Royal Fisheries Trading has commissioned the first phase of its fish processing plant in the Al Quoz industrial area, with investments to date running at Dh11 million. The facility has a freezing capacity of 25-30 tonnes a day and a cold store capacity of 1,200 tonnes a day.

Work on the second phase, at an estimated cost of Dh3.67 million, may start by mid-2001 for completion by early 2002. This will raise the freezing capacity by another 10-12 tonnes and help the company move into more value-added products.

Commissioning of the project was delayed from the initial mid-1999 date due to a decision to locate the plant on a site other than that originally chosen. Royal Fisheries has sourcing arrangements with suppliers in Oman, Yemen and East Africa.

Revenues of Dh50-Dh70 million are predicted in the first full year of operations despite the current weak market. The U.S., Far East, particularly Japan, and the Middle East will be the main markets.

"But the EU ban on fish from the UAE continues to be a drag on widening our export base," Managing Director C.C. Mohammed said. The EU restrictions have been in place for two years.

"The Dubai Municipality took steps to ensure that local fish processing plants conform to EU standards. It's also for the federal authorities to address the issue. But we are not sure what the present status is," Mohammed added.

Currently, among the Middle East states, only Oman, Yemen and Iran can supply fish products to the EU. According to local industry sources, Saudi Arabia has been trying to get the ban lifted. Bahrain may also be moving in this direction, they add.

Meanwhile, the global fish processing industry continues to suffer from cyclical swings. "Now it's somewhat on the downside. Lobstertail and cuttle fish demand is muted, while that for shrimps remains good," Mohammed said.