UNITED ARAB EMIRATES

FOOD & DRINK REPORT

2016

Produced by:

Ali S. Ali

Trade Manager, Food & Drink Sector

British Centres for Business (BCB)

Contents:

The British Centres for Business (BCB) 4

o Trade Services 4

The United Arab Emirates (UAE) 5

UAE Food and Drink Sector 8

UAE Halal Industry 15

UAE Food and Drink Segments 17

o Fresh Food 17
o Packaged Food 17
o Food Service 19

UAE Food and Drink Product Categories 21

o Confectionery 21
o Drinks 21
o Dairy Products 23
o Gourmet Food 23
o Organic Food 24
o Seafood 25
o Meat Products 25
o Pork 27
o Health Food 27
o Alcohol 27

UAE Food and Drink Retail Sector 29

o Spinneys 30
o Carrefour MAF 31
o Lulu 31
o Choithrams 32
o Al Maya 32
o Geant 32
o Union Co-operative 33
o Waitrose 33
o Dubai Duty Free 33

Routes to Market Entry 34

o Consolidator 34
o Distributor 34
o Direct to Retailer 35
o Free zone set up 35
o Onshore set up 35

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 UAE Food and Drink Regulations 36
o Labelling and Packaging 36
o Dating of Foodstuffs 37
o Inspection and Clearance Procedures 37
o Documents Required 38
o Banned Food Addictives in the UAE 38
o Duties 39

BCB Case Studies 40

BCB Contact Information 42

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THE BRITISH CENTRES FOR BUSINESS (BCB)

The BCB is a business-to-business professional services company established with the

mandate to provide operational support and market entry services in Dubai to British
companies.

We are a member of Overseas Business Network initiative (OBNi), created by the British
Chambers of Commerce and UK Trade & Investment, working together to create an
international business network, providing practical support for UK exporters.

Our primary aim is to help British businesses, particularly SMEs, expand into the UAE.

The services that the BCB provides to UK companies include:

Trade Services: market intelligence, commercial development & introductions,

programme arrangement.
Incubator: unique market-entry platform developed with Dubai Government to
help British companies become established in the UAE as a Foreign Branch
company.
BCB Connect: access to the BCBs support network for 12 months.

Trade Services

The BCBs Trade Services arm helps clients expand their commercial horizons in the UAE
in the Retail, Food and Drink, Creative and Tech sectors. Trade Service support can take
a myriad of different forms depending what is required. The intention is to provide
bespoke and practical export help to UK companies, in whatever form that takes.
Outlined below are some examples of trade service projects. They are all priced
individually depending on the level of support needed.

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THE UNITED ARAB EMIRATES (UAE)

Population of 9.45 million comprising of 12 percent Emiratis & 88 percent

expatriates
Population to reach 10.2 million by 2018.
16.47 million tourists in 2015 including 1.2 million UK visitors
Around 120,000 UK nationals reside in the UAE
Second largest Arab economy
Holds 10 percent of worlds oil reserves; expected to last for 90 years
Non-oil sectors contribute 70 percent of GDP
GDP per capita is 20,926.
GDP growth from 59.88 billion in 2004 to 275.57 billion in 2014
18th highest GDP per capital globally
Over 5,000 British companies operate in the UAE
UKs biggest export market in the MENA

The UAE is one of the six member states of the Gulf Co-operation Council (GCC). The
others are Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. The UAE has diversified its
economy away from oil.

More than half of the population lives in Abu Dhabi and Dubai. The remaining are in the
other five emirates Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain.

Source: BQ Magazine

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 Source: Dubai Chamber based on UNCTAD

By 2011, the UAE economy managed to recover from the ramifications of the global
financial crisis. The UAE has developed into a major regional economy over the past 10
years, with its GDP growth in 2014 standing at 4.6 percent.

Indicators Unit 2013 2014

GDP billion 267.28 275.57
Population million 9.35 9.45
Inflation % 3.5 3.6
Source: Trading Economics

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Compared to other GCC countries, the UAE has the highest per capita income, which is
expected to reach 25,537 in 2018.

Source: Dubai Chamber based on Euromonitor

The UAE is the UKs 12th biggest export market globally. UK-UAE bilateral trade in goods
and services reached 12.4 billion in 2013.

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UAE FOOD AND DRINK SECTOR

Sector estimated at 19.88 billion in 2014, based on consumer expenditure

Total value of food & drink imports, exports & re-exports reached 23.5 billion in
2013
Agriculture accounts for 1 percent of GDP; 85 percent of food & drink is imported
6.4 billion worth of imports from UK in 2014 out of which 417 million was food &
drink

The UAE has quickly earned itself a reputation as one of the leading destinations to enjoy
quality food and five-star hospitality services. Both the growing affluence and numbers
of the UAE population and visitors over the last two decades, has led to arise in the
consumption of food and beverage products in general; it has also encouraged the
adoption of a whole new range of products with habits and tastes changing at a similar
pace.

The countrys growing population, thriving economy, and profile as one of the worlds
hottest tourist destinations has only whet the UAEs appetite for quality food products and
hospitality services. Gourmet food stores, organic supermarkets, spice souqs, speciality
food stores, fish markets, international hypermarket chains and local convenience stores
now stock everything from quail eggs to white truffle oil.

The UAE food and drink sector is estimated to grow to 25.81 billion by 2018. The UAEs
food & drink imports and exports grew at an annual rate of 18.5 percent from 2003 to
2013.

Source: Dubai Chamber based on UNCTAD

Due to harsh climatic conditions and scarce water resources, GCC member states are
heavily reliant upon imports for their food supplies. Limited home-grown sources of food
in the UAE obviously mean that the countrys import demand for overseas products is
perennially strong. Agriculture represents a very small share of the UAE's economy. The

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total cultivated land has decreased in recent years, and the UAE remains a major net
food importer.

Source: Dubai Chamber based on stats from Alpen Capital

Based on UNCTAD statistics, the UAEs major food & drink imports from 2011 2013 were
fruits and nuts (11.4 percent - 1.45 billion), meat and meat preparation (10.4 percent -
1.24 billion), dairy products (8.9 percent - 1.04 billion), cereals and other cereal meals
(8.4 percent - 1 billion) and oils and vegetables (8.2 percent - 1 billion).

Source: Dubai Chamber based on UNCTAD

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The UAEs major food suppliers in 2014 were:

Countries million % of Total Imports

India 1,541 11

US 1,346 9

Brazil 1,284 9

Australia 781 5

Saudi Arabia 623 4

Netherlands 543 4

Oman 538 4

China 500 3

Canada 481 3

Vietnam 453 3

Pakistan 434 3

UK 417 3

Others 5,340 39

Total 14,281 100

Source: Dubai Chamber based on UNCTAD

Dubais strategic position as the gateway between the three continents of Europe, Asia
and Africa and the establishment of the many free trade zones have supported the
growth in food & drink exports and re-exports from the UAE.

The majority of the food & drink exports and re-exports from the UAE are to Iran, Oman,
Iraq, Saudi Arabia and Qatar.

Over 5,000 UK companies are doing business in the UAE. The UAE is the primary entry point
for a regional market valued at 150 billion. Re-exports from UAE stood at 29 billion in the
first nine months of 2012.

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Dubais trade with the UK in the food & drink sector in 2011 is shown in the below table.

IMPORT FROM UK EXPORT TO UK RE-EXPORT

COMMODITY
Weight (Kg) Value (AED) Weight (Kg) Value (AED) Weight (Kg) Value (AED)
BEEF 6,098 195,948
BEEF FROZEN 114 1,686
CARBONATED DRINK 242,824 1,268,739 371,502 776,949 30,339 60,340
COCOA BEVERAGE 16,008 390,445 3,000 8,100
CRAB 13,806 390,697
FISH 589,695 16,208,971
FISH - FROZEN 38,751 651,349
FLAVOURED WATERS 937,927 6,993,364 470,843 1,009,282 2,366 7,211
FRESH FRUITS 134,932 1,874,873 52,147 196,223 81,294 259,682
FRUIT BEVERAGE 120,724 796,751 27,200 45,357
FRUITS - FROZEN 16,008 253,647 24 780
JUICES 894,764 4,284,241 879,352 1,718,772 125,049 805,879
LOBSTER 1,625 136,795
MALT BEER 269,793 1,818,012 83,354 249,562 19,785 57,105
MEAT LAMB 114 4,315
MEAT SHEEP 8,399 324,521
MILK BEVERAGE 432,069 2,044,682
MINCED MEAT 10 776
MINERAL WATER 3,145,706 7,255,760 296,523 415,997 60 3,062
OCTOPUS 19 855
OYSTERS 25,845 765,687
PORK 42,038 1,470,747
PORK - FROZEN 14,224 355,857
SHRIMP & PRAWNS 14,492 251,429
SPARKLING WATER 182,206 642,641 43 754
VEGE - FROZEN 209,923 3,248,764
BISCUIT 2,415,873 45,604,404 49,855 356,436 41,206 567,579
BREAD 659,705 19,423,158 12 43
BUTTER 26,473 378,812
CHEESE 1,879,821 48,144,591
CREAM 1,641 30,744
MILK 1,710,584 17,664,207 20 170
PASTRIES 504,823 7,760,694
PREPARED FOODSTUFF 15,603,618 232,181,748 1,434,557 8,131,826 371,280 2,766,636
VEGE-FRESH & CHILLED 1,673,374 16,459,523 24,100 96,580
YOGHURT 546,129 14,369,269
TOTAL 32,380,155 453,648,702 3,668,353 12,908,674 695,558 4,625,651
Source: Dubai Data & Statistics Department

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The UAE food & drink market has performed well during the last few years on the back of
a growing population, a surge in visitor numbers coupled with increased per capita
income and consumption.

The construction boom, especially related to hospitality sector including hotels,

restaurants and malls, has significantly supported the UAE food & drink industry. The
growing tourism industry is positive for the sector with plans to increase hotel room
capacity to add almost 30,000 rooms with an additional 140 hotels in the coming few
years. Dubai currently has a stock of 612 hotels with 85,000 rooms.

Source: Dubai Chamber based on Department of Tourism & Commerce Marketing

The demand for hotel accommodation in Dubai has grown signicantly in the last 7
years. Demand measured in rooms sold has risen by almost 79 percent between 2006
and 2013.

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In total there are currently 71 known hotels in varying stages of planning or construction
in Dubai which are estimated to provide over 22,000 additional rooms.

The increasing demand from the catering industry providing for in-flight meals has also
benefited the sector. Emirates Airline, the worlds largest international carrier, has a very
sophisticated catering division that is already active buying from UK suppliers. Emirates
Flight Caterings (EKFC) facility in Dubai is the largest of its kind in the world, with a
capacity of 175,000 meal trays a day. Last year, EKFC supplied 50 million meals for
Emirates flights and 8 million for other airlines.

Modern retailing and western consumption trends are creating a host of opportunities in
the retail and tourism sectors. Rising health awareness means that there are increased
opportunities for producers of healthy and organic products; the market for packaged
and ready-made meals is similarly robust.

The UAE population is increasing on an average of 2 percent annually. The UAEs

sustained population growth creates a solid food market base with diversified consumer
habits.

Around 58 percent of the population in the UAE is from the South Asian Countries,
especially India and Pakistan. A large majority of low paid workers come from India, Sri
Lanka, Bangladesh, Afghanistan and Pakistan, and are usually provided for at the labour
camps where they live, most commonly sharing costs with a group of people by
purchasing large quantities of meat, rice and vegetables.

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Middle management and higher income earners from the Asian community tend to
reside with their families where traditionally, the wife continues to prepare everyday
meals for the wider family

The majority of Filipinos are employed in retail, foodservice and white collar administrative
positions. They tend to reside in UAE on single status and most commonly live with groups
from the same community. As the Filipino population increases within the country, so does
the need for traditional Filipino food ingredients. There are now various hypermarkets &
supermarkets that cater specifically to Filipino residents. This includes both food
ingredients imported from the Philippines, and cooked take away meals that are price
competitive.

The UAE is an internationally competitive market where products from all major food
producing countries can be found. The UK predominantly supplies the upper end of the
market.

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BCB CASE STUDIES

If you are a food and drink business in the UK wanting to better understand the UAE and
export to this region, talk to the BCB. Heres how were helping other UK firms.

The a2 Milk Company Ltd

The a2 Milk Company Ltd (a2MC) wanted to identify food & drink retailers and distributors
in the UAE to introduce the brand and begin commercial discussions with a view of
getting a2 Milk on supermarket shelves in the UAE.

On behalf of a2MC we contacted 9 UAE based grocers and distributors, introduced

their products to them, secured confirmed interest from all of them and then planned
face-to-face meetings for a2MC to meet with each of them to discuss prospects in
person and develop commercial matters. a2MC is now in talks with all of them to
introduce their products in this region in the first half of 2016.

This is what Simon Hennessy from a2MC had to say:

I must thank Ali for doing an excellent job! By the time I got to see the key accounts they
were all ready to proceed with a potential relationship. The background work was
very comprehensive and the potential partner vetting process identified a high calibre
of potential trading partners. The agenda was well set out and Ali had organised 12
appointments in 3 days! The trip was very productive and the market opportunity is real.

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Meat Promotion Wales

Meat Promotion Wales (HCC) wanted to increase the awareness of Welsh Lamb as a
premium product in the food service and retail sectors. They also wanted to introduce
potential UAE based customers to a range of Welsh Lamb suppliers.

On behalf of HCC we hosted an event to promote Welsh lamb. The event was attended
by buyers from several distributors, hotels, restaurants and supermarket chains. With
around 60 attendees and a welcome speech by Her Majestys Consul General to Dubai,
the event provided a great networking platform for HCC and Welsh lamb suppliers to
showcase Welsh lamb to the right audience. Not only do events like these work to put
British produce on the shelves of the UAE, they also highlight British food generally which
cements the already solid UK reputation for quality.

It is still a bit early to evaluate the impact of this event on the business that Welsh red
meat exporters will do in the UAE but there were certainly plenty of genuinely interested
businesses ready to consider Welsh Lamb.

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BCB CONTACT INFORMATION

For more information on the UAE food & drink sector, please contact the below:

Ali S. Ali
Trade Manager, Food & Drink
British Centres for Business (BCB)
www.bcbuae.com

: +971 4 369 2899

: +971 52 905 3143
: ali.ali@bcbuae.com
: www.linkedin.com/in/alisali2

@BCBUAE
@AliSaifuddinAli

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