DCCI has planned to open a $200 Million ‘Dubai Food City’ by 2011, which will ensure the security of food in the UAE and raise the competition level in the country’s food market.
As per the statement of Farook Kassam, Managing Director of Food & Beverage Department, Dubai Chamber of Commerce and Industry (DCCI), the department has planned to establish a ‘Dubai Food City’ worth $200 Million by 2011, which will be stretching over 5 Million Sq.ft, as reported by KhaleejTimes.
According to DCCI, food and beverage industry in UAE was valued at around $8 Billion in 2008 compared to $6 Billion in the previous year. The Middle East (ME) food industry values around $30 Billion from which the share of GCC countries is nearly $12 Billion. UAE accounts for 30%-40% of the GCC’s share, implying the country represents $3.6-$4.8 Billion of the ME food industry. Further, the UAE food market is expected to grow 10%-15% in the current year.
The geographical location of Dubai has made it the main re-exporting hub. Nearly 80% of food and beverage articles are re-exported from Dubai to the GCC countries and Iran. Additionally, the food and beverage sector contributes significantly to the UAE economy.
Dubai Food City will ensure the food security in the country where 90% of the food products are imported. It will also make the price more competitive and will cut down the possibility of food shortage.
Although regional as well as local players are giving tough competition, Dubai’s food and beverage industry has been performing extremely well. As a whole, the ME food and beverage industry has remained firm in every sort of adversity such as poor harvest, declining food reserves, increasing global food prices and the global economic meltdown.
Moreover, international food suppliers are very well aware of the fact that the Middle East is witnessing an increase in population having higher taste-consciousness and purchasing power. The hospitality sector of the region is very strong as well.
According to a Research Analyst at RNCOS, “Proximity of Dubai to all the key Arab markets is playing a critical role in the growth of its food and beverage industry. There are huge opportunities to raise exports to GCC or non-Arab markets. Moreover, GCC is the largest importer of food products in the Middle East and Dubai will continue to be the food trade hub despite various challenges.”
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