Market Trends of middle east seafood Industry
Production in the region is anticipated to grow due to self-sufficiency initiatives implemented by governments
- Saudi Arabia is the largest fish producer in the Middle East, producing 37,40,39,539 tons of fish in 2022. Fish production in Saudi Arabia increased by 6.48% from 2016 to 2022, followed by the United Arab Emirates, with 24,02,44,330 tons in 2022. Fish production increased gradually from 2021 to 2022, mainly 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 GDP and increase the productivity of the aquaculture sector to 600 thousand tons in stages from 15 years to 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 UAE have the highest annual per capita fish consumption in the Gulf Cooperation Council (GCC), which is nearly 50% higher than the global average. Despite rapid economic growth, the UAE's local fisheries are overfished, and local fish account for only 8% of UAE 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 may 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 to expand local aquaculture production and apply the new generation of aquaculture technologies in the NEOM region of Saudi Arabia.
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Prices are rising due to the high dependency on imports
- In 2022, the United Arab Emirates had the highest fish prices compared to Saudi Arabia and the Rest of the 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. It also has the added advantage of a 2,640 km coastline. The retail price range for United Arab Emirates (UAE) fish in June 2023 was between USD 4 and USD 20 per kg or between USD 1.81 and USD 9.07 per pound (lb). The prices in the Middle East increased mainly 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 system of daily auctions for fish sales by fishermen enables buyers to strike good deals with them 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 mainly due to increasing oil prices and rising inflation. To curb this increase, the governments are launching relief measures, such as the UAE government doubling the budget to support low-income families in the country. Saudi Arabia’s King announced USD 5.33 billion for direct cash transfers and stockpiling. Fish prices may record a sustainable growth rate during the forecast period (2023-2029). Many public and private partnerships are being 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 may help with constant prices.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing production initiatives to stabilize the prices during the forecast period
