Armenia plans to begin regular shipments of fresh fruit and vegetables to the United Arab Emirates in September. At the initial stage, export volumes could reach up to 40 tonnes a week. Armenia’s Economy Ministry announced this on August 27 following a meeting between Economy Minister Gevorg Papoyan and Omar Mohammad Hamdan Abdullah Al Shamsi, the founder and CEO of UAE-based company Watermelon Ecosystem. The sides signed a memorandum of understanding following the meeting.

Armenia’s Economy Ministry said the agreement “will create an opportunity to organise long-term and sustainable exports” of fresh fruit and vegetables. Shipments are expected to begin as early as September, initially at “up to 40 tonnes per week.”

Watermelon Ecosystem is a UAE-based platform that brings together restaurants, food suppliers, manufacturers and farmers. It provides digital solutions for procurement and supply-chain management. The sides discussed not only shipments of fresh produce, but also investment projects, expanding exports of Armenian goods and establishing links between Armenian producers, buyers and distributors in the UAE and other international markets.

According to the Economy Ministry, Papoyan presented his Emirati counterpart with details of investments made in Armenia’s agricultural sector in recent years, as well as production facilities that meet international standards. The minister separately stressed the need to expand access to international markets, particularly for small and medium-sized producers.

Talks on helping Armenian producers enter the UAE market began as early as July. On July 16, Deputy Economy Minister Arman Khojoyan met with a delegation of representatives of Emirati businesses. The sides discussed the possibility of exporting fresh vegetables and flowers from Armenia, as well as issues related to organising supplies.

Access to new markets has become particularly important for Armenian producers following restrictions imposed by Russia, the largest traditional market for Armenian agricultural products. The restrictions introduced by Russia have affected, among other things, imports of agricultural products from Armenia subject to quarantine controls.

Against this backdrop, Armenia has stepped up efforts to find alternative export destinations. In June, the government launched a programme to support greenhouse producers. It provides compensation for exports of tomatoes, peppers, strawberries and flowers in an effort to make Armenian products more competitive in foreign markets.

At the same time, the Armenian government introduced separate support measures for bringing fresh fruit, vegetables and flowers to the markets of the European Union, the United Kingdom and Canada. The state has committed to reimbursing exporters or producers for customs duties paid in those countries.

The European Union has also joined efforts to redirect Armenian exports. In June, the European Commission transferred €34 million to Armenia from a €52 million support package announced against the backdrop of Russian trade restrictions. The EU said the assistance was intended to support, among other things, the agri-food sector, flower production and other export-oriented industries, as well as to help Armenian companies enter new markets.

In July, the European Commission announced an additional €18 million to complete the support package. European Commission President Ursula von der Leyen said the funds were intended to “strengthen and diversify trade”, including by developing export opportunities for Armenian businesses.

At the same time, the EU proposed temporary trade measures aimed at expanding access for Armenian goods to the European market. According to the European Commission, the proposed measures cover around 80% of Armenian exports to the EU. For fresh fruit, vegetables and plants, they cover almost 99% of the volumes Armenia had previously exported to Russia. The European Commission has also sent experts to Armenia to work directly with producers and exporters, including on finding new buyers, meeting European standards and increasing export capacity.

However, the Armenian government’s initial forecasts for greenhouse-product exports were higher than the actual results. In early June, the authorities expected a significant increase in shipments of vegetables, strawberries and flowers. Experts therefore believe the current support programme should primarily be viewed as an attempt to create new export opportunities rather than as an already completed reorientation of Armenia’s agricultural sector.

The UAE remains a relatively small market for Armenian fruit and vegetable products compared with Russia. However, the new agreement could provide producers with an additional sales channel. The importance of the project lies less in the initial 40 tonnes a week than in the possibility of creating a sustainable logistics chain and establishing direct links with Emirati buyers and distributors.

For Armenia, this represents an attempt to open several new directions for agricultural exports at the same time, ranging from the Gulf states to the European market. The Russian market remains significantly larger in terms of volume, but dependence on a single destination leaves producers vulnerable to changes in trade rules.

The shipments to the UAE therefore cannot yet be described as a major change in the structure of Armenian exports. But if the initial agreement for 40 tonnes a week develops into regular commercial shipments and volumes continue to grow, the current project could become one element of a broader restructuring of Armenia’s agricultural exports.