With its strategic location, booming e-commerce, and commitment to innovation, Dubai’s F&B scene is poised to attract international investors and offer exciting business opportunities across the food chain.

Investors are pouring into Dubai’s food and beverage (F&B) sector, with a whopping $577 million in foreign direct investment (FDI) from 2019 to 2023. This surge revealed at a recent business event held during Gulfood, signifies the emirate’s growing appeal as a global F&B hub.

The investment spree involved 48 international companies from 23 countries, lured by the UAE’s vibrant F&B market, which generated a mouthwatering $16.4 billion in retail sales last year, encompassing fresh and packaged food.

According to Euromonitor data, online food purchases are also on the rise, with e-commerce spending reaching $1.1 billion in 2023 and expected to grow at a 9.5% compound annual growth rate (CAGR) between 2023 and 2027.

“The sector is developing innovative solutions to contribute to global food security while ensuring that it keeps pace with the global drive for sustainability,” said Mohammad Ali bin Rashed Lootah, President and CEO of Dubai Chambers.

Beyond traditional investments, Dubai is also a leader in attracting venture capital (VC) for F&B-related technologies. The UAE secured the largest share of VC investments in the Middle East’s restaurant tech sector from 2018 to 2023, exceeding $1 billion. Additionally, the country ranked second for VC investments in agritech, attracting $335.4 million during the same period.

Looking ahead, the future is bright for the UAE’s F&B landscape. Retail sales of fresh food are expected to reach $12.4 billion by 2028, while packaged food sales are projected to hit $8.3 billion. Staples like corn, rice, and wheat are predicted to grow most, followed by the dairy sector.

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