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Gulfood Green 2024

27 Mar 2024

Dubai to become regional hub for fresh fruit and vegetable trade

Dubai to become regional hub for fresh fruit and vegetable trade

A recent report by the Business Registration & Licensing (BRL) sector in the Dubai Economy stated that the number of operating businesses in the field of vegetable and fruit trading has reached 2,495 including 557 companies in the field of dried vegetables and fruits. Most of these companies have been licensed since 1963 until now.

The vegetable and fruit trading sector benefits from the exceptional advantages offered by Dubai in terms of the infrastructure and the readiness of logistics services. The speed of providing services is one of the key advantages provided by the emirate for this vital sector.

The report highlighted the distribution of licenses in the main areas of Dubai, with Bur Dubai accounting for the largest share (1,522), followed by Deira (961), and Hatta (12 licences), whereas the top ten sub-regions are: Ras Al Khor Industrial Area 3, Ras Al Khor, Al Garhoud, Port Saeed, Ras Al Khor Industrial Area 2, Al Ras, Al Marar, Trade Centre 1, Al Karamah, and Hor Al Anz East.

The total number of entrepreneurs in the companies operating in the field of vegetable and fruit trading in Dubai reached 8,799, mostly businessmen.

The operational and survival rate of the companies is 86 per cent.

The legal forms of these companies are Limited Liability Company (1,963), and Sole Proprietorship (283). The legal forms also included Civil Companies, One-Person Limited Liability Companies, Branches of companies based in other Emirates, General Partnership and Private Joint-Stock Companies.

The growing health awareness among the society and the increase in the population contributed to making vegetables and fruits an important commercial commodity in Dubai, in addition to the need to increase their consumption for healthier lifestyles. Further, the abundance of organic vegetables and fruits resulted in the emergence of a specialized market for these products.

Thanks to technology, it has become possible to store vegetables and fruits for longer periods, and there is a possibility to explore other markets especially for frozen vegetables and fruits.

The Research and Market company stated in its report entitled “United Arab Emirates Fruits and Vegetables Market - Growth, Trends, and Forecast (2020 - 2025)”, that the UAE is the second-highest consumer of food in GCC.

The UAE fruits and vegetables market was valued at Dhs13.6 in 2018, and it is projected to grow at a CAGR of 9.93 per cent during the forecast period (2020-2025).

Dubai Economy (Department of Economic Development - Government of Dubai) is the government body entrusted to set and drive the economic agenda of the emirate of Dubai, UAE.

Dubai Economy supports the structural transformation of Dubai into a diversified, innovative service-based economy that aims to improve the business environment and accelerate productivity growth.

Dubai Economy and its agencies develop economic plans and policies, identify and support the growth of strategic sectors, and provide services to domestic and international investors and businesses.

Meanwhile the DED Trader licence launched by the Business Registration & Licensing (BRL) sector in Dubai Economy (DED), enabling start-ups in Dubai to conduct business activities online and across social networking accounts, has seen overwhelming response with 1947 licences issued during the first half (January to end of June) of this year, an increase of 83 per cent compared to the same period last year as the total number of licences reached 1064 licences.

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