In 2006, the United
Arab Emirates’ (UAE) population was estimated at 4.5 million with one of the
world’s highest per capita GDPs, estimated at $US 49,500, with $US 3.5-4.0
billion annual food imports, an estimated 85-90 percent of UAE food needs,
mainly from the United States, United Kingdom, Germany and France. Food
processing attracted the highest level of investment in 2005, which accounted
for nearly $US 9 billion of total investment. Between 2002 and 2005, the number
of food and beverage processing facilities grew from 225 to 300 establishments.
Studies indicate that the total spending by tourists in the UAE will reach US$
7.6 billion in 2009, Dubai alone is targeting 10 million tourists in 2010.
Saudi Arabia invested US$ 325 million in the production of processed food, such
as potato crisps, candy and biscuits in 2005, out of a total of US$ 356 million
of investment in that industry in the GCC. On another note, the new Prince Abdulaziz
Mousaed Economic City to be developed near Hail and located on the
crossroads of many of the Middle East's trade and transport routes will be
pivotal to the Kingdom's agriculture strategy. The planned US$ 8 billion
development will create the Gulf's largest agriculture and processing hub with
a dry port near a new international airport. In Bahrain, the creation of an
encouraging atmosphere for foreign investments and the increasingly growing
demand encouraged foreign companies to enlarge their range of products in the
Bahraini food market and increase their investments. For example, Knorr
announced in 2007 it will launch 23 new products in the local Gulf Co-operation
Council (GCC) market, including Bahrain. On another note, Kraft
Food announced that it will construct a US$ 40 Million cheese and powdered
beverages manufacturing plant in the Bahrain International Investment Park to
meet the demand for instant products.
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