UAE Tops Arab Region in Food and Beverage Sector Investment

Kuwait city: The Arab Investment and Export Credit Guarantee Corporation (Dhaman) has revealed that the Arab region's food and beverage sector attracted 516 foreign direct investment (FDI) projects, with a capital expenditure (Capex) of US$22 billion and the creation of 93,000 jobs between January 2003 and December 2024. According to Emirates News Agency, Dhaman's third sectoral report for 2025 highlights that five Arab countries-Egypt, Saudi Arabia, UAE, Morocco, and Qatar-attracted 421 FDI projects, making up 82 percent of the total, with a Capex of over US$17 billion, or 79 percent. These projects generated 71,000 jobs, accounting for 76 percent of the total. The report is based on four main pillars: sales until 2029, Arab foreign trade for 2024, FDI projects from 2003 to 2024, and an assessment of the sector's investment and business risks in 2024. It shows that the U.S. has been the region's top food and beverage investor over the past 22 years, with 74 projects accounting for 14 percent of the total a nd a Capex of approximately US$4 billion, or 18 percent, creating more than 14,000 jobs. The report also notes that the top 10 foreign investors in the food and beverage sector accounted for around 15 percent of FDI projects, 32 percent of Capex, and 29 percent of total new jobs. The Swiss Nestlé Company led with 14 projects, while the Ukrainian NIBULON Company ranked first in Capex and jobs, with US$2 billion and 6,000 jobs. At the level of inter-Arab investment in the sector, 12 Arab countries have invested in 108 inter-Arab projects, representing around 21 percent of total FDI projects in the sector over 22 years, implemented by 65 companies with a Capex of US$6.5 billion, or 30 percent of total FDI projects in the sector, creating nearly 28,000 jobs. The UAE topped the list with 45 percent of the total inter-Arab projects and 58 percent of Capex. Regarding risks and rewards for business and investment in food and beverages in 14 Arab countries, monitored by Fitch Ratings' risk and reward indicators, th e UAE, Saudi Arabia, Egypt, and Qatar led the Arab ranking as the most attractive countries for investment in the sector during 2024, followed by Oman, Bahrain, Algeria, Morocco, and Kuwait. The report expects food and non-alcoholic beverage sales in the Arab region (16 countries) to surge by 8.6 percent, surpassing US$430 billion by the end of 2025, making up 4.2 percent of the global total, a figure projected to exceed US$560 billion by 2029. The report notes a significant geographical concentration of food and non-alcoholic beverage sales in the Arab region, with Egypt, Saudi Arabia, Algeria, UAE, and Iraq having roughly 77 percent of total sales by the end of 2025. Regarding product distribution, meat and poultry top the list with 27 percent of total food sales in 16 Arab countries, amounting to about US$106 billion by the end of 2025, followed by cereals, pasta, and baked goods with US$63 billion, making up 16 percent. The report also indicates that the Arab region's average annual spending per capita on food and non-alcoholic beverages is likely to increase by 7.2 percent to exceed US$1,845 by the end of 2025, approaching the global figure of US$2048, and is expected to continue rising to around US$2255 by the end of 2029. It is expected that the average Arab expenditure on food and non-alcoholic beverages will hit 25.8 percent of total household expenditure in Arab countries (13 countries), exceeding the global average of 24.2 percent. Concerning Arab external trade in food and non-alcoholic beverages, the report indicates an increase of more than 15 percent to approximately US$195 billion in 2024, with the UAE, Saudi Arabia, Egypt, Iraq, and Morocco accounting for 70 percent, due to a hike in Arab food and non-alcoholic exports by 18 percent to US$56 billion and imports by 14 percent to US$139 billion during the same year. The report adds that the top 10 exporting countries to the region accounted for around 53 percent of its food and non-alcoholic beverage imports, valued at US$73.5 billion, with Br azil leading at US$16.5 billion or 12 percent of the total. Comparatively, the top 10 importing countries from the region made up 60 percent of total Arab food and non-alcoholic beverage exports, valued at US$33.5 billion, with Saudi Arabia as the region's top importer at US$6.6 billion or 12 percent of overall Arab exports.