Amaravati: The Andhra Pradesh government has signed a Memorandum of Understanding (MoU) with United Arab Emirates (UAE) to establish a UAE Food Cluster in the State, taking forward an investment commitment made during the World Economic Forum (WEF) in Davos earlier this year. 

The agreement was signed between the Andhra Pradesh Economic Development Board (APEDB) and the UAE Food Cluster in the presence of Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri at the State Secretariat in Amaravati on Tuesday.

The partnership aims to promote investments, trade and exports by creating an integrated food processing value chain.

UAE-based companies will be encouraged to invest in food processing, export-oriented manufacturing and value-added agricultural products, with a focus on horticultural produce such as mangoes, bananas and cocoa, besides strengthening export infrastructure and global market access.

Marking the first investment under the initiative, Dubai-based Floor Masters International announced an investment of ₹100 crore to establish a food processing unit at Gangadhara Nellore in Chittoor district.

The facility will manufacture food products for export, with the company planning to use Andhra Pradesh as its export base for nearly 25 countries.

Mr. Naidu said the UAE had converted its Davos commitment into a reality within six months and expressed confidence that the Food Cluster would position Andhra Pradesh as a major hub for food processing and exports. 

He highlighted the State’s strengths in horticulture, aquaculture and logistics, noting that agriculture and horticulture contribute about 30% of the State’s Gross State Domestic Product.

He also announced plans to develop Rayalaseema into a horticulture hub with ₹1 lakh crore in investments and establish the Indian School of Agriculture in partnership with Reliance Industries.

Mr. Al Marri described Andhra Pradesh as an attractive investment destination with abundant agricultural resources and praised the government’s investor-friendly policies and quick approvals.

The UAE would invest in food processing, cold-chain infrastructure and related facilities while promoting exports of seafood, dairy, poultry, pulses and other products to global markets, he said, expressing confidence that improved shipping links through Krishnapatnam and Kakinada ports would further strengthen trade between Andhra Pradesh and the UAE. 

Senior UAE and Andhra Pradesh government officials, including Industries Minister T.G. Bharat and Chief Secretary G. Sai Prasad and others were present.