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The Overseas Market Introduction Service (‘OMIS’) is provided by the Commercial Departments of Diplomatic Service Posts overseas as part of the joint trade development operation, UK Trade & Investment (‘UKTI’), of the Foreign and Commonwealth Office (‘the FCO’) and the Department for Business, Innovation and Skills (‘BIS’). Whereas every effort has been made to ensure that information provided through OMIS is accurate, these Commercial Departments, UKTI, the
FCO and BIS accept no liability for any errors, omissions or misleading statements in such information and accept no responsibility as to the standing of any firm, company or individual mentioned. Any party interested in the goods and services provided by any company referred to in OMIS material should undertake their own research and should not consider a reference in OMIS material to be an endorsement of any goods, services or companies mentioned.
United Arab Emirates
Overseas Market Introduction Service
for
Sea Fish Industry Authority
Produced by:
Mr Ali S. Ali, Trade & Investment Officer British Embassy, Dubai
Mrs Jacqueline Porter, Trade & Investment Officer
British Embassy, Abu Dhabi
OMIS Reference: UAE 1340
Date of Report: 30 March 2014
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CONTENTS
Page
I. Executive Summary 4
Summary of the Enquiry 4
Methodology 4
II. Introduction to the UAE 5
Population Break Up By Emirate, 2012 5 Macro Economic Indicators 6
Development of GDP 6
III. UAE Food & Drink Market Overview 7
Strengths 8 Weaknesses 8
Opportunities 9 o Health Food 9
o Gourmet Food 9 o Organic Food 10 o Halal Food 10
IV. Key Trends in the Market 11
V. Local Fisheries Statistics 12
VI. Seafood in the UAE 17
List of UAE Value Added Seafood Brands 17
List of EU Approved Seafood Companies 17 Dubai Seafood Trade with the UK 2008 18
Dubai Seafood Trade with the UK 2009 (January – September) 19 Dubai Seafood Trade with the UK 2010 (January – November) 20 Dubai Seafood Trade with the UK 2011 (January – December) 20
Dubai Seafood Trade with the UK 2012 21 Dubai Seafood trade with the UK 2013 (January – September) 23
Abu Dhabi Seafood Trade with the UK 2013 (January – October) 24
VII. Recent Updates in the UAE Seafood Industry 25
Salmon Farming in Abu Dhabi 25
Salmon Factory in Dubai 25
VIII. Key Retail Outlets 27
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Grocery Retailers 29
IX. Import Requirements 33
Dating of foodstuff 33 Inspection and clearance procedures 34
Documents required 35
Banned products in the UAE 35 Banned Food Additives in the UAE 36
Duties 36
X. Routes to Market 37
Consolidator 37
Distributor 37 Direct to Retailers 37 Free Zones 38
XI. UAE Seafood Contacts 39
Retail Contacts 39 Foodservice Distributors 39
Hotels 41
XII. Considerations for Exporters 43
Entering the Market 43
Channels of Distribution and Sale 44 Direct Trade 44
Commercial Agencies 44 Setting up a Presence in the UAE 45 Customs Duties 45
Temporary Imports & Samples 46 Additional Taxes 46
Terms of Payment 46 Debt Collection 46 Export Financing and Insurance 47
Insurance of Imports from the UK 47 Getting your Goods to the Market 47
Delivery Dates 48
XIII. Dos And Don’ts For Business Visitors to the UAE 49
XIV. Key Contacts and Information 50
XV. Follow-Up Action 53
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I. EXECUTIVE SUMMARY
Summary of the Enquiry
Sea Fish Industry Authority (Seafish) was founded in 1981 by an Act of Parliament and supports all sectors of the seafood industry for a
sustainable and profitable future. It is the only pan-industry body offering services to all parts of the seafood industry, including catching and
aquaculture, processors, importers, exporters and distributors of seafood, restaurants and retailers.
Seafish is funded by a levy on the first sale of seafood landed and imported in the UK. It aims to support and improve the environmental
sustainability, efficiency and cost-effectiveness of the industry, as well as promoting sustainably-sourced seafood.
Seafish commissioned this activity to produce a UAE Seafood report. With that in mind, UK Trade & Investment agreed to deliver the following:
Introduction to UAE UAE Food & Drink sector overview
UAE Seafood Industry overview along with UAE import and export statistics in relation to UK
Relevant contact details in the UAE Seafood Industry
Methodology
UK Trade & Investment have prepared this report using information
obtained on a selective basis from the following sources:
Industry contacts / consultants / competitors
Commercial and customised databases Internet research
Trade associations and other relevant organisations Trade publications
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II. INTRODUCTION TO THE UAE
The United Arab Emirates (UAE) is one of the six member states of the
Gulf Co-operation Council (GCC). The others are Saudi Arabia, Kuwait, Bahrain, Qatar and Oman.
UAE is the UK’s largest export market in the Middle East and North Africa. It is the UK’s 13th largest export of goods market at around £4.7 billion
and is designated as one of the UK Trade & Investment High Growth Markets.
Key sectors for the UK in the UAE are: infrastructure (construction and mass transport); energy; defence and security; education and training;
financial and professional services; creative industries and healthcare. We estimate that there are over 100,000 British nationals resident in the
UAE (about 80,000 of which are in Dubai), and that a million British tourists travelled to Dubai in 2013.
The UAE has one of the highest GDP’s per capita in the world and sits atop 7.1% of the world’s proven oil reserves. It is a significant oil and natural
gas producer, with current flow rates hovering around 2.6 million barrels a day.
Over the past two decades, the UAE’s diversification strategy has led to the rise of several non-oil sectors, with non-oil GDP growth reaching 3.3%
in 2012. As a result, the non-oil sector’s contribution to the GDP amounted for approximately 70%.
Population break up by Emirate, 2012
Emirate Million
Abu Dhabi & Al Ain 1.800
Dubai 1.600
Sharjah 1.000
Ajman 0.250
Umm Al Quwain 0.350
Ras Al Khaimah 0.250
Fujairah 0.150
TOTAL 5.400
Source: IMF
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Macro Economic Indicators
Indicators Unit 2010 2011 2015
(PREDICTED)
GDP US $bn 301.9 363.8 453.6
Population Million 5.1 5.2 5.9
Inflation % 0.9 4.5 2.2
GDP per capita US $ 59,716.9 69,872.4 77,395.3
Source: IMF Development of GDP
The UAE’s GDP in 2014 is predicted to be $400bn, with growth of 3.9
percent predicted for the year.
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III. UAE FOOD & DRINK MARKET OVERVIEW
The UAE has quickly earned itself a reputation as one of the leading
destinations to enjoy quality food and five star hospitality services. The country’s growing population, thriving economy and profile as one of
the region’s hottest tourist destinations has only whet the UAE’s appetite for quality food products and hospitality services. Gourmet food stores,
organic supermarkets, spice souqs, speciality food stores, fish markets, international hypermarket chains and local convenience stores stock everything from quail eggs to white truffle oil.
The UAE food market is currently valued at $7.3 billion with an annual
growth rate of 14% percent predicted between 2012 and 2015. According to official reports by the Ministry of Economy food consumption
in the UAE has been growing 12 percent per year and will gradually accelerate over the coming quarters of 2014.
UAE Food Retail Industry Forecast: $ billion, 2011-16
UAE Food Retail Industry Value Forecast: $ billion, 2011-16
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Strengths
The UAE has one of the highest GDP per capita in the region rising to
$49,000 within the last quarter of 2012 and continues to diversify its economy away from a reliance on oil and gas.
The country’s urban centres tend to house wealthy consumers serviced by numerous shopping malls and duty free outlets that act as major sources
of revenue for the domestic retail trade. The growing tourism industry is positive for the sector as the UAE hosted
approximately 12 million tourists in 2013, with plans to increase hotel room capacity to add almost 25,000 rooms within the coming years.
The increasing demand from the catering industry that serves in-flight meals has also benefited the UAE’s food & drink sector. Emirates airlines
is considered to be one of the biggest airlines worldwide with a very sophisticated catering division that supplies a good amount of British
products. Familiarity with modern retailing and western consumption trends creates
a host of opportunities in the retail and tourism sectors. Furthermore, rising health awareness means that there are increased opportunities for
producers of healthy/organic products alongside ample opportunities for packaged/ready-made meals.
Limited ‘home grown’ food resources in the UAE have contributed significantly to the country’s potential as a viable market for the food and
drink sector. The UAE currently imports an estimated 90 percent of its food and beverage.
Weaknesses
The UAE is a Federation of seven Emirates. However, in practice, individual Municipalities within each Emirate can enforce their own
regulations. This can cause confusion across a range of products including those from the Food and Drink sector.
Expatriates make up 85% of the resident population. The economic slowdown initially led to a net outflow of labour particularly in the
construction sector as projects were put on hold or cancelled. Patterns of consumer spending have also varied over the past 3 years as
market confidence took a hit and people became more careful with their expenditure. During this time, due to the uncertainty of job cuts and
consumer confidence in the economy, spending habits of UAE consumers have undoubtedly been affected, with more emphasis on purchasing cheaper goods in comparison to high value goods. That said, the UAE
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economy remains fundamentally sound with Abu Dhabi holding 7.1% of
the world’s oil reserves that are expected to last for another 100 years.
Opportunities The UAE has experienced tremendous growth in the Food and Drink sector
over the past 10 years on the back of a booming economy that promoted and facilitated a cosmopolitan lifestyle. Demand for premium goods
continued to improve in 2012 with an increasing preference for consumers to purchase high value products – a trend seen in a country that has a huge expatriate population with high disposable income.
Dubai will continue to generate business opportunities across the board.
Abu Dhabi can be expected to project itself more on the domestic and international stage on the back of oil revenues that should facilitate delivery of its Strategic Plan 2030 along with its mega projects.
Education, life sciences, financial services, ICT, mass transport, tourism,
creative industries, construction (particularly in Abu Dhabi), environment and energy/power will remain priority sectors for the UAE in the short/medium term and attract significant Federal investment.
The performance of the industry is predicted to accelerate with an
anticipated compound annual growth rate of 6.5% for the four year period of 2012 – 2016, which is expected to drive the food & drink sector to a value of $10 billion by the end of 2016.
Health Food
The UAE has one of the highest rates of obesity and diabetes in the local and expatriate community. The UAE government are under increasing
pressure to reduce this rate and to review the situation as a priority. As a result, UAE consumers have become increasingly aware of the links
between their diets and their health with the majority of the population seeking to live a more active and healthier lifestyle.
These trends have resulted in huge opportunities for take away options and healthy product lines such as reduced fat dairy and brown breads.
Gourmet Food
The UAE has acquired a taste for sophisticated cuisine, sending the value of high end products imported to the country soaring. The rising numbers
of UAE residents are creating lucrative markets for high end products from UK producers, a segment that is growing in all areas of the sector.
Companies like Dean and Deluca and Jones the Grocer are catering to people who are looking for fresh and healthy specialised products from
around the world, including the UK. Galleries Lafayette is another good
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example of the boutique style food department that aspires to add a touch
of luxury to the average UAE resident.
The concept of having a store/deli/restaurant is becoming quite popular around the UAE with more and more of these models opening up.
Organic Food
The trend towards organic food in the region is still in its infancy but is growing rapidly. Within the region, the UAE is the biggest and fastest growing market for organic food, with specialised food outlets and
distributors setting up shop in the country.
This is driven by high disposable incomes in some segments of the population along with a growing awareness of food and health issues and an increasing familiarity with organic produce. Popular organic foods
include those specifically targeted at children, as well as fruit, vegetables and dairy products.
With most of the organic products being imported, apart from the higher cost involved in growing them, their retail prices carry a higher premium
than the comparable conventional food.
Halal Food The importance of the Halal food industry is growing at a significant rate
within the UAE and the Middle East. Muslims comprise of one of the fastest growing consumer markets in the world, hence represent a major
growth opportunity for UK companies. In the UAE 80 percent of imported food is Halal, with products coming from countries such as Brazil, Australia and New Zealand.
The GCC countries alone consumed $43.8 billion worth of Halal products in
2012, according to the Halal journal. Brazil has a 54% share in the GCC Halal market while Australia claims a 9% share.
Dubai, as an international trading/re-export hub, is set to play a significant role in this fast growing sector within the next three years. The
UAE alone has recorded the highest increase of 30% in fresh Halal meat sales followed by Egypt at 22% and Saudi Arabia at 21%.
Halal has many regulations concerning the procedure of slaughtering an animal. Any non-halal meat products whether gelatine or meat, are
strictly forbidden within the region. Carnivorous animals or birds of prey are also forbidden. The ritual way prescribed by Islamic law of
slaughtering the animal and draining the blood exists as law and must be abided by.
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IV. KEY TRENDS IN THE MARKET
As noted at the beginning of this report, only 15 percent of the population
is Emirati. Estimates vary, but around 40 percent are from the Indian subcontinent, with a further 10 percent from various South East Asian countries. The British population accounts for just over 100,000 residents,
with the figure set to increase over the coming years. There is also a sizable population from Iran and other Middle East countries.
The headline figures disguise the income levels and consumption habits.
A large majority of low paid workers come from India, Sri Lanka, Bangladesh, Afghanistan and Pakistan. They are usually provided for by
the labour camps, or more commonly sharing (and reducing) the cost with a group of people by purchasing large quantities of meat, rice and vegetables. Middle management and higher income earners from the
Asian community tend to reside with their families where traditionally, the wife continues to prepare everyday meals.
The majority of Filipinos are employed in the food service and secretarial positions. They tend to reside here on a single status and most commonly
live with groups from the same community. As the Filipino population increases within the country, so does the need for traditional Filipino food
ingredients. There are now various hypermarkets and supermarkets that caters to Filipino residents. This includes both food ingredients imported from the Philippines and cooked take away meals that are still quite price
competitive.
The UAE is an internationally competitive market where products from all major food producing countries can be found. The UK predominantly supplies the upper end of the market for fresh produce, as well as dairy
products and dry food.
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V. LOCAL FISHERIES STATISTICS
Fisheries is one of the most important sub-sectors in the agricultural
sector, as it contributes to the employment of labour and provides a decent life for a number of residents in the coastal areas, in addition to providing essential products for food consumption in the UAE.
The global demand for fish is steadily increasing with the expectation it
will continue to rise due to population growth and rising incomes. The UAE territorial water contains more than 200 islands of various sizes with historical and economic importance.
The amount of fish caught in 2012 totalled 4,399 tons, an increase of
12.2% compared with 2011. The estimated value of fish production amounted to about AED 80.8 million and it was caught in around 25,781 fishing trips, including 82% with tarad and 18% with lansh.
Scombridae accounted for the highest value of caught fish, with AED 27.0
million or 33.4% of the total value of the catch in 2012. This was followed by Serranidae worth AED 25.4 million or 31.4%, Lethrinidae with AED 11.5 million or 14.2% and Carangidae with AED 9.5 million or 11.7% of
the total value.
Quantity and Value of Fish Catch, 2001 to 2012
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Quantity of Fish Catch, 2001 to 2012
Value of Fish Catch, 2001 to 2012
- 14 -
Quantity and Value of Fish Catch by Major Fish Families, 2011 and
2012
Percentage Distribution of the Quantity of Fish Catch by Major Fish Families, 2012
- 15 -
Percentage Distribution of the Value of Fish Catch by Major Fish
Families, 2012
Quantity of Fish Catch by Boat Type and Fishing Methods, 2012
- 16 -
Total Number of Fishermen and Fishing Boats, 2008 to 2012
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VI. SEAFOOD IN THE UAE
Statistics from the Ministry of Environment & Water indicate that the
seafood trade in the UAE grew by 15 percent in 2012. The UAE consumes more than 50kg of fish and seafood products per capita per year according to Asmak International Fish Farming Company.
The high number of expatriates and foreign workers is a significant factor
contributing to the growth in demand for imported fishery products. Halal seafood products are yet another range of items that has huge potential in the region. Halal in this context is defined as the product being treated
and prepared in the ritual manner prescribed by Islamic Law.
There is an increasing number of processing plants specialising in value-added products such as flavoured mussels and crumbed fish. These plants are located mainly in the surrounding Emirates, Sharjah and Ajman.
The following table reflects some of the more prominent brands available
in the market. List of UAE Value Added Seafood Brands
Company Name Seafood Brand
ASMAK ASMAK
Dubai Cooperative Al Islami
Cascade Al Kaber
Freshly Frozen Fair
Seville Al Khalej
Global Foods Arctic Gold
The following table shows a list of EU approved companies that exist in the UAE.
List of EU Approved Seafood Companies
EU Approval No Company Name Emirate
001 ASMAK Processing Co Abu Dhabi
002 Magenta Fish & Seafood Dubai
003 Gulf Seafood LLC Dubai
005 Caviar Classic Seafood Dubai
006 Seville Products Ltd Sharjah
007 East Fish Processing LLC Ajman
009 Shaheen Fisheries Ajman
012 Royal Crown Dubai
014 Freshly Frozen Dubai
015 Alliance Foods Co LLC Ajman
016 Global Foods Industries Sharjah
017 Black Pearl Caviar Dubai
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Dubai Seafood trade with the UK 2008
In 2008, the resident expatriate population and the expanding hospitality sector aided the growth of the seafood trade. UAE food service experts noted that consumer preferences were shifting towards non traditional
items like clams, mussels and oysters. Although salmon is not a local fish, it has been reported as being amongst the top 3 sellers in the UAE
market.
Description
IMPORT EXPORT RE-EXPORT
Weight
(kg)
Value
(AED)
Weight
(kg)
Value
(AED)
Weight
(kg)
Value
(AED)
Trout fish 276 19,690 0 0 0 0
Salmon fish 259,477 8,110,410 0 0 0 0
Salmonidae 20,190 1,141,511 0 0 383 10,496
Halibut fish 50 751 0 0 0 0
Sole fish 707 12,848 0 0 0 0
Flat fish 120 14,863 0 0 0 0
Tuna fish 12,844 188,604 0 0 0 0
Cod fish 5,344 62,337 0 0 0 0
Cana’d fish 887 60,154 0 0 0 0
Other fish 33,428 803,733 0 0 2,218 56,691
Fish fillets 3,809 111,633 0 0 0 0
Chilled fish 1,309 29,516 0 0 0 0
Fish meat 41,179 579,959 0 0 0 0
TOTAL 379,620 11,136,009 0 0 2,601 67,187
Source: Dubai Data & Statistics Department
Frozen
Description
IMPORT EXPORT RE-EXPORT
Weight (kg)
Value (AED)
Weight (kg)
Value (AED)
Weight (kg)
Value (AED)
Sockeye salmon
118 10,599 0 0 0 0
Salmon fish 746 50,377 0 0 0 0
Atlantic
salmon
737 49,334 0 0 0 0
Salmonidae 1,480 105,117 0 0 0 0
Yellowfin fish
27 783 0 0 0 0
Tuna fish 1,345 18,439 0 0 0 0
Haddock
fish
68 1,172 0 0 0 0
Sea bass
fish
157 1,071 0 0 0 0
Other fish 821 32,104 8,688 194,011 0 0
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Fish fillets 4,182 87,419 0 0 0 0
Fish meat 38 781 0 0 0 0
TOTAL 9,719 357,197 8,688 194,011 0 0
Source: Dubai Data & Statistics Department
Dubai Seafood trade with the UK 2009 (Jan – Sep)
The organic fish segment is also playing an increasing role in this sector. The organic ‘chill killed’ shell-on-shrimp arrived in the UAE market in
2009, and has proven to be very popular amongst the health conscious community. They are farmed in India with no chemical or antibiotic used, and carry a high standard of traceability thus allowing them to retain good
colour and texture when defrosted.
Description
IMPORT
Weight (kg) Value (AED)
Salmon fish 143,935 3,790,384
Salmonidae 15,269 524,573
Halibut fish 389 2,217
Sole fish 1,334 11,822
Flat fish 492 18,324
Albacore fish 557 31,177
Tuna fish 7,779 87,150
Sardines 10,157 97,934
Haddock fish 273 2,167
Coal fish 61 803
Other fish 17,350 451,442
Fish fillets 258 14,795
Fish meat 59,375 438,681
TOTAL 257,228 5,471,470
Source: Dubai Data & Statistics Department
Frozen
Description
IMPORT
Weight (kg) Value (AED)
Atlantic salmon 1,356 8,597
Salmonidae 26 1,172
Sole fish 1,236 24,310
Flat fish 19 3,749
Tuna fish 5,754 68,582
Haddock fish 34 2,983
Cana’d fish 2,489 157,690
Other fish 291 15,502
- 20 -
Fish fillets 160 6,697
TOTAL 11,365 289,282
Source: Dubai Data & Statistics Department
Dubai Seafood trade with the UK 2010 (Jan – Nov)
Description
IMPORT RE-EXPORT
Weight (KG)
Value (AED)
Weight (KG)
Value (KG)
Pacific Salmon 253,010 7,362,175
Salmonidae Fish 16,673 545,212
Plaice Fish 42 1,379
Sole Fish 1,237 119,030
Cod Fish 64 2,727
Sardines 6 99
Haddock 221 3,899
Mackerel 163 5,949
Livers/Roes/Fillets 12,945 574,257 537 14,097
Pacific Sockeye Salmon Fish
11,470 508,440
Pacific Salmon Fish 166 5,236
Atlantic Salmon Fish 325 7,035
Cod Fish Frozen 760 36,644
Haddock Fish Frozen 2,718 49,369
Hamoor Fish 1,800 49,803
Other Fish Fillets 25 1,015
Swordfish 290 6,948
Frozen Hamoor Fillet 1,202 66,719
Chilled Fish Fillet 52,759 1,407,153
Fish Meat 94,232 832,381
TOTAL 450,109 11,585,468 537 14,097
Source: Dubai Data & Statistics Department
Dubai Seafood trade with the UK 2011 (Jan – Dec)
Description IMPORT
Weight (Kg) Value (AED)
Trout fish 29 764
Pacific salmon fish 467,215 13,376,895
Salmonidae fish 24,454 892,904
Plaice fish 55 1,792
Sole fish 5,760 549,726
Flat fish 165 14,354
Herrings fish 1,700 67,997
Haddock fish 10 235
Mackerel fish 27 682
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Source: Dubai Data & Statistics Department
Dubai Seafood trade with the UK 2012
Description IMPORT
Weight (Kg) Value (AED)
Trout fish 4 402
Pacific salmon fish 414,919 12,968,827
Pacific salmon Fresh or chilled 154,795 5,635,738
Atlantic salmon 39,178 882,873
Salmonidae fish 24,544 1,090,233
Halibut fish 18,916 1,186,368
Plaice fish 64 1,886
Sole fish 16,258 1,470,188
Turbots Flat fish of a type 598 78,653
Flat fish 893 55,138
Sardines fresh or chilled 6 171
Other fish 5,996 375,889
Pacific sockeye salmon fish (red salmon)
1,630 22,266
Pacific salmon fish frozen 2,595 81,929
Atlantic salmon fish 930 11,184
Salmonidae fish frozen 1,793 98,408
Sole fish frozen 87 8,374
Albacore or longfinned tunas fish 7 377
Tuna fish 552 21,395
Herrings Fish frozen 18,948 94,945
Cod fish 329 7,982
Haddock fish frozen 7,398 235,157
Mackerel fish frozen 1,495 15,695
Sea bass fish 59 1,501
Fish, frozen 18,764 62,784
Other fish fillets and other fish meat, fresh or chilled
781 56,483
Swordfish (Xiphias gladius)frozen 1,000 37,973
Hamoor fish other than fillet frozen 1,627 99,765
Other fish fillet other than frozen 3,441 92,278
Toothfish (Dissostichus spp.)whether
or not minced other than frozen
3,539 28,671
Other, fish fillets and other fish meat
(whether or not minced), fresh, chilled or frozen
83,504 871,250
TOTAL 653,889 17,129,656
- 22 -
Mackerel 51 1,668
Cod fish 10,135 144,095
Cod frozen 7,508 111,113
Haddock 4,705 60,722
Coalfish 22 829
Alaska Pollack 12 473
Other fresh or chilled Fish 63 4,308
Sardines fish 12 277
Haddock fish 536 8,296
Coalfish fish 25 1,089
Mackerel fish 27 710
Eels fish 5 451
Other fish 41,416 1,738,820
Catfish fresh or chilled 218 14,427
Seabass 28,725 1,206,549
Pacific sockeye salmon fish 1,759 19,574
Pacific salmon fish frozen 3,660 92,562
Trout fish frozen 3 300
Atlantic salmon fish frozen 26,124 178,788
Salmonidae fish frozen 2,936 183,681
Albacore or longfinned tuna fish 458 27,915
Other frozen fish of Southern bluefin tuna
180 6,598
Cod fish frozen 549 7,620
Other type of Mackerel fish, frozen 300 14,681
Haddock fish, frozen 8,275 58,323
Haddock fish 2,195 45,409
Mackerel fish frozen 25,830 154,609
Fish, frozen 6 580
Swordfish 56 3,993
Hamoor fish 7 119
Other fish fillets and other fish meat,
fresh or chilled
784 60,015
Other fish fillet other than frozen 13,408 563,580
Pacific and Atlantic salmon fish fillet
fresh or chilled
386 23,350
Other fish fillet fresh or chilled 686 19,318
Fish fillet of Salmondae (salmon) fresh or chilled
14,673 776,249
Other fish fillet frozen 2,723 90,691
Cod fish fillet 100 5,889
Haddock fish fillet 2,376 64,345
Pacific and Atlantic salmon fish fillet frozen
214 2,320
- 23 -
Other, fish fillets and other fish meat 12,361 154,363
TOTAL 883,685 29,219,178
Source: Dubai Data & Statistics Department
Dubai Seafood trade with the UK 2013 (January – September)
Description IMPORT
Weight (Kg) Value (AED)
Trout fish 3,420 238,589
Pacific salmon Fresh or chilled 206,487 7,705,103
Atlantic salmon 129,254 3,472,244
Salmonidae fish 22,872 1,134,585
Halibut fish 12,880 844,717
Plaice fish 5 245
Sole fish 15,955 1,304,569
Turbots Flat fish 2,083 248,810
Other Tuna fish fresh or chilled 124 3,207
Sardines fresh or chilled 1 59
Cod 16,802 341,345
Haddock 12,109 241,463
Coalfish 12 419
Other fresh or chilled Fish 982 46,879
Catfish fresh or chilled 2,712 58,166
Seabass 67,523 3,063,900
Pacific salmon fish frozen 7,519 47,458
Salmonidae fish frozen 11,590 606,351
Albacore or longfinned tunas fish 613 34,465
Other frozen fish of Southern bluefin
tunas
689 6,317
Other type of Mackerel fish, frozen 29,400 71,539
Other Jack and horse mackerel 9,450 48,858
Cod fish, frozen 63 3,173
Haddock fish, frozen 16 1,144
Hake( Nazli) fish, frozen 5 467
Other fish, frozen 673 9,399
Other fish fillet fresh or chilled 139 12,884
Fish fillet of Salmondae (salmon)
fresh or chilled
22,234 1,075,137
Fish fillet and other fish meat 3,025 53,497
Other fish fillet frozen 2,233 59,298
Cod fish fillet 5,448 87,104
Haddock fish fillet 4,515 100,962
Hake (naazli) fish fillet, frozen 166 1,170
- 24 -
Other fish fillet of other type of fish Frozen
82 4,159
Pacific and Atlantic salmon fish fillet
frozen
19,654 45,229
Other, fish fillets and other fish meat 255 9,228
TOTAL 610,991 21,982,141
Source: Dubai Data & Statistics Department
Abu Dhabi Seafood trade with the UK 2013 (January – October)
Description IMPORT
Weight (Kg) Value (AED)
Live fish, not elsewhere specified 827 21,650
Swordfish (xiphias gladius) fresh/chilled
154 2,694
Other fish fillets and other fish meat, fresh or chilled
280 7,233
Other fish fillet and other fish meat, frozen
669 31,124
Other fish fillets & other fish meat (whether or not minced) fresh, chilled
or frozen not elsewhere specified
844 32,016
Salmon, prepared/preserved, whole/in
pieces (excl. minced)
369 10,200
Herrings, prepared/preserved,
whole/in pieces (excl. minced)
107 3,119
Sardines, sardinella & brisling/sprats,
prepared/preserved, whole/in pieces (excl. minced)
81 3,705
Tuna, skipjack & bonito (Sarda spp.), prepared/preserved, whole/in pieces
(excl. minced)
612 14,992
Mackerel, prepared/preserved,
whole/in pieces (excl. minced)
41 2,365
Anchovies, prepared/preserved, whole/in pieces (excl. minced)
5 432
Fish prepared/preserved, whole/in pieces (excl. minced)
190 14,118
Prepared/preserved fish other than whole/in pieces
1,536 53,067
TOTAL 5,715 196,715
Source: Abu Dhabi Data & Statistics Department
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VII. RECENT UPDATES IN UAE SEAFOOD INDUSTRY
Salmon Farming in Abu Dhabi
After golf courses in the desert and even a ski slope in a shopping mall, the UAE is now turning its hand to farming cold water fish such as salmon.
Asmak, an Abu Dhabi company plans to farm the fish in chilled onshore
pools at prices that can compete with imports flown in from Norway or Ireland.
Asmak, which already runs offshore fish farms, is harnessing technology honed in Scandinavia to set up the Middle East's first onshore fish farm in
a bid to provide affordable alternatives to popular local fish such as grouper.
Asmak believes that by the end of 2014 people in UAE will be able to eat salmon that is locally produced.
While Gulf companies are used to taking on difficult projects such as the previously mentioned golf courses and the indoor ski slope in Dubai,
Asmak's plans pose a new challenge - keeping water at a temperature of 13 degrees celsius in a region where sea water temperatures can go up to
40 degrees. The project, with a price tag of AED 100 million ($27.2 million), involves
building a land-based recirculation aquaculture system (RAS) farm on an area of 500,000 square metres, which essentially takes sea water, chills it
and then re-uses it. The advantage of having the farm onshore is that Asmak will be able to
control the environment so Asmak won't have to deal with issues like high tides or acid rain effects and, most importantly, the elevated temperature
levels.
While fish farming typically relies on tanks built offshore, this new onshore farming technique causes less harm to wild fish since there is no likelihood of spreading diseases into the sea or of farmed fish escaping into the wild.
Asmak exports its fish to over 40 countries and has offshore fish tanks
across the coasts of the region in the UAE, Saudi Arabia, Bahrain and Oman.
Salmon Factory in Dubai
Dubai Maritime City recently entered into a partnership agreement with SalMar ASA, a major Norwegian salmon farming company.
The Dubai Cooperative Society for Fishermen, a Dubai government entity
- 26 -
is supporting the new partnership. The ambitious venture a ‘first-of-its-
kind’ in Dubai proposes to build a state-of-the-art 'salmon house' in the emirate.
Arctic Marine Industries AS is the company that will execute and manage the ambitious partnership.
SalMar, which plans to set up the largest factory for smoked salmon in the
region, is the second largest company in Norway.
- 27 -
VIII. KEY RETAIL OUTLETS
The UAE retail report forecasts that the country’s retail sales will grow
from an estimated $21.56 billion in 2011 to $28.16 billion by 2015. Of this food sales were set to be worth $7.71 billion in 2011 and expected to increase by 24.4 percent to $9.59 billion by 2015. The country has made
a significant amount of investment into the retail real estate sector, owing to some of the world’s most extravagant malls such as Dubai Mall and the
Yas Mall. The UAE’s grocery retail sector has experienced major growth in recent
years on the back of a growing economy – notwithstanding the economic slowdown. The grocery retail landscape in the UAE is uniquely structured
in that it lacks the traditional retailing formats such as butchers, green grocers and fishmongers. This is mainly due to the lack of natural resources suited to agriculture in the UAE and the country’s dependence
on imported products.
Hypermarkets, supermarkets, co-operatives, duty free shops and convenience stores form the core formats of the UAE’s grocery retail sector. Hypermarkets and supermarkets can primarily be found in inner
city areas, most commonly within large shopping malls.
While Emaratis contribute to retail sales, the large contribution comes mainly from the expatriate community and tourism sector. The UAE recorded 12 million tourists in 2013, a significant factor in stimulating
retail growth.
The outlook for household spending in the UAE over the coming year is encouraging with reports estimating a significant increase in UAE salaries in 2014.
Recent studies suggest that the average UAE consumer spends
approximately 127 hours in supermarkets per year and regularly visits a food store at least four times a week. Average household spending in the
UAE stands at $15,400 per annum. Emirati households account for the highest at $24,000. This is due to many factors, the first being the weather restrictions of the region and the way shopping malls have
created a recreational atmosphere that provides the consumer with a variety of shopping/recreation options particularly during the hot/humid
summer months. Large modern retail outlets are particularly popular with the majority of
the expatriate community, mainly due to the familiarity of the surroundings, and the variety of choice available. Co-operatives are
supported by the government. UAE nationals are the principle shareholders and shoppers at these outlets that mostly cater to the Arab consumer, providing economical prices, although with much less choice.
This particular market is estimated to cover 15% of the retail sector.
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The popular hypermarket and supermarket chains provide the most prevalent and preferred form of grocery shopping and account for 70
percent of grocery sales within the UAE. Against this background, convenience stores and independent outlets account for just 4.2 percent of total sales.
Competition in the retail sector is fierce, mainly due to the increasing
pressure to secure consumers loyalty. Larger retailers are continuously being pushed into competitive pricing policies due to limited level of differentiation across the basic product range.
The UAE French retailer, Carrefour has progressed quite significantly over
the past 8 years. The French hypermarket offers discounted products that have become very popular amongst price conscious consumers and is expected to open more locations across the UAE over the coming 10
years.
Upmarket supermarkets such as Spinneys, Waitrose and Choithram tend to offer a large variety of premium products that cannot otherwise be found by hypermarket outlets. For example the famous British Chocolatier
Thorntons can only be found in Spinneys outlets due to its exclusivity - imported direct by the retailer.
The Al Maya Group has earmarked approximately $6 million as part of its expansion plan within the next two years as the demand for supermarkets
and hypermarkets rise. The Al Maya Group are increasingly on the lookout for UK products due to the location of their stores.
Convenience formats are becoming more popular in the UAE. While the large hypermarket format is still dominant, convenience formats are a
way for retailers to expand their local footprints. Abu Dhabi based Lulu Hypermarket Group is planning 50 neighbourhood stores across the Gulf
region over the next three years, and Carrefour is expanding its express convenience stores across the country.
Spinneys has announced plans to establish 10 new convenience store outlets over the next 3 years, spending approximately $50 - $100 million
on their expansion plans. Lulu has recently opened its 100th store in the UAE with further expansion plans across the GCC.
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UAE Food Retail Industry Distribution: % Share, by Value, 2011
Grocery Retailers
Carrefour MAF
The French retailer Carrefour has been present in the UAE since 1995; where it was established as the first hypermarket in the Middle East region. Carrefour is present in the UAE via a franchise agreement with the
Middle East partner, Majid Al Futtaim (MAF). The French retailer currently owns 20 outlets within the UAE, with plans to expand in Abu Dhabi over
the coming years. Carrefour has the space and capacity to cater for both the more affluent
western expatriates to the middle and lower income. Consequently, with the increasing demand, Carrefour has begun producing an economy
brand, something similar to the UK local brands that Tesco and Sainsbury’s offer.
Strategy
MAF has expanded by opening a similar concept to Mall of the Emirates. Mirdif City Centre, the AED2.6 billion (USD0.71 billion) mega mall in the Mirdif area of Dubai opened in March 2010. This mega mall totals 180,000
square metres of shopping space and offers roughly the same gross leasable area as Mall of the Emirates, the third largest mall outside North
America. Carrefour currently operates 12 stores in Dubai alone, with the 13th
opening soon in Dubai Investment Park. The French retailer is also in the process of opening four new express stores in the UAE bringing the total
number of mini markets to 20 across the Emirates.
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Carrefour’s strategy is to experiment with new store concepts such as
convenience, discount formats and private label ranges. Carrefour is also diversifying its range and objectives by offering more international brands
and takeaway food. The primary purpose for this is to set itself apart from local rivals who lack the floor space required to accommodate such features.
EMKE Group – Lulu Hypermarket
Abu Dhabi based food retail group EMKE operates the Lulu hypermarket chain in the Middle East, as well as a number of supermarkets. Established
in 1966, the South Indian owned company currently employs a total of 12,800 employees with a share of approximately 32% in the organised
retail market. The EMKE hypermarkets under the Lulu banner mainly target the Indian community in Dubai, but also local Arabs and other Asians. Western expatriates make up a much smaller percentage of
customers.
EMKE’s own brand, the Lulu brand, consists of over 100 items in the ambient, fresh foods, health & beauty and household product ranges. They are competitively priced against branded products, and offer private
label products from the UK retailer Iceland.
Strategy The Lulu hypermarket brand objective is to bring modern, organised
retailing within reach of the entire Gulf population. Lulu opened 23 hypermarkets and shopping malls in the last three years in almost all
major cities of the GCC. In Abu Dhabi alone there are plans to open another 6 hypermarkets with more outlets planned in Yemen, Iraq and other non GCC countries.
Lulu is also entering online retailing with the planned ‘web store’ targeting
young and affluent customers. With a sales turnover of AED 15.5 billion, the retail group grew 19 percent in 2013 and is expected to achieve a 20
percent growth in 2014. Spinneys Dubai LLC
Established in 1999, Ali Albwardy now has 100% ownership of the
Spinneys Dubai Group. The retailer operates from one distribution centre in the Al Quoz area of Dubai, with over 14,000 square metres storage space, nearly a third refrigerated. The company makes use of a UK based
consolidator for distribution of food and drink items to the UAE.
Spinneys supplies private and internationally labelled products that are familiar with expatriates around the globe. Despite the recent opening of the four Waitrose stores in Dubai, Spinneys continues to sell Waitrose
private label products imported from the UK retailer. The majority of
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Waitrose products which includes frozen, dairy, canned goods and
confectionary are available from Spinneys UAE stores. Overall, Spinneys does not consider its private label strategy essential to the business and,
at present, its private label share of sales is below 5%. Strategy
Spinneys has plans for further expansion of their 40 supermarkets within
the UAE. Spinneys is currently in the process of opening 5 new stores with 50% already in completion. The retailer has been successful in securing prime sites in prime locations which includes new and upcoming areas in
the new Dubai area. According to recent statements, the retailer is not planning to compete with the likes of the major hypermarket operators,
but will be covering the supermarket and superstore sector. Waitrose
Owned by the Albwardy Group in the UAE, Waitrose holds a licensing
agreement with Spinneys of Dubai and currently operate from four purpose built branches in Dubai.
Strategy
The UK food retailer seeks to expand its overseas presence with plans to expand further in the Middle East, with 8 stores in the region and plans to increase their foothold further in Abu Dhabi.
T Choithram & Sons LLC
Established in 1974, Choithram is a general trading, import and export business venture that also operates supermarkets and department stores.
It has extensive warehouse facilities and distribution centres situated in the Al Quoz area of Dubai and is one of the largest supermarket chains in
the UAE. Other business activities include wholesale, distribution of food and non-food items, catering and marketing branded consumer products
via a distribution and support network in the UAE. The chain consists of 28 supermarkets and 5 department stores at prime
locations across the seven Emirates of the UAE and represents 60 multinational companies. The company has extended its supermarket,
wholesale business and distribution network to the Sultanate of Oman, Bahrain and Qatar.
Strategy
The retailer has plans to double the number of stores within the UAE with nineteen new stores on their radar. Abu Dhabi is firmly on the Choithram radar and is believed to be lining up some prime spots for expansion. The
- 32 -
retailer caters for up-market and expatriate customers and depending on
location, can also target lower income groups.
Al Maya Supermarket The Dubai based retail group operates grocery and fashion outlets across
the UAE, and currently has 31 stores in the UAE, 18 of which are supermarkets. The group represents various international brands, and
started its first supermarket in 1979 in the emirate of Ajman. The group has offices in the UK and Poland and own a rice mill in the UK.
Strategy
The company’s strategy is to provide a ‘24 hour convenience store in every neighbourhood’, by ultimately aiming for a Tesco type express store. Al Maya is expanding its network, particularly its grocery network
by adding more and more supermarkets within the new developed areas in Dubai. Al Maya has already managed to secure prime spots in areas
such as the Marina and Jumeirah Beach Residence adding coffee shops as a new concept in their newer stores.
Al Maya have major plans to expand in the food & beverage sector with requests to import more UK products due to the high demand from British
expats. Al Maya believes there is still plenty of room for growth in the local
neighbourhood store format enabling the company to avoid competition with the major hypermarket operators and mall developers, as well as
allowing the company to get a head start in the convenience/supermarket sector before its rivals diversify in this direction.
Union Co-op
Established in 1982 by a group of local nationals, the Co-op now has an important position in the UAE being represented by a “Consumer
Cooperative Union” that orders private label products under the Co-op brand. Approximately 70-75 percent of food products are imported via a network of importers and wholesalers. The remainder is ordered direct,
but this is perceived to be a slower method of procurement.
The Union Co-op currently imports around 400 goods. The company’s main strategy is to import an increasing amount of commodities including canned foods, juices and fruits.
- 33 -
IX. IMPORT REQUIREMENTS
The UAE authorities have succeeded in unifying a number of food
standards and regulations in the food industry. Among the seven Emirates of the UAE, only the Emirate of Dubai requires that all food products imported through their entry points be registered and labels are pre-
approved by the local health department.
All labels must be written in Arabic or both Arabic and English. The labelling must be difficult to remove or alter, and must be clear and easy to read.
The label must show the following:
Brand name Product name (a summarised description of the food product)
The food ingredients (arranged according weight or volume) Production and expiration dates of all products
Name of the food manufacturer, packer, distributor or importer Net weight or volume Country of origin
Products barcode Lot (batch) number
Storage conditions (if applicable) Mentioning the ingredients which may cause hypersensitivity Language of the label shall be in Arabic. Approved stickers could be
used to translate the food labels in the Arabic language Instructions for using the product (if needed)
Displaying the nutritional information is optional (except the products with special uses such as baby foods, foods for patients, etc)
The label must not be:
False, misleading or deceiving
Suggest that it is another foodstuff Data must not be covered, altered or obliterated
Dating of foodstuff
Requirements:
Production and expiration date shall be printed on the original
package or label It is prohibited to write such dates manually or indicate them on a
sticker (including the sticker that is used for Arabic translation) Double dates are not allowed Production and expiration shall be clearly printed, embossed, or
engraved and difficult to erase
- 34 -
Day – month – year shall be indicated on food products with a
validity of three months or less. Month – year shall be indicated on food products with a validity of more than three months
Food products are divided into two categories with regards to their validity
Production/expiry (P/E) dates must be engraved, embossed, printed or stamped directly onto the original label or primary packaging at the time
of production, using indelible ink. P/E dates printed on stickers are not an acceptable alternative, neither is U.S. bar coding, in lieu of P/E dates. Only one set of P/E dates on the label is permitted. P/E dates must be
printed in the following fashion, depending upon the shelf life of the product:
- Day/month/year for products with a shelf life of three (3) months or less - Day/month/year or month/year for products with a shelf life longer than
three (3) months.
Under the month/year format, the last day of the month is considered the expiry date. Exporters who list the first day of the month following the expiry date have run into issues when trying to clear shipments. The
month may be printed in numbers or letters. For example, both 3/08 and March 08 are acceptable formats.
The word “Production” or the letter “P” must precede the production date. The expiry date must be preceded by one of the following statements:
“Expiration (date)”, “Use by (date)”, “Use before (date)”, “Sell by (date)”, “Valid until (date) from the date of production” or the letter “E."
Example of correct format:
P: 20/02/2012 E: 19/02/2013
Speciality food product labels, for items such as diet, health and infant foods, must contain detailed ingredient information (vitamins, minerals,
supplements, additives including food colourings, preservatives etc), nutritive value per 100 grams, health warnings if any and instructions for proper use and storage.
Inspection and clearance procedures
All consignments of foodstuff arriving at any ports are physically inspected. There is no exception to this requirement.
Certain foodstuffs, such as baby foods and edible oils, are sampled for
analysis at the central laboratory. When the consignment has been sampled for analysis, the decision as to their fitness normally takes five working days or more depending on the item.
- 35 -
Documents required
The following are the documents required to clear any cargo on entrance
to the UAE:
Bill of entry or Airway bill
Delivery order in case of containers only An original health certificate approved by the governmental health
authority at the country of origin Consignment packing list An original Halal certificate issued by an Islamic Organisation which
is approved by the UAE authorities (for meat and poultry products) Other significant certificates which might be required in case of any
international epidemics (such as GMO Free Certificates, Avian Flu Free Certificates, Dioxin Free Certificates, etc)
All meat and poultry products must be accompanied by an Islamic (Halal) slaughter certificate prior to exporting into the UAE. Animal fats and
ingredients should be sourced from animals that are Halal slaughtered. Legalisation of the documents is completed by UAE embassies in the
country of export before exporting and by the Ministry of Finance and Industry after the goods have entered into the country.
Banned products in the UAE
Adding alcohol is prohibited in any food product unless alcohol occurs naturally in products such as juices. Alcoholic beverages and alcohol
containing products can be imported but only through authorised importers who run their own retail shops. There are no special labelling requirements for alcoholic beverages beyond what is typically required in
the country of origin.
Any products containing pork should be clearly declared on the label (not only in ingredients). To avoid confusion with regulatory officials and
consumers, exporters may wish to steer clear of names traditionally associated with alcohol, pork or non-pork products such as turkey ham or beef bacon.
- 36 -
Banned Food Additives in the UAE
E. Number Name
E104 Quinoline Yellow
E105 Fast Yellow
E107 Yellow 2 G
E123 Amaranth C 1
E124 Ponceau 4 R
E127 Erythrosine
E131 Patent Blue V
E142 Green S
E924 Potassium Bromate (Bread products)
E952 Cyclamate
E1510 Ethanol (alcohol)
Duties There is now a 5% duty rate on most imported food products which enter
the UAE.
- 37 -
X. ROUTES TO MARKET
There are many routes to entering the UAE market. Most retail outlets
have a preference to import through a consolidator as they are already aware of the labelling requirements. There is also the option of setting up a manufacturing base in one of the UAE’s economic free zones.
The following gives a general idea to the various routes to entry:
Consolidator
A consolidator is most probably the most efficient, practical way of distributing food products. The advantage for UK companies is that they
can export very small quantities, without the hassle of sending in bulk to various distributors. The big disadvantage for this method is the lack of being able to monitor the products in the market and influence its
marketing potential.
Distributor Most of the larger distributing companies cover all sectors in the trade,
including hotels/service industry and retail. The majority of hotels in Dubai prefer to buy products through a well established distributor. In addition,
a good distributor should be able to offer advice on the local market, product potential and detailed import regulations.
The cost for distribution falls between 18% and 25% on top of the product shipping cost. Some distributors may be cheaper at around 11%. Most
distributors supply the retail and/or the food service industry including hotels, restaurants, catering companies and airline companies.
Some larger well established companies supply the retail industry and describe themselves as sales and marketing support service companies.
They work extensively around the year on product launches, advertising, public relations, events and exhibitions.
Some distributors are proactive in working with renowned chefs to conduct workshops, kitchen courses and other business development
activities that promote new products to their contacts.
Direct to Retailers The majority of supermarkets prefer to procure directly from a
consolidator. There are some leading supermarkets who still favour the traditional route of sampling the product direct through the company.
- 38 -
Free Zones
The option of setting up a manufacturing base in the UAE is becoming
more popular within the sector. The Free Zones are the most effective way of owning 100% of the company, thus offering a more productive business and tax incentive to foreign companies.
- 39 -
XI. UAE SEAFOOD CONTACTS
Retail Contacts
Name Designation Organisation Telephone Email
Edwar
Morin
Carrefour Purchase
Manager
+971 4 312
7300
emorin@carrefouruae.
com
Shiroj
Iyyakad
Lulu Group
International
Senior Buyer +971 4 383
2517
m
Amit Nihalchan
dani
T. Choithram & Sons LLC
Buyer – FMCG +971 4 347 9974
Ashok Tulsiani
Executive Director – Food
Al Safeer Group
+971 6 532 5353
Shawqi Khaleel
Purchasing Manager
Union Coop +971 4 371 4113
Saifuddin
Gheewala
Purchasing
Manager
Giant +971 4 359
6600
m
Marthinus Hendrikz
General Manager –
Commercial & Logistics
Spinneys / Waitrose
+971 4 355 5250
Kamal Vachani
Group Director
Al Maya Group +971 4 282 2555
K. Samuel
Varghese
Imports
Manager
Abu Dhabi
Cooperative Society
+971 2 644
5386
m
Ali
Mansouri
Imports
Manager
Abu Dhabi
Fishermen Cooperative Society
+971 2 673
0888
om
Foodservice Distributors
Name Designation Organisation Telephone Email
Faisal Procurement
Manager
Al Aqili
Distribution
+971 4 347
5252
- 40 -
Rajan J.
S.
Managing
Director
J. M. Foods
LLC
+971 4 338
6580
Joseph Abraham
General Manager
Al Seer Distribution
+971 4 372 5300
Suneel Menon
CEO Hallmark Foods
+971 4 329 5600
Hossam
Yehiya Shabayk
Foodservice
Manager
Aramtec +971 4 380
8444
Anil
Kumar Pillai
Purchasing
Manager
Barakat
Quality Plus
+971 4 880
2121
m
Daniel Cabral
Purchasing Manager
Kibsons International
+971 4 320 2727
Manish
Gandhi
Director M. H.
Enterprises
+971 4 347
0444
Steve Pyle Food Service Manager
Transmed +971 4 334 9993
Anzar
Nizam
Purchasing
Manager
Farm Fresh +971 4 339
7279
m
Bruce Woolner
Operations Manager
Chef Middle East
+971 4 815 9888
Praveen Kumar
Sales & Marketing
Manager
Eat Fish Company LLC
+971 50 482 4366
Mohammed Moideen
Managing Director
Al Tayeb Fish +971 2 673 3313
Ali Saeed Managing
Director
White Dolphin + 971 50
522 2772
om
Aamir Khan
Purchasing Manager
The Deep Seafood Company
+ 971 2 673 3446
Michel
Khoury
General
Manager
Foodco LLC + 971 50
661 4157
m
- 41 -
Jaimy Jose
Procurement Manager
K M Trading + 971 2 671 8654
Anil Kutti BDV
Manager
NMC Trading +971 2 673
4300
A P Al
Thaf
Manager Golden Group
of Companies
+ 971 2 555
1915
apalthaf@goldengroup
co.ae
Mani Anthony
Managing Director
Al Batha Trading Co
LLC
+ 971 2 448 1590
Anand Bhadia
Sales & Marketing Personnel
Emsons Group +971 2 673 1660
Oby
Varghese
Sales
Manager
Al Ahlia
Wholesale Foodstuff
+971 2 641
9811
et.ae
Hotels
Name Designation Organisation Telephone Email
Malek
Mousa
Group
Procurement Manager
Al Habtoor
Group
+971 4 394
1444
malek.mousa@habtoo
rhotels.com / [email protected]
Ranjit Sharma
Purchasing Manager
Dusit Dubai +971 4 317 4160
Owais
Rehman
Director of
Procurement
Hyatt Regency +971 4 317
2090
om
Shoaib Anwar
Assistant Purchase
Manager
Hilton Dubai Creek
+971 4 212 7600
Pushpa
Nair
Director of
Procurement
Crowne Plaza
Dubai
+971 4 305
6700
Giri Babu Corporate Director of
Procurement
Jebel Ali International
Hotels
+971 4 814 5365
Gaurav Melhotra
Assistant Director of Supply Chain
Jumeirah International
+971 4 384 5702
- 42 -
Thomas Joseph
Purchase Manager
Kempinski Hotels and
Resorts
+971 6 714 5669
Piyasena Galagader
ege
Purchase Manager
Le Meridien Group
+971 4 702 2585
Jabbar K Purchasing Supervisor
Marriott +971 4 607 7801
Siva Valutheda
th
Purchasing Supervisor
Radisson SAS Hotels and
Resorts
+971 4 262 5555
Rohan Perera
Purchasing Manager
Rotana Hotels +971 4 705 4561
Ravi
Menon
Purchasing
Manager
The One and
Only Royal Mirage
+971 4 315
2713
purchasing@oneandro
yalmirage.ae
- 43 -
XII. CONSIDERATIONS FOR EXPORTERS
Entering the Market
Economic activity in the UAE is regulated by each individual Emirate as well as by the Federal Government. Dubai has taken the lead in
constructing/developing a relatively unrestricted environment in which to do business. Competition is very keen in established sectors. Breaking
into an existing market means newcomers have to work hard to capture a share. Newcomers need to find competitive advantages, for example, better quality, faster delivery, lower prices or newer designs.
Other opportunities exist alongside notable joint public / private stock
companies. An example is Dubai Investments, a Public Joint Stock Company, which is developing a 3180 hectare industrial park on the outskirts of Dubai. The company has interests in the manufacturing of
consumer goods, communications, light industry, high technology and environmentally friendly acquisitions. Their core business is investment in
viable projects that have the potential for growth across all economic sectors.
The majority of local governments and federal ministries based in Dubai are required to purchase through local agents, who may also assist in
marketing and sales, although it is still possible for a company outside the UAE to sell directly to contractors. Generally, price is the most important factor in promoting sales, although it is evident that product quality and
after-sales service are also important selling factors in the UAE market. Advertising and participation in sales promotions and trade exhibitions is
often helpful for raising consumer awareness and gaining market share, but effectiveness will vary according to product.
The period from September - June sees a variety of trade exhibitions and conferences in a broad range of sectors including information technology,
education, interior design, construction, food & drink and health. Exhibitions and trade fairs are also held in Sharjah, Ras Al Khaimah and
Fujairah. It is important for companies to project the right image from the moment
they enter the market. The basic principles of advertising, marketing and trade literature are the same as in the UK. Design should be dramatic but
inviting, simple and easy to follow.
- The style should be in keeping with the product
- All commercial correspondence should be in Arabic as well as English
- Price quotations should be given in UAE Dirham or US dollars - All quotations and prices should include customs duty, cost,
insurance and freight (CIF)
- 44 -
Channels of Distribution and Sale
There are three main methods of exporting to Dubai and the Northern
Emirates. It is up to individual companies to choose the method of export that best suits the characteristics of their product or service following careful assessment of potential sales in the market place. These methods
are:
Direct Trade International manufacturers and exporters may conduct business with the
country by concluding transactions directly with importers and traders who are already established in the market. This type of trade is best
suited to low volume trade or to test the market and should not otherwise be used as a permanent arrangement.
Commercial Agencies
A foreign company wishing to supply goods to the UAE can do so without establishing a physical presence by appointing a commercial agent and distributor. The Federal Commercial Agency Laws of 1981 and 1988 state
that an agent must be a UAE national or a company 100% owned by UAE nationals. There have been suggestions that this law may be reviewed.
Officials from the UAE have met with a delegation from the World Trade Organisation (WTO), as part of the drafting process for a new UAE commercial law currently under consideration. The UAE, which has been a
member of the WTO since 1996, held discussions with the organisation before the trade policy review in March 2006. The new law though still to
be agreed will allow majority foreign ownership of UAE registered firms; at present foreigners can only own 100% of UAE companies in dedicated free zones such at Jebel Ali and Dubai Internet City.
The UAE is a federal country and it may be necessary to appoint more
than one representative in order to cover the whole market effectively. Alternatively a sole agent may be appointed. In practice, many overseas
companies appoint several agents to cover defined areas of the country (and the region) and may have separate agreements for separate products. Any commercial agency agreement needs to be drawn up with
great care specifying the products and territories to be covered by the agent.
The Commercial Agencies Law was amended in 2006. Under this amended law the provision prohibiting a principle from refusing to renew
an agency agreement without justified cause has been deleted. In reality it may still be extremely difficult to terminate a commercial agency
agreement without facing a claim for compensation from the agent unless it is terminated with the written agreement of both parties. However, Article 8 also now states that a principle may register a different agent if
the term of the agreement has expired.
- 45 -
Crucially, Article 8 goes on to state that a time limited agency is deemed to be terminated on the expiry of its term, unless both parties agree to
extend its validity within one year prior to the termination date. In other words, termination is now automatic unless there is mutual consent to renew, whereas before the agency agreement was deemed to continue
unless there was mutual consent to terminate. Article 9 now states under the New Law that either the principle or the agent may claim
compensation if termination of the agency causes damage to either of the parties. Previously the right to claim compensation was the agent's alone. The embassy recommends that UK companies should seek legal advice
before entering into a written agreement.
Setting up a Presence in the UAE
Apart from the obvious distinct advantages of having a physical presence
in the market place, one important consideration is that businessmen in the Middle East prefer to meet, in person, those they may wish to do
business with. It is important to invest time in building relationships with potential customers or partners.
Customs Duties
The UAE imposes 5% customs duty across-the-board on most categories of imports. Products brought into a free zone within the UAE are exempt from import duties. However, goods exported from a free zone into any
of the Emirates are treated as imports and are liable for customs duty.
Such duties are levied on the CIF value. Some goods including all transit cargo, are exempt from duty (for example foodstuffs, medicines and public sector imports) although the customs authorities may call for a
cash or bank guarantee as security, refundable to the owner of the goods on their re-export outside the UAE.
The UAE's customs tariffs are based on the World Customs Organisation
nomenclature system. Duties may be levied ad valorem or specific to the goods concerned.
The UK customs classification helpline (Tel: 01702 366 077) provides advice on customer classification numbers. The helpline is open from
09.00-16.30. Enquiries can also be e-mailed to [email protected].
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Temporary Imports & Samples
Commercial samples and temporary imports may be imported duty free
and stored in any of the free zones in the UAE. Subsequently, the majority of goods then transferred into the UAE from free zones are subject to 5% duty.
Import duty is not usually levied on samples imported into the UAE.
However, for goods of a higher value such as jewellery, prior permission to import and arrangements for free entry must be made with the director of customs, preferably through a local sponsor or agent.
The Arab-British Chamber of Commerce has a network of agent and sub-
agent chambers of commerce throughout the UK that can help companies with enquiries about sending samples and temporary imports to the UAE. Companies should contact their local chamber of commerce to find out
where their local agent chamber is. The website of the British Chambers of Commerce (www.chamberonline.co.uk) has a search facility that allows
enquirers to locate their local chamber. Additional Taxes
Corporate income tax: the individual emirates issue corporate tax
decrees although in practice, taxes have only been imposed on oil and gas producing companies and petrochemical producing companies at rates set out in their Government concession agreements.
Capital gains tax: capital gains are not subject to taxation.
Social security taxes: the UAE does not impose social security taxes.
Terms of Payment
Most UK banks can provide advice on payment. Generally speaking any of the customary methods of payment used in international commercial
transactions can be used when doing business with UAE companies. Irrevocable Letter of Credits (L/C) and cash against documents (CAD) terms are the most common methods of payment. Further information on
payment terms are held in the Simpler Trade Procedures Board (SITPRO) briefings on 'getting paid for your exports' www.sitpro.org.uk.
Debt Collection
In order to minimise the risk of accruing bad debts, exporters should take up credit references on UAE importers with whom they do business. Legal
action can be both costly and lengthy and may not be worthwhile for relatively small debts.
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Commercial, diplomatic or consular officers are not able to assist in the
collection of debts but they may be prepared to offer advice on the best means of settling outstanding difficulties. British banks are able to advise
on the different means of securing payment. A list of lawyers specialising in UAE law can be obtained from the Law
Society or direct from the British Embassies in Abu Dhabi and Dubai.
Export Financing and Insurance Export Credits Guarantee Department (ECGD) can provide insurance or
arrange medium/long-term finance packages in a wide range of markets worldwide for UK exporters of capital goods and projects.
They can also provide contacts for private sector insurance for UK exporters of consumables. For more information on how ECGD may be
able to help you visit the ECGD website www.ecgd.gov.uk or contact their helpline 0207 512 7000.
Insurance of Imports from the UK
In the UAE there are no restrictions. The importer is free to arrange his preferred form of cover.
Getting your Goods to the Market
All the emirates have modern ports and warehouse facilities. The port of Jebel Ali in Dubai is the largest man-made port in the world; it currently
has 63 deepwater berths and good warehousing facilities. An expansion of the port is underway. The majority of goods are imported by sea. Much is transferred by truck to neighbouring GCC countries or to smaller ships
for onward movement to ports around the region.
In Dubai, Port Rashid and Jebel Ali Port are now amalgamated under the Dubai Ports World. Port Rashid is one of the busiest ports in the Gulf and
has 35 berths. The development of the free zones at Jebel Ali and Dubai International
Airport has enabled Dubai to dominate the regional business of unloading, breaking down and reloading cargo for onward shipment. Warehouse
facilities provide storage for imports and there are no storage charges for the first 20 days.
Other ports in the UAE are also seeking to gain a share of the re-export business. Sharjah is the only emirate with a port on both the Gulf and
Indian Ocean (Gulf of Oman) coasts (Mina Khalid and Khorfakkan). Fujairah also has a port on the Indian Ocean (Gulf of Oman). Having a port located on the Gulf of Oman outside the entrance to the Gulf is a
significant advantage. An international cargo ship can cut 24 hours off the
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sailing time from Europe to the Far East by not joining the queue to pass
through the busy straits of Hormuz, not to mention the savings from lower insurance rates for not entering the Gulf.
Delivery Dates
Sea freight from the UK takes approximately 4-6 weeks, with airfreight taking 3-7 days. Goods requiring transfer from the ports will require extra
time and this will need to be taken into account when calculating delivery time. Customs clearance can also add a week or two to delivery times.
The British International Freight Association's (BIFA) importer/exporter initiative aims to provide specialist help and assistance to companies who
are new to exporting. This service, available through selected BIFA registered members, offers up to one day's free consultancy to advise companies on such matters as modes of transport, distribution methods,
costing, documentation and payment terms. More information on BIFA can be found on www.bifa.org.
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XIII. ‘DOs AND DON’Ts’ FOR BUSINESS VISITORS TO THE UAE
This information is not charged under OMIS but provides you with the key
facts for a successful visit to the UAE. Travel insurance: we strongly recommend that you obtain
comprehensive travel and medical insurance before arriving in the UAE.
Visas: British citizens are given 'leave to enter' on arrival in the UAE. However, if you plan to stay longer than 30 days, you must contact the UAE immigration authorities. British citizens must have at least six
months validity remaining on their passports to be given 'leave to enter'.
Do respect customs regulations: the importation of narcotics, pork products and pornographic books and material is forbidden. Videos, books and magazines are subject to scrutiny and may be censored. The
penalties for drug trafficking, smuggling and possession are severe. The presence of drugs in the body is counted as possession and carries a
minimum sentence of four years imprisonment. Some UK prescription/over the counter medicines are illegal in UAE. If you have any concerns about taking medication with you in the UAE, you should contact
UAE Embassy in the UK for further information.
Do respect local laws and customs: dress in a modest way, covering at least tops of arms and legs. Don't wear tight clothes. Don't behave in a manner that might insult Muslim sensitivities, customs or beliefs. Don't
make rude gestures or swear - you could be taken to court and face a severe fine and detention. Public displays of affection between members
of the opposite sex are frowned upon. You should respect local customs and sensitivities at all times, especially during the holy month of Ramadan or if you intend to visit religious sites.
Do be aware of the law relating to alcohol: In the UAE drinking is
allowed in your own home as long as you hold a valid liquor licence. There are also a large number of licensed hotels serving alcohol. But
Muslim sensitivities to alcohol should be observed and it is a punishable offence to drink or be drunk in public. If you go into a public place having taken alcohol and come to the notice of the police for whatever reason,
you can be charged under the alcohol laws.
Please also note if you are of the Muslim faith, whatever your nationality, it is illegal for you to drink in the UAE. Finally, DO NOT DRINK AND DRIVE. The Emirati authorities operate a zero tolerance policy towards
drink/driving.
For more information on travel to UAE, consult the Foreign and Commonwealth Office travel advice for the UAE.
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XIV. KEY CONTACTS AND INFORMATION
British Embassy, Abu Dhabi
Address: Khalid bin Al Waleed St (Street 22), PO Box 248, Abu Dhabi Tel: +971 2 610 1111
Fax: +971 2 610 1585 Email: [email protected]
British Embassy, Dubai
Address: Al Seef Road, PO Box 65, Bur Dubai Tel: +971 4 309 4444 Fax: +971 4 309 4302
Email: [email protected]
Event & Conferencing Facilities The British Embassies in the UAE have some space suitable for receptions,
seminars or other events such as product showcases. UK companies can use this space for a fee, subject to availability and agreement.
Telephones
The international dialling code for the UAE is +971. Landline numbers in Dubai are prefixed with 04; Abu Dhabi with 02 and mobile numbers with
050, 052, 055 or 056. Currency
The unit of currency is the UAE Dirham (AED). One Dirham is made up of
100 fils. The currency is pegged to the US Dollar at a rate of AED 3.67 to $1.
Hotels
When you are planning your visit to the UAE please bear in mind that hotel space is at a premium. During the high season (October-May) it can
be very difficult to find good quality hotel accommodation. The problem is particularly acute around the dates of major exhibitions.
Language
Arabic is the official language. English is widely used and understood. A number of South Asian languages are also commonly used including Malayalam, Urdu and Hindi.
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Getting Around
The easiest way to get around during a visit to the UAE is by taxi. They
are generally clean, inexpensive and efficient. There are a number of taxi companies in the UAE and taxis are available at all major hotels and shopping malls.
They can also be flagged on the street. Almost all are metered. The
starting charge for a taxi flagged in the street is 3 Dirhams between 0600 and 2200 (3.50 between 2200 and 0600).
Taxis from the airport start at 20 or 25 Dirhams depending on the time of day. There are many local and international car hire companies operating
in UAE. Visitors will require an international driving licence in order to hire a car in UAE.
Working Hours
Working hours can vary between the emirates and may also change between summer and winter. The public sector takes a Friday/Saturday weekend. In the private sector some companies take Friday and others
Friday/Saturday. Friday is the Muslim holy day and many retailers are closed until mid-afternoon or evening. Most retail outlets remain open
until late evening. Hours vary during Ramadan, the Muslim holy month of fasting during
daylight hours. Most officials work from 0900 to 1300, but many useful contacts can be made and renewed during and after the evening 'Iftar'
meal. Federal government and administrative offices in United Arab Emirates
generally work from 0730-1430 Sunday to Thursday. During the month of Ramadan, the business hours can reduce to something like
0900-1300.
The private sector has traditionally worked a split shift from 0830-1300 and 1600-1900 Saturday to Thursday. Increasingly though the private sector is adopting a 0900-1700 working day. Some companies
operate a two-day weekend on Friday and Saturday.
Banks are open from 0800-1300 Sunday to Thursday.
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Local Public Holidays 2014
27 May Leilat al-Miraj (subject to confirmation)
29-31 July Eid al-Fitr (subject to confirmation) 4-7 October Eid Al-Adha (subject to confirmation) 25 October Al-Hijra (subject to confirmation)
2 December UAE National Day
In 2014 the Muslim holy month of Ramadan is expected to last from 29 June until 28 July and ends with Eid Al Fitr holiday on 29 July, subject to confirmation.
Meetings
The time frames people work to are often shorter than in the UK. It is not unusual for meetings in the UAE to be arranged with relatively little
notice. In fact it can be counterproductive to try and arrange them too far in advance. By the same token meetings can be cancelled or postponed
at short notice. This does not necessarily indicate a lack of interest, however priorities can change suddenly.
Interlocutors may not always be prepared for a meeting and you may find it necessary to start by explaining again who you are, why you are visiting
and something about your company's product or service. Climate
UAE has a sub-tropical, arid climate with around 13cm of rainfall a year.
During the summer months, between June and September, the temperature is between 38c and 50c during the day and around 30c during the night. The winter months are from December to March when
the temperature falls to between 20c and 26c during the day and 12c and 16c during the evening.
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XV. FOLLOW-UP ACTION
We are happy to discuss the findings of the report and the progress you have had with the companies we put you in touch with.
Please do not hesitate to contact me direct if you have any further questions about this service. We would be happy to receive feedback on
the service we have provided so far. We look forward to hearing from you soon and continuing to work with
you to help expand your business in the UAE.
Performance & Impact Monitoring Survey (PIMS) UK Trade & Investment (UKTI) is striving to provide the highest quality
service to all its clients, and greatly values feedback from the businesses it has helped. In order to achieve this, UKTI has commissioned an
independent market research specialist, OMB Research, to conduct surveys on its behalf. The interviews invite clients to provide frank views on both the quality and usefulness of the support provided. These
surveys are conducted under the market research code of conduct, which means that all of the survey responses are strictly confidential, and
reported to UKTI only in anonymised aggregate form. UKTI uses the findings from these surveys to help drive quality and
satisfaction improvement and to inform the focus of its trade services, to ensure they are meeting the needs of UK exporters as effectively as
possible. As Seafish Industry Authority has been a recipient of UKTI’s Overseas
Market Introduction Service, you may be contacted by OMB research and asked to take part in the survey. Participation in the surveys is voluntary,
but as this evidence is so important to informing UKTI policy development, we very much hope you will be able to take part.
