kizad food processing cluster Serving the Middle East

Middle East Food Sector

$ 1 Trillion Opportunity

GCC Region –

Global Hub for Food Trading

Key Facts & Trends Key Facts & Trends

MENA Food Sales (billion USD)**

GCC Food Consumption (Volume)***

Middle East and North Africa (MENA) region’s food products market could exceed $1 trillion by 2030*. A growing population, economic diversification efforts and increasing disposable income contribute to the long term future prospects of the food sector in the MENA region.

The GCC region plays a major role in global food industry. GCC is a major hub for food re-export and the value of its food retail sector is estimated to be $106 billion*.

$1 $319 $106 6.1% 7.4% 59.2 3.4%

TRILLION BILLIONMILLION

TONS BILLION

projected food products market in the MENA region by 2030**

estimated market size by 2021**

estimated compound average growth rate of food sector in MENA between 2015 - 2021**

estimated annual retail food sales in GCC*

Cereals, dairy products, fruits & vegetables and meat products are the major food categories consumed in the region

projected growth rate (CAGR) of food sales in GCC during 2015 - 2021**

expected GCC food consumption by 2021***

estimated CAGR of total packaged foods market in the GCC during 2014-2019***

261

2015 2016 2017F 2018F 2019F 2020F 2021F

2016E

2016E 2016E

2016E 2016E

2016E

22.4 Million MT

7.55 Million MT 2.9 Million MT

5.5 Million MT 6 Million MT

3.7 Million MT

27.5 Million MT

9.7 Million MT 3.4 Million MT

6.5 Million MT 7.2 Million MT

4.9 Million MT

2% CAGR

3% CAGR 2% CAGR

2% CAGR 2% CAGR

3% CAGR

2021F

2021F 2021F

2021F 2021F

2021F

257 254267 283

301319

74 78 81 8793 99

106

22 23 2527 28 31 32

MENA GCC UAE

*World Bank **Business Monitor International *AT Kearney Report **BMI ***Alpen Capital

Cereals

Dairy

Vegetables

Meat

Fruits

Others

2 3

5

UAE

Largest Re-Export Centre in the GCC for Food Sector

Key Facts & Trends

United Arab Emirates, 2nd largest economy and the most important business hub in the GCC, is also the largest re-export centre for food products serving the entire MENA markets.

$100

$5.6

# 1

$357

10.1

15%

BILLION

BILLION

estimated value of UAE’s food products imports*

forecast for retail sales value of packaged foods market in the UAE by 2020***

UAE’s rank in food sector risk-reward index in the MENA region (lowest risk and highest reward)**

forecast of healthy packaged food sales in UAE by 2020 (CAGR of 9.2% during 2015 – 2020)***

food consumption in UAE by 2021 (CAGR of 4.4% during 2016 – 2021)***

share of organic, low fat and glutton-free products in packaged foods market***

MILLION TONS

MILLION TONS

MILLION

UAE Food Sales (billion USD)*

7.6

5.4

3.0

3.1

7.4

5.2

2.9

3.0

7.7

5.5

3.0

3.1

8.2

5.8

3.3

3.3

8.8

6.2

3.5

3.6

9.5

5.6

3.8

3.8

10.1

7.0

4.1

4.1

10.8

7.5

2.81.31.4

1.31.3

1.21.2

1.11.1

1.01.1

1.01.0

1.01.01.0

0.9

2.62.42.3

2.11.91.8

1.9

4.4

4.4

2014 2015 2016 2017F 2018F 2019F 2020F 2021F

Others

Baked Gds & Pasta Products

Sugar Products, Oi&Fat

Fruits & Vegetables

Breads & Cereals

Dairy

Fish, Meat &Poultry

*Ministry of Economy-UAE **Business Monitor International ***Alpen Capital

*Business Monitor International **Alpen Capital

2016E

2016E 2016E

2016E 2016E

2016E

2.7 Million MT

0.5 Million MT 0.6 Million MT

1.7 Million MT 1.6 Million MT

0.9 Million MT

3.5 Million MT

0.6 Million MT 0.7 Million MT

2.1 Million MT 2.1 Million MT

1.1 Million MT

5.2% GROWTH

1.9% GROWTH 2.8% GROWTH

4.4 %GROWTH 5.3% GROWTH

2.9% GROWTH

2021F

2021F 2021F

2021F 2021F

2021F

Cereals

Dairy

Vegetables

Meat

Fruits

Others

UAE Food Sales (Volume)**

CAGR 4.4%Over all Volume/year: 2016: 8.1% I 2017: 8.6% I 2019: 9.3% I 2021: 10.1%

Major food re-exports - coffee, tea, sugar and rice make UAE the largest re-export centre in the region

4 5

United Arab Emirates, 2nd largest economy in the GCC

Global Hub

for Halal Products Why UAE

Why Abu Dhabi

UAE is a global hub for halal food products – one of the fastest growing product segments in the world. Abu Dhabi, located at the centre of the most important consumer base for halal products offers the ideal platform for serving the markets in the GCC and MENA region.

$3.7 $53.1 $20 TRILLION BILLION BILLION

forecast of international halal industry by 2019*

projected requirement of halal food imports in the GCC by 2020**

UAE’s annual imports of halal meat (314,000 tons)***

Among the highest GDP per capita in the world AA credit rating from Fitch

and S&P, AA2 from Moody’s

in the Middle East – Safest city in the region*

in MENA region on World Competitiveness Index

World Competitiveness Index Business Monitor International

#1worldwide on World Competitiveness Index

worldwide on Goods Market Efficiency

worldwide on Institutions

worldwide on Infrastructure

worldwide on Labor Market EfficiencyBusiness Monitor International

#17#11#3

#5#5 Food & Drink Risk/

Reward Index

on Trade Procedures & Governance

on Transport Network

in MENA region on BMI’s Logistics Risk Index

#1#1

#1#2

#1 in the world – among the fastest growing tourism destination** #3

* Safe Cities Index 2015 - Economist Intelligence Unit ** Global Cities Index Report 2016Unit

ABU DHABI, OFFERS THE IDEAL PLATFORM FOR SERVING THE MARKETS IN THE GCC AND MENA REGION.

*Global Islamic Economy Report **Alpen Capital ***Farrelly & Mitchell

6 7

KIZAD Khalifa Industrial Zone Abu Dhabi

Khalifa Industrial Zone Abu Dhabi, is the integrated deep-water port and the largest industrial zone in UAE that offers wide range of business setup solutions and infrastructure facilities.

Khalifa Port Free Trade Zone, is ranked among the largest free trade zones in the region offering a unique investment environment for foreign investors to explore the lucrative markets in the Middle East.

KHALIFA PORT FREE TRADE ZONE

Located midway between Abu Dhabi and Dubai and integrated with Khalifa Port, KIZAD enables businesses to benefit from its strategic location, easy access to markets, low operational costs, world-class infrastructure, and efficient investor support services to facilitate business growth. Covering an area of over 400 million m2 across its free zone and non-free zone facilities, KIZAD provides a comprehensive solution including unmatched competitive advantage and multimodal connectivity with Khalifa Port (fastest growing deep-water port in UAE), Abu Dhabi International Airport, express-highways and planned railway network forming the pillars of infrastructure facilities.

Located within Khalifa Industrial Zone Abu Dhabi (KIZAD) and covering an area of 100 million m2, Khalifa Port Free Trade Zone offers the facilities and benefits provided by Khalifa Port and KIZAD in addition to customized free trade zone business policies such as 100% foreign ownership, no restriction on repatriation of capital and profit, duty free import and re-export etc.

With a fast–track business formation process and liberal labor policies Khalifa Port Free Trade Zone is an attractive platform for international investors to set up a business venture in UAE within a quick time-frame and explore the regional markets.

RANKED AMONG THE LARGEST FREE TRADE ZONES IN THE REGION

THE LARGEST INDUSTRIAL ZONE IN UAE

8 9

Key Benefits for Food Sector in KIZAD & KPFTZ

Less Time. More Business

KIZAD Advantage. Unmatched!

Integrated with Khalifa Port – 2nd fastest growing deep water port in the world and the first semi-automated port in the region Located midway between Abu Dhabi and Dubai Free trade zone benefits

• 100% foreign ownership in the Free Zone companies • 100% repatriation of capital and profit • No corporate and income taxes • No customs duty on import and re-export First Free Zone in the UAE to be connected with the planned railway network Large plots of industrial land, modular warehouses and office space Modular highway – 8 lane highway - dedicated for large equipment movement Extensive network for power, water, waste management etc. Competitive lease rates and utility rates Lower cost of shipment to the markets in the Middle East, Europe and Africa Significantly faster time to markets in the Europe and Africa Lower terminal handling charges and fast truck turnaround time

Average Cost Comparison Across Major Locations

Electricity (USD/kWh)

Water (USD/m3)

Land Lease (USD/sq.m)

Registration Fees (USD)

KIZAD 0.09 2.13 7.90 3,539

UAE AVG. 0.11 2.47 9.72 7,514

GCC AVG. 0.08 2.26 7.49 9,941

Serving the markets in the Middle East and GCC through only exports results in significant lead time. Through its multi-modal connectivity and infrastructure, KIZAD and Khalifa Port Free Trade Zone are ideally positioned to help businesses to reach the target customers in the region within a few hours.

The graphic below shows savings in lead time - in number of days - if companies from the respective countries/regions serve the markets in the gulf from KIZAD and Khalifa Port Free Trade Zone.

KIZAD and KPFTZ have become home to some of the largest food products manufacturers in the region. Both international and regional companies in the food products sector get benefited from the unmatched competitive advantages offered by KIZAD and Khalifa Port Free Trade Zone.

Food Cluster in KIZAD & Khalifa Port Free Trade Zone

China

JapanIndia

USA

Canada

South Korea

RussiaEU

Brazil

Australia

7

5

5

5

7

6

4

366

Major Investors in Food Sector

*Comparing the average cost across locations with similar infrastructure facilities. Actual figures may vary depending on specific location, project specifications etc.

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