Food Sector Report UAE

Investment Opportunities in
Food Sector
in Ras Al Khaimah(UAE)
Sector Study on Food Sector in UAE

with Regional Perspective
January 2010
1
Contents
4 Executive Summary
8 Overview of Agriculture and Food Sector in the GCC/ Middle East
22 GCC Economic Outlook
24 Overview of Agriculture sector in UAE
28 Overview of food processing sector in UAE
32 Dairy Industry
33 Meat & Poultry Products
36 Soft Drinks
38 Sugar
40 Tea & Tea Bags
42 Confectioneries
43 Fish & Fish Products
47 Overview of packaged food sector in UAE
48 Market Data- Sales of packaged food by sector- Volume 2003-2008
49 Market Data- Sales of packaged food by sector- Value 2003-2008
50 Market Data- Sales of packaged food by sector- % Volume Growth 2003-2008
51 Market Data- Packaged food by Brand Shares 2003-2007
SOAT Analysis
52 UAE Food Industry SWOT
53 UAE Economic SWOT
53 UAE Business Environment SWOT
54 UAE Trade in Food Sector
57 Analysis of Overall Trade
Analysis of Trade of Individual Food Items
61 Meat & Meat Products
62 Vegetables
63 Fruits
64 Milk & Milk products
65 Fish and Fish products
66 Sugar
67 Tea
68 Fruit Juices
69 Mineral water
70 Cereals and Grains
71 Pasta Products
72 Chocolates &Cocoa products
73 Poultry Eggs
74 Nuts & Dry fruits
75 Sauces
76 Jams & Jellies
77 Vegetable oils
78 Ice Cream
79 UAE Food & Drinks industry developments
81 Food & Drink industry forecast scenario
82 Food Service (catering)- Key trends and developments
2
Contents
84 Food Retail Market overview

86 Developments in Food Retail Market
87 Food Retail Market forecast scenario
88 Rationale for setting up projects in RAK
89 Identified Projects
90 Food Products & Free Trade Agreements
91 About Ras Al Khaimah
93 About RAK Investment Authority
99 References
References
 Summary Report on Agriculture in the Arab Region,
Economic and Social Commission for Western Asia
(ESCWA). United Nations
 Food & Agriculture Statistics, Food & Agriculture
Organization (FAO), United Nations
 United Nations Industrial Development Organization
(UNIDO)
 GOIC (Qatar) Annual Report, 2008
 Arab Agriculture Statistics Year Book , Arab Organization of
Agricultural Development
 Food & Drinks Report, 2009, Business Monitor International
 Arab Business Intelligence on Food & Drinks, November
2009, Noozz.com
 Packaged Food, Euro Monitor International, February, 2009
 DCCI Economic Bulletin vol-4, Issue 31 May 2007
 Dubai Port & Customs Trade Statistics, 2008, Dubai
World.
 Dow Jones Factiva database of companies.
 Ministry of Foreign Trade, Foreign Trade Affairs, UAE
 Federal Customs Authority, Abu Dhabi, UAE
Websites:
http://www.researchandmarkets.com/reports/
http://www.worldbank.org
http://www.gulfnews.org
http://www.khaleejtimes.org
3
Executive Summary
Food Consumption
The UAE provides investors with one of the world‟s highest income consumer bases. Demand for processed
and packaged foods increased considerably through the country‟s economic boom (2002-2008), a process that
was aided by rapid growth within the Mass Grocery Retail (MGR) sector, which improved companies‟ route to
market.
Food consumption to rise steadily in the UAE over the coming years. The increase will be a result of rising
disposable incomes, continued western influences stemming from the number of expatriates in the country, the
increased presence of modern retail formats selling a wider range of higher-value goods, and the continued
growth in population and tourism levels. In addition, higher-value food and drink products will steadily become
more widely available outside of the country‟s major cities, further fuelling food consumption levels. Despite the
economy weakening significantly, which has affected demand for higher-value food categories, it is believed
that the negative effect on the food and drink industry will not extend past the near term. Non-traditional foods
such as breakfast cereals and ice cream are growing in popularity, fuelled by rising disposable incomes and
growing competition among key players, while packaged and convenience food are also gaining greater
market share.
Foreign Trade
Like most states in the Gulf region, the UAE is heavily reliant
Share of Total Trade in 2008
on imports to satisfy demand. Its harsh climate does not lend
itself to a productive agricultural industry. The country has
been content to use its wealth to tap into import markets to
make up for domestic shortfalls.
re-exports
The food & drink trade deficit to widen by 65.6% through to in ml AED
exports in
2013 as per BMI, Imports will remain high, largely because ml AED
14%
of the difficulties the country faces in increasing its 12% imports in
agricultural output owing to its harsh climate. Cumulatively, ml AED
these developments have led to a major change in the 74%
country‟s food industry and a tremendous negative trade
balance in the food and drink sector. However, this does not
mean that the local food and drink production industry will
not develop. In fact, government efforts in the agricultural
sector, although limited in their potential by the country‟s
climate, will help improve self-sufficiency in many categories
– not least the profitable dairy industry.
Due to limited agriculture and industrial sectors, the United Arab Emirates (UAE) is largely dependent on
imports. In 2008 total trade was Dh 22 billion out of which 74% were imports, 12% exports and around
14% of imported products were then re-exported to the Middle East Countries, former Soviet states, the
and Eastern Africa. In spite of, numerous attempts to increase local production, the country still imports
food products from countries including; among others, the Indian subcontinent, USA, Australia, New
Zealand and South Africa.
Description 2008 % 2007 % 2006 %

imports in ml AED 16,194 73.80% 12,384 69.21% 9,963 66.20%
exports in ml AED 2,677 12.20% 2,699 15.09% 2,596 17.25%
re-exports in ml AED 3,072 14.00% 2,811 15.71% 2,490 16.55%
21,943 17,894 15,050
4
Food Processing
Major Items of imports in 2008
Currently, the region is estimated to have
around 1600 food processing plants (with Meat &
significant sales) are in operation, , consisting of Meat
dairy, wheat milling, snack foods, vegetable oils, Others Products
juices, soft drinks etc. The UAE‟s food- 35% 17%
Vegetables
processing sector has been undergoing a period 15%
of significant expansion over the past several
years, a trend we expect to continue moving Tea Fruits
forward. Due to foreign investment and 10% Milk & Milk 12%
government attempts to increase domestic food products
production and self-sufficiency, production 11%
facilities have started to spring up with increased
regularity.
Domestic Trade- Retail Sector
Due to the large expatriate population, a diverse

range of food is available. In recent years, there Major Items of Exports in 2008
has been a shift in food habits from traditional to
Vegetable
Western-style convenience foods.
oil
9%
The retail sector in the UAE continues to grow
and develop at a rapid rate, a process that OTHERS Sugar
began in earnest nearly 10 years ago. Annually, 24% 46%
many new state-of-the-art stores are added to
the country‟s retail map, creating continuous
competition among the major retailers. In the
Fruit
period 1998-2004, retail outlets in the UAE grew
Juiceas Vegetables
by 47 per cent. Store sales by independent Cereals, 7%
9%
retailers account for 21 per cent, small Grains etc
shops/convenience stores 28 per cent and 5%
wholesalers around one per cent. It is estimated
that 50 per cent of retail sales takes place within
hypermarkets, superstores and supermarkets.
Retail chains such as Carrefour, Spinneys and
Lulu dominate the big format supermarket trade
with 50 per cent market share. Major Items of Re-exports in 2008
Milk
UAE grocery retailing is growing at 5-10 per
products
cent per annum. Foods sold in retail outlets Nuts and
5% Others
consist of 75-80 per cent imported consumer- Dry Fruits
ready products, and 20-25 per cent locally 18% 18%
processed foods. With the exception of fresh Sugar Vegetable
tomatoes used in the production of tomato paste 5% s
and ketchup and a small quantity of fresh Meat Tea 18%
vegetables used in the production of frozen Fruits
Products 12% 18%
vegetables, almost every ingredient used in 6%
locally produced food is imported.
Almost over 75 per cent of the food items are

imported. Locally produced food items
consisting mainly of dairy products, poultry and
eggs, seafood, snack foods, fresh tomatoes,
some vegetables and a limited number of
supermarket items.
5
Government Initiatives
Highlights…………….
The UAE Government has a keen interest in fostering the
development of the food processing industry having
invested some US$1.4 billion since 1994 to develop a  The UAE provides investors with one of the world’s
value-added food-manufacturing sector to target local and highest income consumer bases.
re-export markets. The result is that there are around 100
food processing plants in the country representing a large  Food consumption to rise steadily in the UAE over
chunk of the region‟s food manufacturing capability. Major the coming years. The increase will be a result of
food processing plants include vegetable oils, soft drinks rising disposable incomes, continued growth in
and juices, snack foods, pasta, confectionary and dairy population and tourism levels aided by the increased
products. presence of modern retail format selling
 Demand for processed and packaged foods

Opportunities increased considerably through the country’s
economic boom (2002-2008),
Manufacturing opportunities in the UAE exist in most food
categories. However, the market is highly competitive  Like most states in the Gulf region, the UAE is
heavily reliant on imports to satisfy demand. Its
given the UAE‟s open trade policies. The food service
harsh climate does not lend itself to a productive
sector is also a particular growth area given the agricultural industry.
significant expansion of the tourism sector and the large
number of new hotels and resorts being opened in the  UAE grocery retailing is growing at 5-10 per cent per
UAE. annum. Highly developed supply chain and Mass
Grocery Retail (MGR) sector improved companies’
Competitive environment route to market.
 Foods sold in retail outlets consist of 75-80 per

Food suppliers from all over the world vigorously compete cent imported consumer-ready products, and 20-25
for market share. European Union, US and Asian per cent locally processed foods.
products pose the greatest competition to Australian
products as lower freight rates work in favour of these  With the exception of fresh tomatoes used in the
suppliers. It is acknowledged that distant countries e.g. production of tomato paste and ketchup and a small
Australia can compete on quality but higher freight costs quantity of fresh milk and vegetables used in the
production of frozen vegetables, almost every
can add to the price making products less competitive.
ingredient used in locally produced food is imported
The major supermarket chains import some of their  In 2008 total trade was Dh 22 billion out of which 74%
products direct from overseas suppliers. Most items are were imports, 12% exports and around 14% re-
sourced locally from exclusive agents. The major sources exports.
of supply are from the Asian subcontinent and European
markets that enjoy comparatively low freight rates. The  Food products are being imported from countries
including; among others, the Indian subcontinent,
US dominates the high quality snack market. European
USA, Australia, New Zealand, South Africa, Brazil &
companies, under license from American manufacturers, Europe
dominate the cereals market. Australia is one of the major
suppliers of beef and lamb with strong competition from  Currently, the region(ME)is estimated to have around
US, Holland and the India subcontinent. France, 1600 (with significant sales) food processing plants
Australia, the UK and Holland dominate the market for are in operation, consisting of dairy, wheat milling,
cheese. There are significant imports of juices and non- snack foods, vegetable oils, juices, soft drinks etc.
alcoholic beverages despite the availability of locally
manufactured product. The US leads the market for  The UAE distribution industry is very advanced, with
almonds but other nuts are imported from India and Iran. sophisticated warehousing (cold chains) and
inventory systems. The smaller organizations that do
not own their own warehouses still have access
Distribution channels
through rented facilities.
Import and land distribution of food products is carried out  Import and land distribution of food products is
by the private sector. Government intervention is limited carried out by the private sector. Government
to health regulations and labeling requirements. Many intervention is limited to health regulations and
importers in Oman, Qatar, Bahrain and Kuwait buy food labeling requirements.
6
items via the UAE, since individual orders from these countries tend to be less than the minimum required by
suppliers. Thus, container-sized loads are shipped to the UAE and broken down into smaller quantities for
trans-shipment to these countries.
Large importers are often integrated with logistics and distribution companies, who supply to wholesalers and
retailers. Some of the large importers and distributors run their own retail outlets as well. The UAE distribution
industry is very advanced, with sophisticated warehousing (cold chains) and inventory systems. The smaller
organizations that do not own their own warehouses still have access through rented facilities.
Tariffs, Regulations and Customs
Free trade agreements can have important implications for the Food sector because of the improved access
(addressing both tariff and non-tariff barriers) which they can provide and because of the reduction in tariffs
which can occur under them.
Under the GCC custom Union, UAE has implemented the GCC customs which follows the harmonic code
system, in general, tariff rate & import duties are fixed at 5%. However, there are exceptions for certain
products that need to be checked with the customs website accordingly using the harmonic code system. A list
of (939) commodities comprising live animals, fresh and chilled meat and fish, fresh vegetables and fruit and
cereals etc are exempted. Certain product like Tobacco is subject to 100% and liquor to 50% duty. . Import of
pork and pork products are permitted but are very strictly regulated. No food labels can have pictures or
recipes listing pork or alcohol. Alcoholic beverages are available in the UAE but their import is strictly restricted
to licensed importers who source wine and spirits from around the world.
The UAE is a member to the Great Arab Free Trade Area (GAFTA) which includes all the Arab countries. In
addition the UAE have individual FTAs with some of the Arab countries such as Syria, Lebanon, Jordan,
Morocco and Iraq.
In UAE all FTAs are conducted on the GCC level, with the exception of FTA with US was on bilateral level and this
has not been signed. The GCC has signed FTAs, the first one with Singapore last December 2008, and the last one
was with The European Free Trade Association (EFTA) the countries are (Iceland, Liechtenstein, Norway and
Switzerland) signed on the 22nd of June 09. The two FTAs need to be ratified by both sides in order to come into
force. The GCC currently negotiating with the following countries and economic blocks e.g. EU (27 countries),
Turkey, Australia, New Zealand, Mercosur (Argentina, Brazil, Paraguay and Uruguay), Japan, S.Korea, China, India
& Pakistan. All two agreements impose obligations on the parties in relation to trade in Food products.
These obligations include a general requirement to provide „national treatment‟ to goods originating in the
other party (that is to treat goods originating in the other party no less favourably than like goods originating
in UAE in regard to domestic taxation and regulation). They also include obligations to remove or reduce
tariffs in accordance with agreed schedules and timetables.
7
Overview of Agriculture and Food Sector in the
GCC
GCC / Middle East
Ref- Food & Agriculture Organization (FAO), United Nations
Agricultural development and food security problems, in their political, economic and social dimensions,
are among the most outstanding issues that are receiving wide attention in the Arab region and
internationally at all levels. Since the turn of the third millennium, the goal of achieving sustainable
agricultural development and food security has attracted the prime attention of Arab leaders. This is
especially because of the pivotal role that agriculture can play in response to regional and international
development concerns. Hence, and in response to the growing concern with sustainable development, both
regionally and internationally, more attention is being directed in the Arab region to the call for removal of
environmental, technical, economic and organization barriers of sustainable agricultural development and
food security in the different states.
The current status of agriculture in the Arab region: Development and maintenance of
agricultural resources:
Water resources
Water scarcity is regarded as the main factor limiting agricultural development in the Arab
region as a whole. It is estimated that the water resources of the Arab countries amount to only 1% of
3
those of the world. The per capita share of water is estimated at 1057 meters per annum, which is a
3
little over the water poverty line of 1000 meters. Only in few Arab countries that the per capita share
of water is above the poverty line. The water resources of the Arab region are also characterized by
uneven distribution and difficulties associated with their tapping and use in many parts of the region.
Different methods are used in the development of water resources from traditional and nontraditional
sources in the Arab countries, depending on the nature of the available water sources and the extent of
water scarcity in the different countries. The problem of availability of water for agricultural purposes
is even more difficult in many of the countries of the region, especially under condition of growing
demand for water for non-agricultural use, which reduces the share of water available for irrigation
purposes.
Land resources
Land is the second limiting factor facing sustainable agricultural development in the Arab region. The total
land area of the Arab region is estimated to be about 14.06 million square kilometers, which is equivalent to
about 10.8% of the land area of the world. Land under cultivation, however, is estimated to be only about 5%
of that of the world. It was found that only small increase in the amount of land under cultivation of
approximately 2% took place in the Arab region by the end of the period stretching between 1990 and 2004.
Room for substantial expansion of arable land in the Arab region as a whole is limited by land suitability
problems. At present only 35% of land in the Arab region is regarded as suitable for agricultural production
purposes.
Most of the countries of the Arab region are located in arid and semi-arid areas. Consequently, the region is
subject to land degradation and desertification, and the associated environmental and socio-economic
problems, which hampered agricultural land conservation efforts. Land affected by desertification in the Arab
region is estimated to be about 9.8 million square kilometers (about 68% of the total land area). Among the
factors that increased the rate of desertification is degradation of the natural vegetation, which currently is
estimated to cover about 6.6% of the total area of the Arab region. Excessive deforestation is practiced in
some areas to make room for arable farming, housing and development of infrastructure. This is coupled
with deterioration in the natural pasture lands, which are estimated to cover about 28% of the total land area
of the region.
8
Animal resources
A third factor which limits sustainable agricultural development efforts in the Arab region relates
to the potential for expanding animal production. Animal resources contribute to socio-economic
stability in rural areas. It was estimated that animal wealth in the Arab region has increased from 259.3
heads in 1990 to 373.3 heads in 2004 (a yearly increase of about 2.9%). However, there are a number
of factors that limit the possibilities for expanding animal production in many of the countries of the
region. The potential for integration of animal production in the region with fodder production has not
been achieved, despite the existing opportunities. Natural and irrigated fodder in the countries of the
region that are endowed with suitable environmental conditions can be used for fodder production for
the export to the water-scarce countries of the region.
Fisheries
The expansion of fisheries production in the Arab region is also limited, mainly because of the
lack of investment in the development of the huge fishery resources that have remained largely unused.
Consequently, the potential for contribution to food security through the development of fishery
production has not been captured. The percentage of the total investment in agricultural production in
the Arab region which is committed to fisheries development is very small. Countries differ in this
respect in accordance with the relative importance of the fisheries sector to the national economy.
Local produces in different countries in the region have been discussed in subsequent pages .
9
UAE Local Produce
Production (Metric Ton)
Citrus fruit, nes 5500
Chillies and peppers, green 5600
Mangoes, mangosteens, … 5700
Potatoes 7900
Commodity
Other melons… 8000

Cauliflowers and broccoli 11500
Sheep milk, whole, fresh 12000
Cow milk, whole, fresh 12000
Lemons and limes 12300
Onions (inc. shallots), green 16500
Hen eggs, in shell 17200
Cucumbers and gherkins 17200
Cabbages and other… 17500
Pumpkins, squash and… 20000
Eggplants (aubergines) 22000
Goat milk, whole, fresh 36000
Camel milk, whole, fresh 40000
Vegetables fresh 140000
Tomatoes 215000
Dates 755000
 Dates are a staple crop of UAE and are most widely produced in the county as evident from the chart.
UAE accounts for 11.4% of the global date production. It produced 755,000 Metric tons of dates in
the year 2007.
 Similarly Tomatoes and Fresh Vegetables are also grown in significant qualities to feed local
population.
 Milk is an important part of UAE's daily diet therefore it has developed and improved its local dairy
farming industry and produced 100,000 Metric tons of different types of milk in the year 2007.
10
KSA Local Produce
Onions, dry 53736
Grapes 144430
Hen eggs, in shell
Commodity
174000
Sorghum 248900
Fruit Fresh Nes 368000
Watermelons 393234
Vegetables fresh nes 400000
Potatoes 468500
Tomatoes 477572
Dates 982546
Wheat 2630000
 KSA is one of the largest producers of Wheat in GCC region. In order to decrease its dependence on food
imports it has successfully developed large Wheat farms to feed its local population. The annual
production of wheat in KSA reached 2,630,000 Metric ton in the year 2007.
 Similarly Cow milk and dates are also produced in significant quantities in KSA to cater to its local
population requirements. KSA accounts for 13.5% of the global date production.
 Tomatoes, Potatoes and fresh vegetables are also produced in significant qualities in KSA.
11
Kuwait Local Produce
Wheat 700 Production (Metric Ton)
Spinach 1000
Melons (include cantaloupes) 1050
Carrots and turnips 1600
Okra 2500
Pumpkins, squash and gourds 5100
Commodity
Lettuce and chicory 6500

Onions, dry 7500
Cabbages and other brassicas 8500
Dates 14500
Potatoes 23500
Tomatoes 55500
 Tomatoes & fresh vegetables are grown in large in quantities in Kuwait as evident from the above
chart.
 Kuwait Agricultural Ministry has embarked on fast track plan to make it the country self sufficient in
basic food requirement.
 Similarly dairy food industry is also being developed in the country to meet the growing demand of
dairy products.
12
Cauliflowers and broccoli
Oman Local Produce
2989 Production (Metric Ton)
Okra 4736
Mangoes, mangosteens, guavas 6373
Commodity
Potatoes 9067
Onions, dry 9078
Other melons (inc.cantaloupes) 9289
Sorghum 10439
Watermelons 17233
Bananas 28892
Tomatoes 41426
Dates 255871
 Large quantities of dates are grown in Oman to meet its local demand as well as for export
purposes.
 Similarly fresh vegetables and Tomatoes are also grown in significant qualities in Oman.
 Higher demand for dairy products has helped develop local dairy industry and therefore Oman
produces 132,630 metric tons of milk.
13
Bahrain Local Produce
Goat milk, whole, fresh 300 Production (Metric Ton)
Nuts, nes 350
Watermelons 354
Bananas 750
Onions, dry 814
Okra 895
Commodity

Tomatoes 4554
Dates 13293
 Dates are one of the most important crops produced in the Kingdom of Bahrain with production
reaching 13,293 Metric tons in the year 2007.
 Only second to dates; dairy milk products are produced in the Kingdom.
 Similarly Tomatoes and Fresh fruits are also grown in significant quantities to meet the local
demand.
14
Qatar Local Produce
Maize 790
Carrots and turnips 841
Maize, green 860
Eggplants (aubergines)
Commodity
2905
Onions, dry 3715
Tomatoes 11868
Dates 21564
 As evident from the above chart dates are produced in the highest quantities in Qatar.
15
Jordan Local Produce
Onions, dry 28571 Production (Meric Ton)
Oranges 31514
Apples 31523
Bananas 34910
Commodity

Watermelons 85650
Potatoes 97400
Olives 125029
Tomatoes 610246
 Tomatoes are the most commonly grown crop in Jordan with quantities reaching 610,246 Metric
tons in the year 2007.
 Fresh milk including other dairy products are produced by the local dairy farms to support the
demand from the local population.
 Similarly other vegetables such as Cucumbers, gherkins, Olives etc. are also produced in large
quantities in Jordan to meet its local demand.
16
Syria Local Produce
Maize 177036
Grapes 273028
Apples 280247
Grapefruit (inc. pomelos) 290000
Commodity
Cotton lint 365000

Olives 495310
Potatoes 570128
Oranges 602930
Watermelons 606716
Cottonseed 725000
Tomatoes 732500
Barley 784479
Sugar beet 1150000
Wheat 4041100
 Wheat is a staple crop of Syria and its annual production in the year 2007 reached to 4,041,100
metric tons.
 Milk & other dairy products are also produced in the huge quantities to support the local population
demand. In the year 2007; 2,579,533 Metric tons of milk was produced in Syria only second to
Wheat.
 Sugar beet is also an important commonly grown crop in Syria and the annual production reached
1,150,000 metric tons in the year 2007.
17
Iran Local Produce
Dates 1000000
Maize 1588000
Onions, dry 1700000
Commodity
Oranges 2300000
Apples 2660000
Rice, paddy 2800000
Grapes 2900000
Barley 3000000
Watermelons 3300000
Potatoes 4500000
Tomatoes 5000000
Sugar beet 5300000
Sugar cane 5700000
Wheat 15000000
 Wheat is an important staple crop of Iran and its annual production reached to 15,000,000 metric
tons in the year 2007. In order to feed its huge population Wheat is very important for Iran's food
security. Iran ranks 18th in the world in Rice Production.
 Like wise milk & related dairy products are also produced in large quantities to support its growing
population; and its production reached 6,500,000 metric tons in the year 2007.
 Sugar cane and Sugar Beet are also produced in significant quantities in Iran as they are an
important part of their daily diet. Sugar beet & Sugar cane production reached 5,300,000 &
5,700,000 respectively in the year 2007.
18
Egypt Local Produce
Tangerines, mandarins, clem. 748395
Sorghum 843840
Bananas 945429
Dates 1313696
Grapes 1485010
Commodity
Onions, dry 1485933

Watermelons 1912991
Oranges 2054626
Buffalo milk, whole, fresh 2609821
Potatoes 2760460
Sugar beet 5458210
Maize 6243220
Rice, paddy 6876830
Wheat 7379000
Tomatoes 8639024
Sugar cane 17014272
 In Egypt Sugar Cane is one of the most important and most widely produced crop and ranks 15th in
the world in Sugar cane production. It’s an important source of foreign exchange for the country.
 Similarly Tomatoes and wheat are also produced in large quantities in Egypt to meet the huge local
demand.
 Rice & Maize are also grown in significant quantities to support the local and their annual
production reached 6,876,830 & 6,243,229 Metric tons respectively.
19
Fish Production/ Total Catch in the Middle East
Source:http://www.aoad.org/ASSY28/Chap4/TAB(112).htm
Arab Agriculture Statistics Year Book-2007
Farms Local Catch Total Catch

Country (1000 M.T) (1000 M.T) 1000 Metric Tons
Jordan 0.4 0.5 0.8
Kuwait 0.3 4.5 4.8
Bahrain N.A 15.0 15.0
Qatar N.A 15.2 15.2
Syria 8.4 9.5 17.9
Iraq 14.0 27.0 41.0
Emirates N.A 90.0 90.0
Saudi Arabia 81.1 65.5 146.5
Oman N.A 149.6 149.6
Egypt 595.0 375.9 970.9
Total 699.2 752.6 1451.8
Fish Production - 2007

Egypt 970,9
Oman 149,6
Saudi Arabia 146,5
Emirates 90,0
Countries
Iraq 41,0
Syria 17,9 Prod in 1000 Metric Tons
Qatar 15,2
Bahrain 15,0
Kuwait 4,8
Jordan 0,8
20
Red & White Meat Production in the Middle East
Source:http://www.aoad.org/ASSY28/Chap4/TAB(112).htm
Arab Agriculture Statistics Year Book-2007
Country (X 1’000) Metric Tons

Qatar 18
Bahrain 18
Oman 33
UAE 65
Kuwait 80
Iraq 126
Jordan 152
Syria 457
Saudi Arabia 582
Egypt 1426
Total 2957
Local Production of Red & White Meat

1000 Mertic Tons
Egypt 1426
Saudi Arabia 582
Syria 457
Jordan 152
Countries
Iraq 126
Kuwait 80
UAE 65
Oman 33
Bahrain 18
Qatar 18
21
GCC Economic Outlook
Gulf economies are benefitting from the global economic recovery. Although it is set to contract this year, real GDP
should bounce back in 2010. Expansionary fiscal policy is a key part of the recovery story. If oil price drops
substantially in 2010, the bullish outlook could be jeopardized. Despite the recovery, private sector activity could still
be constrained by slower growth in bank credit.
In its latest GCC brief, National Bank of Kuwait (NBK) reports that the recent months have witnessed an
overwhelming consensus that the global economy is on the road to recovery, suggesting that the bottom of the
financial crisis is behind. A number of recent economic indicators and signs strongly suggest the crisis has
subsided. The most recent projections of the IMF show the world economy is expected to contract by 1.1% in 2009
and expected to recover 3.1% next year. This represents an improvement of 0.3 and 0.6 percentage points from the
Fund‟s projections three months earlier, respectively. There is, however, less agreement among economists on the
shape of the probable global recovery; “W”, “V”, “U” or something in between.
The road to this recovery has been cemented to a large extent by governments around the globe expanding fiscal
and monetary policies, bailing out firms, and injecting capital and liquidity in the banking system. Nowadays, new
economic concerns are emerging as governments, including the G20, start talking about the post crisis environment
and the proper timing of an “exit” strategy. “Exit”, of course, entails the withdrawal of governments‟ stimulus,
whenever the signs of solid and durable recovery are established. More likely, such an exit strategy will not be
executed in most countries before the second half of 2010.
World economic recovery is good for the region….

The Gulf economies are definitely among the top beneficiaries of any global rebound. As oil continues to be the
major driver of GCC macro performance, the higher oil prices that started stabilize since June of this year began to
gradually restore regional confidence and to leverage its favorable prospects. Recent consumer confidence surveys
show a substantial improvement relative to earlier in the year. Indeed, the region‟s economic performance and
outlook have always been an oil story. Over the last 10 years, oil accounted for an average of 46% of GDP, 75% of
merchandise exports, 84% of governments‟ revenues. Numbers were even higher in recent years.
The global recovery, if robust, is expected to provide further support to oil prices in the near term. For 2009,
however, it has been projected that the real GDP of the region to contract by 2.5%, affected mainly by cuts in oil
production. The largest GDP contractions are to be recorded in the UAE and Kuwait. Growth in the non-oil GDP of
the region is expected to continue in 2009, though at a slower pace (2%), compared to an average growth of 7% in
the previous five years. Meanwhile, it has been projected that Gulf economies will post 4.8% real growth in 2010,
outperforming most regions around the world. There are, however, some downside risks to this projection.
…. but regional fiscal policies should be supportive

Oil prices have been very volatile since Q3-08. The average monthly price of the OPEC basket dropped from USD
131 per barrel in July 2008 to USD 39 in December, but had risen back to USD 78 by late October 2009. The
current price level is considered “fair” by OPEC members who also prefer to see oil prices stabilizing at their current
levels. OPEC members have so far insisted on keeping the cartel‟s production level unchanged, and see no need to
reverse the daily 4.2 million barrel in production cut that entered into force since November of last year. Looking
ahead, oil prices may move in either direction depending on a number of issues, including the status of the global
economy, demand and supply conditions for oil, geopolitics, the US dollar outlook, and any other oil-related
changes in Western economic policies. Any forecast of the future direction of oil prices carries more uncertainty
than usual. For Gulf countries, the major concern is to see prices slide again below USD 50 a barrel or below the
breakeven price that balances governments‟ budgets. Although such a scenario would have a negative impact on
the region‟s finances and outlook at large, but the net impact would depend on governments‟ and private sectors‟
reactions to lower oil prices. Historically, government spending programs, especially on development projects were
highly correlated with oil prices. In 2009 for example, and with the exception of Saudi Arabia and UAE, other GCC
countries announced a small rise or a cut in their spending.
If prices witness a substantial drop in 2010 and governments, out of budgetary concerns, decided to reduce
spending, then the bullish outlook of the region would be jeopardized. Instead, Gulf governments would be advised
to exploit the positive atmosphere and to build on it with more spending and more public-private projects. They also
ought to pursue economic reforms and introduce further improvement to the business environment.
22
… as well as banks
Banking services are a leading private sector activity in the Gulf region, contributing between 4-12% of the region‟s
GDP, despite the large share of the oil sector. However, the financial results of most banks across the region during
the first half of 2009 show a drop in profits relative to the same period of last year. At any rate, GCC banks have
always been among the strongest and safest banks in the region according to most financial indicators, including
capital, profitability, government backing, and prudent risk management. It is believed that GCC banks have drawn
the proper conclusions, like others around the globe, and should remain healthier and in better shape than banks in
other emerging economies. 2010 is expected to see the resumption of growth in bank intermediation, though at a
slower pace than in previous years.
GCC Macroeconomic Data
2006 2007 2008E 2009F 2010F 2011F 2012F 2013F
Real growth (%)
UAE 9.4 7.6 7.7 0.9 4.3 6.7 7 6.7
Saudi Arab 3.2 3.4 4.2 0.4 3.3 3.7 4 3.9
Qatar 9.9 8.4 14.3 12.4 19.9 8.6 4.7 3.7
Kuwait 6.3 4.7 8.5 0.7 4.3 5.1 5.4 5.2
Bahrain 6.7 8.1 6.1 2.4 3.1 4.6 4.1 1.4
Oman n/a n/a n/a n/a n/a n/a n/a n/a
Nominal GDP (US$ bn)
UAE 170.1 198.7 240.4 201 232.3 266.7 310.6 360.5
Saudi Arab 356.6 381.7 468.1 331.8 393.6 425.1 455.5 467.3
Qatar 56.9 70.4 95.8 75.2 105.2 127.6 140.6 147
Kuwait 101.7 112.1 148.4 108.6 130.9 14909 165.8 175.3
Bahrain 15.8 17.5 18.6 18.1 19.7 21.6 23.5 25.3
Oman n/a 40.3 n/a n/a n/a n/a n/a n/a
CPI (Average %)
UAE 13.5 13.3 14 4.5 6.5 7.3 6 6
Saudi Arab 2.3 4.1 9.9 1.3 3 3.5 3.7 3.5
Qatar 11.8 13.8 15.1 9.2 8.1 6.5 5.4 5.6
Kuwait 3 5.5 10.8 7 5.6 4.5 4 3.2
Bahrain 2 3.8 7 0.8 2.8 3 2.7 2.5
Population (m)
UAE 4.9 5.3 5.6 5.7 5.9 6.2 6.6 6.9
Saudi Arab 23.7 24.3 25 25.6 26.3 26.9 27.6 28.3
Qatar 1.1 1.3 1.6 1.7 1.9 2 2.2 2.3
Kuwait 3.2 3.4 3.6 3.8 3.9 4.1 4.3 4.6
Bahrain 0.9 1 1.1 1.1 1.2 1.2 1.3 1.4
Oman n/a 2.6 n/a n/a n/a n/a n/a n/a
GDP per capita (US$)
UAE 34,550 37,690 42,690 35,340 39,660 43,030 47,330 52,160
Saudi Arab 15,060 15,700 18,710 12,950 14,980 15,790 16,510 16,530
Qatar 50,190 52,660 61,420 43,670 55,780 62,330 64,970 64,380
Kuwait 31,950 32,980 41,510 28,810 33,280 36,480 38,380 38,460
Bahrain 17,190 16,810 16,510 16,090 16,660 17,390 17,990 18,470
Oman n/a 15,546 n/a n/a n/a n/a n/a n/a
Net FDI (US$ bn)
UAE 1.9 6.6 7.2 3 6.1 4.8 6 6.5
Saudi Arab 17.5 11.2 15 13.6 13.9 14.4 15.7 17
Qatar 32 -4,125 -2,880 -1,290 -2,120 -950 -1,125 -855
Kuwait -8,056 -13,563 -11,078 -9,503 -10,907 -11,994 -13,976 -15,334
Bahrain 1,935 87 -100 320 190 -107 -97 46
Source- Deloitte Touche Tohmastu- Report on GCC macro-economy indicators, E-Estimated; F-Forecast
23
UAE Overview of Agriculture Sector in the UAE
While the country is self-sufficient in some sectors, namely fish and date production, it is dependent on imports for
essential commodities, such as meat, poultry and eggs. Agricultural development, leading to increased food
production, is hampered by the country‟s climate. In recent years, the government has been looking for ways to
increase agricultural output by extending the cultivated land area and by introducing improved production methods. Its
measures to date have included reclamation and redistribution of agricultural land to provide support for farmers,
extensive training programs and the provision of necessary equipment, both manual and technological. In addition, the
government has commenced a program of palm-tree planting to create shaded areas in which crops otherwise
unsuitable for production in the UAE‟s climate can grow.
Due to the government‟s strong focus on agriculture, the country‟s output in all but its already highly developed
fisheries sector has grown in recent years and the country is now over 80% self-sufficient for milk and almost 40%
self-sufficient in its demand for eggs. Recently, the UAE government has also been supporting organic farming
initiatives. Although the desert climate is notoriously difficult to farm in, certain crops such as sweet potatoes,
mangoes, asparagus and lemongrass are able to withstand the high temperatures.
With soaring obesity rates fuelled by excess consumption, diabetes now affects up to a quarter of the adult population,
four times the global average. Given these alarming figures, the government is looking for ways to encourage healthy
eating and the promotion of fresh fruits and vegetables is one such means. Some of these organic projects are
receiving government support in the form of free land access and water. However, these projects have been coming
under increasing criticism owing to the water resources they require.
UAE Local Produce

Chillies and peppers,… 5600
Mangoes,… 5700
Potatoes 7900
Commodity

Cauliflowers and… 11500
Onions (inc. shallots),… 16500
Cabbages and other… 17500
Vegetables fresh 140000
Tomatoes 215000
Dates 755000
24
The entire Arabian peninsula because of the absence of any river system and very scanty rainfall, is not a conducive
environment or agriculture activity. Nevertheless, from a state of virtual non-existence, agriculture now makes a
significant contribution to the GDP, and has made some progress since it was promoted after the oil boom.
Nevertheless, not only UAE but the entire region can never be self-sufficient in food production and must rely on
imports, particularly, in view of their rapid upsurge in population.
Currently, the only agriculture product in which UAE has self sufficiency is dates. However, domestic production of
vegetables in UAE meets more than half of the domestic demand. Even greater success has been made in cattle
farming, which does not suffer from the same constraints as cultivation farming. Milk production meets almost
85% of the demand, eggs about 40%, red meat about 30% and white meat about 18%. The lowest self sufficiency
in meeting demand for fresh unprocessed food products is for fruits where only about 7% of domestic
demand is met by domestic production, but one reason for this is the wide variety of fruits which are in
demand. Cultivated products outstrip meat/fish products, and account for more than one-third of the value of the
output.
UAE has reportedly about 40 thousand farms, with more than half located in Abu Dhabi, which enjoys a pre-
eminent position in farming in UAE. The other farming areas in the country are in Al-Dhaid (Sharjah) and Ras Al
Khaimah. The other areas of any significance are Fujairah and Dubai. Ajman and Umm Al Quwain have very little
cultivated area. Meanwhile, fishing activity is spread more evenly across all; the different Emirates.
The total cultivated area has been rising. It rose from 675 thousand Donums in 1995 to almost 2.6 million Donums
by 2003 (the latest year for a detailed survey on agriculture). The largest proportion of land is being utilized for palm
and fruit trees, which account for almost three fourth of the cultivated area (the country is reported to have almost 40
million date palms, compared to 5 million in 1970).
Structure
Below is the structure of the primary sector, based on value of output. While this is as some years ago, the structure
does not change significantly in the short term, and it is estimated to be still around these levels. UAE is now a
world leader in date palm bio-technology, using advanced tissue culture techniques to produce millions of young
trees a year.
Structure of the Agriculture/Primary Sector in UAE
Product Type Share in Production

Cultivated Products 69%
- (Dates, Alfalfa) (23%, 3%)
Animal Products 20%
(Milk) (11%)
Sea/ fish products 11%
(Deep Sea Fish) (7%)
Source: Ministry of Environment & Water, 2003
Other cultivated products
Food grain production, which requires rather large cultivated areas and has a rather low yield per cultivated area,
is notably absent in the country. Only very small quantities of wheat and tobacco are grown. Cultivation is largely of
cash crops. Among the non-fruit produce, vegetables are the most important crop, which though occupy only
approximately one fourth of the area, but have the largest shark in output both in quantity and value. The major
crops are tomato, egg plant and cabbage. The field crops of note are clover and green fodder.
25
Exports
Production of some items is in excess of domestic demand, leading to the development of an export
industry. Tomatoes are the chief exports. The export destinations are within the Gulf region, with Kuwait
being a major buyer of tomatoes from UAE. Dates are exported to a much wider range of destinations, though UAE.
's share in the global trade in dates is still small and has considerable potential to increase
Water and irrigation
Agriculture accounts for most of the water consumption around the world and it is the same in UAE. At around
70%, it is slightly less than the global average because of the low cultivation. The chief source of irrigation is still
ground water, followed by rain water (which is rather small). Ground water in UAE being of fossil origin, it is not
fully replenished and this imposes a severe limit on the growth of agriculture in the country. Desalinated water, used
for household use in UAE is simply too expensive to be used for agriculture.
State support
Agriculture in UAE has been considerably supported by the state's policy to promote agriculture and ensuing
subsidies. The subsidy support is carried out by the federal government and its services extend from providing
irrigation and spraying engines, tractor services, plant protection, equipment and maintenance as well as free
distribution of seeds, pesticides and fertilizers.
Agriculture growth
Though agriculture has raised its share to 2% rom a mere 1% in the early eighties, and despite the broad mandate in
the country to encourage agricultural production, water scarcity makes self sufficiency an impossible target.
Cultivated ^rea cannot be increased further because the coastal areas have a high salt concentration, making
it unsuitable for agriculture except for high tolerance crops. Meanwhile, the hinterland area has a sandy soil
which is high in potassium.
New developments (outsourcing agriculture)
To achieve self-sufficiency in food production and ensure secure supplies, UAE has now begun to invest in
agricultural production in foreign countries with abundant arable land. Sudan, Egypt and Pakistan have been
chosen for this. Instead of buying/importing food, the concept is to directly grow food in foreign countries on
purchased or leased land and ship back the produce.
While the destination countries have abundant arable land, this land is underutilized because of shortage of
investment funds. Agriculture has been a neglected sector in many of the poor countries, and with
appropriate investments, it could lit many households out of poverty. The GCC countries have now decided
to establish a joint company or a fund which will invest in the Arab nations which have such fertile lands available
to them. The Abu Dhabi Fund for Development is planning to invest in a large farm project, spread over 30,000
hectares (equivalent of 30 square kilometers) in northern Sudan to commence production with fodder to be
followed by wheat, corn and potatoes. Total U.A.E. investment in Sudan is reported to be around 400,000 hectares.
This is in considerable contrast to earlier when international farming ventures were mostly in cash crops (as in
Latin America for bananas, crops etc.) and carried out by large multinational companies. The projects have an
involvement of both the private and public sectors, and it is not only the Gulf Arab countries, but other countries
such as China, India and South Korea too, are engaged in what has been described as "outsourcing"
agricultural production. The trend towards outsourcing agriculture production has been increasing. Sudan is
reported to be keeping aside one-fifth of its arable land for other Arab governments. Egypt too, is securing such
deals to grow wheat. The focus of most of these deals is on staples or bio-fuels, with the dominating crops
being wheat, rice, maize etc.
26
If properly managed, this development could be a win-win situation for both sides, with the recipient country
receiving funds for the development of its agriculture to enable them to appropriately utilize their land resources, and
capital abundant but food deficient countries securing supplies of essential commodities and reduce their
dependence on imports. Farming in many developing countries is hampered by the inability of farmers to invest
into better seeds, tools and fertilizers. Agriculture output both per farm worker and per unit of land is still very low in
many of these countries, and this can considerably improve with fresh inputs. U.A.E. is likely to focus on cash crop
production at home, as these required smaller amounts of land and grow staples outside.
27
UAE Overview of Food Processing Sector in UAE
The insignificance of the agricultural sector still continues, but there is now a large and thriving food industry in the
region, even if almost entirely dependent on imports for raw material (particularly GCC). As per GOIC, Food &
Beverage sector constitute 9.7% and 10.2% in total investments and employment respectively within all types of
processing industries in UAE in 2008.
Structure of the Processing Industries in UAE in – 2008

Investment/
Description Million $ No. of Labor
Investment % Labor %
Food, beverages 1,532 9.7% 28,845 10.2%
Textiles, clothes & leathers 343 2.2% 41,253 14.5%
Wood, wooden poducts & furniture Paper, printing &
publishing 193 1.2% 23,342 8.2%
Paper, Printing & Publishing 446 2.8% 18,323 6.5%
Chemical & plastic products 6,499 41.1% 50,570 17.8%
Non metallic mineral products 2,804 17.7% 40,040 14.1%
Basic mineral industries 2,384 15.1% 7,814 2.8%
Manufactured metallic products, tool, and
equipments 1,543 9.8% 68,973 24.3%
Other manufactured industies General Total 72 0.5% 4,785 1.7%
General Total 15,816 100.0% 283,945 100.0%
Ref: http://www.goic.org.qa/GOICReports.html
Currently, the region is estimated to have around 1600 small to large size food processing plants in operation, with
significant sales, consisting of dairy, wheat milling, snack foods, vegetable oils, juices, soft drinks etc. The break of
the processing units, country wise have been given in the Table next page. The corresponding list of companies
with contact details have been given in a supplement report.
The UAE‟s food-processing sector has been undergoing a period of significant expansion over the past several
years, a trend we expect to continue moving forward. Due to foreign investment and government attempts to
increase domestic food production and self-sufficiency, production facilities have started to spring up with increased
regularity. However, the country is still highly dependent on food imports to fill the gap between domestic
production and the demands of a growing population. Imports are also fuelled by expatriates‟ preferences for foods
from their home countries.
The continued impetus to the industry comes from a rapidly growing demand which has virtually doubled in the last
four years (2004-07), as indicated by Dubai trade statistics. Net Imports have grown at an average rate of 21.5%
per year since 2004. Vegetable products have grown the most largely because of the absence of any domestic
competition. Meanwhile, imports of processed/prepared foods have not grown so rapidly because a substantial part
of the rise in demand is met by domestic production in certain sectors.
An overview of food processing sub-sectors of UAE have been discussed in the subsequent pages.
28
Food Processing companies (with significant Sales) in the region
with line of Activities
Source- Factiva Dow Jones
Pl refer to Annexure-1 for company contact details
29
Food Processing companies (with significant Sales) in the region
UAE with line of Activities……Continue…..
Source- Factiva Dow Jones
Pl refer to Annexure-1 for company contact details
30
UAE Major Food Processing Activities in UAE
Dairy Industry
Key Players in the UAE's Food & Drink Sector
 Al Ain Dairy Farm- Dairy

 Al Rawabi Dairy Farm, - Dairy
Meat & Poultry  Marmum Dairy Co, - Dairy
Products  National Foods Products Co,
 Fujairah Dairy Co, -- Dairy
 Al Mourouj Dairy Co, -- Dairy
Soft Drinks  Nadec Dairy Co.- Dairy
 Unipex Dairy Products Co Ltd-Dairy
 Al Marai Company- Dairy, Fruit juices
 Unilever Middle East- Tea Bags
 Dubai Refreshments Company
Sugar  Agthia (Al Ain Vegetables, Al Ain Food & Beverages, Al Ain Mineral
Water, Grand mill for Flour and Animal Feed)
 Masafi- Mineral Water & Fruit juices
 Oasis Mineral Water
Tea & Tea Bags  Dubai Refreshments Company- Soft drinks & Mineral water
 Jeema Mineral Water PSC- Mineral Water
Food Processing in UAE  Gulfa Mineral Water & Processing Ind Co
 Foodco Holding- Poultry, Meat, Beverages, Jam etc.
 Al Khaleej Sugar Company- Sugar
 Al Islami Foods (formally Co-op Islami)- Meat
Confectionery  IFFCO Group- Snacks, Pasta, Frozen food
 Emirates Macaroni Factory- Pasta
 Gulf Food Industries- Canned Food
 Aujan- Soft drinks & confectioneries
 Nestle- Milk and Confectioneries
Fish  International Foodstuffs Co - Confectioneries
 Modern Bakeries LLC- Confectioneries
 Master Foods-Confectioneries
 Asmak- Fish Processing(Brand-Asmak)
 Dubai Cooperative- Fish Processing(Brand-Al Islami)
Bakeries  Cascade- Fish Processing(Brand-Al Kaber)
 Freshly Frozen- Fish Processing(Brand-Fair)
 Seville- Fish Processing(Brand-Al Khalej)
 Global Foods- Fish Processing(Brand-Arctic Gold)
Milling (Flour) 31
UAE Dairy Industry
At the centre of this expansion has been the dairy industry, which now ranks among the world‟s most
competitive. Per capita consumption of dairy products is high, around 80-85kg annually, and accordingly
this profitable sector is extremely vibrant and competitive, with many dairies in operation. Indeed
competition within dairies is rife across the Gulf region with a number of large companies on the market.
Dairy producers and manufacturers are now being encouraged to establish a union in order to set unified
policies and co-operate in forming a strategy in the face of international competition.
Among the industry leaders is Al Ain Dairy Farm, which offers a wide range of products such as the
Benecol functional milk drink, manufactured under license, and the Optimil yoghurt brand (manufactured
under licence for Dutch firm Campina). Other operators in the UAE market include Al Rawabi Dairy
Farm, Marmum Dairy Co, National Foods Products Co, Fujairah Dairy Co, Al Mourouj Dairy Co,
and Nadec Dairy Co. Regional giants Saudia Dairy and Foodstuffs Co (SADAFCO) and Al Marai,
both large Saudi companies that export to all the GCC states, also sell their products in the UAE.
Dairy products was the largest category within nutrition/staples, with a value share of 40% in 2008. Dairy
products are considered an essential part of daily food consumption. They are considered nutritional and
affordable by most segments of the population, especially Asians, who represent 75% of the total population.
Consumption of dairy products was further encouraged amongst youngsters, who represent a high proportion
of the population. Rice was the second largest category within nutrition/staples in 2008, followed by bread. The
latter is an everyday requirement on all dinner tables, with fresh bread in high demand from locals, Arab
expatriates and Asians (mainly Indians and Pakistanis). It is consumed with every meal of the day.
Multinationals trailed local suppliers by some distance in dairy products, as local suppliers benefited from the
provision of fresh products to a loyal customer base, a strong distribution channel in the shape of local outlets
across the country, and increased availability in supermarkets/hypermarkets.
In spite of maturity in some categories, the constant nature of demand and frequent consumption in key
categories such as dairy products means that the average growth rate is set to exceed the population growth
rate. It is expected that local manufacturers will increase their shares in the coming few years; exploiting
consumers' existing trust for local brands, in addition to the competitive advantage of the availability of local
raw materials and lower prices, growing shelf space and advertising for local brands.
Trade in Milk & Milk Products
2008 2,007 2,006

Weight
(KG) Value (AED) Units Weight (KG) Value (AED) Units Weight (KG) Value (AED) Units
Imports 135367190 1817947771 19355626 127143141 1231427408 7113012 128282052 1106116212 7104917
Exports 7418215 64245872 1212605 6857258 37759353 43031 15652606 84609621 113929
Re-exports 17,020,807 150,078,652 1,353,573 21,295,702 172,647,907 610,172 16,146,933 117,288,296 460,307
Source- Dubai Port & Customs Statistics, Dubai World, 2008
Milk and Milk Products Trade-2008 Import of Milk & Milk Products-
Re- 2006-2008
Exports exports 2.000,00 1.817,95
3% 7%
in Million AED
1.500,00 1.231,43
1.106,12
1.000,00
Imports
90%
500,00
0,00
32
2008 2007 2006
UAE Meat & poultry Products
The importance of the halal food industry is continuing to grow in the Middle East. According to the World Halal
Forum (WHF), the value of the global halal food industry is expected to climb above US$650bn in 2010 as
demand continues to pick up, in spite of the global financial meltdown. The long-term outlook for the halal food
industry is captured by the fact that world‟s Muslim population represents close to 25% of global population (the
world‟s Muslim population stands tall at over 1.6bn). As investment into the industry increases, competition
among producers will intensify, which will beef-up output of halal products.
While Middle Eastern consumers traditionally prefer fresh meat, health and hygiene scares have been a major
driver in changing consumer habits, and have ultimately benefited the packaged-meat industry. Meat and halal
products are now being imported from many countries, including Australia, New Zealand, Ireland, Brazil,
Canada and the US. In fact, most distributors of halal products are not from Muslim countries, with many
international producers having recognized the potential of the market and investing accordingly. Although it is
Malaysia that has taken the lead in developing and modernizing this sector, regional producers have increased
production and are slowly reducing the Gulf region‟s import dependence. Companies such as UAE-based Al
Islami Foods have started to assume the regional mantle.
It is important to note that red meat and poultry products must be certified "halal" to be sold in the UAE.
Consumers perceive brands differently in terms of whether or not they followed this process; therefore local
brands are typically favoured over imported products in such matters. The "halal" certification does not
apply to fish.
U.A.E is one of the leading producers of poultry products in the GCC region. Though poultry farming is not
native to the country, it has nevertheless steadily increased its profile in the country's food sector. Prior to the
late seventies, the entire consumption demand was imported. Domestic production now not only meets about
20% of demand, but domestic poultry products also command a premium price as they are of a superio r
quality. Poultry breeding in U.A.E. is more focused on meat rather than egg production.
The development of poultry farming has also provided support for a domestic meat processing industry, whose
output consists mostly of products like burger patties, minced meats, curries etc. These products are often
sold in frozen form. At the same time, the large number of small poultry farms has also led t6 the
development of animal feed producing companies.
Demand for white poultry meat is high because it conforms to the U.A.E.'s religious requirements, as well
as those of health viz. low cholesterol. Poultry meat constitutes a part of the diet of almost all the different
nationalities that reside in the country, barring the vegetarians.
Demand virtually doubled in the five years between 2003 and 2008, recording an increase of 83%. This reflects
an average annual growth rate of 13% during this period. The growth in demand is largely caused by the
growth in population ;and because of increasing propensity to consume poultry products. The estimated per
capita consumption has remained stable at around slightly less than 50 kilogram per person / per year. U.A.E.
has the highest per capita poultry consumption in the GCC region. The high demand and high propensity to
consume not only refers to the increasing resident population, but also the increase in tourists and visitors
and thus higher demand from the hotels and restaurants.
There are 6 large and 4 medium sized poultry farms in U.A.E. Besides this, a large number of small poultry
farms are spread all across the country. Besides poultry meat, some of these farms also sell eggs and live
chicken.
Given the huge demand for poultry meat, imports nevertheless continue to dominate the market. Value of
net imports of meat and meat products stood at AED 2.8 billion in 2008. Imports take place in fresh, chilled or
frozen forms. Australia, Brazil, India, USA, New Zealand, France & Denmark are the major sources of Imports.
U.S.A. is a strong exporter not of the whole chicken but of leg quarters, which are very price competitive.
Brazilian and Danish chicken are popular among expatriate households for their perceived quality and low
33
water content.
French poultry products are reportedly being gradually phased out of the market because of their high water
content. U.S. leg quarters are popular because of their lower bulk prices, though US chicken being of a
larger size is less popular among some institutional consumers, such as cafeterias and catering companies.
Re-exports forms about 6% of the imports. The destinations are not only the neighbouring GCC countries but also
Iran and Central Asian countries. Exports are almost negligible given the high domestic demand for fresh produce.
Trade in Meat & Meat Products
2008 2,007 2,006

Weight Weight Weight
(KG) Value (AED) Units (KG) Value (AED) Units (KG) Value (AED) Units
Imports 267,476,227 2,793,491,610 53,236,842 196,848,087 1,764,045,662 13,237,015 144,149,652 1,120,754,613 10,230,005
Exports 2,260,703 20,444,323 574,228 3,280,410 30,513,521 92,012 3,962,413 39,124,127 10,427
Re-
exports 24,327,751 183,576,296 2,324,570 33,367,801 202,654,689 1,392,657 19,288,403 135,111,166 927,398
Meat & Meat Products Trade-2008 Import of Meat & Meat Products-2006-
Re- 2008
Exports exports 2.793
3.000
1% 6%
2.500
In million AED
2.000 1.764
1.500
Imports 1.121
93% 1.000
500
0
2008 2007 2006
34
Trade in Poultry Products- Eggs
Poultry Egg Trade-2008 Import of Poultry Eggs

Re- 2006-2008
Exports
exports 233
1% 250
4%
200
Achsentitel 150 135
Imports 100 81
95%
50
0
2008 2007 2006
35
UAE Soft Drinks
The UAE‟s soft drinks industry is competitive across all segments. PepsiCo‟s main brands lead the carbonates
segments and are distributed in Dubai, Sharjah and the Northern Emirates by Dubai Refreshments Company
(DRC), which has a market share of about 70% within carbonates. Coca-Cola, which bases its regional
operation out of Bahrain, plays second to PepsiCo.
DRC also has a strong presence in the bottled water segment through its Aquafina brand, which it
manufactures and distributes in partnership with the prominent Jeema Mineral Water Company. DRC also has
a developing ice tea portfolio. In addition to various bottle sizes, DRC has launched a range of flavoured water
products through Aquafina. The UAE is the world‟s highest per capita bottled water consumer. According to
leading UAE-based bottled water firm Al Ain Mineral Water Company, the country‟s per capita bottled water
consumption has reached 275 litres per annum. Like DRC, Al Ain has also launched a range of flavoured
water drinks. In addition to Al Ain, other prominent players in the bottled water industry include the domestic
company Masafi, Oasis and Gulfa. In recent times, the bulk water segment (four-five gallon) has developed
into a key growth engine for the country‟s main bottled water companies.
The UAE is also one of the world‟s highest per capita consumers of fruit juice. In addition to its strong position
in the bottled water segment, Masafi also has a fast-growing fruit juice business. The company has a launched
a number of new drinks in the past two years. Al Rawabi Dairy also has an expanding fruit juice business. The
PET and tetra pack segment accounts for the highest proportion of sale within the fruit juice segment.
Trade in Fruit Juices
Fruit Juice Trade-2008 Import of Fruit Juices - 2006-2008

140
Re- 118
exports 120 105
8% Imports 100
In million AED
86
30%
80
Exports 60
62%
40
20
0
2008 2007 2006
36
Trade in Mineral Water
Mineral Water Trade-2008 Import of Mineral Water 2006-2008

Re- 70 66
exports 54
60
3%
In million AED
50
Exports
40 35
40%
Imports 30
57%
20
10
0
2008 2007 2006
37
UAE Sugar
Couple of decade ago, demand for sugar in U.A.E. was mostly from households, there is now a
substantial demand for sugar from the manufactured foods industry (particularly soft drinks) and also from
the large number of restaurants and bakeries which have emerged with economic growth and the development of
tourism.
Demand of sugar is influenced by price and speculation. Price of sugar can fluctuate wildly because of
which domestic sales can vary enormously from year to year - not only influenced by demand but also by
existing stocks and speculation. Consequently, annual sates may not necessarily reflect actual consumption.
For example, domestic sales in 2006 more than doubled to 880 million tons compared to 409 million tons in
2005\ but this was probably because of speculative purchase as prices declined sharply in 2006. Sugar price
touched a low in mid 2007, and has moderately climbed since then.
The key sugar product in demand in U.A.E is refined white crystal sugar from sugar cane (demand for
maple and beet sugar is almost negligible). Consumption demand, after adjusting for speculative demand,
is between 500 and! 600 million tons. More than half of this demand is being met by domestic manufacturing
of refined sugar (albeit from imported raw sugar). Minor products like powder sugar, sugar cubes, syrups and
maple sugar/syrup account for less than 5% of the market. A rising population is certainly the chief cause for the
rise in demand, which in turn has led to the expansion of the domestic food and beverage industry, as well as:
the emergence of a large number of hotels and restaurants. Rising demand has also enabled the successful
establishment of domestic manufacturing.
Manufacturing
Sugar manufacture in U.A.E. is confined to refining sugar from |raw sugar, for both domestic and export
markets. There is only one factory, a large one in Dubai. This factory was established in 1991 and production
started in 1995. It now not only meets a substantial part of domestic demand but is also a major exporter. There
is a 35-40% value added in refining raw sugar. Products are both coarse and fine white sugar. It also
produces small quantities of golden sugar, molasses and filter cake, largely as by products. Molasses have
some commercial value for use in animal feed and aluminium factory (for making moulds).
Trade
Because of domestic production, the country now predominantly imports raw and not refined sugar. Raw
sugar is almost entirely imported from Brazil. However, freight costs for imports from Brazil are high, and in
the current glut that exists in the global sugar market, closer import sources may emerge, e.g. India. While
imports of refined sugar fluctuate enormously, import of raw sugar is more stable.
2008 2,007 2,006

Weight
(KG) Value (AED) Units Weight (KG) Value (AED) Units Weight (KG) Value (AED) Units
Imports 539,137,531 686,114,113 31,520,937 1,536,555,973 1,506,777,389 4,955,794 1,357,259,559 1,745,943,350 1,796,322
Exports 783,995,229 1,238,034,922 209,563,574 858,706,781 1,277,829,779 35,039,225 667,410,324 1,138,754,995 16,187,206
Re-
exports 103,681,025 162,573,541 16,696,559 107,422,250 147,083,913 1,376,995 154,477,684 230,421,029 2,616,632
38
Re-exports trade is predominantly for refined sugar, and it too, fluctuates considerably, e.g. declining by
more than 30% in 2006. Based on moving averages, current re-exports do not seem to be higher than the
levels reached in late nineties. One reason for this is that re-exports have been replaced by genuine exports. Raw
sugar to, is also re-exported, involving repackaging of raw sugar purchased in bulk and re-expoled in up to 1.5
ton jumbo sacks for smaller refineries in the region that are not in position to make bulk purchases of raw sugar
in the international market.
Sugar Trade-2008 Import of Sugar-2006-2008

Re- 2.000
1.746
exports
8% 1.507
1.500
Imports
In million AED
33%
1.000
Exports 686
59%
500
0
2008 2007 2006
U.A.E exports benefit from favourable transportation costs
A substantial part of the refined sugar manufactured in the country is exported. .This too, can vary
considerably. In 2006, 666 thousand tons, about 37% of the production was exported, compared to almost
75% in 2005 (931 thousand tons). Important export destinations are in the immediate region but outside
GCC. Iraq is a by far the most important market for refined sugar produced in U.A.E., followed by Sri
Lanka, Iran and Pakistan. Exports are considerably facilitated by the low costs of shipping out containers
from the country. Transportation in U.A.E. is lopsided, with merchandize imports heavily outnumbering
merchandize exports. In fact, this phenomenon is a major reason for the competitiveness for a bulky item like
sugar manufactured and traded (re-exported) from U.A.E.
39
UAE Tea
The tea bag market is dominated by Unilever‟s Lipton Tea, which has a market share of around 75% and a
production facility in Dubai‟s Jebel Ali Free Zone, one of the largest tea-processing facilities in the world. Black
tea is the traditional tea of choice in the region and continues to dominate the market. However, in recent years,
other varieties such as green tea and fruit and herbal teas have also started to grow in popularity – emphasizing
consumer taste for new products. An important factor sustaining and driving the growth of coffee and tea sales
in the Middle East is the traditional role that these drinks play in family and social occasions, which are of the
utmost importance in the social structure of the Middle East. Because of the integral role that tea plays in social
traditions, it will continue to be an important part of everyday life, sustaining high levels of consumption.
The tea market has grown, largely because of the increased population. Besides the population increase,
there is also an increase in the "floating" population of tourists in the country. Consequently, the current growth
of the tea market would be around 7%. Per capita tea consumption is unlikely to show any significant
increase. The current figures indicate a consumption of around 23 kilograms per person (in 2005).
The demand for hot beverages worldwide seems to be divided among ethnic lines. Whereas most of the Arabs,
British, Indians, Pakistanis, Iranians, Russians land Poles are mostly tea drinkers, the inhabitants of Ameicas,
Philippines, Central Europe primarily drink coffee. The same divide is reflected in U.A.E.'s homogeneous
population. However, the population constitution being such, the overwhelming demand in; hot beverages is
for tea.
Demand is predominantly for black tea, with virtually negligible amounts of green tea sold in the market.
Within this, the demand is predominantly (almost 80%) for loose tea (also called pack tea, as opposed to
teabags). This is the share as calculated by weight. In value terms, the share of teabags is considerably higher
because of the higher price of teabags. There are also several "lower teas". Any dried leaves or flowers
when soaked in hot water are deemed as "tea" however the role and share of such teas in the market is very
small.
There is competition within the industry to capture the lucrative and incremental tea market. Pack tea and
teabags are competitive and substitutive. Market price of loose tea is almost one-fifth of that of teabags (in
terms of number of cups delivered). Teabags command a higher price for the convenience they offer.
Manufacturing teabags is a relatively delicate operation, making it difficult for new entrants and large
companies/brands dominate the market.
Teabag market in U.A.E. was dominated for a long time by one single brand. Consumer brand loyalty in tea
is almost as strong as in cigarettes. However, this is slowly changing now with more brands and more
flavors. Incremental demand in a growing market, particularly, allows new entrants to gain a foothold.
Nevertheless, the market is still dominated by one single brand. The reliance of the new teabag brands is on
price competitiveness. Meanwhile, unlike teabags, loose/pack tea has a rather large number of brands. It is
also sold without brand label by weight.
Trade
40
Tea imports have more than doubled in the last 10 years. It is however, difficult to say if this is also
reflection of demand as there may be a degree of double counting, because of import of bulk tea for teabag
production in U.A.E (JAFZA). A lot of tea imports may be destined for teabag production, which is then being
imported from JAFZ back into U.A.E.
Tea Trade-2008 Import of Tea -2006-2008

Re-
exports 1.800 1.631
19% 1.600
Exports 1.400 1.182
In million AED
0% 1.200 996
1.000
Imports 800
81% 600
400
200
0
2008 2007 2006
Re-export trade is largely in loose tea, and a very small proportion of teabags is re-exported. More than half
of the entire import of such tea is destined for re-exports. The prime destination is Iran which accounts
for more than 25% of the entire re-exports. This is followed by Iraq which has become a significant buyer of tea
since the change of regime there, after which the U.A.E.-Iraq trade has expanded enormously.
Re-exports too, have grown significantly in recent years. Total re-exports have more than doubled in the last ten
years, growing to AED 378 million in 2008, compared to AED 157 million in 1996. Though Iran is a key market,
tea re-expots have grown as the southern CIS countries have been added as new markets for re-exports.
These markets source their tea requirements independently, and not through Russia (Soviet Union) as
earlier. Currently, after Iran and Iraq, the key destinations for tea re-exports are Uzbekistan, Turkmenistan,
Tajikistan and Azerbaijan.
Import sources
The tea imports are predominantly from India and Sri Lanka, largely because of the demand for black
tea. These two countries are the leading global producers of black fermented tea. Teabags which were
once almost entirely sourced from U.K., are now produced domestically. About 80% of the teabag products in the
U.A.E. are produced in Jebel Ali. Furthermore, a large amount of teabags are exported out of U.A.E. Given
the strong presence of this brand globally, U.A.E. now is one of the major producers of teabags in the world.
Outlook
The current trends in manufacturing shiting away rom the West to regions with cheaper labour costs, has led
U.A.E. to become a leading producer of teabags ii the world. It helps considerably that the two major sources
of tea are located nearby |(Si Lanka and India). Tea and teabag marketing however is dominated by
some jkey multinational companies. If U,A.E. can attract such companies to its ree zonesj the country can
become a chief supplier of tea (viz. teabags) to the international markets.
41
UAE Impulse & Indulgence(Confectionery )Products
Value sales of impulse and indulgence products reach AED1 billion in 2008; growth of 11% over 2007. This
growth outperformed its previous rate in 2007, fuelled by changing demographics and consumer lifestyles. As
consumer lifestyles become more westernized and fast-paced, and the country's demographics reveal a
population dominated by youngsters, snacking and the consumption of impulse and indulgence products are
on the rise.
Confectionery was the fastest growth category during 2008, as retail sales picked up by 14% in current value
terms to reach AED318 million. Within confectionery, chocolate confectionery was the most vibrant category,
with value sales growth of 16% in current value terms, fuelled by high living standards, various celebratory
periods and a large young population.
Within impulse and indulgence products, snack bars posted the lowest growth rate. Retail sales of snack
bars increased by 7% in 2008 in current value terms to reach AED3.4 million, which was mainly due to the
emerging nature of these products, their relatively high prices, and the lack of consumer awareness.
Multinational companies continued to lead impulse and indulgence products in 2007; Master Foods Middle
East FZE led, followed by Nestlé Middle East FZE. It should be highlighted that the performance of both
companies improved further over the review period, as they invested in product launches, advertising and
promotional campaigns.
A clear example was Master Foods' remarkable efforts in 2007 to rejuvenate its successful Galaxy brand,
which included a comprehensive advertising campaign through various media channels and regular in-store
promotions.
Local companies such as International Foodstuffs Co and Modern Bakeries LLC did well in categories
such as biscuits, ice cream, cakes and pastries,
Impulse and indulgence products is expected to grow by a CAGR of 12% as retail sales reach AED1.8 billion
in 2013. All categories are expected to post strong growth rates, whilst cakes and snack bars will display the
lowest constant value CAGRs of 8%.
Trade
Cocoa, Chocolate etc. Trade-2008 Import of Chocolate etc- 2006-

2008
Re-
700 626
exports
Exports 600 537
20%
In million AED
4% 500 446
400
Imports 300
76% 200
100
0
2008 2007 2006
42
UAE Fish & Fish Products
The United Arab Emirates is a coastal country located on the southern side of Arabian Gulf having extensive
coastlines on its West and East facing the Arabian Gulf and the Gulf of Oman respectively. Traditionally, fishing
provided the main livelihood for the early population during the pre-oil discovery era. But later the oil recourses
paved the way for the overall development of the country.
The Fishing Industry in the U.A.E.
The fishing industry in the U.A.E. is mainly artisanal. The national fisherman are given lot of incentive by the
government by way of providing subsidized boats and engines to promote the fishing industry in the country. The
statistics available for the estimated fish landing indicated that the catch increased from 95.1 x 103 tons in 1990
to 105.5 x 103 tons in 2000. The number of people engaged in fishing as a full time or part time fishermen
showed an increase from 10,172 in 1990 to 15,543 in 2000 while the increase in the total number of fishing boats
for the same period was from 3,321 to 4,688.
Overview of Fisheries in UAE
Fishing in UAE is till artisanal in nature and most of the wild catch is sold as fresh. These fresh wild catches are
sold in the fish markets of respective emirates separately. Auction of these takes place in presence of the Fish
cooperatives agent, who basically helps in auction. The buyers are the local traders or the purchasers from the
hotels. But bulk of the stock is purchased by the local traders. This is then sold either in fresh form or is then
processed in different processing plant. Usually as a practice, during the season, most of the companies
purchase in bulk from fish market. In fish markets, local fishes are sold along with the Omani fish which also
represents big percentage in terms of the quantity of fish. These fishes as mentioned above are purchased by
local traders/companies and processed. Processing industry in UAE was not such a big industry till recent past
but with the investment of some big groups in production of Value added seafood items, this has started growing
very fast.
Processing & Marketing of Fish in UAE
Fisheries in UAE in covered under the Federal law 23 of 1999, the by laws and the amendments thereafter.
According to this law fishing by mechanized boats like trawlers, purse seiners or long liners are completely
banned. Only Speed boats and 'Lanch' (artisanal boats with outboard engines) are allowed to fish in UAE. It is
not allowed to fish without the local fishermen on board in UAE waters. Fishing is strictly prohibited in spawning
seasons, which is well in advance conveyed to all, in order to conserve marine resources. One most important
point is that no company is allowed to export local fishes except the local fishermen having valid permission from
the Ministry and the competent authority, that too only from November to April. Form May-October even the local
fishermen cannot export local fishes. This is a major step towards conservation and restoration of marine
resources by discouraging the export of local fishes.
The seafood processing industry has become big both in terms of quantity of fish processed and also in terms of
the value of the fish processed. At present more than 30-35 processing plants are operating through out UAE,
more being in Dubai and Ajman , with 12 companies having EU approval. All the processing plants have HACCP
as it is obligatory by the Municipalities and also by the ministry to have the HACCP implemented. Total
companies registered with Ministry of Environment and Water are 78.
Activities of these 78 Companies Include:
1. import of seafood
2. import and re-export of seafood
3. processing (primary and secondary both) for local market
4. processing and export
5. fish farming, processing and export
43
The Modus Operandi of the Processing Companies in UAE can be divided in to three Steps:
1. Procurement of material (fresh/frozen) either from outside or from local market (local products as per
the UAE federal law 23 of 199 can not be exported, except by local fishermen with valid license of
export)
2. Primary and secondary processing of the material as per the guidelines of the Federal ministry
(Ministry of Environment and Water) and Competent Authorities (Municipalities of the respective
emirates).
3. Sales of product in local or global market depending upon the type of product.
Types of secondary processing done in UAE are basically:
1. Fillet (both skin on and skin less),

2. Steaks,
3. Gutted,
4. De-scaled Gutted
5. Pan ready,
6. PD and PUD
7. Lobster tail
8. Head less shrimps
9. Smoking
These are some of the major types of end products of secondary processing. Apart form this some big groups
have also started making value added products within UAE with there own brand names. Some local companies
have their own seafood brands, sold either in local market or exported also, are:
List of local (UAE) made Value Added brands
S. No Company Name Seafood Brands

1 Asmak "Asmak"
2 Dubai Cooperative "Al Islami"
3 Cascade "Al Kaber"
4 Freshly Frozen "Fair"
5 Seville "Al Khalej"
6 Global Foods "Arctic Gold"
List of EU approved companies
EU Name of Company City Category

Approval
No
001 Asmak Seafood Processing Co Dubai PPa
002 Magenta Fish & Seafood Supply Dubai PP
003 Gulf Seafood LLC Dubai PP
005 Caviar Classic Seafood Canning Co Dubai PP
006 Seville Products Ltd Sharjah PP PP Processing plant
007 East Fish Processing LLC Ajman PP PPa Plant processing only or
009 Shaheen Fisheries and Meats LLC Ajman PP partially materials derived
from aquaculture (farmed
012 Royal Crown Fisheries Factory Dubai PP
products)
014 Freshly Frozen Foods Dubai PP
015 Alliance Foods Co LLC Ajman PPa
016 Global Foods Industries Sharjah PP
017 Black Pearl Caviar Dubai PPa
44
These are just to name few. But actually in retail market there are more than 10 local brands available other than
several non local brands. Out of these some of Export of local made value added product is limited to GCC and
Middle East . Only a very small percentage gets exported to EU and America.
In general there are separate marketing trends for different species depending upon the demand, season,
country of import, country of export, quality of product, and the availability of the product in global market. Some
important species being marketed in UAE and traded from UAE around the globe are as follows,
Few local (UAE) fishes processed and widely traded only in local market
S. No English Name Local Name Scientific Name

1 Spangled Emperor Sheri Lethrinus nebulosus
2 Thorny Cheek Grouper Disco Epinephelus diacanthus
3 Dusky Tail Grouper Suman Epinephelus bleekri
4 Rabbit Fish Safi Siganus canaliculatus
5 Barred Spanish Mackerel Kahbbat Scomberonorus commerson
6 Greasy Grouper Hamour Epinephelus coioides
7 Sardine Uomah Sardinella longiceps
8 Great Barracuda Giddi Sphyaena barracuda
9 Shrimps Rubian Peaneasus indicus
10 Lobsters Umm Rubian Pannulirus hommarus
Types of exotic/imported fishes processed and repacked or just repacked and exported all around the
globe are as follows:
1. Pomfret from Indian sub continent

2. Cuttle fish from Yemen and Oman
3. Black tiger shrimps
4. Alaska Pollock
5. Red Sea bream from Oman
6. Basa from Vietnam
7. Tilapia
8. Nile perch
9. Shrimps
10. Salmon
These are just to name few. There are different species of these types of fishes being traded from UAE. All these
types are sourced from different regions say for example most of the pomfret comes from Indian sub continent,
Cuttle fish from Yemen and Oman, Shrimps from India, Basa from Vietnam, Red sea bream from Oman, Tilapia
from China and Salmon from Norway etc. Country of import mentioned above is just to the major supplier for
UAE but small portions of these types of fishes comes form other regions also. Actually there are more than 50
different species being traded in bulk from UAE and over 90-100 different species being traded in sporadic
quantities as and when available. Those species being traded in bulk may be either processed and packed in
UAE or just re-packed and re routed from UAE.
Trade
45
Fish & Fish Products Trade-2008 Import of Fish & Fish Products
Re- 2006-2008
exports 500 471
Exports 14%
400
10%
In million AED
312
287
300
Imports 200
76%
100
0
2008 2007 2006
46
UAE Overview of Packaged Food Sector in UAE
Packaged food in the UAE generated retail sales of AED4.8 billion in 2008; increasing by a record 15% in current
value terms over 2007. The fastest growth categories in 2008 included dried processed food, noodles, chilled
processed food and confectionery. The 2008 record value growth rate was fuelled by escalating inflation, increasing
per capita incomes, the expanding retail landscape and the growing population.
Packaged food in the UAE is expected to maintain its strong growth, driven by both supply and demand-led
factors. Packaged food will continue to gain stimulus from higher advertising expenditure, improved distribution
channels and an expanding retail landscape. At the same time demand will be stimulated by strong population
growth and improving living standards; driving sales of packaged food.
In an attempt to control inflation, the government embarked on a series of measures such as subsiding food and
requesting major retailers to fix the price of certain basic commodities. The Union Cooperative Society, which
operates about 16 supermarket outlets, agreed to fix the retail prices of 16 foods, and only increase them in line with
inflation. Emke Group, operator of Lulu Hypermarkets, agreed to keep the prices of 32 basic foods and commodities
at 2007 levels. Abu Dhabi Cooperative Society in turn claims it is selling 130 goods, including basic food, at less than
cost price, and is planning to increase this number to 200. Carrefour fixed the prices of 52 food commodities at 2007
levels throughout 2008.
Demographics Fuel the Packaged Food Market
The UAE's population steadily increased over the review period to reach an estimated level of 5.5 million in 2008,
signalling average annual growth of close to 7%. With this population level, the UAE has become the second
most populated country across the Gulf Cooperation Council (GCC), just after Saudi Arabia. An influx of
expatriates was the main driver behind such growth, as Emiratis accounted for only 20% of the total population.
The Asian expatriate population represented the largest population group in the UAE, estimated at more than
45% of the population, and reaching a high of 75% of Dubai's population. Western expatriates accounted for only
5%, whilst the remaining 30% was accounted for by Middle Eastern and Arab individuals. In terms of age,
children under 15 roughly represented 25% of the population, rising to 50% for those under the age of 21.
Current impact
The UAE's relatively large young population fuelled demand for certain packaged foods across the country, such as
chocolate and sugar confectionery, biscuits, ice cream, drinking milk, breakfast cereals and baby food. These
categories thus demonstrated healthy growth rates and continued to see product innovation.
In terms of nationality, the large expatriate population fuelled demand for diverse meal solutions, especially for
canned/preserved food and frozen processed food. In addition, as most of the expatriate population originates from
the Indian subcontinent and the Far East, the market witnessed thriving demand for domestic products, as they tend
to be relatively cheaper than their imported counterparts.
47
Market Data-UAE
Sales of Packaged Food by Sector: Volume

2003-2008
2003 2004 2005 2006 2007 2008
Confectionery ('000 tonnes) 5.2 5.8 6.5 7.4 8.2 9.0
Bakery products ('000 tonnes) 213.8 235.1 261.0 284.2 308.8 335.3
Ice cream (million litres) 5.9 6.2 6.6 6.9 7.3 7.6
Dairy products (not calculable) - - - - - -
Sweet and savoury snacks ('000 tonnes) 4.0 4.5 5.2 5.9 6.5 7.1
Snack bars ('000 tonnes) 0 0 0.1 0.1 0.1 0.1
Meal replacement products ('000 tonnes) 0 0 0 0 0 0
Ready meals ('000 tonnes) 0.1 0.1 0.2 0.2 0.2 0.2
Soup ('000 tonnes) 0.2 0.3 0.3 0.3 0.4 0.4
Pasta ('000 tonnes) 3.8 4.2 4.8 5.3 5.8 6.4
Noodles ('000 tonnes) 2.7 3.2 3.7 4.3 4.9 5.5
Canned/preserved food ('000 tonnes) 6.7 7.6 8.9 10.3 11.5 12.8
Frozen processed food ('000 tonnes) 3.5 3.9 4.4 4.8 5.3 5.8
Dried processed food ('000 tonnes) 113.0 122.8 133.5 141.2 150.3 160.5
Chilled processed food ('000 tonnes) 0.8 0.9 1.1 1.2 1.4 1.6
Oils and fats ('000 tonnes) 34.5 37.5 40.8 44.8 49.3 54.7
Sauces, dressings and condiments ('000
tonnes) 2.4 2.6 3.0 3.2 3.6 4.0
Baby food ('000 tonnes) 2.6 2.8 3.0 3.3 3.6 4.0
Spreads ('000 tonnes) 1.2 1.4 1.6 1.8 2.0 2.3
Impulse and indulgence products (not
calculable) - - - - - -
Nutrition/staples (not calculable) - - - - - -
Meal solutions ('000 tonnes) 13.7 15.3 17.6 19.9 22.1 24.5
Packaged food (not calculable) - - - - - -
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,Euromonitor International estimates
Notes: Sum of sectors does not equal total packaged food because of double counting (for example canned soup is included in soups and
canned foods)
Volume sales cannot be consolidated due to different unit measurements (eg confectionery in tonnes and ice cream in litres)
48
Sales of Packaged Food by Sector: Value
2003-2008
AED million
2003 2004 2005 2006 2007 2008

Confectionery 156.5 180.2 209.5 244.1 278.6 317.6
Bakery products 538.1 604.6 683.3 763.1 837.1 922.0
Ice cream 91.0 100.1 112.3 127.7 141.7 156.4
Dairy products 744.0 820.9 918.5 1,031.1 1,139.2 1,284.6
Sweet and savoury snacks 97.5 112.2 132.0 150.4 166.8 185.2
Snack bars 2.5 2.7 2.8 3.0 3.2 3.4
Meal replacement products 0.1 0.1 0.2 0.2 0.2 0.2
Ready meals 2.9 3.4 4.0 4.6 5.2 5.8
Soup 9.4 10.6 12.3 13.9 15.2 16.9
Pasta 25.8 29.0 33.3 37.4 41.1 45.6
Noodles 35.4 41.8 49.8 59.9 68.3 78.3
Canned/preserved food 99.8 116.1 138.2 161.6 182.5 206.4
Frozen processed food 38.6 43.7 50.6 58.0 63.9 70.8
Dried processed food 404.8 463.0 554.4 624.2 778.5 1,002.1
Chilled processed food 35.7 40.6 46.7 54.3 61.9 71.0
Oils and fats 209.2 231.3 256.7 285.3 313.4 348.0
Sauces, dressings and condiments 41.9 46.6 53.6 60.3 68.4 78.7
Baby food 75.8 83.8 94.1 107.3 119.7 133.7
Spreads 24.9 28.4 32.3 37.6 42.5 47.8
Impulse and indulgence products 582.3 658.4 748.4 849.6 943.3 1,048.0
Nutrition/staples 1,753.1 1,958.7 2,235.9 2,511.0 2,862.9 3,336.8
Meal solutions 225.5 257.7 301.4 348.0 392.1 443.9
Packaged food 2,560.6 2,874.3 3,285.2 3,708.0 4,197.6 4,827.9
Source:Official statistics, trade associations, trade press, company research, store checks, trade interviews,Euromonitor International
estimates
Note:Sum of sectors does not equal total packaged food because of double counting (for example canned soup isincluded in soups and
canned foods)
49
Sales of Packaged Food by Sector: % Volume
Growth 2003-2008
% volume growth
2003-08 2003/08
2007/08 CAGR TOTAL
Confectionery 10.2 11.4 71.4
Bakery products 8.6 9.4 56.8
Ice cream 4.3 5.3 29.6
Dairy products - - -
Sweet and savoury snacks 9.5 12.0 76.6
Snack bars 6.4 5.3 29.3
Meal replacement products 1.9 1.8 9.3
Ready meals 11.0 12.3 79.0
Soup 8.9 10.8 67.2
Pasta 9.3 11.0 68.7
Noodles 12.9 14.9 100.2
Canned/preserved food 11.8 13.9 92.1
Frozen processed food 8.9 10.5 64.4
Dried processed food 6.8 7.3 42.1
Chilled processed food 13.0 13.7 89.9
Oils and fats 10.9 9.7 58.6
Sauces, dressings and condiments 11.1 10.5 65.0
Baby food 9.3 9.1 54.2
Spreads 11.1 12.7 81.9
Impulse and indulgence products - - -
Nutrition/staples - - -
Meal solutions 11.0 12.4 79.6
Packaged food - - -
Source:Official statistics, trade associations, trade press, company research, store checks, trade interviews,Euromonitor International
estimates
Notes:Sum of sectors does not equal total packaged food because of double counting (for example canned soup isincluded in soups and
canned foods)
Volume sales cannot be consolidated due to different unit measurements (eg confectionery in tonnes and ice cream in litres)
50
Packaged Food by Brand Shares
2004-2007
% retail value rsp
Brand Company 2004 2005 2006 2007

Al Marai Almarai Co Ltd 5.5 5.7 5.9 5.5
Al Ain Al Ain Dairy Co 3.4 3.6 3.7 3.5
Al Sinnara BURVI Enterprises 1.9 2.1 2.2 2.7
Al Rawabi Al Rawabi Co 2.6 2.7 2.8 2.5
Kraft Kraft Food Dubai 1.8 1.9 1.9 1.9
Milco National Food Industries Co Ltd 1.7 1.8 1.8 1.8
Nido Nestlé Middle East FZE 1.8 1.8 1.8 1.7
Al Arabi Savola Group 1.6 1.7 1.7 1.7
Tilda Tilda International Ltd 0.7 0.8 1.1 1.3
Americana Gulf Food Industries 1.2 1.2 1.2 1.2
Puck Arla National Food Products Co LLC 1.4 1.5 1.4 1.2
Afia Savola Group 1.0 1.1 1.2 1.2
Kiri Unibel SA 1.1 1.2 1.3 1.2
Galaxy Master Foods Middle East FZE 0.9 1.0 1.1 1.1
Maggi Nestlé Middle East FZE 1.0 1.0 1.1 1.1
California Garden Gulf Food Industries 0.9 0.9 1.0 1.0
Three Cows Arla National Food Products Co LLC 1.2 1.3 1.1 1.0
Classic Mumtaz United Kaipara Dairies Co (PSC) 0.7 0.8 0.8 1.0
Cerelac Nestlé Middle East FZE 0.9 0.9 0.9 0.9
Mazola Unilever Middle East 1.0 1.0 1.0 0.9
Silver Swan Silver Swan Manufacturing Corp Inc 0.6 0.7 0.7 0.9
Modern Bakery Modern Bakeries LLC 0.7 0.8 0.8 0.8
Pringles Procter & Gamble Gulf FZE 0.9 0.9 0.8 0.8
Klim Nestlé Middle East FZE 0.8 0.8 0.8 0.8
KitKat Nestlé Middle East FZE 0.6 0.6 0.7 0.7
Baskin-Robbins Galadari Ice Cream Co LLC 0.6 0.6 0.7 0.7
Khazan Conserved Foodstuff Distribution Co 0.6 0.6 0.7 0.7
Sanjella Near East Olive Products 0.6 0.7 0.7 0.7
Sun White Modern Arab Distribution Ltd 0.5 0.5 0.6 0.6
Indomie Transworld Distribution 0.5 0.5 0.6 0.6
Artisanal 13.3 13.2 13.0 12.6
Private label Private Label 6.4 6.6 6.6 7.4
Others 41.5 39.4 38.3 38.5
Total 100.0 100.0 100.0 100.0
51
UAE Food Sector
Food Industry SWOT
Strengths
 The UAE‟s high-income and expatriate-

geared population makes it an ideal market
for high-value food products UAE- Competitive edge
 Consumers are brand loyal and susceptible
to new trends and innovations
 The packaged and processed food The competitive edge of the UAE lies in the following
industries have grown rapidly in recent years aspects:
 Self-sufficiency is gradually being attained
across more food categories thanks to both  Resilient economies
government and international investment  High per capita GDP
 The UAE has a large population by Gulf  High standard of living
region standards  Reasonably low inflation
 100% tax exemptions with no personal, corporate, value

Weaknesses added or withholding tax
 100% ownership in free zones
 Despite soaring incomes, per capita  100% repatriation of profits
food consumption growth remains  No restriction on hiring of expatriate workers
weak
 Operating parameters are not identical
across the emirates owing to the  Stable Government
state‟s federal nature, which can be a  Excellent infrastructure such as roads, sea ports, power
regulatory headache for producers and telecommunication Geographical proximity to
MENA, Europe and Asian markets
Opportunities  Low cost of operation (in RAK) compared to other
(Emirates) and GCC countries
 Governmental encouragement
 Successful establishment in the UAE
acts as an advert to the rest of the
Middle East, with other countries One of the strategies of UAE has been to promote
looking to the market to determine industrialization away from oil and gas based industries
future trends in order to ensure a stable broad based economy for a
 Rising health consciousness has balanced growth in the medium to long term.
significantly increased opportunities for
food producers that are able to Food industry is an ideal investment scenario. Besides
introduce „healthy‟ or „light‟ options saving expensive imports, it tends to drive all-round
 Busier lifestyles and more women development by investing in R&D, developing
entering the workforce will continue to ancillary industries and generating employment
add impetus to the packaged and opportunity for the locals. UAE has taken a number of
processed food industries steps in broadening the industrial base away from oil and
gas.
 Demand for organic food is steadily
increasing
Threats
 Profit margins will suffer owing to the government imposing caps on the price of basic foods and
threatening fines if these are not adhered to.
52
UAE Food Sector
Economic & Business Environment SWOT
UAE- Economic SWOT UAE Business Environment SWOT
Strengths
Strengths
 The UAE is a member of the Gulf Co-operation
Council, which being a common market can  The UAE is a member of the Gulf Co-operation
access the GCC market with common favourable Council, a six member common market, and has
terms. been a member of the WTO since 1996
 The UAE has one of the most liberal trade regimes  The state has invested large amounts in
in the Gulf, and attracts strong capital flows from infrastructure, and will continue to do so over the
across the region next 10 years
 In common with most Gulf states, there are a high  The UAE's diversified economy reduces risks
number of expatriate workers at all levels of the from volatile oil prices
economy, making up for the otherwise small
workforce Weaknesses
 The UAE is progressively diversifying its economy,
minimizing vulnerability to oil price movements  Due to the state's federal nature, regulations can
vary considerably across the emirates
Weaknesses  The regional economy is oil-dependent. This has
historically been very cyclical, which increases
 The UAE's currency is pegged to the dollar, giving it risks for long-term projects
minimal control over monetary policy and reducing
its ability to tackle inflationary pressure Opportunities
Opportunities  Large number of free trade zones offering tax

holidays and full foreign ownership
 Oil prices are expected to stay high (by historical  Comparatively relaxed rules on expatriate
standards) employment
 Economic diversification into gas, tourism, financial  The UAE's social stability and relative prosperity
services and high-tech industry offers some means that there is far less concern for security
protection against volatile oil prices than in some other Gulf states
 The construction, tourism and financial sectors are
growing rapidly, driven by domestic and foreign
investment Threats
 Oil prices have massively increased liquidity in

Threats the region. This has resulted in strong financial
inflows,
 Some bottlenecks have been forming in the
construction sector and there is a chance of delays
in several high-profile construction projects
53
UAE Trade in Food Sector- Imports
Source- Dubai Port & Customs Statistics-2008, Dubai World
IMPORTS 2008 2007 2006

HS Code Description Weight (KG) Value (AED) Units Weight (KG) Value (AED) Units Weight (KG) Value (AED) Units
Cereals, Grains etc 68,941,274 179,854,391 4,194,179 48,353,563 166,501,111 2,077,692 33,073,966 86,089,065 1,412,511
cocoa, Chocolate etc 51194503 626,485,677 19,086,916 48,479,966 537,156,205 4,716,451 42,256,316 445,699,739 3,984,341
Coffee 6,068,972 88,291,690 699,402 6,942,229 79,408,945 222,693 7,116,513 68,953,466 264,331
Fish & Fish Products 55,166,270 471,322,785 7,924,245 37,933,229 311,885,058 2,775,497 46,362,872 286,682,634 3,265,085
Fruit Juices 26,075,499 118,357,384 3,611,596 24,107,182 104,998,462 1,320,692 23,140,174 86,023,656 1,001,108
Fruits 857,119,280 1,957,582,926 218,706,230 879,826,387 1,738,183,825 66,571,972 765,741,582 1,337,973,089 64,496,761
Ice Cream 5,696,181 87,224,665 1,383,056 4,624,467 65,213,750 885,084 4,140,216 51,905,356 839,845
Jam and Jellies 11,037,089 52,544,410 1,630,834 13,476,105 52,181,752 635,149 7,791,424 29,404,897 446,897
Meat & Meat Products 267,476,227 2,793,491,610 53,236,842 196,848,087 1,764,045,662 13,237,015 144,149,652 1,120,754,613 10,230,005
Milk & Milk products 135,367,190 1,817,947,771 19,355,626 127,143,141 1,231,427,408 7,113,012 128,282,052 1,106,116,212 7,104,917
Mineral water 26,301,587 65,545,045 5,815,605 22,522,212 54,490,158 1,512,960 15,528,835 35,278,214 958,276
Nuts and Dry Fruits 72,987,220 874,893,017 8,429,115 99,370,495 749,380,257 4,322,521 83,625,043 553,548,938 3,654,492
Others 59,430,541 525,149,375 15,022,985 26,938,998 245,763,419 4,214,701 24,344,330 210,623,951 4,182,553
Pasta 39,258,582 200,855,107 5,579,863 32,433,253 111,922,962 4,351,485 29,535,645 89,044,500 3,993,245
Poultry Eggs 33,744,236 232,946,659 5,161,591 24,297,514 134,862,403 2,206,211 14,917,764 80,902,306 1,315,370
Sauces 87,267,640 387,064,254 16,483,461 24,812,183 139,341,207 2,282,943 12,213,681 74,464,064 1,127,353
Sugar 539,137,531 686,114,113 31,520,937 1,536,555,973 1,506,777,389 4,955,794 1,357,259,559 1,745,943,350 1,796,322
Tea 106,941,808 1,630,630,134 20,903,381 97,107,367 1,182,198,991 7,414,816 88,195,353 996,420,420 7,999,028
Vegetables 984,134,462 2,414,525,998 167,401,929 826,268,221 1,742,405,955 58,331,669 699,616,049 1,221,652,590 48,416,659
Vegetable Oil 213,303,970 983,069,596 17,014,800 161,955,744 465,429,119 18,662,543 155,458,848 335,596,285 16,478,358
Total 3,646,650,062 16,193,896,607 623,162,593 4,239,996,316 12,383,574,038 207,810,900 3,682,749,874 9,963,077,345 182,967,457
IN MILLION (AED) 16,193.90 12,383.57 9,963.08
IN MILLION USD 4,412.51 3,374.27 2,714.73
54
UAE Trade in Food Sector- Exports
EXPORTS 2008 2007 2006

Sugar 783,995,229 1,238,034,922 209,563,574 858,706,781 1,277,829,779 35,039,225 667,410,324 1,138,754,995 16,187,206
cocoa, Chocolate etc 21635118 32,579,332 20,691,375 21,874,831 357,536,202 1,999,997 25,076,955 399,553,526 2,444,644
Others 35,941,515 166,844,520 1,515,119 48,422,520 177,250,059 129,376 53,999,730 180,207,935 70,893
Vegetables 80,890,225 192,964,121 8,366,915 70,452,360 155,213,334 6,213,326 168,404,451 171,570,472 1,470,324
Fruit Juices 124,213,320 241,045,831 6,477,860 65,750,086 138,672,567 852,525 41,720,110 80,388,876 1,102,279
Cereals, Grains etc 50,687,112 123,284,756 9,906,250 89,259,537 112,274,776 599,102 95,429,947 93,662,266 432,953
Pasta 47,422,634 91,168,004 14,059,316 47,725,698 80,688,654 693,769 35,397,291 57,903,361 271,812
Mineral water 63,395,977 45,214,810 10,259,972 74,664,717 55,591,395 562,127 94,283,746 90,910,469 172,274
Fish & Fish Products 8,067,282 59,284,920 172,729 6,448,618 45,728,636 7,780 6,201,964 48,474,122 26,834
Fruits 50,874,227 81,863,307 20,087,803 31,824,110 44,224,685 46,322 35,697,552 44,733,381 123,276
Sauces 21,465,731 76,924,570 2,940,654 12,723,806 43,945,684 830,410 2,552,276 8,357,754 38,952
Milk & Milk products 7,418,215 64,245,872 1,212,605 6,857,258 37,759,353 43,031 15,652,606 84,609,621 113,929
Meat & Meat Products 2,260,703 20,444,323 574,228 3,280,410 30,513,521 92,012 3,962,413 39,124,127 10,427
Ice Cream 555,881 5,994,027 65,755 1,237,562 16,078,711 309 1,601,953 11,326,221 43,528
Nuts and Dry Fruits 300,287 4,815,956 17,428 268,198 5,458,511 3,389 367,865 3,411,289 11,212
Tea 188,610 1,925,444 10,897 245,780 2,314,260 14,942 552,900 5,778,572 45,843
Poultry Eggs 141,871 1,950,423 10,088 78,912 838,569 5,173 38,214 400,955 2,570
Jam and Jellies 111,662 439,208 14,514 95,990 244,411 990 243,411 514,251 441
Coffee 0 0 0 0 0 0 0 0 0
60,733,683 228,165,944 21,283,982 42,553,835 117,307,895 12,888 47,386,512 136,769,549 148,382
Vegetable Oil
1,360,299,282 2,677,190,290 327,231,064 1,382,471,009 2,699,471,002 47,146,693 1,295,980,220 2,596,451,742 22,717,779
Total
2,677.19 2,699.47 2,596.45
IN MILLION (AED)
729.48 735.55 707.48
IN MILLION (USD)
55
UAE Trade in Food Sector- Re-Exports
RE-EXPORTS 2008 2,007 2,006

Nuts and Dry Fruits 44,134,043 552,488,177 2,820,035 54,986,568 508,980,695 1,761,295 50,260,949 428,223,831 1,849,373
Vegetables 203,470,547 545,993,927 16,500,506 189,775,997 376,362,605 13,199,509 202,415,947 346,830,605 12,220,396
Fruits 373,267,221 540,131,391 53,643,532 406,285,434 562,406,276 26,349,909 396,797,868 512,682,542 27,613,039
Tea 37,299,562 377,568,126 3,716,299 35,685,437 337,251,861 3,023,879 36,285,402 288,473,437 3,450,541
Meat & Meat Products 24,327,751 183,576,296 2,324,570 33,367,801 202,654,689 1,392,657 19,288,403 135,111,166 927,398
Sugar 103,681,025 162,573,541 16,696,559 107,422,250 147,083,913 1,376,995 154,477,684 230,421,029 2,616,632
Milk & Milk products 17,020,807 150,078,652 1,353,573 21,295,702 172,647,907 610,172 16,146,933 117,288,296 460,307
Fish & Fish Products 6,489,750 86,076,013 847,103 5,419,607 70,060,230 290,828 13,727,661 101,440,600 433,360
Pasta 18,206,106 63,960,658 2,369,135 22,568,090 47,876,329 1,628,978 26,342,155 46,357,003 2,238,379
Others 10,962,500 56,949,914 763,429 12,204,095 56,971,228 307,812 6,978,551 33,380,544 349,947
Cereals, Grains etc 20,276,465 46,901,255 1,306,427 12,045,031 27,613,658 296,972 19,553,890 30,485,615 167,149
Sauces 10,660,909 43,503,807 1,767,933 6,060,265 26,350,995 269,852 2,558,292 11,168,710 52,048
Fruit Juices 10,413,487 30,487,730 948,485 11,399,486 32,787,971 583,138 5,478,305 18,157,908 326,853
cocoa, Chocolate etc 13,886,952 162,619,814 1,557,734 16,339,436 178,181,099 1,304,749 12,057,639 109,734,634 931,141
Coffee 1,426,067 11,246,877 105,965 1,817,479 15,142,888 56,200 1,957,025 11,676,966 51,316
Poultry Eggs 2,497,935 10,363,819 106,772 5,785,256 11,372,756 207,629 304,863 1,236,390 6,391
Ice Cream 939,459 9,090,234 105,359 731,347 8,072,232 49,397 810,253 8,155,397 45,051
Jam and Jellies 807,142 3,503,259 242,996 754,850 3,095,536 42,926 825,799 3,527,203 59,607
Mineral water 2,275,135 3,047,551 106,167 3,704,674 4,884,542 93,331 1,983,310 2,801,856 12,666
5,701,429 31,568,843 1,318,864 5,777,545 21,043,477 33,331 23,274,327 52,844,503 155,424
Vegetable Oil
907,744,292 3,071,729,884 108,601,443 953,426,350 2,810,840,887 52,879,559 991,525,256 2,489,998,235 53,967,018
3,071.73 2,810.84 2,490.00

IN MILLION AED
836.98 765.90 678.47
IN MILLION USD
56
UAE' Trade- Import & Re-export of Food Items
in 2008 in million AED
Imports in ml Re-exports in
Description AED ml AED
Meat & Meat Products 2,793 184
Vegetables 2,415 546
Fruits 1,958 540
Milk & Milk products 1,818 150
Tea 1,631 378
Vegetable oil 983 32
Nuts and Dry Fruits 875 552
Sugar 686 163
cocoa, Chocolate etc 626 163
Fish & Fish Products 471 86
Sauces 387 44
Poultry Eggs 233 10
Pasta 201 64
Cereals, Grains etc 180 47
Fruit Juiceas 118 30
Coffee 88 11
Ice Cream 87 9
Mineral water 66 3
Jam and Jellies 53 4
Others 525 57
16,194 3,072
Jam and Jellies UAE's imports & Re-

Mineral water exports in 2008 of
Ice Cream Food Items
Coffee
Fruit Juiceas
Cereals, Grains etc
Pasta
Poultry Eggs
Sauces
Fish & Fish Products
Re-exports in ml AED
Others
cocoa, Chocolate etc Imports in ml AED
Sugar
Nuts and Dry Fruits
Vegetable oil
Tea
Milk & Milk products
Fruits
Vegetables
Meat & Meat Products
0 500 1.000 1.500 2.000 2.500 3.000
57
UAE Trade- Total Imports, Exports and
Re-exports in 2008 in million AED
Total Imports, Exports and Re-exports in 2008 in million AED

Description 2008 2007 2006
16,194 12,384 9,963
imports in ml AED
2,677 2,699 2,596
exports in ml AED
3,072 2,811 2,490
re-exports in ml AED
18.000
16.194
16.000
14.000 12.384
12.000
9.963
10.000
8.000
imports in ml AED
6.000 exports in ml AED
4.000 3.072 2.811 2.490 re-exports in ml AED
2.000
2008 2007 2006
58
UAE Trade- Major Items of Trade in 2008
in million AED
Major Items of Imports in 2008 Major Items of imports in 2008
Imports in Meat &

Description ml AED Meat
Meat & Meat Products 2,793 Others Products
Vegetables 2,415 35% 17% Vegetables
Fruits 1,958 15%
Milk & Milk products 1,818
Tea 1,631 Tea Fruits
Milk &
Others 5,580 10% 12%
Milk
Total in million AED 16,194
products
11%
Major Items of Re-exports in 2008

Major Items of Re-exports in 2008
Milk
Nuts and
Re-exports products Others
Description in ml AED
Dry Fruits
5% 18%
Nuts and Dry Fruits 552 18%
Sugar Vegetables
Vegetables 546 5%
Fruits 540 18%
Tea 378 Meat Tea Fruits
Meat Products 184 Products 12% 18%
Sugar 163 6%
Milk products 150
Others 559
Total in million AED 3,072
Major Items of Exports in 2008
Major Items of Exports in 2008 Vegetable

oil
9%
Exports in
Description ml AED OTHERS Sugar
Sugar 1,238 24% 46%
Vegetables 193
Fruit Juices 241
Cereals, Grains etc 123
Fruit Juiceas
Vegetable oil 228 Vegetables
9%
Others 654 Cereals, 7%
Total in million AED 2,677 Grains etc
5%
59
UAE Trade- Share of Total Trade in 2008
in million AED

Description 2008 % 2007 % 2006 %
16,194 73.80% 12,384 69.21% 9,963 66.20%
imports in ml AED
2,677 12.20% 2,699 15.09% 2,596 17.25%
exports in ml AED
3,072 14.00% 2,811 15.71% 2,490 16.55%
re-exports in ml AED
21,943 17,894 15,050
Total in million AED
re-exports
in ml AED
exports in 14%
ml AED
12%
imports in
ml AED
74%
Increase in Share of Imports in Total Trade in 2008

Description 2008 2007 2006
Imports in ml AED 74.01% 68.93% 66.29%
Increase in Share of Imports in Total Trade
75,00%
70,00%
74,01%
65,00% 68,93%
66,29%
60,00%
2008 2007 2006
60
UAE Trade- Meat and Meat Products
Trade -2008 Highlights:

Net imports (Import minus Re-exports) Approx. 243,149 tonnes/ 2,610 million AED
Break up of Trade Imports-93%, Re-exports- 6%, Exports-negligible
Increase in imports 58% in 2008 from previous year in value term
Major Source of imports Australia, Brazil, India, USA, New Zealand, France, Denmark
Major Export Destination Yemen, Afghanistan, Qatar, Azerbaijan,
Major Re-export Destination Iraq, Qatar, Oman, Bahrain, Qatar, Azerbaijan, Ukraine,
Turkmenistan
Major items of imports Meat of bovine animals, boneless, chicken fresh or chilled etc
Trade Figures
Meat & Meat Products Trade-2008 Import of Meat & Meat Products-
Re- 2006-2008
exports
Exports 3.000 2.793
6%
1%
2.500
In million AED
2.000 1.764
Imports 1.500 1.121

93% 1.000
500
0
2008 2007 2006
61
UAE Trade- Vegetables

Break up of Trade Imports-77%, Re-exports- Negligible, Exports-6%
Major Source of imports India, China, Australia, Oman, Iran, Pakistan
Major Export Destination Iran, Yemen, Kuwait, Comoros, Senegal
Major Re-export Destination Qatar, Kuwait, Syria, Oman, Kuwait, Seychelles, Ethopia
Major items of imports Garlic, carrot, Lettuce, Tomato, Onions, cabbage, Potato, Sweet
corn, Mushrooms, beans, vegetables uncooked
Trade Figures
Vegetables Trade-2008 Import of Vegetables-2008

Re- 3.000
exports 2.415
2.500
17%
Exports
In million AED
2.000 1.742
6%
1.500 1.222
Imports
77% 1.000
500
0
2008 2007 2006
62
UAE Trade- Fruits

Break up of Trade Imports-76%, Re-exports- 21%, Exports-3%
Increase in imports 12.6% in 2008 from previous year in value term
Major Source of imports South Africa, Philippines, India, Chile, Egypt, USA, Australia
Major Export Destination Iraq, Iran
Major Re-export Destination KSA, Qatar, Yemen, Sudan Kuwait
Major items of imports Oranges, Banana, Apple, Mango, Grapes, Strawberries, Apricots,
Pears, Pomegranates, papaya, Lemon
Trade Figures
Fruits Trade-2008 Import of Fruits

Re- 2006-2008
exports
2.500
21%
1.958
2.000 1.738
Exports
Achsentitel
3% 1.500 1.338
Imports
76% 1.000
500
0
2008 2007 2006
63
UAE Trade- Milk and Milk Products

Major Source of imports Netherlands, Malaysia, India, Australia, New Zealand
Major Export Destination Shychelles, Iraq, Sudan, Algeria, Libya, Yemen, Afghanistan
Major Re-export Destination Sudan, Iraq, Iran, Somalia, Yemen
Major items of imports Milk, cream, butter, cheese, Yogurt
Trade Figures
Milk and Milk Products Trade-2008 Import of Milk & Milk Products-
2006-2008
Re-
exports 2.000,00 1.817,95
Exports
3% 7%
1.500,00
in Million AED
1.231,43
1.106,12
1.000,00
Imports
90%
500,00
0,00
2008 2007 2006
64
UAE Trade- Fish and Fish Products

Net imports (Import minus Re-exports) Approx. 49,000 tonnes/ 385 million AED
Major Source of imports Vietnam, Myanmar, India, Oman, Norway, UK, Thailand
Major Export Destination Hong kong, China, Sri Lanka, Qatar, Morocco
Major Re-export Destination Sri Lanka, France, Jordan, Iraq, Hong Kong
Major items of imports Tuna, Sardines, Mackerel, Hamoor, Sheiri fish, Salmonidae and
other fishes fresh or Fish fillets
Trade Figures
Fish & Fish Products Trade-2008 Import of Fish & Fish Products
2006-2008
Re-
exports 500 471
Exports 14%
10% 400
In million AED
312
287
300
Imports
200 Imports
76%
100
0
2008 2007 2006
65
UAE Trade- Sugar

Decrease in imports 55% in 2008 from previous year in value term
Major Source of imports India, Brazil, Thailand
Major Export Destination Iraq, Syria, Kuwait, Lebanon, Sudan, Qatar, Pakistan, Libya, Djibouti,
Bahrain
Major Re-export Destination Iraq, Iran, Somia, Sudan, Kuwait
Major items of imports Raw Sugar
Note- Sugar imports mainly raw sugar and sugar exports mainly refined sugar
Trade Figures
Sugar Trade-2008 Import of Sugar-2006-2008

Re- 2.000
1.746
exports 1.800
8% 1.600 1.507
Imports 1.400
In million AED
33% 1.200
1.000
Exports 800 686
59% 600
400
200
0
2008 2007 2006
66
UAE Trade- Tea

Break up of Trade Imports-81%, Re-exports- 19%, Exports-almost nil
Major Source of imports Srilanka, India, Kenya
Major Export Destination Iraq, Iran
Major Re-export Destination Iran, Iraq, Uzbekistan, Turkmenistan
Major items of imports Black & Green tea
Trade Figures
Tea Trade-2008 Import of Tea -2006-2008

Re-
1.800 1.631
exports
1.600
19%
1.400
Exports 1.182
In million AED
1.200 996
0%
1.000
800
Imports
81% 600
400
200
0
2008 2007 2006
67
UAE Trade- Fruit Juices

Major Source of imports USA, South Africa, Thailand, India, Brazil
Major Export Destination Iran, Iraq, Afghanistan, Yemen, Pakistan, Egypt
Major Re-export Destination Iran, Algeria, Congo. Libya, Iraq
Major items of imports Orange, pineapple, grapes, Apple, mango juices etc.
Trade Figures
Fruit Juice Trade-2008 Import of Fruit Juices - 2006-2008

140
Re- 118
exports 120 105
8% Imports 100
In million AED
86
30%
80
Exports 60
62% 40
20
0
2008 2007 2006
68
UAE Trade- Mineral water

Major Source of imports France, Italy, UK, Turkey
Major Export Destination Pakistan, Kuwait, Afghanistan, Bahrain, Djibouti
Major Re-export Destination Iraq, Somalia, Qatar, Bahrain, Kuwait, Oman, Pakistan, Iran
Major items of imports Natural mineral waters, Aerated waters
Trade Figures
Mineral Water Trade-2008 Import of Mineral Water 2006-2008

Re- 70 66
exports
3% 60 54
50
In million AED
Exports
40% 40 35
Imports
30
57%
20
10
0
2008 2007 2006
69
UAE Trade- Cereals and Grains

Major Source of imports Canada, Myanmar, China, India, Ethiopia, Australia, USA. Ukraine,
France, Turkey
Major Export Destination Somalia, Qatar, KSA, Srilanka
Major Re-export Destination Iran, Iraq, KSA, Somalia, Qatar, Sudan
Major items of imports Lentils, Peas, Chick peas, Beans, Mung, Wheat, Rice, Barley, maize,
Corn,
Trade Figures
Cereals, grains etc. Trade-2008 Import of Cereals, Grain products

2006-2008
Re- 200 180
exports 167
14%
150
Ian million AED
Imports
Exports 51% 100 86
35%
50
0
2008 2007 2006
70
UAE Trade- Pasta Products

Major Source of imports Turkey, Italy, Malaysia, Indonesia, Singapore
Major Export Destination Angola, Somalia, Jordan, Sudan
Major Re-export Destination Somalia, Djibouti, Libya, Sudan
Major items of imports Macaroni, noodles, spaghetti
Trade Figures
Pasta Trade-2008 Import of Pasta

Re- 2006-2008
exports
18% 250
201
200
In million AED
150
Exports Imports 112
26% 89
56% 100
50
0
2008 2007 2006
71
UAE Trade- Chocolates & Cocoa Products

Major Source of imports Netherlands, UK, Turkey, Italy, Switzerland, Germany, Italy
Major Export Destination Kuwait, Oman. Qatar, Bahrain, Yemen, KSA, Morocco
Major Re-export Destination Kuwait, Oman. Qatar, Bahrain, Yemen, KSA
Major items of imports Chocolate & cocoa products
Trade Figures
Cocoa, Chocolate etc. Trade-2008 Import of Chocolate etc- 2006-2008
Re- 700 626

exports 600 537
Exports
20%
4% 500 446
In million AED
400
Imports 300
76%
200
100
0
2008 2007 2006
72
UAE Trade- Poultry Eggs

Net imports (Import minus Re-exports) 223 million AED
Major Source of imports Brazil, Netherlands, Oman, Germany, USA, France
Major Export Destination Qatar, Bahrain
Major Re-export Destination Qatar, Iraq, Kuwait, Pakistan
Major items of imports Birds eggs, Egg yolks fresh & dried
Trade Figures
Poultry Egg Trade-2008 Import of Poultry Eggs

Re- 2006-2008
Exports
exports 233
1% 250
4%
200
Achsentitel
150 135
Imports 100 81
95%
50
0
2008 2007 2006
73
UAE Trade- Nuts & Dry Fruits

Major Source of imports USA, Iran, China, India, Pakistan, Australia
Major Export Destination Negligible
Major Re-export Destination KSA, Egypt, India
Major items of imports Almonds, Pista, wall nuts, pine nuts, cashew, Hazel nuts etc
Trade Figures
Nuts and Dry Fruits Trade-2008 Import of Nuts & Dry Fruits
2006-2008
Re- 1.000 875
exports
800 749
39%
In million AED
554
600
Imports
61% 400
200
Exports
0
0%
2008 2007 2006
74
UAE Trade- Sauces

Increase in imports >100% in 2008 from previous year in value term
Major Source of imports USA, UK, Malaysia, Oman
Major Export Destination Iraq, Libya, Algeria, Liberia, Yemen
Major Re-export Destination Iraq, Somalia, Siera Leone, Turkmenistan, Kuwait
Major items of imports Tomato, Soya, Mayonnaise, Chili, Mustard
Trade Figures
Re- Sauces Trade-2008 Import of Sauces

exports 2006-2008
9% 500
Exports
15% 387
400
In million AED
300
Imports
200 139
76%
100 74
0
2008 2007 2006
75
UAE Trade- Jams & Jellies

Net imports (Import minus Re-exports) Approx. 10,230 tonnes / 49 million AED
Major Source of imports Greece, Spain, Netherlands, India, Belgium, France
Major Export Destination Sudan, Morocco, Iran
Major Re-export Destination Morocco, Iran, KSA, Kuwait, Algeria
Major items of imports Jam & jellies & marmalade of raspberry, cherry, apricot and Other
fruits
Trade Figures
Jam & Jellies Trade-2008 Import of Jam & Jellies

2006-2008
Exports Re-
1% exports 60 53 52
6% 50
In million AED
40
29
30
Imports
93% 20
10
0
2008 2007 2006
76
UAE Trade- Vegetable Oil

Increase in imports >100% in 2008 from previous year in value term
Major Source of imports Malaysia, Argentina, Ukraine, Brazil, India, Indonesia, Australia
Major Export Destination Iran, Iraq, Morocco, Somalia, Kuwait, KSA, Jordan
Major Re-export Destination Kuwait, Iran, Bahrain, Morocco, KSA, Yemen,
Major items of imports Palm, Soya-bin, Sunflower, Coconut, Olive, Mustard oil
Trade Figures
Vegetable Oil Trade-2008 Import of Vegetable Oil

Re- 2006-2008
Exports exports 1.200
18% 3% 983
1.000
In Million AED
800
600 465
Imports
79% 400 336
200
0
2008 2007 2006
77
UAE Trade- Ice cream

Major Source of imports Canada, France, Belgium, USA, Netherlands, New Zealand
Major Export Destination Afghanistan, Kenya, Egypt, Ghana, Bahrain, Qatar, Iran, Yemen
Major Re-export Destination Bahrain, Qatar, Oman, Yemen, Djibouti, Afghanistan
Major items of imports Ice Cream
Trade Figures
Ice cream Trade-2008 Import of Ice Cream

2006-2008
Exports Re-
6% exports 100 87
9%
80
65
In million AED
60 52
Imports 40
85%
20
0
2008 2007 2006
78
UAE UAE Food & Drink Industry Developments
Food
In July 2009, the global dairy giant Fonterra announced that it expects the Middle East region (specifically
the affluent Gulf Co-operation Council (GCC) area) to be one of its key long-term growth engines. Based out
of New Zealand, Fonterra has reported double-digit turnover growth in the region over the last three years.
Despite their economies being pulled down by the global meltdown, Fonterra analyses that consumers
across the GCC have not profoundly adjusted their spending habits. The firm has correctly interpreted that
rather than trade down to cheaper brands, most consumers have instead preferred to make savings by
purchasing smaller sizes of Fonterra‟s main brands, which has kept up volume sales.
In June 2009, The UAE‟s ANC Holdings bolstered its rapidly growing food business by acquiring a 60%
stake in Oman-based fisheries processor Dhofar Fisheries for an undisclosed sum. From ANC‟s point of
view, Dhofar is a valuable addition to its promising frozen food business. Dhofar‟s product portfolio ties in
well with ANC‟s existing range of processed meat, shrimp and ready meal products.
In June 2009, leading India-based food company Britannia Industries announced plans to relaunch its
popular Nutro biscuit label in the Gulf region. The firm, which owns 70% of leading Oman-based biscuit
maker Strategic Foods International (SFI) in a joint venture with Oman-based Khimji Ramdas Group, is
intent on capturing a greater share of the region‟s biscuit market. It is specifically interested in expanding its
operations in the UAE, which boasts a biscuit industry that is estimated to be worth over AED500mn
(US$136.1mn) annually
In May 2009, the global food and drink conglomerate Kraft Foods reported an encouraging 12% year-on-
year (y-o-y) increase in revenue in Q109 across its emerging markets. Kraft‟s Middle East and Africa (MEA)
business was among its top performers as key brands such as Tang powdered beverages, Kraft Cheeses
and Oreo cookies continued to inroad.
In early April 2009, Abu Dhabi-based food and drink giant Agthia reported turnover of AED854mn
(US$232.5mn) and net income of AED72.2mn (US$19.66mn) for FY08. The posting represented stellar y-o-y
growth of 48% and 89% respectively. Agthia‟s strong performance was attributed to greater volumes, more
efficient use of plant capacity and more competitive pricing structures. While the company‟s flour and feed
business continued to be the main contributor to turnover, revenue was also bolstered by the acquisition of
frozen foods company Al Ain Vegetable & Tomato Paste in Q108. The subsidiary‟s turnover was
AED43mn (US$11.71mn).
In late March 2009, Leading Middle East based Halal food processor Al Islami Foods penned an agreement
with Sharjah Co-operative Society, an MGR based in the Emirati of Sharjah. The deal will allow Al Islami to
open meat shops at the retailer‟s stores
In early January 2009, a merger was announced between the UAE‟s business house IFFCO and Oman-
based Oman Flour Mills (OFM), in an effort to boost Oman‟s self-sufficiency in poultry production. The new
project will integrate every aspect of the supply chain from hatcheries, to fattening and processing. The
abattoir will slaughter 50,000 birds per day, while the farm also aims to produce 5mn eggs per week, making
it the largest complete poultry unit in the entire Middle East. OFM started life as a producer of wheat and
speciality bread, but has since branched out into animal feeds. The company produces 1,000 tonnes of feed
every day and has a presence in over 10 countries throughout the region. Meanwhile, IFFCO already has a
presence in Oman, through the purchase of a large foods company in 2006. With IFFCO‟s financial power
and expertise in marketing and logistical operations, partnered with the Flour Mill‟s knowledge of livestock
feeding and rearing, the possibilities of improving access to regionally produced poultry in both countries is
strong, as are the opportunities to expand regionally and market more value-added products.
In further halal industry news, also in December 2008, Prairie Halal Foods, a Canadian-owned food firm,
announced plans to explore opportunities at the premium end of the retail sector after opening its first Middle
79
East office in Dubai in the previous month. The company markets and develops high-value halal meats from
Canada. It plans to introduce new delicacies into the Middle East such as buffalo meat, which is a healthier
alternative to most red meats.
Drinks
In June 2009, PepsiCo announced plans to shift its Gulf headquarters to a new manufacturing facility in
Jeddah – Saudi Arabia‟s second largest city. PepsiCo has invested around SAR1bn (US$266.7mn) in the
development, it‟s largest in the Middle East and Africa region. BMI highlights that the Gulf region is
particularly important to PepsiCo – being one of the few regions where it outperforms Coca Cola.
In May 2009, according to leading UAE-based bottled water firm Al Ain Mineral Water Company (a
subsidiary of Emirates Foodstuff and Mineral Water Company), the UAE‟s per capita bottled water
consumption has reached 275 litres per annum, which is comfortably the highest consumption rate in the
world. The country‟s industry is believed to be worth AED1bn (US$272.3mn) a year
Also in May, Al Ain began manufacturing a range of Capri-Sun juice products as it continued to build its
strategic relationship with Germany-based Wild Group. The move allowed Al Ain to dip its toe into the
lucrative fruit juice segment and fitted promisingly with the company‟s buoyant bottled water business, which
along with Masafi, leads the UAE market. In May, it was reported by the UAE-based online news provider
Emirates Business that the popular Islamic carbonates maker Mecca Cola was set to relaunch across the
Gulf region after steadily disappearing from the market.
In May, the UAE-based beverage giant Masafi posted a 44% y-o-y uptick in revenue for Q109. Turnover
climbed to AED105.4mn (US$28.7mn) on the back of marked growth across the company‟s bottled water
and juice products.
In early April 2009, Abu Dhabi-based food and drink giant Agthia reported turnover of AED854mn
(US$232.5mn) and net income of AED72.2mn (US$19.66mn) for the 2008 financial year. The posting
represented stellar y-o-y growth of 48% and 89% respectively.
In late February 2009, Dubai-based bottled water company Jeema Mineral Water acquired Aquafina‟s
factory, in an aggressive move that is part of the company‟s strategy to expand capacity and expand its
market share over the coming years. Aquafina, which has a relatively small share of the UAE‟s bottled water
market, is distributed by Dubai Refreshment Company (DRC), a company that also distributes PepsiCo
products.
In late February 2009, DohlerGroup, a high profile German based producer of beverage ingredients, opened
a centre of expertise in Dubai with an eye on the dynamic market opportunities that exist in the UAE. Its
entry, which came ahead of the prestigious Gulfood trade show in Dubai, is indicative of the direction the
country‟s beverage industry is headed.
In late January 2009, leading UAE-based juice, water and gourmet food producer Masafi announced
revenue of AED378mn (US$102.93mn) and net profit growth of 36% for 2008. The company, which is the
UAE‟s market leader in the bottled-water segment and a leading producer of fruit juices, has been stepping
up its effort to expand horizontally into a fully-fledged FMCG company by 2011 by diversifying into the
gourmet-food segment.
80
UAE
Food & Drinks Industry Forecast Scenario
Soft Drinks
As per BMI forecast soft drinks value sales to grow by 25.3% and reach AED3.41bn through to 2013.
Consumers are particularly susceptible to modern consumption trends. The country‟s hot, dry climate
contributes to the popularity of soft drinks such as carbonates, juices and bottled water, which is also
often used for cooking. Health and energy drinks are also increasingly growing in popularity as
consumers are becoming more health conscious, particularly in light of rising levels of diabetes and other
diet-related illnesses, and this is expected to drive growth in the diet and low-calorie drinks segment.
Consumption of non-alcoholic beers and other malt beverages is also rising as they find greater
acceptance among consumers on the back of more effective marketing by producers.
Hot Drinks
The tea bag market is dominated by Unilever‟s Lipton Tea, which has a market share of around 75% and
a production facility in Dubai‟s Jebel Ali Free Zone, one of the largest tea-processing facilities in the
world. Black tea is the traditional tea of choice in the region and continues to dominate the market.
However, in recent years, other varieties such as green tea and fruit and herbal teas have also started to
grow in popularity – emphasizing consumer taste for new products. An important factor sustaining and
driving the growth of coffee and tea sales in the Middle East is the traditional role that these drinks play in
family and social occasions, which are of the utmost importance in the social structure of the Middle East.
Because of the integral role that tea plays in social traditions, it will continue to be an important part of
everyday life, sustaining high levels of consumption.
The tea and coffee segments are also experiencing healthy growth levels. The size of the tea market is
estimated to be approximately twice the size of the coffee market in value terms and far larger in terms of
volume. Unilever‟s Lipton tea brand is increasingly popular with consumers
On-trade sales are accounting for a growing proportion of tea and coffee sales, which distinguishes the
UAE from the wider Gulf region somewhat. The advent of Western-style coffee and tea houses, which
supplement traditional tea rooms, has been fuelled by the rise in the expatriate population between 2002
and 2008 and Dubai‟s emergence as a major tourist destination.
Although traditional loose tea still dominates the tea market, demand for herbal and fruit teas has picked
up. Tea bags are considered a higher-quality premium product, owing to their greater convenience and
perceived quality. Value sales growth will be driven by the increasing numbers of consumers switching
over to this format.
Food Consumption
The UAE provides investors with one of the world‟s highest income consumer bases. Demand for
processed and packaged foods increased considerably through the country‟s economic boom (2002-
2008), a process that was aided by rapid growth within the MGR industry, which improved companies‟
route to market.
BMI is forecasting food consumption to rise steadily in the UAE over the coming years. The increase will
be a result of rising disposable incomes, continued Western influences stemming from the number of
expatriates in the country, the increased presence of modern retail formats selling a wider range of
higher-value goods, and the continued growth in population and tourism levels. In addition, higher-value
food and drink products will steadily become more widely available outside of the country‟s major cities,
81
further fuelling food consumption levels. Despite the economy weakening significantly, which has affected
demand for higher-value food categories, BMI believes the negative effect on the food and drink industry
will not extend past the near term. Non-traditional foods such as breakfast cereals and ice cream are
growing in popularity, fuelled by rising disposable incomes and growing competition among key players,
while packaged and convenience food are also gaining greater market share.
Trade
Like most states in the Gulf region, the UAE is heavily reliant on imports to satisfy demand. Its harsh
climate does not lend itself to a productive agricultural industry. The country has been content to use its
wealth to tap into import markets to make up for domestic shortfalls.
BMI is forecasting the UAE‟s food & drink trade deficit to widen by 65.6% through to 2013. Imports will
remain high, largely because of the difficulties the country faces in increasing its agricultural output owing
to its harsh climate. Cumulatively, these developments have led to a major change in the country‟s food
industry and a tremendous negative trade balance in the food and drink sector. However, this does not
mean that the local food and drink production industry will not develop. In fact, government efforts in the
agricultural sector, although limited in their potential by the country‟s climate, will help improve self-
sufficiency in many categories – not least the profitable dairy industry.
82
UAE Food Service (Catering) –Key Trend &
Developments
In the light of soaring food prices in the UAE, the Ministry of Highlights….
Economy authorized cooperative societies to • Foodservice sales increase by almost 10%
remove middlemen and directly import 15 basic
in volume terms in 2008
commodities, which were earlier removed from the records
• A successful year for tourism fuels
of commercial agencies, in order to maintain price stability.
foodservice sales
The commodities included powder and condensed milk,
• Bakery products and dried processed food
frozen and canned/preserved vegetables, baby food and continue to dominate volume sales in
formula, chicken, oil, rice, flour, fish and meat products, tea, foodservice
coffee, cheese, pasta and sugar. As per the amendment,
• Local suppliers dominate foodservice, whilst
cooperative societies and commercial companies could
multinationals are also present
import these commodities freely and without conditions;
• Foodservice is forecast a CAGR of 8% in
thus minimizing the role of the exclusive distributors for
volume terms over the forecast period.
these commodities.
Industry insiders estimate that the UAE foodservice market generated sales of AED21.9 billion in 2007;
Dubai and Abu Dhabi together accounting for 80% of sales. The UAE's resident population continued to
drive sales in foodservice.
With approximately three-quarters of the population being expatriates, and with a large number of single
males, many consumers tended to eat out of the home, while the country's 7% population growth rate
further drove consumer foodservice expenditure. In addition to population growth, tourism and geography had a clear
impact on the UAE's foodservice market. Around 7 million tourists visit the UAE annually, with hotels alone accounting
for 17% of total foodservice expenditure, while Dubai has set a target of attracting 10 million tourists by 2010. As for
geography, the lack of greenery and the relatively hot weather during at least half of the year leave little
option for residents but to go to restaurants, shopping malls and hotels to spend their leisure time.
The largest product types sold by foodservice are generally meat, poultry and fish, which together account
for more than 30% of sales. However, as this figure includes both packaged and fresh food, the market
share for packaged food is different, in the sense that dried processed food and bakery products are the
largest categories purely within packaged food.
The emerging coffee culture in the UAE was a strong driver for foodservice in 2008, yet still limited to
middle and high income consumers. Global coffee chains are showing promising growth; it is becoming
customary to see Starbucks, Costa Coffee and other similar outlets in every mall. The latest arrivals are
franchised chains such as Second Cup, Café Suprême, Blenz, Café Céramique and Java U.
Major Players in Food Service
Within foodservice, Federal Foods remained the most prominent company in 2007, thanks to its diversified
product offering. Diversification was pivotal to the company's position, as the company complemented its
original core product of poultry with offerings such as seafood and meat, and specialized products such as
cheese and coffee. This extension also opened up possibilities for new clients, from cafés to luxury hotels.
Foodservice is dominated by local operators, as they are generally more competitive than multinationals in
terms of pricing. As the market is price-sensitive, especially in fast food restaurants, there is considerable
demand for good value for money products.
Due to economies of scale, foodservice suppliers include some of the leading players in the retail channel,
such as Al Ain Dairy Co, National Food Products Co LLC, Almarai Co Ltd, Emirates Refining Co LLC
(ERCO), Emirates Macaroni Factory, Gulf Food Industries and Unipex Dairy Products Co Ltd. In terms of
multinationals, Nestlé Foodservice Middle East FZE and Unilever Middle East showed an increased
presence in foodservice channels.
The latest major mergers and acquisitions activity in the market was the Bidvest Group, acquired a majority stake in
the regional foodservice company HORECA Trade, with the intention of developing it to become the number one
foodservice distribution company in the region.
83
AE
Food Retail Market Overview
UAE‟s MGR sector has been experiencing UAE MGR Market Share
strong growth in recent years, with major Choithram
expansion activity taking place. In 2008, 6% Other
there were four hypermarkets, Consumer 9%
supermarkets/cooperatives, convenience Co-op Carrefour
stores and duty- free shops. Modern MGR 10%
outlets are mainly concentrated in the 24%
largest emirates of Abu Dhabi, Dubai and
Sharjah. However, BMI expects further Spinneys
development of retail chains in the Emke/Lulu 19%
northern emirate of Ajman in the coming 32%
years, owing to the comparatively larger
expansion opportunities that will exist in
this region as the other emirates crowd. In
less-developed areas of the country,
traditional outlets remain very important
and still have some role to play in the
larger cities as well.
Hypermarkets and supermarkets can predominantly be found in urban areas, most commonly within large
shopping malls, which typify the retail experience in the larger, more heavily populated cities. This trend is a
very particular feature of Middle Eastern retailing and it does carry some obvious problems for retailers in
terms of construction costs and availability of space. Accordingly, many retailers are involved in real estate
development and mall construction and management, at least to some degree, enabling them to secure
space in these developments. This represents a particularly unique challenge to international operators, who
are more accustomed to operating in stand-alone outlets on the peripheries of city centres.
According to the Dubai-based Middle East Council of Shopping Centres, the UAE‟s shopping mall growth is
expected to reach 25% of the UAE‟s GDP by 2010. This general retail boom can only help MGR sales
growth, particularly when one considers that hypermarkets and supermarkets are usually located in shopping
malls. A recent study has shown that the average UAE consumer spends some 127 hours in supermarkets
per year and goes out food shopping nearly four times a week, reflecting the social and entertainment aspect
of MGR in the country.
Large modern retail formats are especially popular with the UAE‟s expatriate population. This consumer
base values the product variety on offer and prefers to shop in the ambient and familiar surroundings of such
outlets, although their growing presence has also boosted the popularity of such stores among higher-
income local consumers as well.
Convenience stores and independent outlets are primarily located in smaller towns in suburban and rural
areas. Although the grocery retail sector in these areas is highly fragmented and dominated by independent
stores, there are a number of smaller chains, which have focused on these local areas rather than
attempting to compete with the financial muscle of their inner-city rivals.
Co-operatives are supported by the government and by UAE nationals, who are the principal shareholders.
These mostly cater to the local Emirati clientele, providing competitive prices but a limited variety of
products. Their market share is estimated to be around 15%. This relatively niche offering and the support of
the government have been essential in ensuring the survival of this format.
The larger hypermarket and supermarket chains have been able to offer their customers very low prices as a
result of their ability to bulk buy. Accordingly, other retail formats have had to adapt their strategies and
reduce their profit margins in order to compete. However, this has had a negative effect on the profitability of
such chains.
84
The estimated 504 MGR outlets generated sales worth an estimated US$1.37bn in 2008, representing
growth of over 15% from the year before. Hypermarkets accounted for over 70% of estimated sector sales
by value in 2008, despite the market presence of only 20 outlets. Supermarkets claimed a 25.55% share in
total MGR sales in 2008, with revenues of US$347mn. With sales of around US$55mn in 2008, convenience
stores accounted for 4.38% of total sales.
Structure Of The UAE's MGR Market – Estimated Number Of Outlets,

2002-2008
Structure
2002 2003 2004 2005 2006 2007 2008
Supermarkets 70 80 90 103 115 130 144
Hypermarkets 9 10 10 12 15 18 21
Convenience stores 175 230 248 270 285 315 340
Total MGR operators 254 320 348 385 415 463 505
Source: BMI, UAE National Statistical Authority
Structure Of The UAE MGR Market – Sales Value

By Format (US$bn), 2002-2008
2002 2003 2004 2005 2006 2007 2008
Supermarkets 0.2 0.2 0.2 0.2 0.3 0.3 0.3
Hypermarkets 0.4 0.5 0.5 0.6 0.7 0.8 1.0
Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 0.1
Total MGR Operators 0.6 0.7 0.8 0.9 1.0 1.2 1.4
e = BMI estimate. Source: BMI, UAE National Statistical Authority
85
UAE Developments in Food Retail Market
In April 2009, it was reported that Spinneys, the UAE‟s largest premium-end MGR, had announced plans to
beef up its footprint by launching up to 10 new stores over the next two years in collaboration with
SouqExtra! – a new chain of convenience-focused mini-malls targeting smaller communities.
In February 2009, according to online news source AME Info, UAE MGR Emirates Co-op slashed prices on
a number of food commodities by up to 30% in a promotional offering for the duration of the month. The
news confirmed that the previously resilient UAE consumers were beginning to feel the pinch as the global
financial crisis shifted into the real economy. While Emirates Co-op remains a peripheral player within the
wider UAE retail landscape (it operates around five stores), its decision to cut prices was noteworthy
because it was a rare example of prices moving south.
In January 2009, high-end UK retailer Waitrose was gearing up to launch its second store in Dubai in
partnership with the UAE‟s Fine Fare Food Market. Waitrose opened its first store in Dubai in November
2008, and has decided to pursue its expansion into the UAE, despite the country‟s rapidly deteriorating
economy. Dubai, with its extreme pockets of wealth and growing expatriate community, is a market that is
likely to favour the retailer‟s premium products. Moreover, UAE consumers are considered to be less price
sensitive than their Western counterparts when it comes to food and drink, and are less likely to compromise
on quality despite the economic environment.
In September 2008, Landmark Group, a Dubai-based retail chain, announced its plans to invest INR5.50bn
(US$127.76mn) in its Max Retail and Max Hypermarkets stores in India. The investment will enable the
company to have 100 stores by 2010-2011, and increase its retail market share. Apart from the metropolitan
cities, the company is also eyeing tier I and tier II cities for its expansion. The Indian MGR sector is expected
to experience very strong growth in coming years, making it an attractive market for expansion-orientated
retailers.
In July 2008, French retailer Auchan signed a joint-venture (JV) agreement with Dubai real-estate developer
Nakheel to develop a regional retail chain. The new company will be called HyperCorp and will establish a
chain of 15 hypermarkets and 40 supermarkets across the GCC over the next 10 years. The first round of
openings will consist of five hypermarkets opened in Nakheel‟s Dubai developments, including Dragon Mart,
Great Mall Dubai in International City, Palm Jumeira, Jumeira Village and Palm Deira. Auchan will hold 10%
of the capital in HyperCorp and will benefit from Nakheel‟s real-estate holdings and expertise.
86
UAE Food Retail Market Forecast Scenario
Investment into the UAE‟s MGR industry increased considerably on the back of its economic boom between
2002 and 2008. During this period, MGR sales increased by 141% to reach AED5bn in an industry that had
traditionally been dominated by independent outlets.
Through to 2013, BMI has forecast MGR sales to increase by 37% and reach AED6.8bn. Growth will once
again be led by the hypermarket segment, which contributed an estimated 71% to MGR sales in 2008. Over
the forecast period, hypermarket sales are expected to increase by 35%. The segments growth will likely be
driven by expansions by the leading operators. According to the market research company AC Nielsen,
UAE consumers spend an average of 492 hours per year in hypermarkets and supermarkets.
The convenience segment is forecast to grow by 110% over the forecast period from a much lower starting
position than both hypermarkets and supermarkets. Although the convenience segment has yet to truly
takeoff in the UAE, there are signs that investment from existing retailers is set to increase as demand from
time-pressed consumers for neighbourhood specific stores in particular increases. Local firms have shown
themselves to be willing and able to compete with the major firms operating in the hypermarket sector.
However, with their community knowledge and their limited finances, such firms can be expected to target
the convenience sector – building up strong networks in areas not yet serviced or too small to be serviced
by hypermarkets or large supermarkets. As familiarity with the concept of modern retailing grows,
consumers are also expected to become increasingly demanding, not just in terms of product range, but
with regards to locality and store hours as well, and this is where the convenience sector will benefit and
begin its rapid expansion.
The UAE‟s status as the place from which to establish regional growth has also fuelled interest from
investors. As the concept of modern retailing becomes more commonplace and accepted in the region, a
growing number of investors will probably enter the UAE‟s retail sector. Moreover, the country can be used
as a hub to expand into neighbouring GCC markets. Carrefour entered the Middle East via the UAE and
has since had considerable success in the country‟s neighbouring markets. Fellow multinationals can be
expected to follow suit should they decide to enter the region, with the UK‟s Waitrose being the most recent
example.
In conclusion, economic growth will fuel consumer confidence and the arrival of expatriates. This high level
of spending will also fuel demand for a wide range of products – a demand that retail investors will be happy
to meet. While these factors will fuel growth, the exact level of growth – exceptionally high as it is – will be a
consequence of the further emergence of the high-value hypermarket sector. With annual
87
RAK Rationale for Setting up Project in RAK (UAE)
Competitive Landscape of UAE

 Government Incentives
One of the strategies of UAE has been to promote industrialization away from oil and gas based
industries in order to ensure a stable broad based economy for a balanced growth in the medium to
long term. UAE offers a number of incentives/ benefits to companies/investors to this effect.
Fiscal Benefits; include 100% income and corporate tax exemptions, 100% capital and profit
repatriation, Fully convertible currency, Exemption of equipment and raw material required by industrial
units from customs duty.
Regulatory benefits include; 100% ownership in Free Zones, No trade barriers or quotas, Easy
licensing procedures & company formation, Liberal labour laws and no restrictions on hiring
expatriate.
Highlights..
■ Government Incentives
■ Sound Macro-economy
■ Excellent infrastructure and logistic support system
■ Strategic location
■ Increasing demand for vehicles and components
■ Base for Raw materials-Aluminium, Plastic and glass for automotive sector
 Sound Macro-economy
High per capita GDP, High standard of living, Relatively low inflation. High business confidence and an
increase in disposable income provide a favorable background for the automotive sector
 Excellent infrastructure and logistic support system

UAE has invested large amounts in infrastructure, and will continue to do so over the next to come.
 Increasing demand for Food Items

Food consumption to rise steadily in the UAE over the coming years. The increase will be a result of
rising disposable incomes, continued growth in population and tourism levels aided by the
increased presence of modern retail format selling. Demand for processed and packaged foods
increased considerably through the country‟s economic boom (2002-2008),
 Strategically located
Easy access to huge markets like Middle East & North Africa( MENA), India, South-East Asia and CIS
countries.
88
AKIA
Identified Projects
Food Sector
Fruit & Meat Milk and Dairy Fish & Sea foods Other Food Miscellaneous
Vegetable Processing Products Processing Processing
Processing
 Freeze Dried  Abattoir  Infant Food  Fish & sea foods  Flour Mill  Animal Feed
vegetables  Meat Processing  Ice Cream and Processing and  Sugar Refining  Flexi packaging
 Tomato Puree & and packing Frozen Desserts packing  Confectioneries  PET Bottles
 Fish Meal  Biscuits, Cookies  Crown cap mfg
Paste  Butter & cheese
and Crackers mfg
 Tomato Sauce  Can mfg
 Snack food
 Fruit Jam
 Edible oil
 Fruit juices extraction and
 Fruit Tit bits and refining
canning  Pasta & Macaroni
 Free Flowing table
salt
 Breakfast cereals
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Food Product Tariffs & Free Trade Agreements
Free trade agreements can have important implications for the Food sector because of the improved
access (addressing both tariff and non-tariff barriers) which they can provide and because of the reduction
in tariffs which can occur under them. Modern agreements typically also cover a wide range of issues
other than tariffs and these can be relevant to trade in automotive products or services. Agreements
can provide, for example:
• Enhanced cooperation in relation to standards, technical regulations and

conformity assessment procedures;
• Disciplines encouraging more efficient customs procedures, including WTO-plus
provisions encouraging the availability of advanced rulings on tariff classification, questions
relating to customs valuation, and the origin of goods;
• Commitments to improve access for trade in services;
• Commitments to enhance the protection of investments, increase the transparency of
investment regimes, and ease restrictions on Australian investment; and
• Commitments to enhance the protection and enforcement of the rights of
intellectual property holders.
Under the GCC custom Union, UAE has implemented the GCC customs which follows the harmonic
code system, in general, tariff rate & import duties are fixed at 5%. However, there are exceptions for
certain products that need to be checked with the customs website accordingly using the harmonic
code system. A list of (939) commodities comprising live animals, fresh and chilled meat and fish,
fresh vegetables and fruit and cereals etc are exempted. Certain products like Tobacco is subject to
100% and liquor to 50% duty. . Import of pork and pork products are permitted but are very strictly
regulated. No food labels can have pictures or recipes listing pork or alcohol. Alcoholic beverages are
available in the UAE but their import is strictly restricted to licensed importers who source wine and
spirits from around the world.
The UAE is a member to the Great Arab Free Trade Area (GAFTA) which includes all the Arab
countries. In addition the UAE have individual FTAs with some of the Arab countries such as Syria,
Lebanon, Jordan, Morocco and Iraq.
In UAE all FTAs are conducted on the GCC level, with the exception of FTA with US was on bilateral level
and this has not been signed. The GCC has signed FTAs, the first one with Singapore last December 2008,
and the last one was with The European Free Trade Association (EFTA) the countries are (Iceland,
Liechtenstein, Norway and Switzerland) signed on the 22nd of June 09. The two FTAs need to be ratified by
both sides in order to come into force. The GCC currently negotiating with the following countries and
economic blocks e.g. EU (27 countries), Turkey, Australia, New Zealand, Mercosur (Argentina, Brazil,
Paraguay and Uruguay), Japan, S.Korea, China, India & Pakistan. All two agreements impose
obligations on the parties in relation to trade in Food products. These obligations include a general
requirement to provide „national treatment‟ to goods originating in the other party (that is to treat goods
originating in the other party no less favourably than like goods originating in UAE in regard to
domestic taxation and regulation). They also include obligations to remove or reduce tariffs in
accordance with agreed schedules and timetables.
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RAK About Ras Al Khaimah (UAE)
A LOCATION OF CHOICE
With a favourable geographical location at the

crossroad of trade between the East and West, the
excellent infrastructure, strong government support
towards the private sector, and not to mention its
unmatched natural beauty, it is no surprise that the
emirate of Ras Al Khaimah has emerged as a
destination of choice for investors and leisure
travellers alike. Ideally positioned to service and
access markets like the Middle East, Africa, the
Indian Subcontinent and the CIS countries, Ras Al
Khaimah has become a growth-driven emirate with
an increased focus on manufacturing, services, real
estate, construction and tourism.
RAK ECONOMY
Ras Al Khaimah, the fourth-largest emirate in the UAE, today boasts of a rapidly growing economy, thanks to
the ambitious process of economic diversification adopted by the government that primarily focuses industry,
trade & commerce, tourism and real estate. While Ras Al Khaimah‟s business-friendly policies have ensured a
brisk increase in foreign direct investments, it has also helped the emirate steadily increase its global appeal as
a superior choice destination for business and leisure.
The natural topography of Ras Al Khaimah which consists of 65 kilometers of sun-kissed sandy beaches, the Al
Hajar Mountain range, the vast desert plains in the central region and the green belt in the southern region,
have added to the success of Ras Al Khaimah as a destination of choice.
Ras Al Khaimah has been witnessing impressive economic growth in the past few years under the visionary
leadership of H.H. Sheikh Saud Bin Saqr Al Qassimi, the Crown Prince & Deputy Ruler of Ras Al Khaimah.
In recent years, Ras Al Khaimah has witnessed an increase in GDP figures with growth in manufacturing,
services, and tourism sectors, along with the increase in foreign trade and per capita income, rise in the
standard of living, growth in education, development in world class housing and health-care facilities among
other positive developments that point towards the all round socio–economic prosperity of Ras Al Khaimah. Ras
Al Khaimah was recently rated the best investment destination by the FDI Magazine, Financial Times, London.
The RAK Government encourages development through private sector and believes that the role of the
Government is primarily to create an optimum environment for enterprises, providing enabling infrastructures,
utilities and services and making sure that the Government is an effective partner- supporting and empowering
the private sector.
Ras Al Khaimah has negligible deposits of hydrocarbons unlike some of the other emirates or countries in the
GCC. As a result has sought to diversify its economy over the course of the last decades by opening up to
foreign investors and industries. The aim was to make the best use of the emirate‟s strategic positioning by
improving its infrastructure and creating the right incentives and liberal business environment to attract major
industrial enterprises from around the world.
INFRASTRUCTURE
The Government of Ras Al Khaimah‟s constant endeavor to enhance infrastructure facilities across the emirate
has been a major factor in attracting major foreign investments to Ras Al Khaimah. With a well-planned road
network, an international airport, fully equipped seaports, and advanced communications network, Ras Al
Khaimah is well-positioned for rapid socio-economic growth.
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RAK INFRASTRUCTURE- Highlights
RAK is well connected to most of the neighboring countries by air, sea and roads
The emirate has an excellent road network making overland trans-shipment

throughout the Middle East a realistic possibility
Excellent telecom system
RAK airport is one of the six international airports in the country
Saqr port in RAK is one of the largest bulk handling ports in the region with
container handling facilities
Although the drive to attract foreign companies has been a recent development, RAK has long been one of
the industrial centres of the UAE. The industrial sector has been dominated by the three main industries of
Cement, Ceramics and Pharmaceuticals. The sector has diversified in the recent years especially since the
creation of free zones as well as partnerships between government and foreign investors.
Ras Al Khaimah has a natural advantage when it comes RAK INDUSTRIAL ACTIVITIES- Highlights
to the production of cement as the Al Hajar mountain
range holds vast supplies of high quality limestone, which  One of the largest producers of cement in the
is a key raw material for cement manufacturing. The Gulf region. Al Hajar range of mountains
emirate is also rich in other raw materials such as clay, contain high quality limestone deposits.
quartz and other minerals.
 One of the largest producers of medicines in
The pharmaceutical industry in RAK is about 30 years old the UAE (Julphar)
and has been one of the key focus areas of government
plans since several years. The industry in RAK is  One of the largest producers of ceramic tiles
and sanitary ware in the world (RAK Ceramics)
dominated by the Gulf Pharmaceutical Industries, known
as Julphar. The company has grown into a
 Region‟s leading brand of mineral water
pharmaceuticals giant by Middle East standards and now
(Masafi)
exports to over 80 countries. Julphar is the biggest
pharmaceuticals manufacturer in the UAE.
 Increased industrial activities with the creation
of free zones and partnerships between
What RAK lacks in oil is somewhat compensated for by government and foreign investors
its natural mineral water resources. RAK is the origin of
Masafi mineral water brand, the region's leading mineral  Thousands of small and medium scale
water brand, with its source lying in several rich industries in diversified sectors of
underground springs in the mountainous city of Masafi. manufacturing
Masafi water, has developed into an international brand
which exports bottled water and fruit juices to more than  Emphasis on high-tech industries
20 countries.
RAK Ceramics is the single largest, state-of-the-art, ceramic tile manufacturer in the world with its 12 plants
spread across the UAE, India, Bangladesh, Sudan, Iran and China, producing over one hundred million square
meter of tiles and 3 million pieces of sanitary-ware annually, exporting to 135 countries. The UAE operation is
the largest single location ceramic manufacturing facility in the world with more than 6,000 active models in the
ceramic and porcelain tiles segment, and an exclusive range of more than 600 active models of sanitary ware to
offer with a wide choice in designer bathroom sets, wash basins, bathtubs and related items. RAK Ceramics
has diversified horizontally by forming several joint ventures including Kludi RAK LLC, RAK Porcelain LLC,
Laticrete RAK LLC and many more in Ras Al Khaimah.
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RAKIA About RAK Investment Authority (RAKIA)
The RAK Investment Authority (RAKIA) was Vision & Mission

constituted as per Emiri Decree No. (2)/ 2005
issued by H.H. Sheikh Saqr Bin Mohammed Our vision is to build a diverse economy that enjoys
Al Qasimi, Supreme Council Member and strong, sustainable growth, by attracting
Ruler of Ras Al Khaimah. The mandate for investments from the domestic and foreign markets
the authority is to work towards reinforcing the that will create wealth and raise the standard of
living for the people of Ras Al Khaimah.
investment climate in the emirate and to
promote its various economic sectors. Our mission is to offer complete solutions to the
needs of every investor and provide value and
Under the direction of H.H. Sheikh Saud bin customer satisfaction, ensure minimum transaction
Saqr Al Qasimi, the Crown Prince & Deputy & conversion cost, enable businesses to flourish in
Ruler of Ras Al Khaimah, we are pursuing the the quickest possible time and to make investment
goal of making Ras Al Khaimah a regional in Ras Al Khaimah simple, easy and a pleasant
hub for industrial manufacturing, trade and experience.
commerce. The GDP of RAK has grown
significantly over the past few years. The
growth is driven by increased focus on
manufacturing, services, real estate,
construction and tourism.
Soon after the formation of RAKIA in the year 2005, RAKIA undertook the development of the industrial parks
which include the free zones and non free zones in the Al Hamra. In the same year the infrastructure and
allied work were started in the Industrial parks which resulted in overall development of industries in the
Emirate. In a period of 16 months from RAKIA inception 100% of the Free zone land (2.20 million Sqm) was
leased out to 114 companies and also around 2.2 million sqm were leased out to 94 companies in the non-
free zone Industrial area. With the success in attracting very large conglomerates around the world, RAKIA
took the task of developing 25 million sqm of Industrial land in Al Ghail area of Ras Al Khaimah at the end of
year 2006. RAKIA has already licensed over 220 manufacturing companies in Al Ghail Industrial and is self
sufficient with a 64 MW of captive power plant. The strategy of RAKIA is to attract sustainable industries and
RAKIA offeres investment advisory services and equity participation on selected projects. This has resulted in
an atmosphere of trust among investors and generated a solid network of opportunities. As a result of that
within a span of 3 to 4 years of its inception, RAKIA has been instrumental in attracting over US$2.5 billion of
industrial investments alone, powering an unprecedented economic surge that has made Ras Al Khaimah as
one of the fastest growing emirates in the UAE and the region.
In response to Ras Al Khaimah‟s growing emergence as a business destination of choice, RAKIA established
RAKOFFSHORE – and the International Business Company (IBC) concept- a move designed to address the
growing demand for offshore markets, and also complementing the emirate's ongoing economic
diversification program. RAK OFFSHORE is an innovative initiative that establishes a true offshore facility and
regulatory body providing complete offshore non-resident business registration and financial services through
registered and reputed law firms.
After successfully running industrial parks in Ras Al Khaimah, RAKIA is setting up a Free Industrial zone in
Georgia (Eastern Europe), under the aegis of a subsidiary company of RAKIA. This is the first free zone in the
Caucasus Region and is strategically located for easy access to the EU, Central Asia and Caucasus/ Eastern
European markets. The free zone is being established next to the Poti Sea Port, which is also a subsidiary of
RAKIA, the largest sea port in the Black Sea region and offers tremendous supply chain cost advantage for
movement of goods.
RAKIA is now in the expansion mode and has various Strategic Business Units, e.g.
 Education/ Technology
 Real Estate
 Transportation
93
 Investments
 Manufacturing & Energy
 RAK Offshore Performance Highlights
 Real Estate Regulatory Authority (RERA).
 5400 local and foreign investors have set up
RAKIA Milestones- Achievements operations within the emirate under RAKIA. Out of
which over 2500 are registered under RAKIA free
zones and non-free and over 2800 are registered
under RAK Offshore
Since its inception, over 5400 local and foreign
investors have set up operations within the
 In RAKIA free zone and non free zone. About 85%
emirate under RAKIA, fueling an unprecedented of the investors have come from outside UAE
pace of economic growth that has made Ras Al
Khaimah one of the fastest growing emirates in  Overall composition of license issued in RAKIA
the UAE and a regional economic force to reckon Free Zones & Non Free Zones so far-- Commercial-
with. Out of which over 2500 are registered under 24%, Industrial-23%, Consultancy-24%, Trading-
RAKIA free zones and non-free and over 2800 are 19% and Media-10%.
registered under RAK Offshore.
No of Licenses under RAKIA Free Zones & Non Free Zones  Attracted close to US$ 2.5 billion worth of
investments from 95 countries e.g. from the Middle-
East including UAE, Indian sub-continent including
Pakistan, South-East Asia, US & Europe and other
Total no of licenses ME countries.
3000
2571  Non-free zone (Industrial zone) Phase-I, II, Extn
Zone and Ceramic zone at Al Hamra of total area of
2500
2.83 million sqm have been completely leased out
No of license
2000 1695 to 94 companies with 90% of these are in

manufacturing.
1500
1009  Free Zone at Al Hamra with total area of 2.20
1000 million sqr mtr have been completely leased out to
500 291 about 114 companies registered in free Zone out of
which 89% are in manufacturing.
0
 “Al Ghayl” industrial park, spanning 25 million sq
up to 2006 up to 2007 up to 2008Up to 2009
mtr of which 6 million sq mtr is Free Zone. Already 5
million sqm have been leased out to 230 companies
No of Licenses under RAK Offshore so far.
RAKIA ADVANTAGES
 Easy licensing procedure

 Single window clearance for approvals & permits
 Every investor gets personal attention
 Ready availability of power
 Issue of visit and residence visa under one roof
 Open door policy.
 Easy access to decision makers.
RAKIA has attracted very strategic companies in diverse industry segments ranging from glass and table
ware, float glass, vehicle assembly, steel products, building materials, electrical equipment, rubber,
plastics and food processing. The winning strategy that RAKIA adopted was to forge partnership with
some investors who had viable projects. This strategic partnership has given the investing companies
competitive edge in the way of early implementation, fund and many functional support. RAKIA continues
to have many strategic partners in European countries and also has its own representative offices in
94
France and Germany. RAKIA has also participated in various events in Europe, Asia and also in the UAE
to show case its investment opportunities to companies looking for investments in UAE and in the region.
Some of the events that RAKIA participated recently are the Hanover Industrial fair in Germany, Forum
for Trade and Investment in Zurich organized by OSEC, Global India Forum organized by Horasis in
Munich to name a few and many local events like Middle East Manufacturing Exhibition in Abudhabi and
also BIG 5 in Dubai apart from hosting many business delegation in RAK from across the world. RAKIA
has been giving importance for a knowledge based approach with its dedicated team conducting sector
analysis and identifying and communicating with potential large Industrial investors in the target
countries. It has in the past forged partnership with prominent international consulting companies line
KPMG, PWC, Financial Times etc. for various studies and opportunity assessments.
It is evident from the above table that the number of companies registered in RAKIA in Y2009 has
increased by over 120% over year 2007, is indicative that the efforts of RAKIA to attract investment to
RAK is showing fruitful results. In the year 2010, RAKIA is expecting to attract large number of
Industrial companies as it has already seeing signs of improvement in many countries after the global
economic meltdown during 2008-09.
Geographic Trend-Overall
Russia/cis
Miscellaneous 2%
6%
INDIA
28%
rest of ME
21%
USA
ASIA/SE Asia
3%
7%
UAE
15% Europe
18%
The licenses RAKIA has issued show a remarkable balance among key sectors – 25 per cent went to
commercial companies, 24 per cent to consultancy and service companies, 23 per cent to industrial firms
and the balance to trading and media companies. Investors have come from 96 countries around the
world, out of which 36% are from the Middle East, 35% from Asia & Far East, 18% from Europe, and the
balance from other parts of the world. RAKIA has experienced considerable increase in the registration of
European companies from its previous years. Almost 85% of the European investments in RAKIA are
coming from the six Industrialised countries like Germany, UK, France, Holland, Switzerland and Austria.
RAKIA through its customer relationship KEY ENABLERS

approach has identified the investors need and
has diversified its product offerings with the  Good infrastructure & logistic support system
introduction of RAKIA Business Tower, a multi-  Excellent port facilities
stored commercial complex located in the Al  Competitive energy cost
Hamra region of RAK that houses corporate  Easy access to GCC countries
offices of clients from diverse segments. RAKIA  Strategic location being near to large and important
has also developed warehousing facilities to markets
cater to its growing needs and moreover,  Zero corruption and minimum bureaucracy
workers‟ accommodation and studio flats were  Stable government and investor friendly policies
also made available.  Presence of local and international banks for project
funding
95
Besides managing industrial/business parks,
Accolades for RAK/RAKIA
RAKIA also delivers a wide range of
complementary services to ensure that
 S&P affirmed its “ A” long-term and “ A-1” short-
investment potentials are maximized. RAKIA
term sovereign credit ratings to RAK.
offers investment advisory services and equity  Ras Al Khaimah was rated as “Most Cost
participation in selected projects, a key move Efficient FDI Destination” by Financial Times
that reinforces investor trust and confidence. London in the year 2007.
Due to Its investor-friendly policies and  Ras Al Khaimah has been awarded “Most
flexibility, brought in an array of international Attractive Destination For FDI” in the 2008 –
brands including Guardian Glass, Arc 2009 Middle Eastern Cities of the Future
International, Franke, Duscholux, Mitsui, Kludi, benchmark rankings
Becker Industries, Kempe, Ashok Leyland and
many others.
RAKIA is a one stop shop for all the investor needs providing statutory support like issue of licenses,
assistance in company formation, project approvals, investor‟s visa, design approvals & construction
permits, occupancy certificates etc.,
Among the myriad of advantages which the foreign investors avail of are full ownership of their
businesses and a tax free haven apart from duty exemptions. Other key benefits offered to investors are
100 per cent capital and profit repatriation; easy availability of labour; easy licensing procedures;
excellent port facilities; and absence of foreign exchange controls, trade barriers and quotas.
Apart from the above advantages RAK had the unique traits, well differentiated from its competing
locations like excellent terms for leasing, low cost of operations, favorable business environment, friendly
government policies and high quality infrastructure. Because of all these, RAK was rated the „Best
Foreign Direct Investment destination in the Middle East‟ for 2009 by Financial Times London in the year
2007.
Sector wise break-up- Non free zone Sector wise break-up- Free zone
Auto &
Related
Electricals
Food Food 4%
Wood 4%
Auto & processing processing
products 2% Wood
Related 2%
4% products
2% Electricals Metal
Metal 6%
Products 7% Products Rubber &
30% Rubber & 36% Plastics
Plastics 6%
7% Building
m aterials
Chemicals 11%
9%
Chem icals
Others 11%
Building Others 20%
materials 17%
22%
RAKIA has signed a memorandum of co-operation with banks in Ras Al Khaimah in a move that will
greatly benefit investors in the emirate. Under the agreement, the banks will provide financing to firms
for their projects in RAKIA industrial parks. S&P affirmed its “A” long-term and “ A-1” short-term
sovereign credit ratings on RAK which has build tremendous confidence for banks as well as investors.
RAKIA's ongoing success largely reflects the Ras Al Khaimah Government's own success in
establishing reforms, instituting new laws and regulations and enforcing policies that are hospitable to
local, regional or international investors.
96
Major companies in RAKIA
Ashok Leyland of India is one of the biggest names in industry in the automobile industry. The
company's integrated assembly plant is to build 1000 buses per year in RAK has started its operations in
the year 2008. This is the first fully integrated Bus/trck manufacturing in the whole of GCC.
Zamil Steel of Saudi Arabia is a strong example of a company based in the Middle East that is starting to
establish an important presence in RAK. Zamil, which is actually one of the largest industrial groups in the
Middle East, registered with RAKIA in 2005. The company manufactures pre-engineered buildings and
galvanized steel for electricity towers. The pre-engineered structures are mainly used for construction
projects' show rooms, military bases, factories and temporary or semi-temporary structures.
Arc International – based in

France – came to RAK in 2004 to
establish a production facility in
the region for easier access to INVESTMENT
surging Middle Eastern markets. NAME SECTOR COUNTRY Million USD YEAR
Arc International is one of the KEC Cables Industrial Cables India 60 2009
world's top producers of Pikko Steel Connectors Finland 10 2009
glassware and stemware. POSCO Steel South Korea 35 2008
Becker Paints Paints Manufacturing France 20 2008
Guardian Glass of USA With an
Novas Sealing Industrial Gaskets UK 10 2008
initial investment of approximately
Kludi RAK Water Taps & Faucets Germany 30 2007
$115 million, established
Kempe Engineering Industrial Equipments Australia 10 2007
Guardian RAK with a production
Guardian Industries Float Glass USA 130 2006
capacity of 700 tons of glass per
day for use in automotive and Franke SS Kitchen Product Austria 55 2006
construction applications, Ashok Layland Bus & Truck Assembly India 50 2006
Kirby Steel Steel Kuwait 30 2006
including high-performance
Dabur India Herbal Products India 25 2006
coated glass.
RAK Ghani Glass Glass Containers Pakistan 25 2006
Global Glass Solutions has RAK Steel Steel Products India 25 2006
recently set up a glass processing Mitsui Japan Heavy Fabrication Japan 150 2005
facility in the Al Ghail Industrial JBF RAK Polyester Chips & Films India 100 2005
Park in Ras Al Khaimah. The state- Falcon International Blue Ray DVD Switzerland 70 2005
of-the-art factory is one of the Zamil Steel Steel KSA 35 2005
largest glass-processing facilities Duscholux Sanitaryware Fittings Germany 30 2005
in the region with up to 1,000 sqm Pioneer Cements Cement India 105 2005
Arc International Tableware France 100 2004
glass processing capacity per day,
Global Glass
providing clients in the region a
Solution Glass mfg Jordan 30 2009
complete array of world-class Maico Gulf Ventilation system Germany -- 2009
solutions for their processed glass
requirements. The facility will
manufacture all kinds of
processing glass and will initially
cater to markets in the UAE and
the rest of the GCC.
97
RAK Steel, a joint venture of Ras Al Khaimah Investment Authority,is a new energy efficient and
environment friendly steel rolling mills. The mill produces 500,000 tonnes per annum 8mm to 40 mm
diameter „steel deformed reinforcement bars (REBARS) to international British and American standards.
JBF Industries has teamed up with Ras Al Khaimah Investment Authority in its initial stages and set up
Polyster PET Resin Packaging chips plant in RAKIA. The cost of the plant would be around $100 million.
Naturelle LLC – Dabur International

Subsidiary
Naturelle LLC, subsidiary of Dabur International Ltd., has started its production in RAK in the year
2008. Dabur India Limited is one of the leading FMCG Companies in India, with interests in health care,
personal care products, with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola &
Real.
Maico Gulf LLC
Maico Gulf LLC, a reputed company in air ventilation systems has set up its manufacturing unit in Al Ghail
Industrial Park. Maico Gulf LLC is a joint venture company between Maico Holding GmbH of Germany
and Hira Holding BVI. The Maico products include Ventilation Fans, Industrial & Jet Fan, Smoke vents
and Air Handling Units.
98
References
 Summary Report on Agriculture in the Arab Region, Economic and Social Commission for
Western Asia (ESCWA). United Nations
 Food & Agriculture Statistics, Food & Agriculture Organization (FAO), United Nations
 United Nations Industrial Development Organization (UNIDO)
 GOIC (Qatar) Annual Report, 2008
 Arab Agriculture Statistics Year Book , Arab Organization of Agricultural Development
 Food & Drinks Report, 2009, Business Monitor International
 Arab Business Intelligence on Food & Drinks, November 2009, Noozz.com
 Packaged Food, Euro Monitor International, February, 2009
 DCCI Economic Bulletin vol-4, Issue 31 May 2007
 Dubai Port & Customs Trade Statistics, 2008, Dubai World.
 Dow Jones Factiva database of companies.
 Ministry of Foreign Trade, Foreign Trade Affairs, UAE
 Federal Customs Authority, Abu Dhabi, UAE
Websites:
http://www.researchandmarkets.com/reports/
http://www.worldbank.org
http://www.gulfnews.org
http://www.khaleejtimes.org
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Food Sector Report UAE

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Food Sector Report UAE

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Investment Opportunities in

Sector Study on Food Sector in UAE

84 Food Retail Market overview

Share of Total Trade in 2008

Description 2008 % 2007 % 2006 %

Domestic Trade- Retail Sector

Due to the large expatriate population, a diverse

Almost over 75 per cent of the food items are

 Demand for processed and packaged foods

 Foods sold in retail outlets consist of 75-80 per

Tariffs, Regulations and Customs

Other melons… 8000

Lettuce and chicory 6500

Eggplants (aubergines) 895

Chillies and peppers, green 41735

Cotton lint 365000

Onions, dry 1485933

Farms Local Catch Total Catch

Fish Production - 2007

Country (X 1’000) Metric Tons

Local Production of Red & White Meat

World economic recovery is good for the region….

…. but regional fiscal policies should be supportive

UAE Local Produce

Other melons… 8000

Structure of the Agriculture/Primary Sector in UAE

Product Type Share in Production

Source: Ministry of Environment & Water, 2003

Other cultivated products

Water and irrigation

New developments (outsourcing agriculture)

Structure of the Processing Industries in UAE in – 2008

Pl refer to Annexure-1 for company contact details

Pl refer to Annexure-1 for company contact details

 Al Ain Dairy Farm- Dairy

2008 2,007 2,006

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Trade in Meat & Meat Products

2008 2,007 2,006

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Poultry Egg Trade-2008 Import of Poultry Eggs

Achsentitel 150 135

Trade in Fruit Juices

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Fruit Juice Trade-2008 Import of Fruit Juices - 2006-2008

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Mineral Water Trade-2008 Import of Mineral Water 2006-2008

2008 2,007 2,006

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Sugar Trade-2008 Import of Sugar-2006-2008

U.A.E exports benefit from favourable transportation costs

Source- Dubai Port & Customs Statistics, Dubai World, 2008

Tea Trade-2008 Import of Tea -2006-2008

Cocoa, Chocolate etc. Trade-2008 Import of Chocolate etc- 2006-

The Fishing Industry in the U.A.E.

Overview of Fisheries in UAE

Processing & Marketing of Fish in UAE

Activities of these 78 Companies Include:

Types of secondary processing done in UAE are basically:

1. Fillet (both skin on and skin less),

List of local (UAE) made Value Added brands

S. No Company Name Seafood Brands