The value of food imports to the GCC countries will more than double over the next decade to satisfy a growing regional population with more money to spend as the process of urbanization continues. New research shows as food consumption increases, total GCC food imports will reach $53.1 billion by 2020, an increase of 105 percent from 2010 ($25.8). Rising at a rate of 4.6 percent annually from 2011-2015 in a region low on agricultural land and natural water sources, and forced to import 90 percent of its food products, food consumption in the GCC will reach 51.5 million tons per year during this period. Underlining huge opportunities for food and equipment manufacturers and suppliers, the latest estimates have been released by the Economist Intelligence Unit ahead of SIAL Middle East 2011, the region's professional business platform for the food, drink and hospitality industry. It will be held on Nov. 21-23 at the Abu Dhabi National Exhibition Centre (ADNEC) in partnership with Abu Dhabi Food Control Authority, SIAL Middle East 2011 is part of SIAL Group, the world's largest network of professional B2B food exhibitions which include SIAL Paris, SIAL China, SIAL Canada, and SIAL Brazil. Mohamed Jalal Al Reyaysa, Chairman of the Higher Organizing Committee for SIAL Middle East and the official spokesperson of Abu Dhabi Food Control Authority (ADFCA), said population growth, increasing income per capita, and rapid urbanization are the main demand factors driving food imports into the GCC region. “GCC countries currently import 90 percent of all food products,” said Al Reyaysa. “With its population growing at three times the global average, the GCC region is increasingly depending on imports to meet food requirements. Adding to the challenge is the fact that GCC countries are some of the most water scarce in the world, with only 1.4 percent of land suitable for agriculture. Food security therefore is of prime concern and major challenge for the regional governments.” Saudi food imports, which currently account for 64.9 percent of total GCC food consumption, will reach $35.2 billion by 2020, a rise of 105 percent from 2010 ($16.8 billion). UAE food imports will grow to $8.4 billion, a 133 percent increase from 2010 ($3.6 billion). Kuwait's food imports will reach $5.3 billion (+130 percent), Oman's $4.8 billion (+128 percent), Qatar's $3.3 billion (+153 percent) and Bahrain's $1.6 billion (+ 128 percent). Saudi Arabia is comfortably the GCC's biggest consumer of food, and consumption will grow from 27.9 million tons in 2011 to 32.9 million tons by 2015. Just 1.7 percent of land in the Kingdom is suitable for cultivation, with agriculture contributing only 2.7 percent to the GDP. The Kingdom also imports 70 percent of total milk products consumed. The country produces nearly 60 percent of poultry meat and 40 percent of red meat consumed, with the rest imported. Saudi produces 90 percent of its vegetable consumption need, and like the UAE and Oman, around 70 percent of its total fruit consumption. “Meeting the increasing demand for food is both a challenge for the GCC governments and an opportunity for private sector players to expand within the market,” added Al Reyaysa. “The SIAL Middle East Exhibition provides the all important stage to meet the challenges and capitalize on the opportunities that lay ahead.”
