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UAE F&B sector shows steady growth across region

DUBAI, February 10, 2015

The UAE food and beverage sector is showing steady growth year-on-year and due to the state-of-the-art infrastructure and investor friendly environment, the country is fast becoming a preferred location among the Middle Eastern countries, according to an expert.

Speaking on the sidelines of the ongoing Gulfood 2015 in Dubai, Saleh Abdullah Lootah, chairman of Food and Beverage Manufacturing Business Group (FBMG), said manufacturing of high quality, competitive and value added products, tax-free business system, investment friendly and easier to operate environment, all play major contributing factors in food products that are propelling UAE as F&B manufacturing hub in the region.

The population in the Middle East region in general and in UAE in particular is growing. In 2030, the population of the UAE will reach 10.6 million, an increase of 26.9 per cent from 2012, according to a recent Euromonitor International report.

Due to the UAE’s reliance on foreign workers, foreign citizens dominate the population and are forecast to comprise 88.2 per cent of the population in 2030. The biggest city in 2012 was Dubai and will remain so in 2030. All of the UAE’s main cities will increase in size between 2012 and 2030, but Dubai will be the fastest growing city, it said.

The FBMG is a central point to facilitate and ensure a synergy between the food industry and relevant ministries to achieve the goal of making UAE the hub of F&B manufacturing in the Middle East region, said Lootah.

In addition, the group is playing a strategic role in capacity building by technical and managerial training, sharing best practices and attracting best talent that will prepare UAE F&B sector to grow across the Middle East, he said.

While regulations at both the federal and local levels have been improving vis-à-vis halal food manufacturing in Dubai which is at par with international standards, there is room for openness, for example Free Trade Agreements (FTAs), in government structures that will create an enabling environment for the mega plan of ‘Dubai The Capital of Islamic Economy’, which has further created economic opportunities for F&B sector to expand to manufacturing Halal food and related businesses here in Dubai.

This would have a significant influence on increasing the efficiency and effectiveness of government development programmes, and contributing to the country’s ability to attract foreign investors.

Tarek El Sakka, chief executive officer, Dubai Refreshments Company, said: “There is a substantial opportunity for local and international brands, with GCC governments’ supporting the growth of food processing segment especially bakery and dairy products. The GCC especially the UAE with its locational advantage is emerging as a major food re-exporting hub.

“Although UAE’s food production capability is limited, its strategic location has helped it to be a significant link in the region’s food chain. Therefore, UAE, especially Dubai, with high standards is positioned to lead the region. Made in UAE is becoming a trust mark in food and beverage manufactured in the Middle East.” - TradeArabia News Service




Tags: UAE | Food | growth | beverage | sector |

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