UAE Drives $22bn Arab Food Sector Boom, Creates 93,000 Jobs

The Arab F&B sector has seen a massive $22bn investment wave that created 93,000 jobs in the last two decades. Between January 2003 and December 2024, the food and beverage industry in Arab nations drew 516 foreign direct investment (FDI) projects.

The UAE stands as the powerhouse in this growth story. The nation leads with 45% of all inter-Arab food and beverage projects and commands 58% of total inter-Arab capital expenditure[-5]. These impressive numbers cement UAE’s position as the region’s premier investment destination for the sector. The investment surge benefits the entire Arab region, while UAE’s leadership shows how targeted F&B sector development creates substantial economic value beyond financial gains.

UAE drives $22bn investment surge in Arab F&B sector

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The Arab Investment & Export Credit Guarantee Corporation (Dhaman) reports record-breaking foreign direct investment in the Arab food and beverage sector. Capital expenditure has reached AED 80.78 billion between January 2003 and December 2024.

Dhaman report explains 516 FDI projects since 2003

The latest sectoral report for 2025 from Dhaman’s Kuwait headquarters provides a complete analysis of the region’s F&B investment landscape. This 22-year study tracks investment flows through multiple Arab nations. The report stands on four key pillars: sales projections through 2029, Arab foreign trade for 2024, FDI project analysis from 2003-2024, and investment and business risk assessment. Arab nations have shown strong internal investment activity. Twelve Arab countries have invested in 108 projects through 65 companies. These projects make up 21% of total FDI initiatives.

UAE, Egypt, Saudi Arabia, Morocco, and Qatar lead the charge

These five powerhouse nations dominate the region’s F&B investment scene. They have attracted 421 projects, which represents 82% of the total regional FDI. Their combined capital expenditure exceeds AED 62.42 billion – 79% of all sector investments. The UAE stands out as the leader in inter-Arab investment. It accounts for 45% of all inter-Arab projects and 58% of the total inter-Arab capital expenditure. These numbers show how these nations prioritize food security and economic diversification.

93,000 jobs created across the region

The economic benefits go beyond just money. New jobs have emerged throughout Arab nations. The top five countries – Egypt, Saudi Arabia, UAE, Morocco, and Qatar – have created 71,000 positions. This represents 76% of all new employment opportunities. Inter-Arab projects alone have generated nearly 28,000 jobs, which proves the value of regional cooperation. The F&B sector has become a vital driver of economic growth and employment across the Arab world.

Which countries and companies are leading the F&B investment?

Foreign money has reshaped the scene in Arab food and beverage markets. Several countries and global corporations have emerged as game-changers in this investment space.

U.S. tops foreign investor list with $4B in Capex

American companies have dominated foreign investment in the Arab food and beverage sector in the last two decades. They’ve launched 74 projects, which makes up 14% of all foreign direct investments in the region. The total investment reaches AED 14.69 billion in capital spending, about 18% of all foreign money flowing into the sector. These U.S.-backed projects have created more than 14,000 jobs in Arab nations of all sizes. This strong American presence shows how much U.S. food and beverage companies value the Arab market’s growth potential.

Nestlé and NIBULON dominate project count and job creation

Two global giants stand out among foreign investors at the corporate level. Switzerland’s Nestlé leads in project numbers with 14 different investments across the region. Ukrainian agribusiness NIBULON, on the other hand, makes its mark through massive spending and job creation. NIBULON’s investments add up to AED 7.34 billion and create around 6,000 jobs – making it the biggest single corporate contributor to both money and jobs in the sector. Nestlé’s diverse project approach and NIBULON’s focused, big-ticket investments show two different ways to succeed in the Arab food market.

Top 10 investors account for 32% of total Capex

Investment concentration defines this sector’s character. The ten biggest foreign investors own about 15% of all projects. These same companies put in 32% of the total investment value. On top of that, they create about 29% of all jobs from foreign investment. This pattern shows how a small group of major players shapes the Arab food and beverage industry’s future.

How is the UAE shaping inter-Arab food sector growth?

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Inter-Arab investment has become the life-blood of regional food sector development. The UAE stands positioned as its primary architect. Arab nations have built a substantial investment network that works alongside foreign capital inflows.

UAE accounts for 45% of inter-Arab projects

The food and beverage sector has seen significant inter-Arab cooperation. A total of 12 Arab countries have invested in 108 projects in the last 22 years. These investments make up about 21% of all FDI initiatives in the sector. The projects have created nearly 28,000 jobs through 65 companies across the region. The UAE leads this effort with 45% of all inter-Arab projects. This concentration shows UAE’s vision to encourage regional economic integration through targeted investments.

58% of inter-Arab Capex originates from UAE

The UAE’s financial commitment goes beyond just the number of projects. Total inter-Arab investments reach AED 23.87 billion, which is 30% of all FDI capital in the sector. In fact, UAE sources contribute 58% of this substantial inter-Arab capital spending. This outsized financial contribution highlights UAE’s key role in funding regional food security initiatives.

UAE’s role as logistics and export hub

The UAE does more than direct investment – it serves as the region’s main food processing and re-export center. Its top-tier ports—Jebel Ali in Dubai and Khalifa Port in Abu Dhabi—connect markets throughout the Gulf, Levant, and North Africa. The specialized food parks provide subsidized facilities, simple licensing processes, and integrated cold-chain infrastructure that boost export capabilities. These advantages have made UAE the central hub in a growing regional food distribution network.

What trends are shaping future food and beverage demand?

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The Arab food and beverage market shows promising growth ahead, as consumer needs drive the most important developments in many areas of the sector.

Sales projected to exceed $560B by 2029

Food and non-alcoholic beverage sales in 16 Arab countries will grow 8.6% to exceed AED 1578.93 billion by the end of 2025. This represents 4.2% of the global market. The market will continue to grow and reach AED 2056.29 billion by 2029. Egypt, Saudi Arabia, Algeria, UAE, and Iraq will make up about 77% of total sales by the end of 2025. These markets will shape how people consume in the region.

Meat, poultry, and cereals dominate product categories

Meat and poultry remain the leading product category with 27% of total food sales in Arab countries. This amounts to AED 389.23 billion by 2025. Cereals, pasta and baked goods come next with 16% of sales, reaching AED 231.33 billion. These numbers reflect the region’s long-standing priorities that stay strong even as healthy options gain popularity. People in the region now look for alternatives to traditional fast food. This has led to growth in restaurants that serve plant-based, vegetarian, and gluten-free options.

Per capita spending to reach $2,255 by 2029

Arab countries’ average yearly spending per person on food and non-alcoholic beverages will rise 7.2% to over AED 6774.73 by 2025. This comes close to the global average of AED 7520.13. The regional spending per person should reach about AED 8280.23 by 2029. This increased consumer spending power shows economic growth, especially in the UAE where real GDP should grow 5.4% in 2026.

Arab household food spending exceeds global average

Arab families spend more of their budget on food than the global average. They use 25.8% of total spending on food and non-alcoholic beverages, which is higher than the global average of 24.2%. This higher percentage shows food’s cultural importance and current economic factors that affect buying patterns. The market keeps changing faster while traditional priorities remain strong, even as people move toward health-conscious and eco-friendly options.

Arab nations have seen remarkable changes in their food and beverage sectors in the last two decades. The UAE leads this economic transformation and drives nearly half of all inter-Arab F&B projects while contributing 58% of regional capital expenditure. This position definitely highlights the country’s strategic vision to ensure regional food security and economic diversification.

The United States has emerged as the main external investor, which has revolutionized the Arab F&B sector. Corporate giants like Nestlé and NIBULON have built major operational bases across multiple countries. Their different investment approaches show various paths to success in these growing markets.

The investment surge has created approximately 93,000 jobs across the region. Five leading nations—Egypt, Saudi Arabia, UAE, Morocco, and Qatar—account for 76% of these opportunities. Regional cooperation plays a vital role in economic development, with inter-Arab projects generating nearly 28,000 jobs.

Market projections look very promising. Sales across 16 Arab countries will likely exceed AED 2056.29 billion by 2029, and per capita spending will approach AED 8280.23. Meat, poultry, and cereal products will remain consumer priorities despite new trends toward healthier alternatives. Arab households dedicate 25.8% of their expenditures to food, which exceeds the global average and reflects both cultural priorities and economic realities.

The UAE’s role as a logistics and export hub strengthens its influence in the regional food ecosystem. World-class ports and specialized food parks create perfect conditions for processing and distribution networks that serve markets across the Gulf, Levant, and North Africa. Reliable infrastructure and substantial financial investment make the UAE the undisputed architect of Arab food sector growth. This position will likely strengthen as regional cooperation and international investment continue to expand this vital economic frontier.