Doing Business in the UAEakvarena.no/uploads/Ekstern informasjon/Aquaculture... · Currency United...

Doing Business in the UAE

Abu Dhabi - October 2012

Aquaculture in the United Arab Emirates

Prepared by: NordOest – representative office for Innovation Norway in the Middle East Abu Dhabi – March 2015

1

Contents1. UAE Overview

1.1 Key Facts and Figures1.2 Climate1.3 Geography1.4 Demographics1.5 Economy1.6 Imports

2. Seafood Data2.1 Fish catches in the UAE2.2 Imports, exports and re-exports of seafood2.3 Catches, Imports, exports and re-exports of seafood2.4 Imports, exports and re-exports of seafood - Countries

3. UAE Aquaculture3.1 Why is Aquaculture important to the UAE?3.2 Aquaculture – Present Situation3.3 Locations of Fish Farms3.4 Is Aquaculture feasible in the UAE/GCC region? 3.5 Investments and Projections3.6 Challenges for developing aquaculture

4. UAE Aquaculture – Species4.1 Aquaculture development plans4.2 Concerned fish species: Hamour (Orange Spotted Grouper)4.3 Concerned fish species: Cobia4.4 Concerned fish species: Gold lined Seabream4.5 Concerned fish species: Yellow Fin Tuna4.6 Concerned fish species: Abalone

5. UAE Aquaculture – Regulations5.1 Aquaculture in the UAE – Legal Frame Work5.2 The Ministry of Environment and Water – MoEW

5.3 Applying for an Aquaculture License – MoEW5.4 Aquaculture in Abu Dhabi – Legal Frame Work – EAD5.5 Aquaculture in Abu Dhabi – Legal Frame Work – Draft Environmental Policy on Aquaculture5.6 Aquaculture in Abu Dhabi – Legal Frame Work – Draft Environmental Policy on Aquaculture: Definitions5.7 Aquaculture in Abu Dhabi – Government’s Responsibility for Best Practices5.8 Aquaculture in Abu Dhabi – Licensing for operating fish farms : 1st Phase5.9 Aquaculture in Abu Dhabi – Licensing for operating fish farms : 2nd Phase5.10 Aquaculture in Abu Dhabi – Establishment of an aquaculture coordinating Committee5.11 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 Aquaculture5.14 Aquaculture in Abu Dhabi – Suitable aquaculture Development Sites Sea Cage Aquaculture

6. UAE Aquaculture – Investments6.1 Aquaculture Investment Climate - Public Sector Involvement6.2 Aquaculture Investment Climate - Public Sector Future Plans6.3 Aquaculture Investment Climate – Marine Environmental Research Center (MERC)6.4 Aquaculture Investment Climate – Sheikh Khalifa Bin Zayed Al Nahyan Marine Research Centre6.5 Aquaculture Investment Climate - Private Sector Involvement6.6 Private Infrastructures: ASMAK6.7 Private Infrastructures: Mubarak Fisheries6.8 Private Infrastructures: Fish Farm LLC6.9 Private Infrastructures: Emirates Aquatech6.10 Private Infrastructures: Al Jaraf Fisheries6.11 Investment in Infrastructures: Emirates Star Fisheries6.12 Abu Dhabi Fishermen Cooperative Society6.13 Dubai Fishermen Cooperative Association6.14 ANAF - Advanced National Aquaculture and Fisheries

7. Summary7.1 Summary from interviews7.2 SWOT analysis for Norwegian companies7.3 Recommendations for market entry

1.1 Key facts and figures

Capital Abu Dhabi

Area 83,600 sq km77,700 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 – OfficialEnglish – 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 summerAverage annual rainfall is 42 mmRas al-Khaimah is more temperate, with 150mm average annual rainfall

1. UAE Overview

1.3 Geography

BordersWest and South: Saudi Arabia 475kmSouth East: Oman 410kmNorth: Persian GulfEast: Gulf of Oman

IslandsMore than 200

Elevation ExtremesLowest: 0m - Sea levelHighest: 1737m - Jabal Jais

in Ras Al Khaimah

CoastlineOver 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

Source: Economist Intelligence Unit, February 2015 (* EIU forecast)

1. UAE Overview

Actual EIU Estimates EIU Forecasts

UNITED ARAB EMIRATES 2012 2013 2014 2015 2016

Real GDP Growth (%) 4.7 5.2 4.6 3.3 3.4

Population (m) 7.5 7.9 8.4 8.9 9.2

GDP per head (thousand US$ at PPP) 71.4* 71.9* 71.6 71.2 71.5

Inflation 0.7 1.1 2.3 2.1 2.8

Exchange Rate US$:AED 3.67 3.67 3.67 3.67 3.67

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

54%

15%

14%

11%

6%

Main Origin of UAE Imports - 2013

Others

China

India

US

UK

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

1. UAE Overview

0

20,000

40,000

60,000

80,000

100,000

120,000

2007 2008 2009 2010 2011 2012 2013

UAE Total Fish Catches

0

20,000

40,000

60,000

80,000

100,000

2007 2008 2009 2010 2011 2012 2013

Quantities of fish caught by Emirate (tonnes)

Fujairah

Ras Al - Khaimah

Umm Al - Quwain

Ajman

Sharjah

Dubai

Abu Dhabi

Data indicates there was a sharp fall (~25%) in the amount of fish caught in 2008Catches 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 – KhaimahThe quantity caught in these two emirates forms ~47% of the total amount caught in the country

2.1 Fish catches in the UAE

2. Seafood Data

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2006 2007 2008 2009 2010 2011 2012 2013

UAE Seafood Imports, Exports and Re-Exports by weight (tonnes)

Imports

Exports

Re-exports

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

2.2 Imports, exports and re-exports of seafood

2. Seafood Data

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

2.3 Catches, imports, exports and re-exports of seafood

2. Seafood Data

46,000

164,000

20,000

27,000

Seafood in the UAE - 2013 (tonnes)

Catches

Imports

Re-exports

Exports

Imports

0 20,000 40,000 60,000 80,000

OMAN

VIET NAM

MYANMAR

INDIA

PAKISTAN

CHINA

THAILAND

IRAN

TAIWAN

SAUDI ARABIA

Seafood import origins - 2013

0 5,000,000 10,000,000

BANGLADESH

VIET NAM

SRI LANKA

EGYPT

OMAN

MOROCCO

USA

QATAR

SUDAN

TAIWAN

Top 10 destinations of UAE seafood exports - 2013

0 5,000,000 10,000,000

VIET NAM

IRAN (ISLAMIC…

OMAN

BANGLADESH

SRI LANKA

HONG KONG…

QATAR

TAIWAN

AFGHANISTAN

BAHRAIN

Top 10 destinations of UAE seafood re-exports - 2013

2.4 Imports, exports and re-exports of seafood - Countries

The UAE imported seafood from 95 countries in 2013The charts show the top 10 countries seafood was received and sent to for 2013

Exports went to 59 countries and re-exports to 55The majority of exports and re-exports were sent to the rest of the GCC countries and further East

2. Seafood Data

- The UAE imports approximately 80% of its food

- Over 50% of seafood globally is farmed throughaquaculture 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 by80% in the last 40 years(Hamour, Shaari, Farsh)

- Hamour, a member of the Grouper family and alocal favorite, has decreased to 90%

- National food security is a key concern (priorityarea) for the government of Abu Dhabi

- Alleviating pressure on wild fish stocks is a priorityfor Environmental Agency (EAD), who is in charge ofmanaging the fisheries sector

- Aquaculture can provide employment andeconomic opportunities in rural areas

- Will help conserve ground water resources

3. UAE Aquaculture

3.1 Why is Aquaculture Important to the UAE?

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 for2014 (1% of total fish production)

- Average per capita consumption: 28 kg per year .[𝟐]

- Production trend: Down 25.2% in recent years .[𝟑]

- Investment required to catch up: than AED 1.3 billion

.[𝟓]

0

20000

40000

60000

80000

100000

120000

140000

1940 1950 1960 1970 1980 1990 2000 2010 2020Q

uan

tity

(to

ne

s)Year

UAE Fishery and Aquaculture Production

Total Production

Aquaculture Production

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 producingfingerlings 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 millionaccording 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 whenemptying 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

3. UAE Aquaculture

4.1 Aquaculture Development Plans

25 species reviewed for their suitability for farming [1]

9 species have been cultured successfully during pilot studies [2]

4. UAE Aquaculture - Species

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

4.1 Aquaculture Development Plans

5 species were produced commercially for 2014

Governmental aids with quality fingerlings

Other governmental involvements are in the form of policy and regulation, permitting, monitoring and enforcement are underway


Species Scientific name Production (Ton)

Sea Bream Sparus Aurata 290

Black Tilapia Acipenser baerii 10

Red Tilapia Oreochromis niloticus 30

White Shrimps Penaeus indicus 350

Sturgeon Oreochromismossambicus

108

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 - SubaityOrange spotted Grouper – HamourGold lined Sea Bream – GabitBlack sea Bream - Sheim


• 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

4.2 Concerned Fish Species: Hamour (Orange Spotted Grouper)


• 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]

4.3 Concerned Fish Species: Cobia


• 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]

4.4 Concerned Fish Species: Gold lined Seabream


• 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

4.5 Concerned Fish Species: Yellow Fin Tuna


• Salient physical peculiarity: Spiraled Shell .[𝟏]

• Main feed: Algae

• Breeding: External Fertilization .[𝟐]

• Natural Habitat: Coasts of Baja California, Mexico and California, USA

4.6 Concerned Fish Species: Abalone


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


5.3 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

http://www.moew.gov.ae/assets/download/e3fe253e/law23_e.pdf.aspx

http://91.74.184.33/videoplayer/Federal-Law-No.-24-of-1999-Eng.pdf?ich_u_r_i=4a1c2c893d153b65494962dbfc4f69e5&ich_s_t_a_r_t=0&ich_e_n_d=0&ich_k_e_y=1545028920751163482422&ich_t_y_p_e=1&ich_d_i_s_k_i_d=2&ich_u_n_i_t=1

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


http://91.74.184.33/videoplayer/Federal-Law-No.-24-of-1999-Eng.pdf?ich_u_r_i=4a1c2c893d153b65494962dbfc4f69e5&ich_s_t_a_r_t=0&ich_e_n_d=0&ich_k_e_y=1545028920751163292425&ich_t_y_p_e=1&ich_d_i_s_k_i_d=2&ich_u_n_i_t=1

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 foraquaculture in Abu Dhabi

• shape the development of future aquaculture policies andprograms in government departments and agencies

• guide the development of operational policies in relation toaquaculture in government departments and agencies

• clearly convey to all aquaculture stakeholders, including theindustry and general public, the principles that guide the AbuDhabi government’s commitment to sustainable aquaculturedevelopment


5.5 Aquaculture in Abu Dhabi– Legal Framework

Draft Environmental Policy on Aquaculture:

Proposed Aquaculture Permitting CategoriesA1. Land-based operations A2. Pump-ashore operations A3. Suspended aquaculture operationsA4. Bottom-culture operationsA5. Developmental or experimental aquaculture.


a. Pond Aquaculture (A1 or A2)b. Tank Aquaculture (A1 or A2)c. Inter-Tidal Aquaculture (A4)d. Longline or Raft Aquaculture (A3)e. Sub-Tidal Aquaculture (A4)f. Cage Aquaculture (A3)

HighTideMark

LowTideMark

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 othertotal dissolved solids. in the Abu Dhabi context it refersto naturally occurring groundwater in aquifers ordesalinated 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'ssurface, and is often contained in aquifers. it is naturallyreplenished by precipitation (rain) as it infiltrates into theground. Depending on the salinity, groundwater couldbe classified as fresh (< 1000 ppm), brackish (1000 - 30000 ppm), saline (30 000 - 50 000 ppm) and hyper salineor brine (> 50 000 ppm).

Groundwater red Zones: highly depleted groundwater

areas, strategic reserves and restricted areas

5.6 Aquaculture in Abu Dhabi– Legal Framework


The government’s responsibilities lies in the

development of suitable polices. The EAD drafts ,[𝟏]

clearly states that aquaculture ventures shall bedeveloped in a manner that:

• Alleviates pressure on wild fish resources;

• Maintains high standards of environmentalstewardship by utilizing environmentally-sustainable technologies and practices; waterefficiency, energy efficiency, Effluent dischargestandards,

• Holds aquaculture producers accountable forprotecting native flora and fauna and theirsurrounding ecosystems;

• Monitors the effects of aquaculture operationson the surrounding environment and reportsthe results to support best management andcontinuous improvement

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

The first phase of the Abu Dhabi Government’s screening/permitting procedure for an aquaculture establishment is as follows:

Environment Agency Abu DhabiLead agency to assess the environmental impact and

sustainability of a project .[𝟏]

Abu Dhabi Food Control AuthorityAssess the applications from an animal biosecurity, animal

health and welfare, and consumer health and safety .[𝟐]

Department for Economic DevelopmentReviews 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]


5.9 Aquaculture in Abu Dhabi – Licensing for operating fish farms: 2nd Phase

Ministry of Environment and WaterProvides an animal activity license after the

preceding screening processes .[𝟏]

Environment Agency Abu DhabiApproval for the application of licenses

Abu Dhabi Chamber of Commerce

Registers the business name .[𝟑]

Abu Dhabi MunicipalityIssues an approval certificate with respect to

the veterinary health standards .[𝟐]


Adjunct Members

5.10 Aquaculture in Abu Dhabi – Establishment of an aquaculture coordinating Committee

Proposed Members

Core Members


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


6.1 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 stationcurrently producing fingerlings of locally popular fish species in their natural spawningseason:• 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 KhalifaMarine 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 inthe UAE


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

6.3 Aquaculture Investment Climate – Marine Environmental Research Center (MERC)


• Open System hatcheries

• Upon establishment, there was a cooperation with JAIKO, aJapanese 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 cyclewithin a fish farm such as, appropriate feeding timings, age,water quality monitoring, fish behaviour

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 NationalCompany 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 inorder 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 toaid 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 fingerlingswill 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


6.5 Aquaculture Investment Climate - Private Sector Involvement

So far, the investment in UAE’s aquaculture industry is solely by private companies. For December2013, 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 currentlyestablishing a Dh293 million project (which would eventually rise to Dh1.8 billion) foraquaculture practices in the Arabian Gulf

• Abu Dhabi’s Farmers Service Center (ADFSC) identified 25 to 30 farms (mostly private) thatproduce fish, but claim several others have not been identified• Mostly ponds producing tilapia


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

• Operations now are based in Saudi Arabia with one farm in Kebbe City and a second one under approval (closed system)

• 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



• They had started the process of establishing a 600tonnes per annum capacity off-shore cagefarm on Delma Island (consisting of 50 cages covering an areas of 250,000 square meters), offAbu 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

• 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

• The farm will host a processing plant with a production capacity of 800-1,000 MT per annum



• The equipment used in the Saudi fish farms where purchased by a Norwegian companyaround 20 years ago

• The same equipment that was used in the UAE and Oman was moved to Saudi Arabia whenUAE operations stopped

• Feed is purchased by Arasco, a Saudi fish feed producer

• Medication is rarely used

• No need for genetic manipulations – They purchase juveniles form Greece and Turkey


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

• Hatchery in the Arabian Gulf

• 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

• Plans are in the next 5 years to produce 7-8,000 tonnes from their facilities in the UAE and 4-5,000 from facilities based in Oman

• Feeds: sourced by Saudi Arabia and Greece – Feed from Greece is considered of higher quality


6.8 Private Infrastructures: Fish Farm LLC

• Starting operations in early 2015

• 300 metric tonnes of sea bass, sea bream and grouper in three separate tanks

• Have been working with a Norwegian aquaculture technology company in setting up theproject

• Contract value of €9.5 million

• Plans to produce 200 metric tonnes of salmon in similar systems - to be fully operational byApril 2015

• Aim to produce the highest quality for the five, six or seven star hotels


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)

• Capacity of 35 tonnes of premium caviar per year and 700 tonnes of sturgeon per year

• Farming System: Recirculation Aquaculture System

• Feeding System: Robots

• Sensors and Monitoring: Software developed by HMR

Automatisierung und Prozesstechnik GmbH .[1]

• Training: In house

• Antibiotics: Nil but they would be highly interested if the drugs bring along something special


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


6.10 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

• Production of shrimp within two-meter deep pond facility in 74 hectares of land on BalRumaid Island (located behind Reem Island, a 15 minute drive and a five minute boat rideaway from Abu Dhabi) and fin fish breeding in Al Ajban, UAE

• The island is private property of the ruler of Abu Dhabi so security is high

• 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



• Type of pumps Cast iron pumps working round the clock to supply fresh seawater from thesea to the ponds. Main challenge is that they need maintenance every 6 months to ensure thecoating remains intact as rust is an issue due to the high salinity of the water (45ppt)

• Duplex stainless steel pipes would be more appropriate for this environment but moreexpensive

• Medication: Only add vitamins to the feed during the high temperature season to relievestress


Faming System Land based farming (100 hectares of land) on Bal Rumaid Island. The island has been converted to ponds


• Genetic Manipulation: As far as they know there is some research to control diseases but sofar this has not been successful for invertebrates

• Training: In house

• Feeds: Formulated palate feeds imported from Malaysia, Indonesia and Thailand. They triedimporting once from a Belgian company but the quality was not as good. It takes around 10-15 days for the feed to arrive from the day they order

• Shrimp feed is not very popular in Europe. Even if they were to order form Europe or the USthey feel it would take longer to arrive and would be more expensive


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 13,000tonnes 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 toproduce 3,000 tonnes of fish in the first year, 8,000 tonnes in the second and 13,000 tonnes inthe final year. This includes 10,000 tonnes of shrimp and 3,000 tonnes of tuna, cobia and seabream

• After the two years they plan to set up cage farming

• No decision has been made at this point on suppliers for technologies, feed, etc


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


6.13 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


6.14 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

• 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


http://www.anaf.ae/

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

• 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

• 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

• On land farming seems to be considered the most viable method

• Off-shore farming poses challenges due to less environmental control. A combination on on-shore 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

7. Summary

Strengths

• Perceived as professional• High quality products• Focused on R&D• Trustworthy

Weaknesses

• Market is price sensitive• Negotiations require flexibility• Must dedicate time in cultivating relationships locally

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

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

7.3 Recommendations for market entry

• Market potential for Norwegian companies is high but with some challenges

• Norwegian companies are regarded as experienced and professional

• However it is a price sensitive market so flexibility in negotiations is a must especially due to competition with Europe and Eastern countries

• Few market players, there is still a lot of work to be done to educate the market

• A pilot project with a local partner and marketing through the appropriate channels could create awareness and prove future success

• 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

• 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

7. Summary

Doing Business in the UAE

Abu Dhabi - October 2012

For further information contact:Maritsa [email protected]+971 50 907 1490

Matteo [email protected]+971 56 601 8336

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