DGAP-News

Premium veggies and fruit abound with a fresh UAE basket - Germany's BayWa and Al Dahra expand their value chain with EUR30 million agribusiness in Abu Dhabi

DGAP-News: BayWa AG / Key word(s): Joint Venture Premium veggies and fruit abound with a fresh UAE basket - Germany's BayWa and Al Dahra expand their value chain with EUR30 million agribusiness in Abu Dhabi 07.03.2017 / 08:49 The issuer is solely responsible for the content of this announcement. Premium veggies and fruit abound with a fresh UAE basket Germany's BayWa and Al Dahra expand their value chain with EUR30 million agribusiness in Abu Dhabi Munich/Abu Dhabi, March 07, 2017 - The German-based BayWa AG, with agriculture as one of its core businesses, has tied up with the Abu Dhabi-based Al Dahra Holding LLC, a leading international agribusiness company, to set up a ground-breaking project in the UAE.

BayWa AG and Al Dahra Holding LLC today unveiled the EUR30 million project. The new entity, Al Dahra BayWa LLC, will operate in the production of premium vegetables like tomatoes using latest greenhouse technologies as well as in the marketing of the produce in the seven-emirate federation, and potential regional markets. This contract is subject to approval by the competent authorities in the UAE.

Spending power in the UAE on fruit and vegetables from regional and sustainable production is strong and the country has a healthy market for premium fruits and vegetables. Al Dahra BayWa LLC will have its headquarters in the UAE capital, Abu Dhabi.

Commenting on the new company, HE Khadim Abdulla Al Derei, Vice Chairman & Managing Director of Al Dahra Holding LLC, said: "We are pleased to make this announcement which comes as part of the strategy of food security in the UAE and contributes to consolidating our initiatives in that direction".

"Al Dahra BayWa LLC has a great potential for growth in the region, and we are confident that this collaboration has the elements of success in this continuously growing business segment", he added.

The joint venture is part of the specialties strategy in BayWa's Agriculture Segment. "Through our trade network, we have identified the United Arab Emirates as a very profitable market with a large growth potential", explained Klaus Josef Lutz, the Chief Executive Officer of BayWa AG. "On an international scale, we are observing a growing interest to close the value chains between from growers to consumers - this development is reflected in our decision-making." Mr. Lutz emphazised that BayWa does not refer to standard products like wheat, corn and soy when talking about the expansion of its value chain, but instead focuses exclusively on special products for a profitable market segment in regions with strong growth in order to diversify its agricultural business.