UAE Food Industry Remains Robust

THE United Arab Emirates is an important regional hub with significant food re-exports to the GCC, North Africa and the CIS countries. The Government is seeking opportunities to expand light manufacturing and exports and food processing is consistent with this strategy. There are also growing concerns about food security in the region and the UAE could become an important regional processing and storage centre for bulk, semi-processed and consumer-ready foods with the aim of boosting the availability of food supplies and storage.    

Cumulative investment in food processing reached $9 billion through 2008, accounting for nearly half of the $21 billion in investment outside of the oil and gas sector. Between 2003 and 2008, the number of food, beverage  & tobacco processing facilities grew from 225 to 359.  Nevertheless, the value of imports of processed foods continues to exceed the value of raw materials for further processing by a significant margin, and the UAE is dependent on imports for 85 to 90 per cent of its food needs.

Whilst food processors often started small, the UAE’s strategic location, excellent ports, and strong infrastructure have helped many to expand. Industries such as flour and feed milling, soybean crushing, meat processing, dairy processing, soft drinks, fresh juice production, vegetable preparation and canning and snack food production are currently able to compete with industries and products in the Middle East and Asia. A number of international companies and brands are currently producing in the UAE, utilising their own facilities or co-packing with other existing processing facilities.  

Seafood processing is another rising industry.  Processors utilise seafood products caught locally or others imported from Oman, India and Iran. The U.S., Europe and other Asian countries are the principle importers of UAE processed seafood products. 

Processors depend nearly exclusively on imports for sourcing their raw materials and intermediate food products in light of the limited local agricultural production. Some locally produced foods are of very high quality with competitive prices compared to imported products.  As the number of food processing companies in UAE continues to increase, locally produced products are likely to compete directly with imports of consumer-ready foods, whilst boosting demand for ingredients and other raw materials. 

Many types of locally produced foods are gaining in popularity and establishing strong brands in the areas of juices, bakery products, pasta, canned beans, processed meats, snack foods and biscuits. There are several advantages for localNike Air Jordan