UAE Export Guide: Market Research Report - Seafish

Here to give the UK seafood sector
the support it needs to thrive.

Export Guide:
UAE
Market Research Report

UNITED ARAB EMIRATES

Overseas Market Introduction Service
 2018

 Produced by:

 Ogundimu Wuraola
 Trade Manager, Consumer & Retail

Contents

THE UNITED ARAB EMIRATES (UAE) ............................................................................................................. 4
UAE FOOD AND DRINK SECTOR .................................................................................................................... 6
UAE SEAFOOD INDUSTRY ............................................................................................................................ 11
 Local Fisheries Statistics .......................................................................................................................... 11
 Economic Importance of the Seafood Industry ...................................................................................... 12
 Consumer Trends and Opportunities ..................................................................................................... 15
 Expo 2020................................................................................................................................................ 16
 Relevant Trade Shows ............................................................................................................................. 16
FOOD AND DRINK IMPORTS REQUIREMENTS ............................................................................................ 18
 Labelling and Packaging .......................................................................................................................... 18
 Dating of Foodstuffs................................................................................................................................ 19
 Inspection and Clearance Procedures .................................................................................................... 20
 Documents Required .............................................................................................................................. 20
 Banned Food Additives in the UAE ......................................................................................................... 21
 Tariffs and Duties .................................................................................................................................... 21
ROUTES TO MARKET ENTRY ........................................................................................................................ 23
 Consolidator ............................................................................................................................................ 23
 Distributor ............................................................................................................................................... 23
 Direct to Retailer ..................................................................................................................................... 24
 Export Management Company ............................................................................................................... 24
 Free Zone Set Up..................................................................................................................................... 25
 Onshore Set Up ....................................................................................................................................... 25
BUSINESS ETIQUETTE AND GENERAL INFORMATION................................................................................. 26
 Language ................................................................................................................................................. 26
 Meetings and Presentations ................................................................................................................... 26
 Negotiations ............................................................................................................................................ 27
 Cultural Considerations........................................................................................................................... 27
 Working Hours ........................................................................................................................................ 27
 Currency .................................................................................................................................................. 28
 Telephones .............................................................................................................................................. 28
 Hotels ...................................................................................................................................................... 28
 Getting Around ....................................................................................................................................... 28

BRITISH EMBASSY CONTACTS ..................................................................................................................... 29
 British Embassy, Abu Dhabi .................................................................................................................... 29
 British Embassy, Dubai ............................................................................................................................ 29

 3

THE UNITED ARAB EMIRATES (UAE)
The UAE is a member of the Gulf Co-operation Council
(GCC) which includes Saudi Arabia, Kuwait, Oman, Bahrain
and Qatar.
 Key Facts
The UAE is a federation of seven Emirates. Abu Dhabi is the
capital which includes Abu Dhabi city as well as the The UAE had a population of
Western provinces including Al Ain, together making it the 9.4 million in 2017 comprising
largest Emirate. Dubai is the most significant emirate from a of around 12-15 percent
trade and commerce perspective. The other emirates are Emiratis & 85-88 percent
 expatriates.
Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al
Quwain. More than half of the population lives in Dubai,
Sharjah and Abu Dhabi. The remaining are in the other four The UAE welcomed 15.8 million
Emirates. tourists in 2017, up by 6.2%
 over the previous year.
In the last few years, especially after the fall of oil prices,
the UAE has diversified its economy away from oil. This has
always been the case for Dubai who diversified into other Dubai is expected to attract
income generators such as tourism. Abu Dhabi, where most 20 million tourists by 2020.
of the oil reserves are concentrated, has been actively
following a policy of economic diversification. Non-oil
 The United Kingdom was the
sectors now contribute to 70 percent of GDP and it’s
 third-largest source of tourists,
expected to increase to 80% by 2021. delivering 1.27 million travellers
 – up by 2 per cent over 2016.
The UAE has developed into a major regional economy
 Around 120,000 UK nationals
over the past 10 years and is expected to see real GDP
 reside in the UAE.
growth of between 4 and 5 percent per year from 2018 to
2020.
 The UAE is the second largest
 Indicators Unit 2017 Arab economy. Holds 10
 GDP per capita £ billion 32,336.13 percent of the world’s oil
 Population million 9.4 reserves; expected to last for
 Inflation % 2.9 more than 100 years.
 Source: IMF

The UAE is the UK’s biggest export market in the Middle East GDP per capita was
& North Africa (MENA) region and the 12th biggest export £32,336.13 in 2017.
market globally. There are over 5,000 British companies
operating in the UAE. UK-UAE bilateral trade in goods and
services reached £12.4 billion in 2013 from £7.5 billion in

 4

2009. It is expected to double to £25 billion by 2020.

The UAE is a diverse and multi-cultural country represented by various ethnic and
religious groups. Local Emiratis make up about 12-15% of the population, based on
different estimates. The other major ethnic groups are Arab and Iranian (20%), South
Asian (50%), Filipino, Western expatriates etc. The table below shows the statistics
breakdown of UAE population:

 Nationals of Population Population %
 India 2,600,000.00 27
 Pakistan 1,200,000.00 13
 UAE 1,084,764.00 11
 Bangladesh 700,000.00 7
 Philippines 525,530.00 6
 Iran 450,000.00 5
 Egypt 400,000.00 4
 Nepal 300,000.00 3
 Sri Lanka 300,000.00 3
 China 200,000.00 2
 All other countries 1,696,334.00 18
 Total UAE Population 9,456,628.00 100
 *Source: Abu Dhabi Information for residents and travelers 1

More than 50% of the UAE expert population are from South Asia. UAE has a relatively
young population: more than 70% of the population within the ages of 0-55. The table
below shows the statistics breakdown of the age group breakdown:

 Total
 Women Men
 Age Group (in Percentage
 (in millions) (in millions)
 millions)
 0-14 years 0.67 0.69 1.36 14%
 15-24 years 0.4 0.81 1.21 13%
 25-54 years 1.46 4.83 6.29 66%
 55-64 years 0.09 0.45 0.54 6%
 65 years and over 0.03 0.11 0.14 1%
*Source: Global media Insight 2

1
 http://www.abudhabi2.com/uae-population-by-nationality/
2
 https://www.globalmediainsight.com/blog/uae-population-statistics/

 5

UAE FOOD AND DRINK SECTOR
“In line with consumer spending more broadly, our outlook for the
UAE food and drink market remains positive over our 2017-2021
forecast period. Ongoing rises in disposable incomes combined with
increasing adoption of Westernised consumption patterns will drive
industry growth, particularly for premium food and drink products.
While we note downside risks posed by regulatory changes such as
the imposition of a tax on tobacco and sugary drinks in late 2017, and
 Key Facts
VAT in 2018, we believe the overall impact will be limited due to the
 Sector estimated at £21 billion
affluence of the consumer base and relatively low retail prices to
 in 2014, based on consumer
begin with.”
 expenditure.
 BMI UAE Food & Drink Report Q1 2018

The UAE has quickly earned itself a reputation as one of Total value of food & drink
the leading destinations to enjoy quality food and five-star imports, exports & re-exports
 reached £28 billion in 2013.
hospitality services. Both the growing affluence and
numbers of the UAE population and visitors over the last
two decades, has led to a rise in the consumption of food Agriculture accounts for 1
and beverage products in general; it has also percent of GDP; 80 percent of
encouraged the adoption of a whole new range of food & drink is imported.
products with habits and tastes changing at a similar
pace.
 £8.26 billion worth of imports
The country’s growing population, thriving economy, and from UK in 2015 out of which
 around £184.2 million was food
profile as one of the world’s hottest tourist destinations has
 & drink.
only whet the UAE’s appetite for quality food products
and hospitality services. Gourmet food stores, organic
supermarkets, spice markets, speciality food stores, fish
markets, international hypermarket chains and local
convenience stores now stock everything from quail eggs
to white truffle oil.

The UAE food and drink sector is estimated to reach £31
billion by the end of 2018.

Due to harsh climatic conditions and scarce water
resources, the UAE and other GCC member states are
heavily reliant upon imports for their food supplies. Limited
home-grown sources of food in the UAE obviously mean
that the country’s import demand for overseas products is
perennially strong. Agriculture represents a very small
share of the UAE's economy. The total cultivated land has

 6

decreased in recent years, and the UAE remains a major net food importer.

In 2017, the UK was the 12th major supplier of food products into the UAE. The tables
below summarise UAE imports across different countries:

Number of imported shipments 2017

 Country of Origin Number of imported shipments
India 68,796
Oman 46,487
Pakistan 16,640
Egypt 15,193
Netherlands 13,714
United States 11,911
Australia 11,187
China 9,025
Iran 8,806
Thailand 8,447
Kenya 8,062
United Kingdom 7,879
Turkey 7,289
Ethiopia 6,965
France 6,872
Italy 6,705
Sri Lanka 6,524
Spain 6,319
South Africa 6,079
Vietnam 4,717
*Source: Dubai Municipality 2018 data

Although in the 12th position in the number of shipments, the UK is the number one in the
number of imported food products into the UAE. See table below:

Number of imported items 2017
 Country of Origin Number of imported items
United Kingdom 291,843
India 267,654
Netherlands 174,959
Oman 173,657
United States 109,628

 7

Thailand 78,709
Italy 67,768
Australia 57,063
Pakistan 48,061
Egypt 40,741
*Source: Dubai Municipality 2018 data

 Country of Origin Quantity of food imported per kg
India 1,632,872,787
Canada 801,240,442
Australia 420,574,205
Pakistan 343,436,286
Iran 316,027,918
Egypt 294,045,971
China 287,410,134
United States 263,835,178
South Africa 248,273,096
Oman 219,208,507
Romania 181,532,101
Turkey 178,647,529
New Zealand 177,364,031
Ukraine 158,981,253
France 154,488,140
Russian Federation 152,031,391
Philippines 151,668,409
Brazil 135,150,188
Thailand 128,411,490
Argentina 124,936,810
Netherlands 116,237,460
Malaysia 111,494,078
Vietnam 111,238,792
Italy 104,986,415
Spain 102,001,726
Indonesia 100,612,440
United Arab Emirates 86,634,888
Germany 75,407,023
Ecuador 72,493,376
Lebanon 63,517,566

 8

Kenya 62,229,878
Myanmar 56,866,248
United Kingdom 49,752,724
Belgium 42,182,561
*Source: Dubai Municipality 2018 data

Based on Dubai Municipality records, the most imported item group is the grains and
cereals. Seafood is the 10th highest imported item into the UAE. See below table

Top imported food group items 2017
 Groups Name Total Weights / TONS
Grains, Cereals and Products 14,041
Dairy Products 9,026
Chocolates, Confectionery, Sugar, and Products 4,714
Vegetables and Products 4,154
Beverages and Soft Drinks 4,140
Water 3,406
Pulses, Seeds, Nuts, and Products 2,415
Soups, Sauces, Dressing and Products 1,565
Herbs, Spices, Coffee and Products 1,458
Fish, Seafood and Products 1,116
Snacks and Ready to Eat Food 964
Fruits and Products 757
Food Additives 681
Meat, Poultry and Products 598
Special Nutritional Use Products 294
Miscellaneous Food 248
Oils, Fats, And Products 175
*Source: Dubai Municipality 2018 data

Dubai’s strategic position as the gateway between the three continents of Europe, Asia
and Africa and the establishment of the many free trade zones have supported the
growth in food & drink exports and re-exports from the UAE.

The majority of the food & drink exports and re-exports from the UAE are to Iran, Oman,
Iraq, Saudi Arabia and Qatar.

The UAE is the primary entry point for doing business in the Middle East and North Africa
(MENA). Food & drink exports and re-exports from UAE stood at around £5.64 billion in
2013.

 9

The UAE food & drink market has performed well during the last few years on the back
of a growing population, a surge in visitor numbers coupled with increased per capita
income and consumption.

The construction boom, especially related to hospitality sector including hotels,
restaurants and malls, has significantly supported the UAE food & drink industry. The
growing tourism industry is positive for the sector with plans to increase hotel room
capacity to add almost 30,000 rooms with an additional 140 hotels in the coming few
years. Dubai currently has a stock of 676 hotels with 101,502 rooms. In total there are
currently 71 known hotels in varying stages of planning or construction in Dubai which
are estimated to provide over 22,000 additional rooms.

The increasing demand from the catering industry providing for in-flight meals has also
benefited the sector. Emirates Airline, the world’s largest international carrier, has a very
sophisticated catering division that is already active buying from UK suppliers. Emirates
Flight Catering’s (EKFC) facility in Dubai is the largest of its kind in the world, with a
capacity of 250,000 meal trays a day. Last year, EKFC supplied 50 million meals for
Emirates flights and 8 million for other airlines.

Modern retailing and western consumption trends are creating a host of opportunities
in the retail and tourism sectors. Rising health awareness means that there are
increased opportunities for producers of healthy and organic products; the market for
packaged and ready-made meals is similarly robust.

The UAE population is increasing on an average of 2 percent annually. The UAE’s
sustained population growth creates a solid food market base with diversified consumer
habits.

 10

UAE SEAFOOD INDUSTRY

Local Fisheries Statistics

Fishing is an embedded tradition in the Emirati culture as
many of the Emirati ancestors depended on fishing for
survival due to the limited agricultural activity. The strategic
position of the UAE at the southern end of the Gulf, lying
 Key Facts
between the Arabian Peninsula and Iran has contributed
 Abu Dhabi has an estimated
significantly to this trade. The country has sea borders to two
 70% of the landed catch in the
very distinct water bodies: the largest coastline borders the
 UAE which equals 4438 tons
embayment-like Gulf while the East coast has a border to the
 per year.
more oceanic Gulf of Oman and Arabian Sea( also knowns
as the Persian Gulf).

 UAE is reliant on import to
 meet demand for sea food.

 70% of seafood product UAE is
 imported.

 Salmon was the most imported
 seafood product in the UAE.

 Consumers are seeking more
 healthy food options and
 seafood products are helping
 to fill the gap.

 There are opportunities around
The majority of catch is taken from Abu Dhabi, since this
 the Expo 2020 for the expo
Emirate comprises over 72% of the sea area of the United
 branded products.
Arab Emirates. However, the most productive areas are
inshore areas near to the Straits of Hormuz, around Ras al-
Khaimah. This can be attributed to the lower population in
the Ras Al Khaimah area. Abu Dhabi has an estimated 70%
of the landed catch in the UAE which equals 4,438 tons per
year.

There are over 30+ designated landing sites for seafood in
UAE and most are located along the coast and these

 11

products are generally auctioned at the market in which they are landed. Most landing
places incorporate facilities for landing, storing, auctioning, wholesaling and retailing
the catch, while some of the larger landing places/markets also have simple processing
facilities for wholesale and retail customers. Some imported and trans-shipped product
is also sold in the markets, although locally captured fish pre-dominate.

According to the Ministry of Climate Change and Environment (MOCCAE), there are
approximately 5,115 national and 13,288 expatriate commercial fishermen in the UAE,
operating in 5,985 vessels. There are about 16,000 recreational vessels registered with
the Federal Authority for Land and Sea Transport in UAE. There are 2,818 active
commercial fishers in Abu Dhabi with vessels crewed by 468 Emirati fishers and 2,350
expatriates.

Economic Importance of the Seafood Industry

Economically, the UAE seafood sector comprises only 0.12 % of the country’s GDP
contribution - about 39 million pounds. Similarly, in Abu Dhabi, the total ex-vessel value
of the landed catch for the commercial fishery is estimated to be less than 0.0077 % of
the Emirate’s GDP - valued at 27.9 million pounds. The economic contribution of the
fisheries sector is relatively small in terms of the overall output of Abu Dhabi Emirate and
that of the UAE. However, this is outweighed by the cultural importance and
significance of the seafood industry to the UAE population.

Currently the UAE imports 70 % of seafood products, with the 29% from local fisheries
catch and 1 % from aquaculture. Salmon continues to be the most imported seafood
product in the UAE. The table below shows some of the most popular seafood products
into the UAE.

Top imported seafood products 2017
Product Name Total Weights KG
Salmon 628,707
Cod fish 84,226
Mackerel 57,958
Haddock 37,717
Tuna 31,160
Fish fingers 26,757
Turbot fish 24,332
Dover sole 22,825
Oyster 22,638
Mussel 16,074
Halibut fish 14,578
Prawns 14,297
Scallops 13,853

 12

Shrimps 13,550
Octopus 10,448
Crabs 9,774
Sea bass 8,497
Herring fish 8,327
Fish fillets 7,733
Sardines 7,702
Fish cakes 6,237
Monk fish 4,834
Pollock 3,711
Sole fish 3,488
Lobster 3,392
Trout 3,343
Clams 3,182
Crab legs 3,074
Red king crab 2,420
Cord fish 2,398
*Source: Dubai Municipality 2018 data

The UK is one of the top exporters of seafood to the UAE. The table below compares the
increase/decline of seafood imported from the UK to UAE between 2015 and 2017

 2015 2017 % Import %
 Fresh & Chilled
 Imports 2015 Imports Imports 2017 Imports weight Value
 Items
 Weight Value in GBP Weight Value in GBP change change
 in KG in KG
 Pacific salmon 267,233 2,176,828 11,989 75,069 -96% -97%
Atlantic salmon
and Danube
salmon 247,770 1,291,024 499,181 3,398,773 101% 163%
Crabs 4,277 33,332 562 3,582 -87% -89%
Halibut 19,234 291,510 42,128 358,017 119% 23%
Lobsters 1,708 37,075 79 1,983 -95% -95%
Plaice 156 944 145 805 -7% -15%
Sole 22,611 370,945 23,081 352,961 2% -5%
Trout 12,244 170,075 3,462 39,289 -72% -77%
Turbots 23,165 456,499 26,889 468,246 16% 3%
Cod 24,030 105,811 36,615 162,645 52% 54%
Haddock fish 30,712 114,392 20,854 84,144 -32% -26%

 13

Oyster 22,733 69,658 25,189 107,800 11% 55%
Clams, cockles
and arks shells 313 2,540 3,076 11,750 883% 363%
Mackerel 36 242 481 1,898 1237% 684%
Ray fin fished and
others in the
family 14 163 295 3,441 2034% 2006%
Other fish fillet 2,387 11,612 21,749 129,028 811% 1011%
Other fish fillets
dried, salted, or in
brine but not
smoked 25 9 60 320 142% 3547%
Pacific salmon
fish fillet 1,190 4,099 28,901 53,308 2330% 1201%
Salmonidae 1,526 22,862 2,997 34,266 96% 50%
Seabass 48,586 773,917 8,382 117,250 -83% -85%
Catfish 9,762 116,170 4,554 50,244 -53% -57%
*Source: Federal Competitiveness and Statistics Department UAE

 2015 2017 % Import %
 Frozen Items Imports 2015 Imports 2017 Imports Imports weight Value
 Weight Value in GBP Weight in KG Value change change
 in KG in GBP
Albacore or
long finned
tuna 1,508 23,172 325 4,905 -78% -79%
Crabs 6,540 50,984 1,250 9,848 -81% -81%
Lobsters
(Homarus spp.) 305 2,414 594 11,198 95% 364%
Atlantic salmon
and Danube
salmon 453 2,317 11,280 16,414 2390% 608%
Cod 716 4,503 185 1,441 -74% -68%
 Cold-water
shrimps and
prawns 396 4,589 327 6,072 -18% 32%
Flours, meals
and pellets of
fish, fit for
human
consumption 189 539 13,388 20,156 6984% 3638%
Haddock fish 360 2,264 3 40 -99% -98%

 14

Haddock fish
fillet 5,311 29,577 297 2,298 -94% -92%
Livers and roes,
dried, smoked,
salted or in
brine 202 3,223 50 321 -75% -90%
Other type of
Mackerel fish 488 2,022 52,500 102,573 10658% 4972%
 fish fillet of
other type of
fish 8 116 2,741 7,832 34163% 6667%
Other fish 9,755 13,214 90 2,074 -99% -84%
Other shrimps
and prawn'
frozen whether
in shell or not 843 11,573 1,166 12,722 38% 10%
Pacific salmon
fish fillet 2,881 27,636 24,840 33,987 762% 23%
Snails, other
than sea snails 72 430 5 80 -93% -81%
Toothfish fillet 4,635 45,614 1,371 12,389 -70% -73%
 Pacific salmon,
Atlantic salmon,
and Danube
salmon 3,622 44,284 40,778 44,082 1026% 0%
*Source: Federal Competitiveness and Statistics Department UAE

For more data on the UAE’s general seafood imports, see attached document

Consumer Trends and Opportunities

The UAE food and drinks sector has experienced tremendous growth over the last few
year driven by a number of factors such as high disposable income, increasing expat
community and busy schedule of resident. Hence, UAE residents are ordering food for
convenience and consuming more unhealthy food. In a recent poll carried out by
KPMG, 70% of residents claim they ate out more in 2017 than they did in 2016.

According to the World Health Organization, the UAE has one of highest rates of obesity
and diabetes in the local and expatriate community. Consequently, the government
has taken necessary measures to increase health awareness in the country while
discouraging the consumption of unhealthy food. There is an increasing healthy drive
among residents and lifestyle trends are gearing towards more green options in diets.
Seafood, which serves as a healthy alternative, is one of the products to benefit from
the increasing awareness due to its high content of omega-3 fatty acid. Some of the
most common popular seafood products include: Mackerel, Salmon, Sardines, Tuna,
Grouper, and Seabass.

 15

This changing dietary requirement will increase demand for more seafood products in
the country.

Expo 2020

The Expo 2020 is a six-month long event taking place in Dubai from Oct 2020 to April
2021. The Dubai Expo is expecting a footfall of 25 million people with 70% of visitors
projected to come from outside the UAE representing over 200 nationalities. The mixed
population provides an opportunity for varieties in fine dining, dining, snacking, impulse
food, food trucks etc.

The value of potential food and beverage sales during the Expo is estimated at over 2
billion Dirham from over 200 food outlets spread across the venue. Meals served by the
hour is estimated at 85,000 meals. The value of seafood served during the event is set to
be significant as there is a great appreciation for seafood products in UAE.

The opportunities around the Expo includes Expo branded product which will be made
available prior to and during the event. To ensure equal opportunity to everyone, the
Expo team have launched an e-sourcing portal that allows companies to access and
compete for procurement tender. See below link to access the Expo portal:

https://esource.expo2020dubai.ae/esop/uae-e20-host/public/web/login.jst

Relevant Trade Shows

The growing importance of UAE as an international business hub is driven by the
increased demand from the public and private sectors. UAE hosts annual trade shows
in various industries including: automotive, education, food, aviation, medicine,
hospitality, IT, and security. These shows have become an essential part in both
expanding business locally, and even more so internationally. Attending a trade show
will provide a better understanding of the depth and breadth of the potential market
and highlight the maturity of the market and sales potential. In addition, business in the
GCC region is highly based on relational business development. Showing up in market
to meet with potential commercial partners and customers is critical to sustainable
business from the region. Although the GCC markets are price sensitive, it will be strong
relationships that yield sustainable market success.

GULFOOD 2019

Date: Feb 17- 21, 2019
Website: www.gulfood.com
Location: Dubai UAE

 16

About: Gulfood is the Middle East’s largest food and beverage event currently in its 24th
edition. The event hosts over 5,000 exhibitors who are joined by over 98,000 visitors
during the 5-day event.

SEAFEX 2019

Date: to be announced
Website: www.seafexme.com
Location: Dubai, UAE

About: The Seafex exhibition is a more focused event for players in the seafood industry.
The event attracts approximately 15,000 buyers to the global centre for international
foodservice and retail trade.

SEAFOOD EXPO 2019

Date: to be announced
Website: www.dubaiseafoodexpo.com
Location: Dubai, UAE

About: The Seafood EXPO serves as a platform to connect with key personnel from
seafood processing and seafood product manufacturing plants and industries.

SIAL MIDDLE EAST

Date: to be announced
Website: www.sialme.com
Location: Abu Dhabi, UAE

About: Sial Middle East is focused on the food, beverage and hospitality industries in the
UAE. The event focuses on sectors such as the airline catering program; foodservice
and HORECA sector; and healthy and organic food.

 17

FOOD AND DRINK IMPORTS REQUIREMENTS

The UAE authorities have succeeded in unifying a
number of food & drink standards and regulations. All
food products imported through their entry points
must be registered and labels are pre-approved by
the local municipality.
 Key Facts
Prior authorisation is required from the UAE Ministry of
Environment and Water for all foodstuff imports, Arabic label is compulsory
animals and their products, animal feeds, additives, all
alcoholic beverages, pork products and tobacco
products. UAE is reliant on imports to
 meet the demand for seafood
Imported and locally produced food products are
treated equally regarding food safety regulations and
labelling requirements. All food shipments to the UAE The date format acceptable
are inspected to ensure compliance with labelling in UAE is Day/month/year.
and shelf-life regulations.

Labelling and Packaging Alcohol as an ingredient in
 any product is prohibited in
All labels must be written in Arabic or both Arabic and UAE
English. The labelling must be difficult to remove or
altered and must be clear and easy to read.
 The UAE import tax is 5%
The label must show the following:

 • Brand name The value added tax (VAT) is
 • Product name (a summarised description of the 5% on all products
 food product)
 • The food ingredients (arranged according
 weight or volume)
 • Production & expiration dates of all products
 • Name of the food manufacturer, packer,
 distributor or importer
 • Net weight or volume
 • Country of origin
 • Product barcode
 • Lot (batch) number
 • Storage conditions (if applicable)
 • Mentioning the ingredients which may cause
 hypersensitivity
 • Language of the label should be in Arabic.
 Approved stickers could be used to translate
 the food labels in the Arabic language
 • Instructions for using the product (if needed)

 18

• 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 Foodstuffs

Requirements:

 • Production and expiration date should 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 & expiration shall be clearly printed, embossed, or engraved and
 difficult to erase
 • 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

Production/expiry 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, as well as 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 3/18 and March 18 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)”; “Fit
for…..from the date of production”; “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:

 19

P: 15/02/2016 E: 14/02/2017

Specialty 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, fish/seafood and edible oils, get sampled
frequently 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.

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 certificates 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, poultry and by 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)
 • Other certificates as decided by the authority

Prior to importing it is always advisable to consult the Tariff Department with the original
invoice and catalogue to obtain the correct HS codes and confirm that the products
are not restricted or prohibited by any of the government authorities in the UAE. This will
allow the consignee to avoid any delays after the goods have arrived to obtain any
permission if required.

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 the country.

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Banned Food Additives in the UAE
The following are the most popular banned additives in UAE. The Municipality has the
right to stop any product which contains other chemicals they deem unacceptable in
the country.

 E.Number Name
 E104 Quinoline Yellow
 E105 Fast Yellow
 E107 Yellow 2 G
 E123 Amaranth
 E124 Ponceau 4 R
 E127 Erythrosine
 E131 Patent Blue V
 E142 Green S
 E924 Potassium Bromate (Bread products)
 E952 Cyclamate
 E1510 Ethanol (alcohol)

Tariffs and Duties

There is a 5 percent duty rate on most imported food and drink products which enter
the UAE. Alcoholic beverages are subject to duty of 50 percent. 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 Cost, Insurance and Freight (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 classification.tso@hmrc.gsi.gov.uk.

VAT was introduced in the UAE on 1st January 2018 which will of course have
implications for the food and drink retail sector. It is hoped that this will not have any
negative impact on growth in the sector, although it will take a period of adjustment for
consumers initially. As a general rule, 5% is being applied to goods and services in the

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UAE. There are some major exemptions for ‘big ticket’ items such as school fees,
healthcare and private lease agreements which have assuaged concerns about VAT
fueling inflationary pressures.

Just as in the UK, companies are collecting the levy on behalf of the government and
firms should now know their filing deadlines, with SMEs typically having to report on a
quarterly basis and larger firms obliged to file monthly.

There will be no direct impact on exporters as VAT only applies to UAE based
companies. However, it is important that UK companies are aware of developments
and how, for example, their distributors & resellers are applying VAT in terms of the end
price for the consumer. British exporters should also be aware that UAE importers are
obliged to record and pay a ‘reverse charge’ when bringing in goods from overseas
meaning that the tax and administrative burden falls on the UAE buyer.

Further information on UAE food and drink regulations can be found here -
https://www.dm.gov.ae/wps/wcm/connect/2a153865-07d6-4ed1-a661-
68f2990d3ac2/IMPORT+AND+RE-
EXPORT+REQUIREMENTS+FOR+FOODSTUFF+Eng.pdf?MOD=AJPERES

 22

ROUTES TO MARKET ENTRY
There are several routes to entering the market in the
UAE. Most food & drink retail outlets have a
preference to import through a consolidator which
can ease out the pressure of labelling requirements.
There is also the option of setting up a manufacturing Key Facts
base in one of the UAE’s economic free zones.
 The distributor model is the
The following gives a general idea to the various most common route to market
routes to selling your product:

Consolidator Smaller food manufacturers
 prefer to use a consolidator to
A consolidator is probably the most efficient and sell products into the UAE as
practical way of distributing food products in the UAE. volumes required are usually
The advantage for UK companies is that they can smaller
export very small quantities, without the hassle of
sending in bulk to various distributors.
 Jebel Ali is the most popular
The big disadvantage in this method is the inability to free trade zone in UAE
monitor the products in market and really understand
marketing factors and potential.
 The BCB has incubator
Several supermarkets in the UAE have tie-ups or their
 platform that allows for easy
own consolidating offices in the UK, which makes it
 set up of a branch or
easier for UK food and drink companies to export their
 representative office
products to the retailer via those in-house
consolidators.

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 local distributor. In
addition, a good distributor should be able to offer
advice on the local market, product potential and
detailed import regulations.

The average importer mark-up on food products is
about 10-15 percent. Most distributors supply the retail
and/or the food service industry including hotels,
restaurants, catering companies and airline
companies.

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Some larger well-established distributors 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 network.

There are many retail distributors in the UAE. Some of the major ones are:

 o 4 Corners UAE
 o Al Maya Distribution
 o Al Seer Group
 o Choithrams
 o Baqer Mohebi Enterprises LLC
 o Ghassan Ahmed Al Sulaiman Trading
 o Lootah Premium Foods
 o Safco International General Trading Co LLC
 o Truebell Marketing & Trading LLC
 o Transmed

Direct to Retailer

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
directly from the manufacturer. Retail food prices are generally 20-25 percent above
import/wholesale prices. The following are some of the popular retailers in the UAE:

 Food & Drink Number of Stores in the
 Retailer UAE
 Carrefour 58
 Lulu 49
 Spinneys 49
 Al Maya 42
 Choithrams 39
 Union Cooperative 11
 Waitrose 7
 Park N Shop 4
 Dubai Duty Free 4

Export Management Company

Apart from working directly with retailers, food service operators and distributors in the
UAE, international companies can also appoint an export management company who

 24

can manage their brands in the UAE. Such companies would source out relevant
distributors and end-customers, look after marketing for the brands and act as their
brand representatives/branch office in the UAE.

Some of the major export management companies in the UAE are McCarthy Middle
East, Richmond Enterprises, The Goods Collective Co and Tudor Rose International.

Free Zone Set Up

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 percent of
the company, thus offering a more productive business and tax incentive to foreign
companies. However, companies in the free zones can’t trade onshore and would still
need onshore distributors/agents for them to supply to the foodservice and food retail
sectors. There are more than 37 free trade zones operating in the UAE and below are
some of the popular free zones in UAE

 • Jebel Ali free trade zone
 • Dubai airport free zone
 • Dubai Multi Commodities Centre
 • Dubai Internet City (DIC)
 • Dubai Logistics City
 • Ras Al Khaimah Free Trade Zone
 • Dubai International Financial Centre
 • Twofour54

Onshore Set Up

There is also an option for companies to set up onshore in the UAE by partnering up with
an Emirati company, or individual, and setting up a Limited Liability Company (LLC).

The BCB also provides UK companies with incubator-style support to help them get
underway in the UAE. Companies attain a Dubai Department of Economic
Development trade licence and are established ‘onshore’ allowing for complete
market access (i.e. rather than having the restrictions of a free zone). The company
formation types available are ‘Branch of a Foreign Company’ or ‘Representative
Office’ maintaining 100 percent ownership by the UK parent company. UK firms can
incubate with the BCB for a period of up to 24 months. This model would allow
promotional and administrative activities, but goods would need to be sold either
directly from the UK, or through an onshore distributor.

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BUSINESS ETIQUETTE AND GENERAL INFORMATION

As mentioned earlier in this report, the UAE has a diverse and multi-cultural society with
80% expat population. Consequently, the laws in the UAE are regarded as relatively
liberal compared to the other GCC countries.

The UAE is a Muslim country and it is important that visitors are aware and show respect
to the local traditions and sensitivities and always behave and dress modestly,
particularly when visiting religious sites. However, although the national culture revolves
around the religion of Islam, other religions are also respected and churches and
temples can be found alongside mosques.

The Islamic dress code is not compulsory and visitors are allowed to dress as they would
generally in their various countries, albeit more modestly (with clothing which covers
shoulders and knees). Most Emirati males wear a kandura, an ankle length white shirt
and most Emirati women wear an abaya, a black flowing-over garment covering most
of the body and a head scarf covering their hair.

Language

Arabic is the most commonly spoken language, followed by English. When dealing with
a government agency, Arabic is required for all official documents, forms, laws and
decrees are in Arabic. Arabic is often preferred within some public sector
organisations. Therefore, it helps to have a working knowledge of the language –
although you will find English is the common language of business.

English is widely spoken throughout the country. It is preferable to have one side of your
business card printed in Arabic; however, this is not compulsory. During meetings you
should:

• exchange business cards immediately after introductions, presenting with both
 hands or with the right

• do not offer anything with your left hand, nor receive anything with your left hand

• keep cards on the table, do not put them away immediately.

Meetings and Presentations

Personal relationships are a vital key to success in doing business in UAE. It is preferable
for exporters to have a face-to-face business dialogue with their UAE counterparts.
Face-to-face meetings are preferred, as phone or emails are sometimes seen as

 26

impersonal. Appointments should be made no more than two weeks in advance and
confirmed a few days before the actual meeting as priorities may change. This step is
necessary to build trust and bond with your local partner. It’s important to connect with
the decision maker in your target organization. This can be achieved via introduction
by a mutual contact, exhibitions, networking receptions or through the British Centres
for Business (BCB) in the form of a Trade Advisory Service (TAS). Through a TAS, the BCB
can provide a programme-arranging service, whereby your company would be
introduced to the most appropriate contact and an appointment can be confirmed
on your behalf.

Continuous personal contact with potential and existing partners/clients and regular
visits to the market are of the utmost importance and it is natural for the business
relationship to be built with time.

The customary greeting is “As-salam alaikum" (peace be upon you), to which the reply
is "Wa alaikum as-salam” (and upon you be peace). When entering a meeting, general
introductions will begin with a handshake. You should greet each of your Emirati
counterparts individually. Avoid shaking hands with the opposite sex unless they extend
their hand first.

When you are in the UAE, especially on business, coffee, as well as tea, will often be
offered to you in offices and at Arab's homes. Offering coffee is symbolic of hospitality.

Negotiations

It is essential to obtain legal, financial and taxation advice, along with undertaking
necessary research, all of which are critical when considering new markets. Ensure all
your documents are reviewed by an appropriate advisor before signing anything.

Cultural Considerations

The UAE is a considerably modern country in relation to the rest of the Middle East
region. As such, many traditional attitudes and business practices are evolving towards
a more westernised approach. Nevertheless, it is still important to be aware and
respectful of some of the differences that might exist.

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 smaller retailers are closed until mid-afternoon or evening. Most retail outlets
remain open until late evening.

 27

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.
Federal government and administrative offices in United Arab Emirates generally work
from 0730-1430 Sunday to Thursday. Working hours vary during Ramadan, the Muslim
holy month of fasting. Most officials work from 0900-1300, but many useful contacts can
be made and renewed during and after the evening 'Iftar' meal.

Banks are open from 0800-1300 Sunday to Thursday.

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.

Telephones

The international dialing 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, 056, or 058.

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.

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. 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.
Uber also functions in the UAE and can we used to commute around. The Uber app is
the same as the one in the UK. There is also a local based Uber style company called
Careem. Unless you are going to a major landmark (e.g. a hotel or mall) a public taxi

 28

will expect you to direct them to your desired destination. While Ubers and Careems
are slightly more expensive than a public taxi, the advantage of an Uber or Careem is
that they are reliable, trackable and use GPS and you will not need to direct them.

BRITISH EMBASSY CONTACTS

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: commercial.abudhabi@fco.gov.uk

British Embassy, Dubai
Address: Al Seef Road, PO Box 65, Bur Dubai
Tel: +971 4 309 4444
Fax: +971 4 309 4302
Email: ukti.dubai@fco.gov.uk

For more information on this report, please contact:

 Trade Manager, Consumer & Retail

 ☎: +971 4 369 2899
 : +971 52 905 3143
 : wuraola.ogundimu@bcbuae.com
 :www.linkedin.com/in/wuraola-ogundimu-4523a872/

 @BCBUAE

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