The American putting the flavor back in the tomato in the UAE and sharing it with Saudi Arabia

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Sky Kurtz, CEO at Pure Harvest told Arab News the company hoped to expand into Saudi Arabia in 2020. (Pure Harvest)
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The tomatoes are grown all year in climate controlled greenhouses hear Abu Dhabi. (Pure Harvest)
Updated 29 November 2019

The American putting the flavor back in the tomato in the UAE and sharing it with Saudi Arabia

  • The startup is on schedule to expand operations into Saudi Arabia by H2 2020
  • It is hoped that with technology advances that the farms will generate solar energy too

DUBAI: For the last few decades retailers have treated flavor as a separate commodity to the food they were selling – for one price you get the item, pay more and you get the taste those in their 40s and older used to experience throughout their childhoods.

But a UAE-based multimillion-dollar startup is looking to change that and already has its eyes on Saudi Arabia with plans to start operations in the second half of 2020.

“We are trying to bring back a nostalgic connection to food that is local, that supports your local economy - but also is flavorful, is healthy, and is safe,” Pure Harvest CEO, Sky Kurtz, told Arab News.

“Our slogan at the company is ‘It tastes like it should’.”

Sky Kurtz says flavor is key with his produce. (Pure Harvest)

And because the produce is grown locally its production will contribute significantly to the local economy.

The Gulf region is notorious for its arid landscape - the UAE alone imports up to 90 percent of its food – Saudi Arabia has a similar issue with import reliance – and the food that is grown in the country usually lacks flavor, Kurtz said.

But he said he believed this same landscape was actually “one of the best places to farm in the world,” when the right technology was used.

“We have an abundance of light, an abundance of labor, cheap land, zero percent corporate taxes.”

Using climate-controlled greenhouses, that offer optimal conditions for growing fruit and vegetables year-round, Pure Harvest is producing approximately two tons of tomatoes every day that sell at the supermarkets for about $3.40 for 300g.

Expansion plans

The firm’s customer base includes hotels, restaurants, caterers and a number of supermarkets including Carrefour, Spinneys and Waitrose.

Pure Harvest was set up late in 2016, and initially raised $5.8 million in 2017 in what has been described as the Mena region’s “largest-ever seed financing,” led by Shorooq Partners and the Mohammed bin Rashid Innovation Fund.

The operational side of the company started life in the desert outside Abu Dhabi in October 2018.

“The initial farm we built is really a commercial scale proof of concept. What we are going to build will be over 12 hectares – we’re going to build a much larger footprint,” Kurtz added.

They experimented with different types and varieties of tomatoes – it was a test run, Kurtz said, to convince future investors of the company’s potential.

Tonnes of tomatoes are being produced in the current trial operation near Abu Dhabi. (Pure Harvest)

Kurtz said Pure Harvest was not a conventional farm, but instead a food manufacturer and already the company is looking to add lettuces and strawberries to its product line.

“We believe that if we can bring down the cost and improve the affordability and availability of these crops, we can massively grow those markets,” Kurtz explained, adding: “We believe that we can deliver that here at a more affordable price than other companies that import.”

He said the long-term aim of the business was to “drive the cost out of food production and share that with the customers.”

Rather than selling at a premium, Kurtz explained, the plan was to grow the market share across the Gulf region, but bring down the cost and increase consumption.

And the business plan seems to benefit the local economy, because with every unit of produce sold means more money spent locally, which Kurtz said lead to a “significant multiplier for the region.”

"Consumption benefit" 

What’s more Pure Harvest has received a significant level of funding from international funders.

“There’s a consumption benefit… we attract foreign direct investment, over half of our capital is from abroad and the expansion is likely to be even more than that,” he explained.

The extra funds – he said – would help secure land rentals from the governments, pay for the various resources and also create some employment opportunities.

Kurtz says the firm is also carbon negative, buying the gas generated by oil refineries to aid with the growing of its crops.

“We consume carbon. We actually purchase food grade CO2 and we feed it to the greenhouse…  We displace the airplane that would have otherwise brought the food that is burning jet fuel to get here.

“We use less than 32 liters of water per kilogram of production. A typical farm in the UAE uses over 260 liters.”

It is not just crops that Pure Farms are going to produce, Kurtz said they were looking at the potential for becoming a solar power farm.

With solar energy technology advances it is likely there will be duel-function glass that will provide sunlight for the plants, but also capture the solar power that will not only power their operations, but also be sold onto the national grid.

The ultimate aim, Kurtz added, was to expand across the Gulf region, producing local food for local communities – but with the potential to export the excess. 

Saudi Aramco shares soar at maximum 10% on market debut

Updated 11 December 2019

Saudi Aramco shares soar at maximum 10% on market debut

  • Company is now world’s largest publicly traded company, bigger than Apple

RIYADH: Saudi Aramco shares opened at 35.2 riyals ($9.39) on Wednesday at the Kingdom’s stock exchange, 10 percent above their IPO price of 32 riyals, in their first day of trading following a record $26.5 billion initial public offering.
Aramco has earlier priced its IPO at 32 riyals ($8.53) per share, the high end of the target range, surpassing the $25 billion raised by Chinese retail giant Alibaba in its 2014 Wall Street debut.
Aramco’s earlier indicative debut price was seen at 35.2 riyals, 10 per cent above IPO price, raising the company’s valuation to $1.88 trillion, Refintiv data showed.
At that price, Aramco is world’s most valuable listed company. That’s more than the top five oil companies – Exxon Mobil, Total, Royal Dutch Shell, Chevron and BP – combined.
“Today Aramco will become the largest listed company in the world and (Tadawul) among the top ten global financial markets,” Sarah Al-Suhaimi, chairwoman of the Saudi Arabian stock exchange, said during a ceremony marking the oil giant’s first day of trading.
“Aramco today is the largest integrated oil and gas company in the world. Before Saudi Arabia was the only shareholder of the company, now there are 5 million shareholders including citizens, residents and investors,” said Yasir Al-Rumayyan, the managing director and chief executive of the Saudi Public Investment Fund.
“Aramco’s IPO will enhance the company’s governance and strengthen its standards.”
Amin Nasser, the president and CEO of Saudi Aramco, meanwhile thanked the new shareholders for their confidence and trust of the oil company.
The sale of 1.5 percent of the firm, or three billion shares, is the bedrock of Crown Prince Mohammed bin Salman’s ambitious strategy to overhaul the oil-reliant economy.
Riyadh’s Tadawul stock exchange earlier said it will hold an opening auction for Aramco shares for an hour from 9:30 a.m. followed by continuous trading, with price changes limited to plus or minus 10 percent.

The company said Friday it could exercise a “greenshoe” option, selling additional shares to bring the total raised up to $29.4 billion.
The market launch puts the oil behemoth’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
Two-thirds of the shares were offered to institutional investors. Saudi government bodies accounted for 13.2 percent of the institutional tranche, investing around $2.3 billion, according to lead IPO manager Samba Capital.
The IPO is a crucial part of Prince Mohammed’s plan to wean the economy away from oil by pumping funds into megaprojects and non-energy industries such as tourism and entertainment.
Watch the video marking Aramco’s opening trading: