Dubai – Reexports of the Dubai food industry last year totalled 4 billion dirham, (US$ 1.1 billion), according to figures disclosed today (24) by the Dubai Chamber of Commerce and Industry in a luncheon in the emirate for 200 businessmen participating in the Gulfood, the largest fair in the sector in the Middle East, which ends on Thursday (26).
The Dubai Chamber of Commerce issued 9,700 certificates of origin for companies in the food sector in 2008. The products were shipped to 83 countries, with Iran being the main destination, with 48.8% of reexports, followed by the Gulf Cooperation Council (GCC), which includes Saudi Arabia, Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates, with 33.7%, and in third come other Arab countries outside the GCC, with 10.8%.
According to figures supplied by the Dubai Chamber of Commerce, the food and beverage industry seems to be among the best positioned to make use of the existing opportunities, both domestically and internationally. The organisation believes that the Arab countries outside the GCC present the best opportunities for food producers. Consumption standards are similar in these nations and they should be more receptive to products made in the Emirates. Furthermore, the proximity of the countries makes the market very interesting.
In his opening address, the director general of the Dubai Chamber, Hamad Buamim, said that the food industry market in the Middle East has a turnover of US$ 30 billion a year, being US$ 12 billion in the GCC alone. "Dubai is a gateway into the business world," he said.
With regard to the global crisis, Nicholas Stadtmiller, of the Executive Business and Market Development Department at the Dubai Chamber, said that the food sector is very different from others. "There is a credit crisis. We cannot give advice about that, but the food sector is different, people are going to continue eating," he said. According to him, companies have to invest more in competition without reducing product quality.
Stadtmiller also said that in Dubai there are many advantages to investment, mainly due to the good infrastructure and proximity with other large markets. Apart from that, the emirate is responsible for 50% of packages of imported products, due to the large polyethylene and aluminium industry in the country, "which makes it advantageous for companies to export here," he added.
He also mentioned the opportunities for establishment of joint ventures with companies in the GCC and mentioned as examples the establishment of joint ventures with companies in the GCC, giving as an example the partnership between Saudi dairy Almarai, which also produces juice, and PepsiCo, which together established the International Dairy and Juice.
The luncheon offered by the Dubai Chamber included representatives of 31 countries. From Brazil, those participating were the secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby, the marketing manager at the organisation, Andréa Monteiro, and the coordinator of the Foreign Trade Department, Francisca Barros. Also present was the agribusiness international promotion director at the Ministry of Agriculture, Eduardo Sampaio Marques, and the policy consultant at the Ministry, Danilo Gennari.
*Translated by Mark Ament
