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UAE-based agritech firm Armela is finalising plans for a horizontal high-tech strawberry facility and evaluating production of baby spinach and blueberries, its founder and chief executive said.
“This will support year-round production and distribution,” Avir Shah told Zawya Projects on the sidelines of Gulf Food event in Dubai.
Shah said the company holds 80–85 percent share of the UAE’s lettuce market and is expanding its footprint in kale and cucumber through farm acquisitions.
The company produces an average of 4.2 tonnes of premium hydroponic lettuce annually from its high-tech facilities in Dubai and Abu Dhabi, alongside kale and cucumbers from lower-tech farms. It is also conducting trials for broccoli, a crop it currently imports at scale from Kenya.
“We are among the largest importers of broccoli in the UAE. Now we’re testing whether we can grow it locally year-round through mid-tech greenhouse solutions,” Shah said.
Backed by the UAE-based AWR, Armela operates both horizontal and vertical farms but has stayed away from high-tech vertical farming.
Shah noted that high-tech vertical farming requires higher upfront investment, carries higher production costs and offers limited crop variety compared with horizontal farming. Moreover, abundant sunlight makes high-tech horizontal farms more cost-efficient and scalable.
“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.
Growth story
Armela was founded in 2016, initially operating a small research farm growing herbs, lettuce and tomatoes. After two years of R&D, the company converted its facility entirely to lettuce production, selling out within six to eight months and triggering an expansion strategy centred on high-tech horizontal hydroponics.
“We were the only player at the time to successfully operate a high-tech hydroponic lettuce facility at scale, delivering consistent yield all year round,” said Shah.
The company owns and operates all its farms and supplies Tier 1 and Tier 2 retailers across the UAE, wholesale markets as well as e-commerce platforms like Talabat with Noon, Amazon, and Careem expected to follow shortly. Armela also operates a temperature-controlled logistics fleet of more than 30 vehicles, monitored around the clock.
Over the past six months, the company has launched and grown a trading arm sourcing fruits and commodities globally and branding premium produce under its Armela label. A newer brand, Origins by Armela, focuses on origin-based sourcing, grading and repackaging of high-quality produce from trusted international suppliers.
Shah said the company has positioned itself at the premium end of the market, with locally grown lettuce now priced above imports, driven by growing brand recognition.
Bank talks
Looking ahead, Armela plans to fund expansion through bank financing and potential equity investment.
“With revenues growing and strong cash flow, we’re now exploring banking facilities for expansion and working capital. we're open to equity investment as well,” Shah said.
He added that UAE banks have shown increasing appetite for agritech financing, reflecting growing confidence in controlled-environment agriculture.
(Reporting by Deva Palanisamy; Additional reportng by Anoop Menon; Editing by SA Kader)
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