concerned Fish Species: Hamour (Orange Spotted Grouper) •
Also known as Estuary cod, Estuary Rock cod, Estuary rock-cod, Green Grouper and Mérou Taches Oranges (French)
•
Salient physical peculiarity: Orange or reddish-brown spots all over
•
Main feed: Fishes (including themselves.[𝟏] ), shrimps, crabs and cuttlefish
•
Breeding: All born female; sexual maturity at 3 years; transform to male at 4 years .[𝟐]
•
Natural Habitat: Arabian Gulf, New Caledonia .[𝟑]
•
Status: Near Threatened (NT) on the IUCN Red List
4. UAE Aquaculture - Species 4.3 Concerned Fish Species: Cobia •
Also known as Black kingfish.
•
Salient physical peculiarity: Often mistaken for a shark .[𝟏]
•
Main feed: Crustaceans, especially shrimp, squid and crab, as well as small fishes and eels.
•
Breeding: External fertilization .[𝟐]
•
Natural Habitat: Warm ocean waters .[𝟑]
4. UAE Aquaculture - Species 4.4 Concerned Fish Species: Gold lined Seabream •
Also known as Qabit
•
Salient physical peculiarity: Yellow blotch at the base of the soft dorsal fin.
•
Main feed: Other fishes
•
Breeding: Spawns from December to late January, when water temperature is around 21 °C .[𝟐]
•
Natural Habitat: Subtropical and tropical waters .[𝟑]
4. UAE Aquaculture - Species 4.5 Concerned Fish Species: Yellow Fin Tuna •
Also known as Allison's tuna, Pacific long-tailed tuna, Yellow finned albacore.
•
Salient physical peculiarity: Metallic silver with a black and yellow blend. .[𝟏]
•
Main feed: wide variety of fish, squid, cuttlefish, octopus, shrimp, lobster and oceanic crabs .[𝟐]
•
Breeding: External fertilization
•
Natural Habitat: Tropical and subtropical waters .[𝟑]
•
Status: Near Threatened (NT) on the IUCN Red List
4. UAE Aquaculture - Species 4.6 Concerned Fish Species: Abalone •
Salient physical peculiarity: Spiraled Shell .[𝟏]
•
Main feed: Algae
•
Breeding: External Fertilization .[𝟐]
•
Natural Habitat: Coasts of Baja California, Mexico and California, USA
5. UAE Aquaculture - Regulations 5.1 Aquaculture in the UAE - Legal Frame Work •
The Ministry of Environment and Water launched a guide during AQUA ME 2015 on how to obtain an aquaculture practice license
•
Suitable aquaculture sites across Abu Dhabi have been mapped with more studies to take place for the rest of the Emirates
•
A development plan is being prepared by EAD, in collaboration with other government bodies, farmers, non-government organisations and researchers
•
Feasibility and Environmental Impact Studies are performed by the applicant
•
Approvals and licenses must also be obtained from authorities in the emirate the farm will operate in (each emirate has its own laws) including the Local municipality, Chamber of Commerce and Department of Economic Development • In some cases, permission must also be sought by ADNOC – Abu Dhabi National Oil Company
•
Once the farm is ready, an inspection is carried out by the Department of Fisheries and the MERC • Approval is granted for 5 years, renewable for 5 years. This may be reviewed as this regulations was set at a time when there was no aqucaulture in the country.
5. UAE Aquaculture - Regulations 5.2 The Ministry of Environment and Water – MoEW The MoEW’s mission is to develop strategies and policies in the areas of: • Environment • Water resources • Agriculture • Livestock • Fisheries • Aquaculture • Encountering desertification • Conservation of biodiversity The Ministry aims to: • Enhance the Integrated Water Resources Management Enhance environmental sustainability • Prevent agricultural pests and epidemic livestock diseases • Enhance food safety and sustainability of local production • Ensure that administrative services provision is in accord with standards of quality, efficiency and transparency
5. UAE Aquaculture - Regulations 5.3 Applying for an Aquaculture License - MoEW Aquaculture activities are governed by Federal Law No.23 and 24 regarding the Exploitation, Protection and Development of Living Aquatic Resources in the Waters of the United Arab Emirates License application fees: 1000 AED per year [1] Required Documents: • A copy of the environmental license issued by the competent authority • A copy of the study of economic and technical feasibility of the project • A copy of the initial approval issued by the concerned local authority concerned • A copy of the decision of the declaration of the Assembly (cooperative societies of fishermen / Cooperative Union of Fishermen's Associations) Terms and conditions for establishing a fish farm: 1. Establishing or investing in commercial living aquatic farms is restricted to: • Citizens • Legal entities owned by citizens not less than 51% • Cooperative societies of fishermen • Scientific bodies 2. Use of fresh water for breeding aquatic organisms is prohibited unless the establishment caters for using water firstly for rearing aquatic organisms and then for agriculture 3. Fish farming is prohibited on beaches, bays, creeks, gulfs and islands where mangrove trees are present
5. UAE Aquaculture - Regulations Terms and conditions for establishing a fish farm (continued): 4. If the rearing method suggests using floating marine cages, the competent authority in coordination with the Ministry shall determine number and sizes of such cages 5. The application must include: • Technical Feasibility of the project • Economic Feasibility of the project • Site plan including farm location (latitude/longtitude) • Species and sources of fingerlings/larvae • Water source and methods for disposal of waste water • System used for culture • Production purpose, capacity and plans • Number of containers and sizes 6. The Aquaculture project must abide by the Federal Law No. (24) for the year 1999 for the Protection and Development of the Environment
7. The Ministry in cooperation with the competent authority will consider the applications for obtaining a license for establishing and investing the commercial farms for aquatic organisms 8. Importing brood stock or larvae and rearing of species different from the species found in the fishing waters of the country is prohibited unless a written authorization is obtained by the Ministry 9. The license period for establishing and investing in commercial aquatic organism farms shall be limited for five years to be renewed as required and after obtaining the necessary approvals and fulfilling the required conditions
5. UAE Aquaculture - Regulations 5.4 Aquaculture in Abu Dhabi - Legal Frame Work EAD’s Objective with the policy is to: •
orient local government entities around a common vision for aquaculture in Abu Dhabi
•
shape the development of future aquaculture policies and programs in government departments and agencies
•
guide the development of operational policies in relation to aquaculture in government departments and agencies
•
clearly convey to all aquaculture stakeholders, including the industry and general public, the principles that guide the Abu Dhabi government’s commitment to sustainable aquaculture development
5. UAE Aquaculture - Regulations 5.5 Aquaculture in Abu Dhabi– Legal Framework Draft Environmental Policy on Aquaculture: Proposed Aquaculture Permitting Categories A1. Land-based operations A2. Pump-ashore operations A3. Suspended aquaculture operations A4. Bottom-culture operations A5. Developmental or experimental aquaculture.
a. b. c. d. e. f.
Pond Aquaculture (A1 or A2) Tank Aquaculture (A1 or A2) Inter-Tidal Aquaculture (A4) Longline or Raft Aquaculture (A3) Sub-Tidal Aquaculture (A4) Cage Aquaculture (A3)
High Tide Mark
Low Tide Mark
5. UAE Aquaculture - Regulations 5.6 Aquaculture in Abu Dhabi– Legal Framework Draft Environmental Policy on Aquaculture: Definitions Aquaculture: Aquaculture is the farming of aquatic organisms, including fish, molluscs, crustaceans and aquatic plants for food, the aquarium trade, restocking or commercial purposes. Farming implies some form of human intervention in the rearing process to enhance production, such as regular stocking, feeding and protection from predators. Farming also implies individual or corporate ownership of the stock being cultivated.
Freshwater: Freshwater is generally characterized by having low concentrations of dissolved salts and other total dissolved solids. in the Abu Dhabi context it refers to naturally occurring groundwater in aquifers or desalinated water with a salinity of less than 1000 ppm.
Groundwater: is water that exists in the pore spaces and fractures in rock and sediment beneath the earth's surface, and is often contained in aquifers. it is naturally replenished by precipitation (rain) as it infiltrates into the ground. Depending on the salinity, groundwater could be classified as fresh (< 1000 ppm), brackish (1000 - 30 000 ppm), saline (30 000 - 50 000 ppm) and hyper saline or brine (> 50 000 ppm).
Groundwater red Zones: highly depleted groundwater areas, strategic reserves and restricted areas
5. UAE Aquaculture - Regulations 5.7 Aquaculture in Abu Dhabi – Government’s Responsibility for Best Practices The government’s responsibilities lies in the development of suitable polices. The EAD drafts ,[𝟏] clearly states that aquaculture ventures shall be developed in a manner that: •
Alleviates pressure on wild fish resources;
•
Maintains high standards of environmental stewardship by utilizing environmentallysustainable technologies and practices; water efficiency, energy efficiency, Effluent discharge standards,
•
Holds aquaculture producers accountable for protecting native flora and fauna and their surrounding ecosystems;
•
Monitors the effects of aquaculture operations on the surrounding environment and reports the results to support best management and continuous improvement
5. UAE Aquaculture - Regulations 5.8 Aquaculture in Abu Dhabi – Licensing for operating fish farms : 1st Phase The first phase of the Abu Dhabi Government’s screening/permitting procedure for an aquaculture establishment is as follows:
Environment Agency Abu Dhabi Lead agency to assess the environmental impact and sustainability of a project .[𝟏]
Abu Dhabi Food Control Authority Assess the applications from an animal biosecurity, animal health and welfare, and consumer health and safety .[𝟐]
Department for Economic Development Reviews the financial feasibility study (i.e. business plan) and confirm the economic viability of a project .[𝟑]
Department of Transport Assess the applications which are involved in operation at sea .[𝟒]
5. UAE Aquaculture - Regulations 5.9 Aquaculture in Abu Dhabi – Licensing for operating fish farms: 2nd Phase
Environment Agency Abu Dhabi Approval for the application of licenses
Ministry of Environment and Water Provides an animal activity license after the preceding screening processes .[𝟏]
Abu Dhabi Municipality Issues an approval certificate with respect to the veterinary health standards .[𝟐]
Abu Dhabi Chamber of Commerce Registers the business name .[𝟑]
5. UAE Aquaculture - Regulations 5.10 Aquaculture in Abu Dhabi – Establishment of an aquaculture coordinating Committee Proposed Members Core Members
Adjunct Members
5. UAE Aquaculture - Regulations 5.11 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Coastal aquaculture systems (RAS)
5. UAE Aquaculture - Regulations 5.12 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Intertidal Aquaculture
5. UAE Aquaculture - Regulations 5.13 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Inland Aquaculture
5. UAE Aquaculture - Regulations 5.14 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Sea Cage Aquaculture
6. UAE Aquaculture - Investments 6.1 Aquaculture Investment Climate - Public Sector Involvement •
Support the industry through • Providing high quality fingerlings • Funding research and developing techniques suitable for local species
•
Development of suitable investment climate through policies
•
Increase cooperation with the private sector
•
Mapping of suitable sites for aquaculture
•
Offer training to fishermen on aquaculture practices
•
Aims to produce 10 million fingerlings in 3 years
•
UAE Marine Environmental Research Center (MERC) is an experimental research station currently producing fingerlings of locally popular fish species in their natural spawning season: • White-spotted spinefoot (Siganus canaliculatus) • Orange-spotted grouper (Epinephelus coioides) • Large-scale mullet (Liza macrolepis) • Sobaity seabream (Sparidentex hasta)
6. UAE Aquaculture - Investments 6.2 Aquaculture Investment Climate - Public Sector Future Plans •
Increase seafood production contribution by aquaculture to 25% by 2021
•
Provide juveniles of commercial species to support the industry through the Sheikh Khalifa Marine Environment Research Centre
•
Continue stock enhancement
•
Encourage fishermen to take up fish farming
•
Develop commercial production techniques for local species
•
Mapping of suitable sites for aquaculture operations across the UAE
•
Increase cooperation with the private sector to develop new techniques and the sector in the UAE
6. UAE Aquaculture - Investments 6.3 Aquaculture Investment Climate – Marine Environmental Research Center (MERC) •
Established in the ‘80s with a campus area of 127,000 m2
•
Experimental production of selected fish and shrimp species
•
Development of breeding programme of local fish species
•
Development of suitable fingerling production techniques for the region
• •
Facilities include hatchery and laboratories Enhance marine resources through: • Production and release of fingerlings • Mangrove cultivation - allow areas for spawning and nursery • Provide fishing regulations advice to the government to protect the marine environment
•
Statistical and biological studies
•
Providing technical know how to small scale farms
•
In 2010, UAE signed an MoU with Kinki University, Japan to cooperate in research and culture of blue fin tuna
6. UAE Aquaculture - Investments 6.3 Aquaculture Investment Climate – Marine Environmental Research Center (MERC) •
Open System hatcheries
•
Upon establishment, there was a cooperation with JAIKO, a Japanese company • Contract of two years to transfer technology and knowledge, cooperation lasted 15 years
•
90% of production of fingerlings is for releasing to the sea • 2 million fingerlings of various species released
•
Currently provide fingerlings for small farms (1x1 or 2x2 cages)
•
Work in the laboratories mostly involves biological studies, studies of red tide and diagnosing and treatment of disease. Old facilities that require upgrading
•
Medications are imported
•
No genetic manipulation studies
•
Water is supplied from the sea through filter systems
•
Main challenges involve further research in the fish life cycle within a fish farm such as, appropriate feeding timings, age, water quality monitoring, fish behaviour
6. UAE Aquaculture - Investments 6.4 Aquaculture Investment Climate – Sheikh Khalifa Bin Zayed Al Nahyan Marine Research Centre •
The Ministry of Environment and Water signed an MoU in November 2014 with Al Muzdahira National Company to operate the Sheikh Khalifa Marine Research hatchery in Umm Al Quwain
•
Building of this facility forms part of a long-term strategy to guarantee food and environmental security in order to protect, develop and sustain national resources for future generations
•
Until recently it was envisaged the focus would be stock replenishment however now this will also be to aid in the development of the aquaculture industry by providing fingerlings and know how
•
1st phase: Hatchery - Completed, aims to produce 10 million fingerlings in 3 years. Hatching of fingerlings will begin by the end of 2015 • Subaiti • Seabream • Grouper
•
2nd phase: Labs – Study of marine pollution, aquaculture
•
3rd phase: Expansion of a hatchery for endangered species
•
4th phase: Educational – Aquarium
•
5th phase: Library, showroom, conference facilities
6. UAE Aquaculture - Investments 6.5 Aquaculture Investment Climate - Private Sector Involvement So far, the investment in UAE’s aquaculture industry is solely by private companies. For December 2013, aquaculture companies in the UAE amount to a worth of 1.2 billion AED ($326.7m) Leading Aqua culturists in UAE are: •
Asmak (Abu Dhabi) – Owned by ASMAK holdings
•
Mubarak Fisheries (Dubai) – Now Fish Farm LLC
•
Emirates Aquatech (Abu Dhabi) – Owned by Bin Salem Holding
•
Al Jaraf Fisheries (Abu Dhabi) – Owned by PAL group of Companies
•
Emirates Star Fisheries in Dubai (Fishing and Sea food processing Company) is currently establishing a Dh293 million project (which would eventually rise to Dh1.8 billion) for aquaculture practices in the Arabian Gulf
•
Abu Dhabi’s Farmers Service Center (ADFSC) identified 25 to 30 farms (mostly private) that produce fish, but claim several others have not been identified • Mostly ponds producing tilapia
6. UAE Aquaculture - Investments 6.6 Private Infrastructures: ASMAK •
ASMAK were the first to begin aquaculture operations in the UAE since 1999
•
Was formed through an IPO of 300m dirhams
•
Farming began in Ras al Khaimah, however operations had to be moved to Khor Fakkhan due to strong tides
•
Operations carried on in Khor Fakkhan until 2011 when they stopped due to red tide
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Operations now are based in Saudi Arabia with one farm in Kebbe City and a second one under approval (closed system)
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Currently ASMAK are more focused on seafood trading but they are monitoring developments in UAE regulations for aquaculture in order to begin again when the time is right
•
They are considering establishing operations in Bahrain, Cairo and Abu Dhabi
•
Announced plans in November 2013 to introduce land-based recirculation aquaculture system for salmon farming in Abu Dhabi’s Western Region • Starting capacity of 2,000 MT of aquaculture products which will expand to 4,000 MT per annum
6. UAE Aquaculture - Investments 6.6 Private Infrastructures: ASMAK •
They had started the process of establishing a 600tonnes per annum capacity off-shore cage farm on Delma Island (consisting of 50 cages covering an areas of 250,000 square meters), off Abu Dhabi for sea bream, subaiti and barramundi. • The operation was paused due to issues on land rental
•
The new facility would include, hatcheries, fish farms, processing, fish feed and equipment, marketing and distribution
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To cover an area of 500,000 square meters and produce 4,000MT of fish in its two phases including Salmon, Seabream, Barrumundi and Subaiti
•
Will include a cluster of 50 small fish farmers to annually produce 100MT of Seabream and few endangered species per farm
•
The farm would consist of 50 cages and cover an area of 250,000 m2
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The farm will host a processing plant with a production capacity of 800-1,000 MT per annum
6. UAE Aquaculture - Investments 6.6 Private Infrastructures: ASMAK •
The equipment used in the Saudi fish farms where purchased by a Norwegian company around 20 years ago
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The same equipment that was used in the UAE and Oman was moved to Saudi Arabia when UAE operations stopped
•
Feed is purchased by Arasco, a Saudi fish feed producer
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Medication is rarely used
•
No need for genetic manipulations – They purchase juveniles form Greece and Turkey
6. UAE Aquaculture - Investments 6.7 Private Infrastructures: Mubarak Fisheries •
Second aquaculture operation established in the UAE
•
Established in 2008, produces approximately 500tonnes of European sea bream and sea bass in net cages off the Dibba shore
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Hatchery in the Arabian Gulf
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Mubarak fisheries was recently bought by Fish Farm LLC (Established in 2013)
•
In the process of building a recirculation system in Jebel Ali free zone
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Plans are in the next 5 years to produce 7-8,000 tonnes from their facilities in the UAE and 45,000 from facilities based in Oman
•
Feeds: sourced by Saudi Arabia and Greece – Feed from Greece is considered of higher quality
6. UAE Aquaculture - Investments 6.8 Private Infrastructures: Fish Farm LLC •
Starting operations in early 2015
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300 metric tonnes of sea bass, sea bream and grouper in three separate tanks
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Have been working with a Norwegian aquaculture technology company in setting up the project
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Contract value of €9.5 million
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Plans to produce 200 metric tonnes of salmon in similar systems - to be fully operational by April 2015
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Aim to produce the highest quality for the five, six or seven star hotels
6. UAE Aquaculture - Investments 6.9 Private Infrastructures: Emirates Aquatech •
Owned by the Bin Salem Group
•
Based in Abu Dhabi, this 56,000 sqm farm produces premium Siberian caviar (Yasa Caviar) and sturgeon meat (worlds largest)
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Capacity of 35 tonnes of premium caviar per year and 700 tonnes of sturgeon per year
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Farming System: Recirculation Aquaculture System
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Feeding System: Robots
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Sensors and Monitoring: Software developed by HMR Automatisierung und Prozesstechnik GmbH .[1]
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Training: In house
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Antibiotics: Nil but they would be highly interested if the drugs bring along something special
6. UAE Aquaculture - Investments 6.9 Private Infrastructures: Emirates Aquatech •
Feeds: They send their requirements to Germany and Saudi for manufacturers to mill feed to their specification (custom made)
•
Genetic Manipulation: Nil and they don’t believe Sturgeons can be genetically manipulated
6. UAE Aquaculture - Investments 6.10 Private Infrastructures: Al Jaraf Fisheries •
Produces Asian White Shrimps/ Black Tiger Shrimps, European Sea Bream, Shrimps Juveniles, Tilapia and Ornamental fish
•
Have plans to farm Grouper in the near future
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Production of shrimp within two-meter deep pond facility in 74 hectares of land on Bal Rumaid Island (located behind Reem Island, a 15 minute drive and a five minute boat ride away from Abu Dhabi) and fin fish breeding in Al Ajban, UAE
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The island is private property of the ruler of Abu Dhabi so security is high
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Capacity: 1.5 to 2 tonnes of fresh/live shrimps per day (548 to 730 tonnes per year)
•
On an average 75% survival rate of shrimps
•
300,000-500,000 baby shrimps in one hectare pond
6. UAE Aquaculture - Investments 6.10 Private Infrastructures: Al Jaraf Fisheries •
Type of pumps Cast iron pumps working round the clock to supply fresh seawater from the sea to the ponds. Main challenge is that they need maintenance every 6 months to ensure the coating remains intact as rust is an issue due to the high salinity of the water (45ppt)
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Duplex stainless steel pipes would be more appropriate for this environment but more expensive
•
Medication: Only add vitamins to the feed during the high temperature season to relieve stress
Faming System Land based farming (100 hectares of land) on Bal Rumaid Island. The island has been converted to ponds
6. UAE Aquaculture - Investments 6.10 Private Infrastructures: Al Jaraf Fisheries •
Genetic Manipulation: As far as they know there is some research to control diseases but so far this has not been successful for invertebrates
•
Training: In house
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Feeds: Formulated palate feeds imported from Malaysia, Indonesia and Thailand. They tried importing once from a Belgian company but the quality was not as good. It takes around 1015 days for the feed to arrive from the day they order
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Shrimp feed is not very popular in Europe. Even if they were to order form Europe or the US they feel it would take longer to arrive and would be more expensive
6. UAE Aquaculture - Investments 6.11 Investment in Infrastructures: Emirates Star Fisheries •
Dh1.8 billion fund is being established.
•
The first project of these projects kicks off in Oman in 2016, with the aim to produce 13,000 tonnes of fish a year by 2018
•
Focus is on 7,000 km of coastline off Oman and Yemen (Arabian Sea) for this project
•
The first phase, from 2016 to 2018, will focus on coastal aquaculture and is expected to produce 3,000 tonnes of fish in the first year, 8,000 tonnes in the second and 13,000 tonnes in the final year. This includes 10,000 tonnes of shrimp and 3,000 tonnes of tuna, cobia and sea bream
•
After the two years they plan to set up cage farming
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No decision has been made at this point on suppliers for technologies, feed, etc
6. UAE Aquaculture - Investments 6.12 Abu Dhabi Fishermen Cooperative Society •
Aim to produce medium sized fish which are staple food for low-middle income families • • • •
Hammour (orange-spotted grouper) Shaari (spangled emperor) Safi Arabi (white-spotted spinefoot/rabbitfish) Shrimps
6. UAE Aquaculture - Investments 6.13 Dubai Fishermen Cooperative Association •
Aims to enhance cooperation between Dubai fishermen by developing a freezing, packaging and canning factory and a fish farm capable of producing 1,000 tonnenes of fish are among the plans for the next two years
•
Currently 50,000 fish are being grown with the aim to increase the numbers of local fish at risk such as: • Hamour (spotted grouper) • Subaiti (a fish close to the sea bass) • Qabid (gold-lined sea bream) • Safi (rabbit fish) • Sherri (Spangled Emperor)
•
When the fish grow to a certain size they are released into the open sea, to increase the population
•
40 net cages off the shore of Palm Deira
6. UAE Aquaculture - Investments 6.14 ANAF - Advanced National Aquaculture and Fisheries •
Abu Dhabi based company offering the full range of solutions for aquaculture and fisheries and farm management services - http://www.anaf.ae
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Have been awarded the contract to operate the Sheikh Khalifa Marine Research Centre
•
Services cover • Aquaculture planning • Feasibility, development & operation • Fisheries policy development & sustainable management • Aquaculture Consulting and Evaluation Studies • Aquaculture Project Development • Aquaculture Operations Management • Fisheries Consulting Services • Icthio-pathological services • Training
•
Partners with AKVA Group and APC, a consulting company from Greece specializing in the fields of fisheries - aquaculture, rural and regional development, and marine environment
7. Summary 7.1 Summary from interviews •
The main concern of local market players until recently has been the lack of clarity in regulations for aquaculture and little government support
•
Current farms are entirely a private investment
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A guide was launched by the Ministry of Environment and Water during the AQUA ME exhibition in 2015 on starting a fish farm in the UAE
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The government has been focused on fish stock replenishment in the sea and research for best aquaculture practices with local fish however more importance will be placed on offering a consistent supply of fingerlings to fish farms
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On land farming seems to be considered the most viable method
•
Off-shore farming poses challenges due to less environmental control. A combination on onshore and offshore is also a viable option
•
Finding investors is difficult, especially during the hatchery phase as there is little knowledge locally about aquaculture. Market needs to understand aquaculture is a long term investment
7. Summary 7.1 Summary from interviews •
Neighbouring countries are keeping an eye on how aquaculture will develop in the UAE. Some market players believe in 5 years the UAE will be the main aquaculture hub
•
In terms of research and study of suitable local species there is competition from countries like Greece and Turkey which have more similar conditions and species to the UAE – Norway is more specialised on Salmon
7. Summary 7.2 SWOT analysis for Norwegian companies
Strengths • • • •
Perceived as professional High quality products Focused on R&D Trustworthy
Opportunities • Utilise local expertise and knowledge (local ecological conditions are extremely important) • Research and Development • Enter with a local partner and start a pilot project • Local partner must have the right local expertise and knowledge in aquaculture and local environmental conditions
Weaknesses • Market is price sensitive • Negotiations require flexibility • Must dedicate time in cultivating relationships locally
Threats • Strong competition from Europe both terms of price and quality • Some elements can be manufactured/copied locally at much lower prices • Market entry requires a long term commitment
7. Summary 7.3 Recommendations for market entry •
Market potential for Norwegian companies is high but with some challenges
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Norwegian companies are regarded as experienced and professional
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However it is a price sensitive market so flexibility in negotiations is a must especially due to competition with Europe and Eastern countries
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Few market players, there is still a lot of work to be done to educate the market
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A pilot project with a local partner and marketing through the appropriate channels could create awareness and prove future success
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A consistent knowledge and technology transfer programme could open a pathway to a long term cooperation where Norwegian companies work with UAE authorities to establish a solid aquaculture industry
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Business success in the region is based on cultivating relationships
•
Local partner must have the right local expertise and knowledge in aquaculture and local environmental conditions
Doing Business in the UAE For further information contact: Maritsa Kissamitaki
[email protected] +971 50 907 1490 Matteo Chiesa
[email protected] +971 56 601 8336
Abu Dhabi - October 2012
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