Staying Ahead of the Curve

Population in the Middle East is expected to swell to 437 million by 2050 – a 54% increase from 284 million in 2010. More immediately, the population in the high-income GCC nations is likely to grow by 10 million by 2020. This increase, according to Alpen Capital's most recent report on GCC food industry, is a primary driver for the growth in food consumption.

"The region is highly receptive to the global food industry trends, given its expanding demographic profile and diverse preferences," said Mohammed Jalal Al Reyaysa, director of Community Services and Communications, Abu Dhabi Food Control Authority (ADFCA), ahead of the SIAL Middle East in November. ADFCA hosted 500 food buyers at the Abu Dhabi event to enable food manufacturers to develop export potential and reach out to the vibrant MENA market.

"The increasing demand for food presents a great opportunity to manufacturers to reach out to newer markets," Mr Al Reyaysa added.

Raising the Industry's Global Profile

Other matchmaking events supported by overseas trade offices help to identify opportunities for GCC exporters and raise their profiles in global platforms.

Dubai Exports, an agency of the Department of Economic Development (DED), spearheads the exports from the country through creating long-term overseas opportunities for UAE companies. Within the region, Saudi Arabia remains one of the main export destination markets, particularly in the building materials and food & beverage sectors.

At the Anuga food exhibition in Cologne in October, for instance, Dubai Exports assisted UAE firms to raise their profile as exporters. Germany is an important market for Dubai with its total direct export to the country amounting to Dhs1bn in 2010, whilst exports from the free zones was valued at Dhs1.2bn, the agency reports.

"Dubai Exports is continuously looking for ways to aid local companies to expand their presence and increase their export opportunities in the Kingdom and Europe particularly in Germany," said Engineer Saed Al Awadi, chief executive officer of Dubai Exports.  "The Anuga exhibition provided an excellent opportunity for UAE companies to showcase their products and services, and present the latest in the UAE’s food industry including Dubai's export capabilities."

Momentum at the Free Zone

In 2010, Jebel Ali Free Zone (Jafza) saw a 12% increase in the number of food and beverage companies to take the total number in the Free Zone's F&B sector to 250 at the end of the year. Leading F&B companies including Mars GCC, Kraft Foods, PepsiCo, Unilever, Procter and Gamble, Heinz, Wrigley, McCain International and Alokozay Tea conduct their MENA operations there.

The Free Zone expects to expand its current clientele to include more global names and to maintain the momentum as it looks to attract new investments from companies in Europe. "From the start, Jafza has attracted FDI from the global Food and Beverage industry, drawn by the free zone's strategic location, its trading and redistribution potential and business opportunities in the Middle East," said Ibrahim Mohamed Al Janahi, deputy CEO, Jafza and chief commercial officer.

Mansoor Al Bastaki, senior regional manager for Global Sales - Europe who represented Jafza at Anuga, said the Free Zone presented its investment-friendly business model with its high-capacity logistics infrastructure and world-class services. "The GCC region is dependent on food imports offering many opportunities to global companies who have easy access to markets in the MENA region and [even to] Asia as well where the demand for food is steadily rising," he said.