The food and beverage sector in Dubai attracted new FDI worth $577 million from 2019 to 2023. The investment was made by 48 international companies from 23 countries, it was revealed on Tuesday.
Moreover, the UAE’s F&B sector generated $16.4 billion in retail sales, including fresh food and packaged food.
Meanwhile, consumer spending on food via e-commerce platforms reached $1.1 billion in 2023. It is expected to increase at a compound annual growth rate (CAGR) of 9.5 percent between 2023 and 2027, Euromonitor data showed.
Read: UAE emerges as global FDI hotspot, second only to the U.S.
The figures were revealed as Dubai International Chamber hosted a business event on the sidelines of Gulfood.
The five-day event is from 19th to 23rd February at the Dubai World Trade Centre. It attracted 400 delegates from local and international businesses.
“Dubai is continuing to strengthen its position as a significant global hub for the world’s food and beverage trade, which creates promising opportunities for companies operating in the sector to expand and grow. The sector is developing innovative solutions to contribute to global food security while ensuring that it keeps pace with the global drive for sustainability,” Mohammad Ali bin Rashed Lootah, President and CEO, Dubai Chambers, said.
Regional leader in investment attraction
The UAE accounted for the largest share of venture capital (VC) investments in the Middle East’s restaurant tech sector from 2018 to 2023. It attracted investments exceeding $1 billion in this area, according to data from PitchBook. The UAE also ranked second among Middle Eastern countries regarding the value of VC investments in the agritech sector during the same period. The country attracted investments worth $335.4 million.
Fresh food
According to data from Euromonitor, retail sales of fresh food in the UAE will rise from $9.8 billion in 2023 to $12.4 billion in 2028, a CAGR of 4.7 percent. Meat accounts for the largest share of sales in this category, with retail sales reaching $2.6 billion in 2023. Meat retail sales are likely to achieve a CAGR of 5.8 percent from 2023 to 2028.
Vegetables followed with sales of $2.4 billion in 2023, and a forecasted CAGR of 4.3 percent during the same period.
Packaged food
Retail sales of packaged food in the UAE are likely to rise from $6.6 billion in 2023 to $8.3 billion in 2028. Staples such as corn, rice and wheat account for the largest share of sales in this category, reaching $2.3 billion in 2023. They are likely to grow at a CAGR of 5 percent between 2023 and 2028. These were followed by dairy products, with sales of $2 billion in 2023. Dairy is likely to see a CAGR of 4 percent in the same period.
