SEMINAR FOOD EXPORT REGULATIONS TO SAUDI ARABIA AND THE UAE Opportunities for Belgian F&B companies in Saudi Arabia Mrs Ebtisam AHMED Mr Denis LAHAYE
We are close partners Trade = 4 billion in 2017 Saudi Arabia = 32 th Belgian client Imports = 1.7bn in 2017 Saudi Arabia = 27 th Belgian supplier Export = 2.6bn in 2017 Saudi Arabia food import from Belgium = 115,164 tonnes = 117mn in 2017
Saudi Arabian Food & Beverages Market The 6 th destination for EU Food Products
Why Saudi Arabia? Biggest market in the GCC Population = 33mn by 2021 Per capita = 48,608.60 Food demand = still growing Food consumption = 59% share of the GCC market Imported food = 80% Ready to absorb 5% VAT
Future Trends Increased number of retail outlets Private label 100% foreign ownership Rising health-consciousness Foodservice sales = 7.7 billion Food with entertainment = high demand 4 ready to eat meals Catering services = pilgrims = market larger share
Need our help to get into contact with Saudi importers? Flanders Investment & Trade / Brussels Invest & Export Embassy of Belgium - Riyadh - Saudi-Arabia E: riyadh@fitagency.com T: +966 11 480 1760 AWEX Riyadh Embassy of Belgium Riyadh - Saudi E: riyadh@awex-wallonia.com T: +966 11 480 8614
SEMINAR FOOD EXPORT REGULATIONS TO SAUDI ARABIA AND THE UAE Opportunities for Belgian food companies in the UAE Mrs Evelien STAELENS
Market overview One of the main food consumption centres in the GCC Large consumer base Re-export hub Country-wise Composition of Net Food Imports Volume (2014) Source: Alpen Capital, Industry Report 2017
Current BE F&B exports to the UAE Some figures 2017: 80m EUR (-4% compared to 2016) What do we export? Confectionary Frozen food products (e.g. French fries) Drinks What about fresh products? Fresh fruit: 450 tons Fresh vegetables: 50 tons
Growth drivers
Growth drivers Population growth 3% growth rate 2016-2021 11.4 mln Tourist arrivals: 25 mln (2020) Diverse mix of people Rising per capita income 4,1% growth rate 2016-2021 Health awareness Sales channels Increasing penetration of organized retail formats Emergence of new food service channels
Food retail sales Growing expected food retail sales value (AED Billion) 40 Fresh Food Packaged food 35 30 25 20 15 10 5 Past Expected Future 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Fresh food in the United Arab Emirates, June 2017, Euromonitor International. Data from 2017 and onwards based on estimates/forecasts from Euromonitor International. Actual data may be different from estimates/forecasts
Niche markets
Muslim food market expenditure 2,000 1,600 Forecast for global Muslim food market expenditure (USD billion) 1,585 1,200 1,128 800 400 0 2014 2020 Source: State of Global Islamic Economy Report, 2015/16, prepared by Thomson Reuters in collaboration with DinarStandard. Actual data may be different from estimates/forecasts
Halal meat 12 Growing expected halal meat retail sales value (AED billion) 10 8 6 1.2 2.6 1.3 2.8 1.4 3.0 1.5 3.2 1.6 3.4 4 2 3.9 4.2 4.5 4.9 5.2 0 2017 2018 2019 2020 2021 Poultry Lamb, Mutton and Goat Beef and calf meat Source: Meat in the United Arab Emirates, June, 2017, Euromonitor International. Data from 2017 and onwards is based on estimates/forecasts from Euromonitor International. Actual data may be different from estimates/forecasts
Fresh food products sales growth (2017-2021) 8 7.4 6 6.3 5.9 5.7 5.5 CAGR, % 4 2 4.0 4.1 0 Meat Vegetables Nuts Fresh Food average Pulses Fish and Sea food Fruit Source: Fresh Food in the United Arab Emirates, June 2017, Euromonitor International. Data from 2017 and onwards based on Euromonitor estimates/forecasts. Actual data may be different from estimates/forecasts
Fruit & vegetables sales growth (2017-2021) 8.8 8.7 8.0 7.9 6.3 6.3 CAGR, % Bananas Canned fruit, Cabbages fruit based products Potatoes Citrus fruits Leaf and stem vegetables Source: Business Monitor International (BMI) 2017. Data based on BMI estimates and forecasts. Actual data may be different from estimates/forecasts
Packaged food sales growth (2017-2021) 12 10 10.6 8 CAGR, % 6 4 2 6.3 6.0 5.8 5.7 5.6 5.3 0 Savoury sacks Sauces, Dressings and Condiments Spreads Sweet Biscuits, Snack Bars/Fruit Snacks Processed Baby Food Meat and Seafood Packaged food average Source: Euromonitor International, 2017. Data based on Euromonitor International estimates/forecasts. Actual data may be different from estimates/forecasts
Need any help? Flanders Investment & Trade Mr Kris PUT E: dubai@fitagency.com T: +971 4 331 22 00 AWEX / Brussels Invest & Export Mrs Anja HEINEN E: dubai@awex-wallonia.com T: +971 4 332 31 23