Food serves to be one of the necessities of human life, without which life on earth turns out to be impossible. Every country on this planet has got its style of preparing their food, which turns out to be unique from another region. Numerous business activities like restaurants, café and hotels are carried out keeping the food as an ultimate base. It is a well-known fact that the UAE turns out to be one of the famous international tourist hubs. Along with the growing population, the demand for food and beverage has reached to a paradigm shift.
The United Arab Emirates, one of the famous countries in the Middle Eastern region, leaves no stone unturned when it comes to business incorporation. Similar to the IT, Manufacturing and other business industries, it has got an equal opportunity for business investors to come forward and invest in the Food and Beverage industry. This guide will give you an in-depth understanding of the F&B sector, and the business opportunities it holds so that you can start a business in Dubai.
Food and Beverage Industry in the UAE
Ranked as the largest producer of oil and gas industry, the UAE is extending its arms to boosts the non-oil sector to fetch-in new ways for revenue generation. The Food and Beverage industry is considered to be the second largest industry at an international level. When it comes to the UAE, in the last five years, the sector has uplifted by 22%, holding a value of $13.2billion by 2018. The possibilities are not limited to the geographical boundary. For better clarity, let’s have a look at the domestic and international food market of UAE.
The Domestic Market
The UAE Food and Beverage domestic market are expected to hold a value of 131 Billion and 14 Billion, which means an increase of almost 62% compared to the present value. The Government of Dubai has considered the Food and Beverage as one of the targeted sectors in the Dubai Industrial Strategy 2030.
The International Market
In the other hand, it has got a massive audience in the international market. It stands as the 13th biggest agricultural exporter dealing in agricultural food and beverage products. The market is expected to grow more in the next three years. The possibility of expansion of the UAE F&B Market is stated below:
| Destination | Priority Percentage |
|---|---|
| Riyadh | 52% |
| Jeddah | 26% |
| Doha | 22% |
| Khobar | 13% |
| Manama City | 9% |
| Kuwait City | 9% |
Moving forward to the next step, let’s have a look at the core drivers of the food and beverage industry in the UAE.
Drivers of the Food and Beverage Industry in the UAE
The below-mentioned points stand as the core drivers that has thrived the food and beverage industry to the next extent.
1.High Population with Higher Disposable Income
The UAE currently holds a population count of 9.6 million with a high disposable income per capita. A region containing such an enormous population will increase the demand for the food and beverage industry.
2.Continuous Growing Demand for Food Services
Be it a mall, street food or even small or big hotels; there exists a constant demand for the food services at every second in every corner of the region. According to Euromonitor International, the CAGR of fresh food increased over 8.3% within a period of three years ranging from 2018-2021.
3.Gulfood 2019
Gulfood stands as an international food and beverage trade show every year in the UAE, that attracts millions of visitors and provides them with the opportunity to experience the unforgettable food experience. In 2019, the food fest will begin by 29th October 2019 and will come to an end by 31st October 2019. In the year 2017, the fest welcomed more than 97,000 visitors, and more than 5000 exhibitors to showcase their products, featuring the food specialties of more than 120 countries.
4.Expo 2020s
Much awaited Expo 2020 is on the edge of getting hosted in Dubai, a perfect ground for business partnerships. The expo is targeted to attract more than 25 million over a period of six months. The presence of such a vast population will increase the demand for food and beverage to a different level.
The continuous events that take place in Dubai never leave the city half-hearted. The region always holds ground for endless activities, which branches out multiple opportunities for entrepreneurs and business investors who want to set up their business in the UAE, in the food and beverage sector. To know more regarding the reasons to invest in the UAE F&B sector, click here. Let’s take a step forward and understand the different opportunities that the region holds for business owners.