Dubai: The total value of spending in the UAE's food services market is estimated to have grown 11 per cent to Dh6.47 billion (in wholesale prices) in 2006, according to a latest report.
The Middle East's food service industry is still attracting more international names from the quick service restaurants (QSR) sector, particularly in the UAE because of its strong growth and increasing population.
The most important contributing factors are the growing population, relatively high purchasing power and the significant rise in the number of tourists.
Studies indicate that the total spending by tourists in the UAE will reach $7.6 billion in 2009 and that Dubai alone is targeting 10 million tourists in 2010.
Demographic factors and lifestyles also play a key role in this high percentage of spending on food services, especially considering the huge numbers of singles and their long working hours, which tend to encourage consumption of ready-to-eat meals.
Reports on franchising in the Gulf show that the fast-food industry in the UAE is still enjoying strong double digit growth year on year for the last five years, and the local quick service restaurant business currently stand at over $1 billion.
Industry experts expect that the market will grow even further and that there's still room for new international players, despite the UAE's comparatively large QSR market for its size.
Yasser Abdul Azim, director of marketing and business development for First Food Services LLC, the Burger King franchisee in the UAE, believes that even though the local markets include many of the most well known names in the QSR sector, many local and regional companies are still looking for new franchises to introduce to the UAE.
"From our long experience in this field and our own market studies, we can see that demand is nowhere near saturation," he said. This implies that there's still more room in the local and regional markets which are acting as a magnet for many of the international brands within all industries including fast food.
"We at First Food Services are going to introduce a new concept of restaurants in the quick service industry focusing on providing a menu offering that focuses on fresh ingredients."