UAE leads $22 billion in food and beverage investment as sector creates 93,000 jobs
In its third report of the 2025 sector of the Arab food and beverage sector, released from its headquarters in Kuwait, the Arab Investment and Export Credit Guarantee Corporation (Dhaman) said that the UAE accounts for 45 percent of all inter-Arab food and beverage projects and 58 percent of total inter-Arab spending, underscoring its position as an investment region.
Dhaman’s analysis shows that between January 2003 and December 2024, 12 Arab countries invested in 108 food and beverage projects among the Arabs, representing about 21 percent of the total FDI projects in this sector.
UAE leads Arab F&B investment
These investments were initiated by 65 companies, with a combined capital expenditure of $6.5bn – 30 per cent of total FDI Capex – and created nearly 28,000 jobs.
The UAE led all Arab countries by a wide margin, reflecting its role as a manufacturing hub, cargo gateway and regional export platform for food and beverage producers.
Across the region, Egypt, Saudi Arabia, UAE, Morocco and Qatar attracted 421 FDI projects, accounting for 82 percent of the total.
These projects generated more than $17bn in Capex, or 79 per cent of the total, and created 71,000 jobs, equivalent to 76 per cent of all jobs created by the sector during the period.
Global investment
The report is based on four pillars:
- Auctions until 2029
- Arab foreign trade for 2024
- FDI projects between 2003 and 2024
- Assessment of investment and business risks in 2024
It identified the United States as the largest foreign investor in the Arab food and beverage sector over the past 22 years.
US companies invested in 74 projects, representing 14 percent of total FDI projects, with a Capex of approximately $4bn, or 18 percent of the total, and created more than 14,000 jobs.
The top 10 foreign investors in the sector account for 15 percent of all projects, 32 percent of total Capex and 29 percent of newly created jobs. The Swiss company Nestlé led the way with 14 projects, while the Ukrainian company NIBULON ranked first in terms of investment and employment, with $2 billion in Capex and 6,000 jobs.
UAE is among the top investment destinations
Using Fitch Ratings’ risk and reward indicators covering 14 Arab countries, Dhaman ranked the UAE, Saudi Arabia, Egypt and Qatar as the most attractive markets for food and beverage investment in 2024. They were followed by Oman, Bahrain, Algeria, Morocco and Kuwait.
Sales of food and non-alcoholic beverages in the 16 Arab countries are expected to increase by 8.6 percent to exceed $430 billion by the end of 2025, accounting for 4.2 percent of global sales. The total is predicted to exceed $560bn by 2029.
Sales remain highly concentrated, with Egypt, Saudi Arabia, Algeria, the UAE and Iraq together accounting for nearly 77 percent of the region’s total sales by the end of 2025.
By product category, meat and poultry are expected to lead with 27 percent of total food sales, valued at approximately $106bn, followed by cereals, pasta and baked goods with sales of $63bn, representing 16 percent.
Average annual per capita spending on food and non-alcoholic beverages in the Arab region is forecast to increase by 7.2 percent to over $1,845 by the end of 2025, close to the global average of $2,048, before rising to around $2,255 by the end of 2029.
The average household expenditure on food and non-alcoholic beverages in the 13 Arab countries is also expected to reach 25.8 percent of total household expenditure, exceeding the global average of 24.2 percent.
Trade expansion
Arab foreign trade in food and non-alcoholic beverages increased by more than 15 percent to nearly $195bn by 2024.
The UAE, Saudi Arabia, Egypt, Iraq and Morocco accounted for 70 per cent of this figure, driven by an 18 per cent increase in exports to $56bn and a 14 per cent increase in imports to $139bn.
The top 10 exporting countries in the Arab region accounted for about 53 percent of imports of alcoholic and non-alcoholic beverages, worth $73.5 billion, with Brazil leading at $16.5bn, or 12 percent.
Meanwhile, the top ten importing countries from the region account for 60 per cent of Arab food and non-alcoholic beverages, worth $33.5bn, with Saudi Arabia ranking first as the region’s top consumer at $6.6bn, or 12 per cent.
