The UAE has emerged as the Arab region’s leading hub for food and beverage investment, driving the majority of inter-Arab capital flows and ranking among the most attractive markets.
December 2025: The Arab region’s food and beverage sector attracted 516 foreign direct investment (FDI) projects valued at USD 22 billion between January 2003 and December 2024, generating approximately 93,000 jobs, according to the Arab Investment & Export Credit Guarantee Corporation (Dhaman).
Dhaman’s third sectoral report for 2025, released at its headquarters, showed that five Arab countries, Egypt, Saudi Arabia, the UAE, Morocco, and Qatar, accounted for 421 FDI projects, representing 82 per cent of the total. These projects involved capital expenditures exceeding USD 17 billion, or 79 per cent of overall investment, and created around 71,000 jobs, equal to 76 per cent of total employment generated in the sector.
Dhaman’s latest report highlights the UAE’s leading role in food and beverage investment across the Arab region, strong growth in FDI and trade, rising consumer spending, and a positive sales outlook through 2029.
The report is structured around four core pillars: projected sales through 2029, Arab foreign trade in 2024, FDI projects from 2003 to 2024, and an assessment of investment and business risks in 2024. It identified the United States as the region’s largest foreign investor in the food and beverage sector over the past 22 years, with 74 projects(14 per cent of the total), capital expenditure of nearly USD 4 billion (18 per cent), and the creation of more than 14,000 jobs.
According to the findings, the top 10 foreign investors accounted for around 15 per cent of total FDI projects, 32 per cent of capital expenditure, and 29 per cent of new jobs. Switzerland’s Nestlé led in project count with 14 investments, while Ukraine’s NIBULON ranked first in terms of capital expenditure and employment, with USD 2 billion invested and approximately 6,000 jobs created.
In terms of inter-Arab investment, 12 Arab countries undertook 108 projects in the sector over the 22 years, representing about 21 per cent of total FDI projects. These investments were implemented by 65 companies, with capital expenditure of USD 6.5 billion, around 30 per cent of total FDI value, and generated nearly 28,000 jobs. The UAE emerged as the leading inter-Arab investor, accounting for 45 per cent of projects and 58 per cent of total capital expenditure.
Assessing risks and returns using Fitch Ratings’ risk-and-reward indicators across 14 Arab countries, the report ranked the UAE, Saudi Arabia, Egypt, and Qatar as the most attractive destinations for food and beverage investment in 2024. Oman, Bahrain, Algeria, Morocco, and Kuwait followed.
Looking ahead, food and non-alcoholic beverage sales in 16 Arab countries are projected to rise by 8.6 per cent to exceed USD 430 billion by the end of 2025, representing 4.2 per cent of global sales. This figure is expected to surpass USD 560 billion by 2029. Sales remain geographically concentrated, with Egypt, Saudi Arabia, Algeria, the UAE, and Iraq together accounting for around 77 per cent of total regional sales by the end of 2025.
By product category, meat and poultry lead the market, accounting for 27 per cent of total food sales, about USD 106 billion, by the end of 2025. Cereals, pasta, and baked goods follow with sales of approximately USD 63 billion, or 16 per cent of the total.
The report also forecasts that average annual per capita spending on food and non-alcoholic beverages in the Arab region will increase by 7.2 per cent to exceed USD 1,845 by the end of 2025, approaching the global average of USD 2,048. Spending is expected to rise further to around USD 2,255 by 2029. Food and non-alcoholic beverages are projected to account for 25.8 per cent of total household expenditure across 13 Arab countries, exceeding the global average of 24.2 per cent.
On the trade front, Arab external trade in food and non-alcoholic beverages grew by more than 15 per cent to nearly USD 195 billion in 2024. The UAE, Saudi Arabia, Egypt, Iraq, and Morocco together accounted for about 70 per cent of this total, driven by an 18 per cent increase in exports to USD 56 billion and a 14 per cent rise in imports to USD 139 billion.
The top 10 exporting countries to the Arab region supplied around 53 per cent of its food and non-alcoholic beverage imports, valued at USD 73.5 billion, with Brazil leading at USD 16.5 billion, or 12 per cent of the total. Conversely, the top 10 importing countries in the region accounted for 60 per cent of Arab food and non-alcoholic beverage exports, valued at USD 33.5 billion. Saudi Arabia ranked as the region’s largest importer, with purchases of USD 6.6 billion, representing 12 per cent of total Arab exports. (ANI/WAM)
Have a news or topic to share with industry? Write to us editorial@pfionline.com
