Dubai’s F&B sector attracted $577m in new foreign direct investment

Dubai International Chamber, one of the three chambers operating under the umbrella of Dubai Chambers, has successfully hosted a business event on the sidelines of Gulfood, the world’s largest conference and exhibition dedicated to the food and beverage (F&B) sector. The five-day event is taking place from Feb.19 – 23, at Dubai World Trade Centre (DWTC).

Aimed at equipping participants with essential information on the latest trends shaping Dubai’s F&B landscape, the event attracted the attendance of 400 delegates from local and international businesses. The session highlighted the promising opportunities Dubai offers to companies operating in the sector, which are supported by the emirate’s advanced logistics capabilities and favourable business environment.

According to data from Euromonitor, the UAE’s F&B sector generated $16.4 billion in retail sales, including both fresh food and packaged food. Consumer spending on food via e-commerce platforms reached a value of $1.1 billion in 2023 and is expected to increase at a Compound Annual Growth Rate (CAGR) of 9.5 per cent between 2023 and 2027.

Dubai’s F&B sector attracted new foreign direct investment worth $577 million from 2019 to 2023, according to data from FDI Intelligence. These investments were made by 48 international companies from 23 countries.

Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, commented: “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 it keeps pace with the global drive for sustainability.”

He added: “Organising Gulfood – the world’s largest F&B event – in Dubai creates an ideal platform for producers, suppliers, and traders from across the globe to connect and build cross-border partnerships. Dubai International Chamber is committed to accelerating the growth of the industry by supporting the expansion of Dubai-based F&B companies into promising global markets, as well as attracting foreign investors to leverage the rewarding opportunities available in the emirate in this vital sector.”

The UAE accounted for the largest share of venture capital investments in the Middle East’s restaurant tech sector from 2018 to 2023. The country attracted investments exceeding $1 billion in this area according to data from PitchBook. The UAE also ranked second among Middle Eastern countries in terms of the value of venture capital investments in the agritech sector during the same period, attracting investments worth $335.4 million.

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, achieving a CAGR of 4.7 per cent.