BMI's Executive Summary

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As the UAE's food and drink sector continues to experience bullish growth, more producers are opening production facilities in the country. The government has worked hard to make the country attractive to foreign and local investors alike, and the UAE's 12 free trade zones allow 100% foreign ownership of an enterprise, in addition to import and export tax exemptions. As a result, the market is highly competitive, and has attracted many foreign operators. A recent example was this quarter when Taher Al Taheri Trading Enterprises, owners of the Rania juice brand, announced that it will set up a AED50mn (US$13.6mn) production facility covering 230,000 sq ft in the Dubai Industrial City. Construction will take place in two phases, with construction of the first phase starting sometime in H108. The first phase should take 10 months to complete, and will produce around 20mn cans annually. Once the first phase is complete, the second will begin, and will take around six months, doubling the production capacity to 40mn cans annually. The company expects the new facility in Dubai will allow it to enter new markets, as the UAE is a major stepping stone for companies looking to expand their business.

In December 2007, Khazan, one of the Gulf region's leading meat producers, announced that it will invest AED20mn (US$16mn) in a new meat factory in the region. The Kuwaiti-owned company has been offering an extensive range of halal meat products for over 40 years, and is now planning a new phase of regional and global expansion. Khazan significantly increased its production output with the establishment of its second meat factory in Sharjah in the UAE, and though there is no guarantee that the company will chose the UAE as the site for the new factory, given the country's excellent transport connection and reputation as a regional hub, it is certainly a likely candidate. When complete, the new factory will be around 77,500ft² (6,968m2) and provide approximately 100 jobs.

Growth in the food and drink sector as a whole has been driven over the last few years, by ample oilderived liquidity, which has boosted government and consumer spending power and investment, and enabled the government to provide a very favourable tax environment for businesses operating in the emirates. We see all of these factors continuing in the near future, as the government is not going to risk political instability by cutting spending, particularly when it can afford not to. As oil prices are set to stay high, economically the overall picture is very positive. Ongoing financial reforms will boost the UAE's attractiveness to investors, both in FDI and portfolio terms. Such a positive macroeconomic outlook will continue to underpin the food and drink sector's impressive growth, particularly as it helps draw in more expatriate labour with high earning potential.

Contents

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Chapter 1 – Business Environment

Table: Middle East Business Environment Rankings

SWOT Analysis

UAE Food, Drink & Tobacco Industry SWOT

UAE Political SWOT

UAE Economic SWOT

UAE Business Environment SWOT

Macroeconomic Outlook

Table: Economic Indicators

Chapter 2 – Retail

Regional Overview – Discount Retailing

Table: Discount Store Sales In US$bn

Table: Key Players In Discount Retail

Industry Forecast Scenario

Table: UAE MGR Sector Sales Value By Format - Historical Data & Forecasts

Industry Developments

Company Developments

Market Overview – UAE

Table: UAE MGR Sector Number Of Outlets – Historical Data

Table: UAE MGR Sector Sales Value By Format – Historical Data

Chapter 3 – Food & Drink

Food & Drink: Regional Overview – Middle East

Table: Milk Production By Volume (tonnes)

Table: Key Players

Industry Forecast Scenario

Industry Developments

Company Developments

Market Overview – UAE

Table: UAE Agricultural Production – Historical Data

Chapter 4 – Tobacco

Industry Developments

Market Overview

Chapter 5 – Competitive Landscape

Key Players

Table: Key Players In The UAE MGR Market

Table: Key Players In The UAE’s Food & Drink Sector

Regional Company Case Studies

Lulu Company Profile

Table: Lulu Outlets

Ülker Company Profile

Table: Ülker

Table: Ülker Regional Presence

Regional Food & Drink Case Study – Aujan Industries

Table: Aujan Industries

Table; Aujan Industries Production Facilities – Saudi Arabia

Table: Aujan Shareholders

Mecca-Cola’s Performance In The Middle East

Table: Mecca-Cola Global Presence

Table: Mecca-Cola – The Figures

Company Analysis

Unilever Arabia

EMKE Group – LuLu Hypermarket

Al Maya

Dubai Refreshments Co (DRC)

Abu Dhabi National Foodstuff Company (Foodco)

Al Ain Dairy

Masafi

BMI Forecast Modelling62

How We Generate Our Industry Forecasts

Retail Industry

Sources

Competitive Landscape for Middle East & Africa Food & Drink Reports: Sample of  
Companies Ranked

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At-a-glance perspective on the strengths, weaknesses, opportunities and threats facing each market’s food & drink industry. BMI also provides similar economic and business environment studies. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) covering all leading food and drink companies operating in each market, including competitive intelligence on geographic presence and competitive positioning of multinationals against local companies; leading products, services and brands; sales and local market share; foreign direct investment, projects, partners and acquisition strategy. Illustration of the industry via rankings tables comparing revenues, number of outlets, number of employees and registration dates. BMI analyses each company’s performance, market position, strategy and investment potential.

Network of Middle Eastern & African Food Sources

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BMI's Middle Eastern & African Food Reports are based on an extensive network of multilateral organisations, government departments, food industry associations, chambers of commerce and company reports. Information sources include: