Findings of a new study by the Economist Intelligence Unit show that as food consumption increases, total GCC food imports will reach $53.1 billion by 2020, an increase of 105 per cent from 2010 ($25.8 billion). Rising at a rate of 4.6 per cent annually from 2011-2015 in a region low on agricultural land and natural water sources, and forced to import 90 per cent of its food products, food consumption in the GCC will reach 51.5 million tonnes per year during this period.

According to SIAL Middle East, which is part of the world’s largest network of professional food events, the value of food imports by GCC countries will more than double over the next decade to satisfy a growing regional population with more money to spend as the process of urbanization continues.

SIAL is scheduled in Abu Dhabi between 21-23 November 2011 at Abu Dhabi National Exhibition Center (ADNEC).

Organizers said More than 12,000 trade visitors from 80 countries are expected to attend SIAL Middle East 2011. The trade show will host an exhibitor line-up of more than 500 food and equipment manufacturers and suppliers.

There will also be 16 national pavilions from Turkey, Argentina, Korea, China, Taiwan, Iran, France, Italy, Poland, Vietnam, Thailand, UK, USA, Pakistan, Tunisia and the UAE. 70 per cent of these companies will be exhibiting for the first time in the region.

Underlining huge opportunities for food and equipment manufacturers and suppliers, the latest estimates have been released by the Economist Intelligence Unit ahead of SIAL Middle East 2011, the region’s professional business platform for the food, drink and hospitality industry.

Taking place from November 21-23 at the Abu Dhabi National Exhibition Centre (ADNEC) and held in strategic partnership with Abu Dhabi Food Control Authority, SIAL Middle East 2011 is part of SIAL Group, the world’s largest network of professional B2B food exhibitions which include SIAL Paris, SIAL China, SIAL Canada and SIAL Brazil.

Chairman of the Higher Organizing Committee for SIAL Middle East and the official spokesperson of Abu Dhabi Food Control Authority (ADFCA) Mohamed Jalal al Reyaysa, says that population growth, increasing income per capita, and rapid urbanization are the main demand factors driving food imports into the GCC region.

"GCC countries currently import 90 per cent of all food products," said Al Reyaysa. "With its population growing at three times the global average, the GCC region is increasingly depending on imports to meet food requirements.

Food consumption in Oman, which meets around 80 per cent of its food requirement through imports, is projected to grow by 5.3 per cent from 2.6 million tonnes in 2011 to 3.2 million tonnes in 2015.

"Adding to the challenge is the fact that GCC countries are some of the most water scarce in the world, with only 1.4 per cent of land suitable for agriculture. Food security therefore is of prime concern and major challenge for the regional governments." The value of food imports by the Sultanate is projected to surge 128 per cent to $4.8 billion by 2020. Food imports to Saudi Arabia, which currently accounts for 64.9 per cent of total GCC food consumption, will reach $35.2 billion by 2020, a rise of 105 per cent from 2010 ($16.8 billion).

UAE food imports will grow to $8.4 billion, a 133 per cent increase from 2010 ($3.6 billion). Kuwait’s food imports will reach $0.3 billion (+130 per cent), Qatar’s $3.3 billion (+153 per cent), and Bahrain’s $1.6 billion (+128 per cent).

"Meeting the increasing demand for food is both a challenge for the GCC governments and an opportunity for private sector players to expand within the market," Al Reyaysa added.

"The SIAL Middle East Exhibition provides the all important stage to meet the challenges and capitalise on the opportunities that lay ahead."
 

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