The fruit market in UAE reached XXX thousand metric tons in 2017 and is expected to reach XXX thousand metric tons by 2022, and the country’s vegetable market reached XXX thousand metric tons in 2017 and is expected to reach XXX thousand metric tons by 2022. For the consumers in the GCC countries, the largest part of their expenditure is currently in food products. The total consumer spending on food in all the Middle East countries, combined, is projected to reach 108 billion by 2022. Among all the GCC countries, UAE spends the most on food products, after Saudi Arabia. The increase in consumption of fruits and vegetables in the country is attributed to the growing expatriate population and economic prosperity. Among the GCC countries, UAE has the highest expatiate population of about 85.5%.
UAE is the second highest consumer of food in GCC. The local demand is mostly met by imports. To limit UAEs reliance on import, the government started efforts to improve the domestic production of fruits and vegetables. The UAE government provides subsidies for every aspect of farming to bring in more number of investors. To further encourage farmers, the government announced an agricultural fund started by the Abu Dhabi Farmers Service Centre (ADFSC). This fund will support the farmers by spending nearly AED 20 million per year to support and finance modern farming techniques. The fund mainly focuses on Hydroponic programs and will cover up to 50% of the total cost of production, for every farmer.
Due to the government’s efforts to increase domestic production, the farmers produced over 38,800 tons of fruits and vegetables during the 2014-2015 farming season. It estimated that the value of domestically produced fruits and vegetables will increase by 25% in the future. The demand for fruits and vegetables has been growing year after year, so as the need for foreign investors and local farmers.
Dubai Municipality had recently signed a MoU with Plantfair. The main goal of the MoU is to consolidate Dubai’s position as a regional hub for trading fresh fruits and vegetables. This is possible by turning UAE into a global business center for fruits and vegetable sector and by showing the investment benefits and business opportunities created by the government for foreign investors and local producers. The UAE government has recently reinforced import and export trade relations with various countries.
The MoU encourages and supports building relationship, productive partnerships and better transfer of international techniques and practices in the field of production and trade of fruits and vegetables. UAE has had several international projects to aid in the transfer of techniques and practices in the field of production and trade of fruits and vegetables.
Market Segmentation - By Fresh Fruits and Vegetables
The agricultural market in UAE is segmented by type of products into fruits and vegetables. These are sub segmented into onions, potatoes, tomatoes, garlic, cauliflower, cucumber, cabbage, beans, eggplant, lemons, apples, bananas, oranges, grapes, strawberry, watermelon, grapefruit, dates, and olives.
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