Korean strawberries grown in the desert head to UAE in $2.6M smart farm deal

A project to grow strawberries in desert conditions using Korean smart farm technology has resulted in an export contract with the United Arab Emirates. As food security and stable agricultural supply chains emerge as pressing challenges across the Middle East, demand for Korean smart farming solutions is growing.

The Ministry of Agriculture, Food and Rural Affairs and the Korea Trade-Investment Promotion Agency (KOTRA) announced Wednesday that smart farm company Agro Solution Korea signed a $2.6 million plant-factory smart farm export contract — worth about 3.6 billion won — with UAE buyer Alfafa on Tuesday (local time).

The deal marks a case in which a local pilot project in the UAE led directly to a full commercial contract. With support from KOTRA's Dubai trade office, Agro Solution Korea carried out an $800,000 smart farm pilot project in 2024. Over roughly a year, the company supplied key equipment from Korea, applied cultivation technology tailored to the UAE's hot, arid desert climate, and verified both productivity and crop quality on the ground.

The Ministry of Agriculture, Food and Rural Affairs and KOTRA have jointly run an agricultural industry export promotion program since 2020. Participating companies receive step-by-step support covering local demand identification, buyer connections, overseas pilot projects, and follow-up negotiations toward full commercialization. The program is designed to help firms export not just equipment but also design, construction, and operational expertise.

Across the Middle East, momentum is building to reduce dependence on food imports. Geopolitical instability, maritime logistics risks, and price volatility driven by abnormal weather have combined to raise the strategic value of smart farming technology capable of producing food locally.

The UAE views food security as a national strategic priority. According to the country's National Food Security Strategy 2051, more than 90 percent of its food supply relies on imports. The UAE has long cultivated smart agriculture as a strategic industry, and analysts say recent instability in the Middle East could accelerate related investment.

Smart farms offer export potential beyond agricultural equipment alone, encompassing cultivation environment control systems, data-driven operational technology, and maintenance services. As food security concerns grow, the global smart agriculture market is expanding rapidly. Grand View Research projects the market will grow at an average annual rate of 15 percent through 2033, reaching $83.7 billion.

Interest in Korean smart farms extends beyond the Middle East. KOTRA and the Ministry of Agriculture, Food and Rural Affairs are holding K-smart farm export road shows targeting promising markets including ASEAN, Australia, and the Commonwealth of Independent States, providing project identification, local pilot project coordination, and buyer matching.

In the first half of this year, the agencies supported three events — participation in a Korean pavilion at the Caspian Agroindustry exhibition in Azerbaijan, a smart farm road show in Eastern Europe, and a road show in Laos. Those efforts yielded 15 MOUs totaling $4.01 million and three export contracts worth $2.87 million.

In the second half of the year, additional road shows are planned in Australia, China, Southeast Asia, and Argentina. The agencies also plan to invite key buyers through "Boom Up Korea," a comprehensive export marketing trade consultation event, and to expand the K-smart farm overseas expansion consortium program.

"As overseas interest in AI-integrated K-smart farms grows, the food security concerns stemming from the war in the Middle East are acting as a catalyst," said Kim Myeong-hui, KOTRA executive vice president and head of the Industrial Innovation and Growth Division. "We will use our overseas network to provide integrated support — from demand identification and local partner matching to pilot projects and commercialization — to boost simultaneous export performance for K-smart farm equipment and systems."