PHOTO
Dubai’s food and beverage sector attracted $577 million in foreign direct investment (FDI) over the last five years, with ease of business and robust supply chains attracting capital from 23 countries over the period.
Speaking at briefing on the sidelines of the ongoing Gulfood exhibition at the Dubai World Trade Centre, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers spoke about the emirate positioning itself as a global hub in the F&B sector, through innovation and e-commerce advancements.
According to data shared by the Dubai International Chamber at the ongoing Gulfood exhibition at the Dubai World Trade Centre, the UAE had also emerged as a top draw for foreign investors, accounting for the largest share of venture capital investments in the Middle East’s restaurant tech sector from 2018 to 2023. Findings by research company Pitchbook revealed, the UAE had attracted investments exceeding $1 billion over the period.
The UAE also ranked second among Middle Eastern countries in terms of the value of venture capital investments in the agri-tech sector during the same period, attracting investments worth $335.4 million.
This year’s Gulfood exhibition has strong focus on digitisation, with companies such as the Abu Dhabi-listed Agthia Group, and F&B producer IFFCO Group talking about investing further in tech and AI in their forward-looking plans.
Retail sales
According to Euromonitor data shared by Dubai Chambers, the UAE’s F&B sector generated $16.4 billion in retail sales, across fresh and packaged food in 2023. Fresh food sales accounted for $9.8 billion, growing at a CAGR of 4.7% to hit $12.8 billion by 2028.
Meanwhile, sales of packaged food in the UAE are expected to rise from $6.6 billion in 2023 to $8.3 billion in 2028, achieving a CAGR of 4.6%.
Retail sales of beverages in the UAE are forecast to rise from $1.6 billion in 2023 to $2 billion in 2028, representing a CAGR of 4.6%.
Consumer spending on food via e-commerce platforms also reached a value of $1.1 billion in 2023 and is expected to increase at a CAGR of 9.5% between 2023 and 2027.
(Writing by Bindu Rai, editing by Seban Scaria) Seban.scaria@lseg.com
