Market Trends of gcc seafood Industry
Self-sufficiency initiatives implemented by governments are anticipated to grow with production
- Saudi Arabia is the largest fish producer in the Middle East. It produced 37,40,39,539 tons of fish in 2022. Fish production in Saudi Arabia increased by 6.48% from 2016 to 2022. The United Arab Emirates followed Saudi Arabia in production with 24,02,44,330 tons in 2022. Fish production increased gradually from 2021 to 2022 due to the government's focus on fisheries. Governments are boosting opportunities to involve the private sector in fisheries. A unique program, the National Fisheries Development Program, aims to enhance the fisheries sector's contribution to the GDP and increase the productivity of the aquaculture sector to 600,000 tons in stages in 15 years till 2030. Regional centers for fishing academies have also been established to support fisheries. Over USD 80 million was invested in the research activities of fish to enhance production capabilities.
- Countries like the United Arab Emirates have the highest annual per capita fish consumption in the Gulf Cooperation Council (GCC), 50% higher than the global average. Despite rapid economic growth, the country’s local fisheries are overfished, and local fish account for only 8% of the country’s consumption.
- Fish production is projected to increase sustainably from 2023 to 2029. Support from the private sector and identification of fisheries for enhanced development, new partnerships with stakeholders and subsidies for fisheries, and the development of 3,000 fisheries with resource persons are anticipated to help increase the production and productivity of fisheries from 2022. For instance, in 2021, NEOM Company and Tabuk Fish Company signed a memorandum of understanding aimed at expanding local aquaculture production and applying the new generation of aquaculture technologies in the NEOM region of Saudi Arabia.
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High dependency on imports raises prices
- In 2022, the United Arab Emirates had the highest fish prices compared to Saudi Arabia and the Rest of Middle East, with the price difference being around USD 4,022 per ton. The difference was mainly due to more subsidies on fuel, infrastructure, and other associated costs by the Saudi Arabian government. The country has the added advantage of a 2,640 km coastline. The retail price range for fish in the United Arab Emirates in June 2023 was between USD 4 and USD 20 per kilogram or between USD 1.81 and USD 9.07 per pound (lb).
- The prices in the Middle East increased due to high demand, which exceeded the supply. The local fish supply decreased, and local production was hampered due to unfavorable climatic conditions in 2020 and 2021. The daily auctions for fish sales by fishermen enable buyers to strike good deals and resell their goods at higher prices, thus directly increasing retail consumer fish prices.
- From 2021 to 2022, fish prices increased by around 0.96%, from USD 3,043 to USD 3,072. The rising fish prices are due to increasing oil prices and rising inflation. To curb this increase, the governments are launching relief measures. For instance, in 2022, the UAE government doubled the budget to support low-income families in the country. Another instance is when the king of Saudi Arabia announced USD 5.33 billion for direct cash transfers and stockpiling in 2022.
- Fish prices are expected to record a sustainable growth rate during the forecast period (2023-2029). Several public and private partnerships are undertaken to enhance the production of fisheries in the Middle East. Saudi Arabia spent USD 80 million on research and planning to develop fish cultivation inland with master trainers to increase production, which is anticipated to help with constant prices.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing production initiatives to stabilize prices during the forecast period
