Booming restaurant sector in Middle East

THE RESTAURANT sector in the Middle East continues to grow rapidly, noted a report in The Restaurant Show, a trade event taking place form 27-29 April at the Festival Arena Exhibition Centre, Dubai, United Arab Emirates.

In the UAE, the sector is valued at USD13.2 billion, and expected to grow at a CAGR of 8% to reach USD29.3 billion by 2020. It will get a boost from the upcoming Expo 2020 which brings some 25 million tourists into the country.

The food service sector will benefit from increased consumer spending which is forecast to reach USD136.1 billion by 2020. (Photo: Czanner I Dreamstime.com)

The region’s foodservice market is keeping up with international trends and concepts, from fast food franchises to celebrity chef-endorsed restaurants, brought about by partnerships between local operators and international brands. According to the report, the food-service sector will benefit from increased consumer spending which is forecast to grow at 25%-plus to reach USD136.1 billion by 2020. It noted some projects laid out for the next two years that will boost the restaurant industry:

In both the UAE and Kingdom of Saudi Arabia, Binghatti Hospitality, the hospitality arm of Binghatti Holding, said 200 Cupaghawa cafes will open in the next three years.

In the UAE, the 800,000 sqm Jewel of the Creek whose phase 2 will be completed in 2019, will see the rise of 20 retail and F&B outlets aside from hotels and serviced apartments.  A project between Dubai International Real Estate as the developer and Habtoor Leighton Group as the main contractor is located in Dubai Creek’s floating bridge and Al Maktoum bridge, Deira, this composes of serviced apartments, hotels, shops featuring 20 retail and F&B outlets.

The Marsa Al Arab, a 4 million-square-foot development located between two islands on both sides of Burj Al Arab Hotel, constitutes apartments, villas and commercial units. It will house an estimated 400 F&B outlets.

In the KSA, The Hakkasan Group will open five restaurants in the next five years. Its partner is the Al Khozama Management Company.

Another prospect is a hotel due for completion in 2020 in Makkah, a project by Saudi Arabian real estate company, Jabal Omar Development Firm. The hotel to be managed by Abu Dhabi Capital Group’s hotel management company H Hospitality Collection, will have five F&B outlets.

In Oman, a new mall by Al Raid Group called Al Araimi Walk will have 42 F&B outlets.  Said to be the Sultanate’s first outlet mall and largest “retailtainment” destination, it is a 240,000sqm area in Barka.

Therefore opportunities for food and beverage processing, packaging and other sectors of this industry will remain high in the region.

Reference: https://www.restaurantshowmiddleeast.com