UAE-based agritech firm Armela is scaling its operations with plans for a new horizontal high-tech strawberry facility and is currently evaluating the production of new crops, including baby spinach and blueberries. The move aims to solidify its position in the local market by enabling year-round production and distribution of a wider variety of fresh produce.
Dominating The Market With High-Tech Horizontal Farming
Already a major player in the UAE’s food security landscape, Armela currently holds an estimated 80-85% share of the local lettuce market. The company produces an average of 4.2 tonnes of premium hydroponic lettuce annually from its advanced facilities in Dubai and Abu Dhabi. It has also been expanding its footprint in kale and cucumber through strategic farm acquisitions.
Founder and CEO Avir Shah explained the company’s strategic preference for horizontal farming over vertical farming, citing the region’s natural advantages. He noted that high-tech vertical farming requires significantly higher upfront investment and carries greater production costs, while high-tech horizontal farms are more cost-efficient and scalable due to the UAE’s abundant sunlight.
“Vertical farming is still in the research and development (R&D) stage. There are only a few niche products like microgreens that work economically,” said Shah.
From R&D To Retail Leader
Founded in 2016, Armela began as a small research farm before pivoting to large-scale lettuce production after two years of successful R&D. The company’s ability to deliver a consistent, year-round yield of high-tech hydroponic lettuce established it as a market leader and triggered its current expansion strategy.
Today, the company owns and operates all its farms and manages a temperature-controlled logistics fleet of over 30 vehicles. Armela supplies major Tier 1 and Tier 2 retailers across the UAE, as well as wholesale markets and e-commerce platforms like Talabat, with plans to add Noon, Amazon, and Careem to its distribution network.
Expanding Beyond The Farm
In the last six months, Armela has successfully launched a trading arm to source fruits and commodities globally. This new division includes a premium produce line under the Armela label and a newer brand, Origins by Armela, which focuses on sourcing, grading, and repackaging high-quality produce from trusted international suppliers.
This strategy has allowed the company to position itself at the premium end of the market. According to Shah, growing brand recognition has elevated the price of its locally grown lettuce above that of imports. The company is also conducting trials to grow broccoli locally, a crop it currently imports at scale from Kenya.
Fueling Future Growth
To fund its ambitious expansion, Armela is exploring a combination of bank financing and potential equity investment. Shah noted that the company’s growing revenues and strong cash flow have positioned it well to secure capital for further growth.
He added that UAE banks have shown an increasing appetite for financing agritech ventures, signaling a rise in market confidence in controlled-environment agriculture as a sustainable and profitable sector.
About Armela
Armela is a UAE-based agritech company specializing in growing premium quality produce through high-tech hydroponic farming. Founded in 2016 and backed by AWR, the company is a leading producer of lettuce, kale, and cucumbers in the UAE. Armela operates its own farms and a dedicated logistics fleet to supply major retailers and platforms across the country, contributing to the nation’s food security goals.
Source: Zawya
