Established in 2012 under the auspices of the Dubai Chamber of Commerce, the UAE Food and Beverage Manufacturing Business Group (FBMG) has emerged as a driving force in diversifying the UAE’s non-oil sector.
Over the past decade, FBMG has not only catalyzed industry collaboration and innovation but has also played a pivotal role in shaping the sector’s response to shifting economic, regulatory and consumer landscapes.
“The Group was founded with the objective of uniting all food and beverage manufacturing firms in the UAE,” says Saleh Lootah, Chairman of the Group. “Our objective is to provide a platform for cooperation, knowledge sharing, and advocacy on behalf of the industry. Over the past decade, we have been steadfast in our mission to facilitate growth and excellence, encourage innovation, and contribute to the development of both the industry and its workforce.”
Saleh Lootah, Chairman of UAE F&B Group
Among the core objectives of the Group include enabling F&B sector excellence by building and improving local capabilities; bridging the gap between industry and government on policy, strategy, and regulation; facilitating stronger synergies among member companies through networking and knowledge exchange; and keeping the indsutry informed with current data and trends.
This is clearly aligned with the UAE’s economic diversification focus. In fact, between 2000 and 2008, the country’s nominal GDP tripled, and since 2010, it has grown at an average rate of 3.5% per year. The non-oil sector, which includes F&B manufacturing, has consistently expanded, with its value rising from US$199.6 billion in 2010 to US$297 billion in 2017. This diversification has fostered a robust environment for F&B growth.
Today, the F&B sector is one of the UAE’s largest non-oil industries and has been identified as a key focus area. The sector’s importance is underscored by its contribution to GDP, employment, and export growth. It now accounts for 30% of the UAE’s manufacturing output, with over 650 factories operating across the , and has secured a combined investment of over AED 40–50 billion, reflecting both government and private capital. UAE’s F&B exports are also projected to increase by AED 16 billion, representing 8% of total exports by 2030.
This will help address UAE’s reliance on food imports, with local production meeting only 10.5% of the country’s food needs. This production deficit has prompted a strategic focus on boosting domestic manufacturing and leveraging the UAE’s position as a regional trade hub. This is already changing: For example, the dairy and bottled water segments have achieved increased local production than import requirements, with the UAE now 80% self-sufficient in milk and 40% in eggs.
FBMG’s consumer research, including its landmark UAE Food Report (conducted with Nielsen), has provided deep insights into evolving consumer behavior:
- Health consciousness: 79% of UAE consumers consider themselves health-conscious, with 15% citing healthy or locally produced products as key purchase drivers.
- Label Literacy: 65% of shoppers regularly read food labels, with expiry dates, halal certification, and ingredient information being the most important factors.
- Waste Awareness: Over 70% acknowledge food wastage, but 94% express willingness to participate in environmentally friendly waste management practices.
- Online Shopping: Online grocery shopping has grown from 5% in 2017 to 10–12% by 2019, driven by digital platforms and changing consumer habits.
FBMG has championed innovation through initiatives like the UAE Food Platform, a digital ecosystem designed to integrate stakeholders, optimize supply chains, reduce food loss, and enable data-driven decision-making. This approach is expected to help cut food wastage to near zero, enhance supply chain transparency and efficiency, enable predictive analytics for inventory and demand planning, and foster stronger collaboration among manufacturers, retailers, regulators, and consumers.
FBMG has also been instrumental in bridging the gap between industry and government, advocating for regulatory harmonization, capacity building, and responsible marketing. Some of the key achievements include:
- Regulatory alignment: Regular engagement with ministries and authorities to address issues such as labeling, price caps, and food safety standards.
- Responsible marketing: Partnership with the International Food & Beverage Alliance (IFBA) to promote self-regulation in advertising, especially concerning products high in fat, sugar, and salt to children.
- Capacity building: Organizing technical and managerial training, industry conferences, and international networking events to raise local manufacturing capabilities and global competitiveness.
Furthermore, it has prioritized sustainability and social impact by promoting the four R approach of Reducing, Reusing, Recovery, and Recycling to minimize food and packaging waste across the value chain, and also undertakes charity initaitives such as the Wafaa food donation program, launched in partnership with Beit Al Khair Society, to deliver essential food items to the underprivileged throughout the year.
While the sector has made significant strides, several challenges persist such as the high reliance on food imports exposes the industry to global supply chain disruptions and price volatility, and manufacturers facing intense competition and pricing pressures from large retailers, impacting margins and local market sahre.
Nevertheless, the outlook remains positive. The UAE’s robust infrastructure, high GDP per capita, and strategic focus on F&B as a growth sector position the industry for continued expansion.
FBMG’s decade-long journey reflects the UAE’s broader economic transformation by leveraging collaboration, innovation, and strategic vision to build a resilient, future-ready F&B sector. By aligning industry growth with national priorities, championing digital transformation, and fostering a culture of sustainability, FBMG has set a benchmark for industry associations across the region.
As the group continues to publish annual reports and drive sectoral initiatives, it remains committed to its founding mission: to enable excellence, bridge stakeholders, and ensure that the UAE’s food and beverage industry not only meets the needs of a growing, diverse population but also leads the way in regional and global markets.
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