One of the region's most elaborate forays into non-traditional fisheries is taking place in the UAE with a local company engaged in raising seafood production through hatchery and cage facilities.

International Fish Farming Company (Asmak) has joined hands with Gulf and European specialist and scientific organisations in an endeavour to exploit the growing demand for seafood not only from within the Middle East region but also beyond, particularly Europe.

A lifting by the European Union (EU) on the ban of UAE fisheries products, for which Asmak worked frenetically, has raised prospects of large profits from exports to that region and prompted the company to consider greater involvement in aquaculture and seafood processing including building facilities for the region's largest commercial hatchery for finfish at Umm Al Quwain.

The company has established successful operations at its first cage farm in Ras Al Khaimah under a long-term concession finalised with the government of that emirate. The farm comprises an offshore area of 3 x 1.5km near Al Mataf Island and a 2,000 sq m land base at Al Rams along with related land assets and seven marine vessels serving as support to the cage farm.

The Ras Al Khaimah project has maintained a double-rate growth. According to Asmak, the average period in Europe for fish to reach 350gm is 17 to 18 months but at the project site the same period was found to yield double the weight. Production capacity at the farm is 1,200 tonnes per year.

Asmak has also signed a concession agreement with the Fujairah government for a 25-hectare offshore cage farm near Dibba. A farm with 20 floating cages has already been constructed and expansion is currently underway to reach a total of 30 cages by November 2002. Present fish production capacity is 800 tonnes annually and expected to reach 1,200 tonnes after expansion. Harvested are species including sobaity, sea bream and sea bass.

UAE nationals hold 55 per cent of Asmak's share capital. Organisations with stakes in the company are the UAE Offset group; Nireus Aquaculture SA (Greece); Gulf Investment Corporation (Kuwait); Union Cold stores & Distribution co.; Dassault Investissements (France); 10N The National Investor; Ras Al Khaimah Government; Foodco; Baldwin International, and Oasis National Foodstuff Company.

The company has announced it will begin construction shortly of the Um Al Quwain hatchery. The company had earlier signed an agreement with the UAE Ministry of Agriculture and Fisheries, allowing it to build facilities for the production of more than 25 million finfish juveniles. The hatchery will constitute a strategic reservoir for enhancing output at its various fish farming facilities including prominent ones in Ras Al Khaimah, Fujairah and Oman.

"This is another deliberate step Asmak is taking towards integrating its various projects around the UAE and the Arabian Gulf, " said senior manager Dr Abdul Hamid Aboufayed. "Asmak is working very closely with all related government bodies to implement every standard procedure pertaining to the preservation of the marine environment and developing the means to protect and nurture it."

Aboufayed said the project would not only strengthen integration within the facilities network, it would also expand the circle of technology transfer among different GCC countries.

Well ahead of work on the Umm All Quwain hatchery, the company signed an agreement with the Kuwait Institute of Scientific Research (KISR) to lease their existing hatchery facilities for the commercial production of finfish juveniles. A joint venture company called Gulf International Aquaculture Company (GIAC) was formed with Asmak holding 49 per cent of the capital and the rest contributed by Kuwaiti companies.

KISR's facility comprises a broodstock of such local species as hamour, shaem and sobaity, all of which will be utilised to produce juveniles and speed up the company's plan for the grow-out of those types. Asmak is providing the management and the technical knowhow for the project.

"Asmak's agreement with KISR to lease their existing hatchery facilities in Kuwait for commercial production of finfish juveniles is a vivid example of the company's continuous efforts to achieve maximum efficiency of operations, as well as fulfil the aspirations of its regional scope of operations," commented Aboufayed.

In another major development, Asmak finalised a concession agreement with the Omani authorities, and took a 65 per cent share in a new company that was incorporated Ñ Quriyat Aquaculture. Quriyat Aquaculture is engaged in cage farming of marine warm water finfish in Omani waters with a targeted production of 2,460 tonnes per year by 2004. The project also includes a finfish hatchery, which will be utilised to produce juveniles. According to Aboufayed, the first production was of European sea bream, followed by sea bass, Red Sea bream and others species. The company has also established a processing plat in Oman - Ocean Fish of Oman - adopting European standards and having a production capacity of 4,000 tonnes per year.

Asmak has taken a 40 per cent stake in the Greek fish feed operation Feedus SA avowedly to make sure the fish feed is in line with European standards. The investment allows Asmak to control the quality of the feed it uses. The content of the feed is fishmeal, fish oil and vitamins.

Says Aboufayed: "The prime reason for going in this direction is to take no risks whatsoever in terms of quality. Furthermore, the reliability and continuity of supply is very vital. The European factories are of very high standards, which are regulated and monitored by the European Union, which is one of our potential markets."

The company's fish processing plant - Ocean Fish Processing - at the Jebel Ali Free Zone in Dubai implements the Hazardous Analytical Critical Control Point (HACCP) system and is the first processing plant of its kind that is ISO certified.

Asmak's diversification plans cover shrimp farming, tuna ranching and the production of value-added products

While it has its sights far beyond the Gulf's shores, Asmak is also looking closely at home demand and wants to become the leader in supplies to major hotels, caterers and the government sector without hurting the local fishermen's market. The company has established a distribution network within the UAE with daily deliveries to the main supermarkets, restaurants and five-star hotels, and is in the process of setting up retail outlets including one at the main fish market in Abu Dhabi.

"Asmak remains steadfast to become the leader in aquaculture in the Middle East and develop an integrated fish company. To achieve this the company will continue to be selective and patient about its investment decisions to ensure that we optimise the use of the funds committed to the company by its shareholders," said Aboufayed.