For medium-sized food and drink exporters looking to expand into the Middle East, this market presents both exciting opportunities and notable, but not insurmountable, challenges.
As a region undergoing rapid transformation in consumer behaviour and regulation, it’s important for exporters to understand the market to achieve long-term success.
Here, we will explore key opportunities and threats food and drink exporters must consider when targeting the Middle East.
This article will be specifically focused on the food and drink sector. We have a separate article highlighting opportunities for all sectors here, much of which is also applicable to food and drink.
Opportunities exporting food and drink to the Middle East
Growing demand for snack, healthy and premium products
Consumers in the Middle East, particularly in the Gulf Cooperation Council (GCC) countries, are increasingly adopting health-conscious diets and seeking premium-quality products. There is rising interest in organic, gluten-free, vegan, and functional foods that align with healthier lifestyles.
High disposable incomes and increased awareness of the benefits of these products are driving the demand for specialised food and drink categories.
Better yet, UK brands enjoy a reputation of premium quality in the region. With a wealthy local and expatriate population who have the disposable income to pay for them.
The snacking category in particular is enjoying huge growth in the UAE market. Data released in 2023 showed that in the previous year, the market had grown 15.9%, against a backdrop of significant food inflation.
For exporters, this shift presents an excellent opportunity to introduce niche products that may have been successful in Western markets, such as plant-based alternatives, soft drinks or free-from products.
Emphasising the unique health value proposition, like you would when advertising locally, alongside British credentials can help maximise the chances of success.
Government initiatives promoting food security
Food security is a critical priority for many Middle Eastern countries, particularly in dry regions with limited agricultural production capabilities. Governments are investing in a range areas, including import diversification to secure a reliable food supply. It’s estimated the UAE for example, imports 90% of its food, presenting a huge opportunity.
The UAE along with, Saudi Arabia, and Qatar are just some of the GCC nations that have launched ambitious strategies to enhance food imports and improve security.
“Our analysis indicates that, with a high risk as a result of the interruption of food imports, it is constantly investing in emergency stock, establishing a variety of trade routes and partners, investing in increasing local agriculture -especially improving water management- can enhance GCC countries food security.”
For exporters, this focus on food security translates into increased demand for high-quality and reliable food imports.
Middle Eastern governments are actively seeking partnerships with international suppliers who can offer consistent, safe, and traceable food products from farm to fork. Particularly in countries which they enjoy a stable political relationship, such as the UK.
Better yet, the region is well served by Jebel Ali Port, which is in the world’s top 10 for container throughput, boasting regular trade links with Europe.
Exporters with strong food safety and compliance standards, with good logistics partners which can manage long-term supply chain commitments are in position to benefit from securing significant contracts in these markets.
Expanding retail market
The rapid expansion of retail in the Middle East is another promising opportunity. Modern supermarkets, hypermarkets, and online grocery platforms are growing quickly, especially in countries like Saudi Arabia and the UAE.
The retail market across the Middle East and North Africa is forecasted to grow at a CAGR of 7.12% over the next 8 years. Very few retail markets across the world are forecasted to enjoy such aggressive growth over the coming decade.
Forecasted size of the Middle East and North Africa retail market (£trn)
Source: Fortune Business Insights
Gulfood Exhibition
The Middle East boasts one of the world’s biggest food exhibitions every year, presenting the ideal opportunity for food and drink brands. There are a number of key aspects which make Gulfood such a compelling opportunity for food and drink brands looking to export to the Middle East.
- Showcase products: With industry professionals, large regional supermarkets and distributors among the 100,000 people in attendance, it’s the perfect place to showcase new products.
- Brand exposure: It gets brands right to the heart of the Middle Eastern market and provides the opportunity to build trust and reputation.
- Market intelligence: Conversations at ground level allow businesses to explore and understand the market trends of the region.
By participating in Gulfood, food and drink brands not only benefit from market access, but also from the long-term opportunities of being seen as established players in the Middle Eastern food sector.
“With an unmatched legacy and undeniable influence, it’s the ultimate platform where market leaders are made, trade partnerships ignite and economies thrive.”
Threats when exporting food and drink to the Middle East
Like with any international expansion, moving into the Middle Eastern market is not without risks and threats to food and drink exporters. While these shouldn’t necessarily put you off, being aware of these at an early stage is the best way to ensure these risks are minimised. Some of the more pertinent threats are as follows:
- Halal and labelling requirements
One of the biggest hurdles for exporters entering the Middle Eastern market is the requirement to comply with strict halal certification. Halal standards differ between countries, and failing to meet these specifications can lead to shipment rejections. Labelling requirements also dictate that some nutritional information in Arabic will be required, depending on the product.
- Political instability and trade restrictions
While several Middle Eastern countries have relatively stable political environments, the region as a whole is prone to geopolitical instability. Exporters may face sudden trade embargoes, disruptions due to regional conflicts, or changing political alliances that affect market access. The Red Sea diversion of 2024 is a great example of this, impacting sea freight trade between the Europe and the Middle East.
- Alcoholic drink restrictions
Alcohol exporting opportunities to the Middle East are extremely limited, with the substance illegal in most circumstances. The UAE has relaxed laws around drinking alcohol in recent years, but it remains an expensive processes, with high import tax rates.
Exporting food and drink products to the Middle East presents a host of lucrative opportunities, especially for medium-sized businesses looking to tap into a wealthy and growing consumer base. From rising demand for premium, health-focused products to government-led food security initiatives, exporters can capitalise on the region’s appetite for innovation.
Success in this market will depend on a company’s ability to adapt to local regulations, build trusted partnerships, and offer products that meet the evolving needs of Middle Eastern consumers.
A key relationship in a successful exporting journey, is with that of your freight forwarder.
With experts across 679 trade lanes and an office in Dubai providing vital local market knowledge, WTA are the ideal partner for exporting to the Middle East.
