Business | Economy
Channel Sponsor
Middle East food service market estimated at $31b
The Middle East food service market is estimated to be worth more than $31 billion a year. GCC states account for $9.5 billion with meat, poultry and fish making up 30 per cent of total purchases.
- By Suzanne Fenton, Staff Reporter
- Published: 23:33 February 19, 2008
- Middle East foodservice Market worth $31 billion annually
- GCC states account for $9.5 billion (meat, poultry and fish account for 30 per cent)
- The UAE accounts for $3-4 billion
- Ninety per cent of region's food needs are imported. Region's imports increased by 14 per cent to $373 billion in 2006.
- Dubai is world's third largest re-export hub. Re-exports 72 per cent of imports to 160 countries.
- The UAE ranks third globally in annual two-way trade with India.
- Middle East is a growing franchise destination with annual growth of 27 per cent valued at $14 billion. Fast food accounts for 40 per cent of this.
Dubai: The Middle East food service market is estimated to be worth more than $31 billion a year. GCC states account for $9.5 billion with meat, poultry and fish making up 30 per cent of total purchases.
The UAE accounts for $3 billion to $4 billion.
The UAE is currently ranked third globally in annual two-way trade with India and has access to two billion consumers in the UAE and surrounding countries. Dubai is the world's third largest re-export hub. Seven-two per cent of all imports are re-exported to 160 countries.
Helal Saeed Al Merri, director general, Dubai World Trade Centre (DWTC) said: "Economically and socially, food and foodservices are hugely important sectors, as they cater to the growth and development of the tourism and hospitality industries."
Ninety per cent of the region's food requirements are imported at a staggering cost of $3.5 billion-$4 billion. The UAE, however, is taking steps towards becoming more self-sufficient. There are currently 6,313 greenhouses and 22,797 farms across the country.
Elly Habt, project manager for exhibitions at Gulffood, said the UAE is witnessing an increase in local food production with more factories being built in the country and in the region.
According to the DWTC, saturation in the industry is forcing emerging markets such as India, Pakistan, North Africa and Saudi Arabia to look for new markets with strong economies.
Growing market
Dubai's high GDP, growing tourism and a growing population are all contributing towards the food business. In 2007, 44.2 per cent of all industrial investment was spent in the food, beverage and tobacco sector in the UAE with Dh32,153 million being invested, according to the Ministry of Finance and Industry.
The 13th Gulfood Exhibition will be held at the Dubai International Convention and Exhibition Centre from February 24 to 27. It is set to be the biggest Gulfood event yet, attracting 2,500 companies, aiming to sign multi-million dollar deals.
Elly Habt said, "It's a growing market - each hotel in Dubai has maybe five restaurants and cafes and they need to source products from somewhere."
The Middle East is set to continue to be the world's fastest growing tourism market, reaching an annual growth rate of 6.7 per cent until 2010, according to latest figures. And with new hotels and restaurants springing up in Dubai all the time, the food industry is in a position to reap the rewards.
Fact box: Break down
Share this article
More from Economy
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Credit swaps... a fair trade
Would you swap an unbuilt unit at the Lagoons for an apartment at JBR?
-
New face of safety
Volvo reveals a sleeker S60, ready to hit the roads early next year
-
When the Web lives worldwide
Cutting-edge firms are building massive data facilities all over the globe
