Food security in the Middle East and North Africa (MENA) region is facing a turning point. It’s well known that the area is short on fertile land. What’s newsworthy is that agri-tech solutions are being mobilized quickly to address this long-standing issue and how policy, capital and old-school obstacles shape the path ahead. Here’s a clear view of what’s happening, how it works and why it matters.
The State of Agri-Tech in MENA
The hunger risk in MENA is serious. In 2023, 66.1 million people in Arab regions faced starvation. Wars are driving several countries toward famine, while water scarcity and limited arable land continue to shrink the agricultural output that so many depend on. Due to these limited resources, most countries heavily rely on imports to meet their demand. For instance, even the Gulf Cooperation Council (GCC) countries — among the most food-secure zones — import roughly 85% of their supply to feed their growing population.
Here is where agricultural innovations make the most difference. Tractors, drones and biotechnology all make farming more efficient and allow for higher yields even with less water and land and a lighter labor load.
The investment wave is already rolling, and these countries are leveraging their capital toward these sustainable systems:
- Controlled environment agriculture (CEA): CEA is a primary focus to grow crops year-round in enclosed, even soilless environments. Vertical farming and high-tech greenhouses make this a reality.
- Water management solutions: Given the region’s extreme aridity, technologies that drastically reduce water consumption are widely adopted. Many producers extensively use drip irrigation, hydroponics and desalination plants.
- Precision agriculture: Sensors, satellite data, AI and drones make food production a precise science that helps ensure crops thrive with the least amount of resources through scheduled irrigation and efficient fertilizer use.
- Agri-fintech and farmer support: In countries with many small-scale farmers, like Egypt, startups are utilizing smartphone apps to provide access to crop insights, microfinance and market information so that they can make more informed operational decisions.
- Alternative proteins and biotechnology: The region has welcomed meat and dairy alternatives to ensure food security. Supermarket shelves are now stocked with plant-based nuggets, burgers and milk, even integrating well into restaurant menus.
The Policy Landscape
Government initiatives are driving much of the change in agritech. Economic efforts include grants and subsidies to private investments. As early as 2015, the UAE introduced the Green Agenda to reduce the nation’s carbon emissions to under 100 kilowatt-hours, which laid the groundwork for startups and sustainable farming projects to expand.
The governments also roll out programs supporting ventures in new international technologies. The Abu Dhabi Investment Office, in particular, has partnered with two global protein companies to establish a four-million-liter fermentation facility in the emirate.
However, fragmented and inconsistent regulations persist, especially in countries with weak agro-input policies. The pesticide sector in the MENA area remains one of the least regulated, mainly due to poor coordination among authorities, importers and sellers. At the same time, many countries lag behind international standards in food safety and traceability, which may slow the adoption of agritech that relies heavily on data, traceability and digital systems.
Water use is already regulated in the region, but implementation struggles arise. Countries have different approaches to regulating groundwater, with some requiring permits for well drilling and limiting the volume of extraction.
Morocco’s national water savings program is converting 550,000 hectares of land to drip irrigation. The program has progressed modernization but has caveats, particularly in how it overlooks on-farm water efficiency losses compared to the broader river basin scale.
Financing Sustainable Agri-Tech in MENA
Innovation needs money. While capital exists, it’s unevenly spread across the region. Strong assistance flows from sovereign wealth funds, private equity, family offices and governments in the Gulf. In contrast, North Africa experiences fewer and different forms of financing, constrained by limited venture aid and higher perceived risk.
Even within the Gulf, funding gaps persist. Arab countries require around USD 230 billion annually to meet the 2030 Agenda for Sustainable Development Goals.
Across the Near East and North Africa (NENA), over 80% of agricultural production originates from small-scale farms, with the average size typically being less than two hectares. These producers often lack access to credit and financial services, limiting their ability to adopt costly machinery innovations that reduce manual labor and improve efficiency. Maintenance can be a heavy burden, too — around 80% of costs stem from just 20% of machine problems — making support crucial for smaller growers.
Roadblocks to Scaling
The shift to sustainable agri-tech faces several barriers that slow its implementation. This is where most countries encounter challenges.
- High up-front costs: Advanced systems save water and land, but the initial setup is expensive. For smaller farmers, the math doesn’t always add up without subsidies or technical assistance.
- Fragmented capital and mandates: Investors have different financial priorities. Some development aid prefers to support North Africa, while Gulf-based resources focus on projects inside the Arab world. This fragmentation turns into uneven pan-MENA fund structures.
- Climate, geography and infrastructure: Approximately 60% of the MENA population resides in areas that fall within arid or semi-arid rainfall zones. It is also among the most water-stressed regions in the world. These challenges hinder logistics, water and energy supply, making resilient infrastructure all the more foundational.
- Small-farm exclusion: Many agri-tech solutions usually target bigger operations, leaving small-scale growers excluded from the development. Their participation is critical, particularly in the NENA, as they are often the ones who lack access to data, capital and training.
- Regulatory uncertainty: Even when the policy framework is established, regular changes, a lack of local expertise and limited digital infrastructure can slow the rollout of precision farming, IoT, AI and other connected systems.
The Pathways Forward for Scaling Sustainably in Agri-Tech
Efforts in the region need tightening. Because countries have different laws and regulations governing the adoption of farming technology, fragmentation remains a significant barrier. Still, some solutions can be applied on a pan-MENA level.
First, policies should offer financial incentives to develop and implement technology-driven solutions that help farming conserve limited resources while strengthening food security.
Public-private partnerships can also help close the funding gap for high-cost technologies, drive innovation and reduce risks for both sides. The focus should be on pesticide, seed and food safety standards, as these remain some of the biggest challenges across the region.
Finally, harmonization offers another path forward. Since many MENA countries face similar climate pressures, water scarcity and agricultural constraints, they could benefit from shared standards, data systems and coordinated technology deployment. Aligned regulations lower compliance costs, accelerate adoption and allow agritech companies to scale across borders rather than remain confined to individual markets.
Addressing MENA’s Climate Realities With Sustainable Agri-Tech
The ecosystem that drives the adoption of production technology relies on collaboration among all players, from smallholder farmers to influential government entities. To achieve food security in a water-stressed region, these stakeholders must collaborate to serve the broader population and ensure a future where food is produced sustainably with minimal environmental impact.
