Pegasus Agriculture Group began the development of a 10,000 sqm hydroponic farm in Muscat, Oman in August 2013, later in April 2014 it commenced the construction of Saudi Arabia’s first commercial hydroponic farm, spread across 20,000 sqm, to grow lettuce, tomatoes, basil, thyme, and rocket. In May 2014, Oman-based Al Hosn Investment Co. started a greenhouse farming project based on the hydroponic technology at an investment of over OMR 4 million (US$ 10.4 million).
The project comprises 16 greenhouse units spread across 33 hectares, with an annual production capacity of approximately 3,000 tonnes of vegetables.
Increasing use of this technology may reduce the region’s food security problems. While the UAE has 87 commercial farms deploying the hydroponic technology, local farmers lack the required operational expertise.
To address this issue, in February 2014, the UAE government introduced a scheme to train farmers and provide hydroponics systems, fertilisers as well as other material at a 50% discount to the market rate.
Aquaponics is a symbiotic system that utilises fish excreta to provide nutrients to the plants which, in turn, serve as a biological filter for water. Aquaponics reduces the water usage by 90%-99% compared to the traditional aquaculture methods. As an organic production technology that is devoid of chemicals, aquaponics lends a competitive edge amid health- conscious consumers. The UAE invested AED 4 million (US$ 1.1 million) in 2011 to set up the Baniyas, the world’s largest aquaponics centre comprising two 2,400 sqm greenhouses, one each for vegetables and fish.
Investing in Hydroponics
Hydroponic farming does not use soil, which results in a form of agricultural production that consumes 90% less water than traditional methods. The word “hydroponic” is derived from the Greek words “hydros,” meaning “water” and “ponos,” meaning “work.”
Shariah Compliant Investment
Pegasus Agriculture’s A-frame Investment is a Shariah Compliant investment approved by the SSB (Shariah Supervisory Board). The investment follows the three principles of Sharia Investing. Pegasus Agriculture Group is pleased to announce that the Hydroponic Investment Product is officially Shariah compliant. Pegasus Agriculture has been issued a certificate from the Shariah Supervisory Board (SSB). The SSB made its official pronouncement after reviewing all of our contracts, literature and associated processes.
Fixed Return on Investment
- 12% fixed ROI per annum
- 2 year buy back option
- Quarterly payments directly to you
- Guaranteed sale of the produce harvested from your A-frame through an off-take agreement
- Peace of mind
- Fully transferable and sellable asset
The A-frame itself is 15 metres in length, 2 metres wide and 2 metres in height. Quite literally the A-frame is shaped like the letter A.
When purchasing an A-frame you are granted a 15 year manufacturers warranty on the structure, gulley’s and drains. This means the A-frame will be fit for use in a hydroponic farm for 15 years. Pegasus Agriculture Group will replace all defective parts at no additional cost to the owner of the A-frame.
Option 1 – Sell Back Agreement
As the purchaser of the A-frame(s) you can sign a sell back agreement with Pegasus Agriculture. This allows you to lock-in a fixed purchase price for your asset at a fixed date and time in the future, giving you peace of mind regarding your exit of your A-frame purchase.
Option 2 – The Re-Sale Option
As the purchaser, you may ask Pegasus Agriculture Group to resell your A-frame(s) (subject to a 5% resale fee) at any time. The resale will be conducted through the online portal where you can simply register the sale of your asset. Pegasus Agriculture will then attempt to match seller with buyer bi-laterally depending upon new purchase volume.
There is not an unlimited supply of A-frame(s) and existing purchasers are often looking to gain more exposure to the passive income stream generated by the asset. All resales will be subject to the Pegasus Agriculture standard terms and conditions and are subject to acceptance by Pegasus Agriculture.
Option 3 – You can sell it freely as you wish, when you wish
As the owner of the A-frame(s), and also the proven returns generated from the A-frame(s), you can sell the A-frame(s) as and when you wish, to any third party. Simply inform Pegasus Agriculture Group of the proposed sale and they will draft the relevant transfer documents and assist you with the process – making it as smooth as possible for you. You may also use their escrow facility for your peace of mind when making the transaction.
Hydroponics as a solution
Considering the region’s arid climate, lack of arable land, and water scarcity problems, hydroponics is by far the best solution to improve the domestic agricultural output. One of the largest operators of commercial hydroponic farms in the Middle East, Pegasus Agriculture revealed that the use of advanced hydroponics and shelf-growing technology results in 1,000- 1,200 tons of fresh produce per annum per hectare, which is about 30 times higher productivity than conventional farming.