""

Required Report - public distribution

**Date:** 12/1/2003

**GAIN Report Number:** TC3013

TC3013

**United Arab Emirates**

**Retail Food Sector**

**Report**

**2003**

**Approved by:**

![](media/image1.wmf)ATO: Michael Henney

U.S. Consulate General

**Prepared by:**

ATO: Mohamed Taha

**Report Highlights: The UAE retail report continues its aggressive
growth. More large type stores are being built. French retail chain
already operates in the market while a new one is being prepared to
launch its services. Value of retailed products are currently estimated
by trades at about \$2.5 billion.**

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Dubai \[TC1\]

\[TC\]

TABLE OF CONTENTS

I. MARKET
SUMMARY..................................................................................
3

II\. ROAD MAP FOR MARKET
ENTRY..............................................................5

[**Entry Strategy 5**](#entry-strategy)

[Distribution Channels 6](#distribution-channels)

[Market Characteristics 7](#market-characteristics)

[A. SUPER STORES, SUPERMARKETS, HYPER MARKETS AND SUPER CENTERS, CLUB
AND WAREHOUSE OUTLETS
7](#a.-super-stores-supermarkets-hyper-markets-and-super-centers-club-and-warehouse-outlets)

[Company Profiles: 7](#company-profiles)

[B. Grocery Stores, Convenience Stores, Gas Marts
8](#b.-grocery-stores-convenience-stores-gas-marts)

III\.
COMPETITION.....................................................................................................9

[Product Category 10](#product-category)

[Major Suppliers Advantages 10](#major-suppliers-advantages)

**IV. BEST PRODUCTS
PROSPECTS..............................................................................12**

[A. Products holding strong market potential include:
12](#a.-products-holding-strong-market-potential-include)

[B. Products not present in significant quantities, but which have good
sales potential if marketing efforts focus on 'quality':
14](#b.-products-not-present-in-significant-quantities-but-which-have-good-sales-potential-if-marketing-efforts-focus-on-quality)

[Food Import Regulations: 15](#food-import-regulations)

[C. Other ATO Publications and Reports Concerning the U.A.E*.*
15](#c.-other-ato-publications-and-reports-concerning-the-u.a.e.)

[1. Publications 15](#publications)

[2. Attaché Reports 15](#attaché-reports)

[POST CONTACT AND FURTHER INFORMATION
15](#post-contact-and-further-information)

I. MARKET SUMMARY

-   The retail sector in the United Arab Emirates (U.A.E.) continues to
    grow and develop, a process that began in earnest nearly 10 years
    ago. Annually, many new state of the art stores are added to the
    country's retail map, creating continuous competition among the
    major retailers. The new stores match Western retail establishments
    in size and variety.

-   The estimated annual value of the U.A.E. retail market is \$2.5
    billion (no official statistics are available).

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-   The estimated average annual growth in retail sales is 5-10 percent.
    First year retail establishments report higher growth rates than
    those claimed by established firms.

-   Foods sold in retail outlets consist 75-80 percent of imported
    consumer-ready products, and 20-25 percent of locally processed
    foods. With the exception of fresh tomatoes used in the production
    of tomato paste and catsup and a small quantity of fresh vegetables
    used in the production of frozen vegetables, almost every ingredient
    used in locally produced food is imported. Local date processing is
    a rapidly expanding industry.

-   The introduction of hypermarkets and superstores is re-shaping the
    retail sector. In 2003, hypermarket openings increased 150 percent,
    reflecting the future market strength investors' hold for mega store
    operations. Superstore and supermarket openings grew only
    moderately, by 15 and 12.5 percent respectively. Convenient store
    openings are unknown, as no official data exists. Information
    provided below is based on trade estimates.

![](media/image6.wmf)

-   Retail development is concentrated in the three largest emirates of
    the UAE - Abu Dhabi, Dubai and Sharjah, home for nearly 75 percent
    of the population. Consumers in those locations tend to shop more at
    larger stores and less on smaller grocery and convenience stores.
    Such stores are relied upon for last minute, spur of the moment food
    needs. However, in the further out suburbs and the lesser-developed
    areas of the country, grocery and convenience stores play an
    important role in the retail business.

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-   Hypermarkets, superstores and supermarkets, despite their limited
    number, are estimated to account for nearly 50 percent of all retail
    sales. Smaller-sized groceries and convenience stores account for
    the other half.

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-   Co-operatives in the UAE, a movement that continues to grow each
    year, receive government support and attract broad-base support,
    particularly from U.A.E. nationals, who usually hold shares in these
    Co-ops, Arab expatriates and other expatriates in the low-to-medium
    income bracket. Co-ops generally cater to local and Arab clientele
    and are known for competitive prices on but a limited range of
    products. The market share of Co-operatives is estimated at 15
    percent.

-   With the exception of the Co-ops and Carrefour, all major chains
    import most products stocked. Consolidation is increasingly becoming
    important for U.S. products in view of their high price and limited
    demand for less desired products. Imports hold a marketing edge in
    this environment as these major chains also depend on local
    companies (importers/wholesalers/distributors) to supply items that
    are:

1\. Handled by an exclusive agent; or

2\. More economical to purchase locally, if the desired quantity is
limited

-   Major food companies (importers/retailers/wholesalers) own modern
    warehouse facilities, staff them with sales representatives, equip
    them with fleets of dry and refrigerated trucks, and operate them as
    food distribution/wholesale centers.

-   New stores are extending their range of services to include sections
    for cooked products, ready-to-cook prepared foods, home delivery,
    cafeterias, banks, bakeries, laundries, audio/video shops,
    pharmacies, flower shops and more.

-   Distribution/retail of alcoholic beverage is limited to a few
    authorized dealers only.

+----------------------------------+-----------------------------------+
| Advantages                       | Challenges                        |
+----------------------------------+-----------------------------------+
| The U.A.E. enjoys one of the     | Competition is keen for the       |
| highest per capita incomes in    | consumer attention.               |
| the world.                       |                                   |
+----------------------------------+-----------------------------------+
| The retail sector is undergoing  | Lack of importers knowledge of    |
| a revolutionary change as        | the wide range of U.S. products   |
| reflected by the resources       | and brands.                       |
| devoted to upgrading existing    |                                   |
| stores and construction of new   |                                   |
| ultramodern outlets.             |                                   |
+----------------------------------+-----------------------------------+
| The HRI sector is expanding      | Competition with other low-priced |
| rapidly.                         | products.                         |
+----------------------------------+-----------------------------------+
| U.S. products are perceived as   | \*High freight rates make U.S.    |
| high quality and importers like  | products less competitive to      |
| to deal with U.S.                | products imported from within the |
| suppliers/products               | region and Europe.                |
|                                  |                                   |
|                                  | \*Anti-American sentiments        |
|                                  | negatively affect consumer buying |
|                                  | patterns, particularly consumers  |
|                                  | of Arabic origin.                 |
+----------------------------------+-----------------------------------+
| The U.A.E. imports nearly 80     | Lack of awareness of U.S.         |
| percent of its food requirements | products by consumers             |
+----------------------------------+-----------------------------------+

II\. ROAD MAP FOR MARKET ENTRY

# Entry Strategy

-   U.S. companies are encouraged to exhibit at major trade shows within
    the region to develop name recognition. The Gulf Food (GF) Show,
    which takes place in Dubai, UAE, in odd numbered years, is the
    largest food show in the Middle East and is widely attended by major
    food traders in the Gulf region. GF will next be held in February
    20-23, 2005. For more information, please contact ATO Dubai.

-   Visit the region. Personal contact is a must to initiate business.
    It is the most effective means to establish on-going business
    relations in the U.A.E. as local food importers receive enormous
    quantities of letters, faxes and e-mail inquiries from potential
    food suppliers around the globe.

-   Exhibit at the FMI/NASDA show held in Chicago each May. Many major
    Gulf region importers attend that show to seek out new products and
    business opportunities.

-   Know the market, be familiar with labeling requirements and be
    prepared to discuss pricing and marketing plans with companies
    interested in your products.

-   Be willing to entertain initial orders that are smaller than you
    would prefer, to share a shipment with other U.S. suppliers or to
    consolidate shipments with more than a product.

-   Know that local importers are mainly interested in long-term
    commercial relationships.

-   U.S. products are known for being of good quality, but pricey.
    Attract potential customers by showing how you can work with them to
    maintaining your product's quality while applying ways to reduce
    costs, thus your price.

# Distribution Channels

-   The U.A.E. food wholesale and distribution system is advanced, well
    equipped and efficient.

![](media/image7.wmf){width="1.5in" height="1.125in"}

-   Retail outlets purchase directly from importers and food
    manufacturers.

-   Major retailers act as importers for a number of products and sell
    directly to other retailers.

-   Co-ops are represented by a \"Consumer Cooperative Union\" that
    orders private label products under the Co-op brand name.

-   Major importers market products to wholesalers/distributors who
    in-turn market these products to retail outlets across the country.

![](media/image8.wmf)

### 

# Market Characteristics

## A. SUPER STORES, SUPERMARKETS, HYPER MARKETS AND SUPER CENTERS, CLUB AND WAREHOUSE OUTLETS

# Company Profiles:  

+--------------+------------+-----+-----+------------+--------------+
| Retailer     | Ownership  | Sa  | No. | Locations  | Purchasing   |
| Name and     |            | les | of  |            | Agent        |
|              | (loca      |     |     | (Ci        |              |
| Outlet Type  | l/foreign) | (   | O   | ty/Region) | Type         |
|              |            | \$M | utl |            |              |
|              |            | il) | ets |            |              |
+--------------+------------+-----+-----+------------+--------------+
| T. Choithram | Int        | 46  | 27  | Regional   | Im           |
| & Sons (TCS) | ernational |     |     |            | porter/local |
|              |            |     |     |            | buyer        |
|              |            |     |     |            | /distributor |
+--------------+------------+-----+-----+------------+--------------+
| Consumer     | Local      | 220 | 82  | Regional   | Direct       |
| Co-op        |            |     |     |            |              |
+--------------+------------+-----+-----+------------+--------------+
| Emirates     | Local      | 50  | 5   | Dubai      | Direct       |
| Co-op        |            |     |     |            |              |
+--------------+------------+-----+-----+------------+--------------+
|              |            |     |     |            |              |
+--------------+------------+-----+-----+------------+--------------+
| Abu Dhabi    | Local      | 55  | 10  | Abu Dhabi  | Im           |
| Co-op        |            |     |     |            | porter/local |
|              |            |     |     |            | buyer        |
+--------------+------------+-----+-----+------------+--------------+
| Abela Stores | Local      | 13  | 1   | Abu Dhabi/ | Im           |
|              |            |     |     |            | porter/local |
|              |            |     |     | Sharjah    | buye         |
|              |            |     |     |            | r/Wholesaler |
+--------------+------------+-----+-----+------------+--------------+
| Emke Group   | Indian     | 400 | 28  | Regional   | Im           |
|              |            |     |     |            | porter/local |
|              |            |     |     |            | buye         |
|              |            |     |     |            | r/wholesaler |
+--------------+------------+-----+-----+------------+--------------+
| Shop n Save  | Indian     | 75  | 42  | Regional   | Local buyer  |
+--------------+------------+-----+-----+------------+--------------+
| Spinney's    | Local      | 155 | 17  | Regional   | Im           |
| Dubai        |            |     |     |            | porter/local |
|              |            |     |     |            | buye         |
|              |            |     |     |            | r/wholesaler |
+--------------+------------+-----+-----+------------+--------------+
| Al Maya      | UK/India   | 45  | 14  | Regional   | Im           |
| Lal's Group  |            |     |     |            | porter/local |
|              |            |     |     |            | buyer        |
|              |            |     |     |            | /distributor |
+--------------+------------+-----+-----+------------+--------------+
| C            | Local      | 150 | 8   | Regional   | Buys         |
| arrefour/MAF |            |     |     |            | locally/     |
|              |            |     |     |            |              |
| Hypermarkets |            |     |     |            | Importer     |
+--------------+------------+-----+-----+------------+--------------+
| Lebanese     | UA         | 7   | 4   | S          | Im           |
| Fruit Co.    | E/Lebanese |     |     | harjah/Abu | porter/local |
|              |            |     |     | D          | buyer        |
|              |            |     |     | habi/Dubai | /distributor |
+--------------+------------+-----+-----+------------+--------------+
| Park n' Shop | Indian     | 10  | 1   | Dubai      | Im           |
|              |            |     |     |            | porter/local |
|              |            |     |     |            | buyer        |
|              |            |     |     |            | /distributor |
+--------------+------------+-----+-----+------------+--------------+
| Giant        | 49/51      | 22  | 11  | Regional   | Im           |
| Supermarket  |            |     |     |            | porter/local |
|              | U.A        |     |     |            | buye         |
|              | .E./Indian |     |     |            | r/wholesaler |
+--------------+------------+-----+-----+------------+--------------+

# B. Grocery Stores, Convenience Stores, Gas Marts

**Company Profiles**[:]{.underline}

+--------------+------------+-----+-----+------------+--------------+
| Retailer     | Ownership  | Sa  | No. | Locations  | Purchasing   |
| Name and     |            | les | of  |            | Agent        |
|              | (loca      |     |     | (Ci        |              |
| Outlet Type  | l/foreign) | (   | O   | ty/Region) | Type         |
|              |            | \$M | utl |            |              |
|              |            | il) | ets |            |              |
+--------------+------------+-----+-----+------------+--------------+
| Emarat Gas   | Local      | 40  | 65  | Regional   | Local buyer  |
| Marts        |            |     |     |            |              |
+--------------+------------+-----+-----+------------+--------------+
| Modern       | Local      | 11  | 4   | Regional   | Im           |
| Bakery &     |            |     |     |            | porter/local |
| Supermarkets |            |     |     |            | buyer        |
|              |            |     |     |            | /distributor |
+--------------+------------+-----+-----+------------+--------------+
| Emirates     | Local      | 60  | 160 | Dubai      | Direct       |
| Petroleum    |            |     |     |            |              |
| Co.          |            |     |     |            |              |
+--------------+------------+-----+-----+------------+--------------+

*Note: Above information sourced from trade and ATO estimates for
2002/3*

-   Convenience/Grocery (C/G) stores far outnumber all other types of
    retail outlets.

-   In urban centers, convenience stores serve as last minute,
    one-or-two item suppliers. However, in suburban and interior areas
    these stores are the primary supply centers.

-   C/G stores account for 40-50 percent of the retail business but this
    market share is expected to decline given rapid developments in the
    retail sector.

-   Generally, food importers/local processors deliver their products to
    C/G stores. In some cases, C/G owners augment store supplies by
    going to the importer or wholesaler. The latter case is particularly
    true when fresh produce is involved.

-   Most C/G stores provide home delivery service thus their prices tend
    to be slightly higher than those offered by larger retail outlets.

-   C/G stores are not suitable for marketing activities or introducing
    new-to-market products.

-   The number of new Gas Marts outlets is rising rapidly. Companies are
    investing in this concept, giving outlets trendy new looks and
    stocking with a wide range of products, in effort to attract a more
    consistent customer base. Several Gas Mart operations have staged
    in-store promotions, but results are not readily available.

-   C/G stores are franchise operations.

III\. COMPETITION

-   The U.A.E. depends heavily on imports to fill the gap between
    limited domestic food production and demand from a growing
    population base. Despite attempts to increase local production of
    food products in recent years the U.A.E. still imports an estimated
    75-80 percent of its total food requirements.

-   Drawn by the country's affluence, food suppliers from all over the
    world vigorously compete for market share. EU and Asian products
    pose the greatest competition to U.S. products. Both hold a
    proximity advantage, which translates to lower freight costs. In
    addition, Asian products enjoy an additional advantage of having a
    low cost of production. Locally processed food products are limited
    in range and are not very competitive to products of U.S. origin
    except for the categories of snack food, juices and some
    confectionery items.

-   The U.S. market share for food imports is about 8 percent. Nearly 50
    percent of products imported from the U.S. are consumer-ready. Some
    U.S. origin food is re-exported to countries throughout the region.
    Food re-exports (from all sources) total about \$1 billion annually.

  -----------------------------------------------------------------------
  **Locally processed foods are made primarily from imported ingredients.
  In many cases, the U.S. is a significant supplier of those imported
  ingredients.**

  -----------------------------------------------------------------------

+--------------------+--------------------+---------------------------+
| #                  | **Major            | ## M                      |
| # Product Category | Suppliers**        | ajor Suppliers Advantages |
|                    |                    |                           |
|                    | (% based on        |                           |
|                    | volume)            |                           |
+--------------------+--------------------+---------------------------+
| **Beef**           | 1\. India: 73%     | **India:** Very price     |
|                    |                    | competitive due to low    |
| Net imports:       | 2\. Australia:     | cost of production,       |
| 30,618 MT          | 9.5%               | negligible freight cost   |
|                    |                    | due to proximity.         |
| US \$10 mil (CIF)  | 3\. New Zealand:   |                           |
|                    | 4%                 | **Australia:**            |
|                    |                    | Competitively priced due  |
|                    | US: Minor supplier | to low production cost    |
|                    | 3.5%               | for range fed cattle, low |
|                    |                    | freight cost due to bulk  |
|                    |                    | shipments.                |
|                    |                    |                           |
|                    |                    | **New Zealand:** Good     |
|                    |                    | quality products which    |
|                    |                    | are less expensive than   |
|                    |                    | similar U.S. origin       |
|                    |                    | products.                 |
+--------------------+--------------------+---------------------------+
| **Poultry**        | 1\. Brazil: 58 %   | **Brazil:** Very          |
|                    |                    | competitively priced due  |
| Net imports:       | 2\. France: 13%    | to low cost of            |
| 136,000 MT         |                    | production.               |
|                    | 3\. Denmark: 12.6% |                           |
| US \$11.7 mil      |                    | **Denmark and France:**   |
|                    | US market share:   | Lower price due to export |
|                    | 10.7%              | subsidy received from the |
|                    |                    | EU, proximity to the      |
|                    |                    | U.A.E.                    |
+--------------------+--------------------+---------------------------+
| **Powdered Milk**  | 1\. Holland: 30%   | **Holland:** Lower price  |
|                    |                    | due to export subsidy     |
| Net imports:       | 2\. New Zealand:   | received from the EU      |
| 60,000 MT          | 22%                |                           |
|                    |                    | **New Zealand**: Low cost |
| U.S.: \$0.2 mil    | 3\. Denmark: 8%    | of production and         |
|                    |                    | aggressive marketing has  |
|                    | US market share:   | helped NZ to establish a  |
|                    | Negligible         | solid market for all its  |
|                    |                    | dairy products.           |
|                    |                    |                           |
|                    |                    | **Denmark:** Similar to   |
|                    |                    | Holland, but product      |
|                    |                    | availability for export   |
|                    |                    | less.                     |
+--------------------+--------------------+---------------------------+
| **Dried Legumes &  | 1\. Iran: 28%      | **Iran:** Large           |
| Lentils**          |                    | production base, low cost |
|                    | 2\. Australia: 12% | of production and         |
| Net imports:       |                    | proximity.                |
| 140,000 MT         | 3\. Canada: 10%    |                           |
|                    |                    | **Australia:** Lower cost |
| US: \$0.65 Mil     | US market share:   | of production.            |
|                    | 0.6%               |                           |
|                    |                    | **Canada:** Aggressive    |
|                    |                    | marketing program.        |
+--------------------+--------------------+---------------------------+
| **Rice**           | 1\. Pakistan: 43%  | **Pakistan:** Large expat |
|                    |                    | population that seeks     |
| Net imports:       | 2\. Thailand:      | basmati and certain long  |
| 620,000 MT         | 38.3%              | grain varieties, low cost |
|                    |                    | of production, proximity  |
| US: \$1.5 Mil      | 3\. India: 16%     | to the UAE.               |
|                    |                    |                           |
|                    | US market share:   | **Thailand: L**ow priced  |
|                    | 0.5%               | rice that mostly is       |
|                    |                    | re-exported to Iran.      |
|                    |                    |                           |
|                    |                    | **India:** Proximity, low |
|                    |                    | cost of production,       |
|                    |                    | supplies both basmati and |
|                    |                    | long grain rice.          |
+--------------------+--------------------+---------------------------+
| **Chocolates**     | 1\. Turkey: 13 %   | **Turkey:** Proximity,    |
|                    |                    | low cost of production.   |
| Net imports:       | 2\. U.K.: 12.7%    |                           |
| 18,850 MT          |                    | **U.K.:** Traditional     |
|                    | 3\. France: 12.2%  | supplier with broad name  |
| US: \$2 mil        |                    | recognition.              |
|                    | US market share:   |                           |
|                    | 3%                 | **France:** Reputation    |
|                    |                    | for good quality, strong  |
|                    |                    | marketing program.        |
+--------------------+--------------------+---------------------------+
| **Confectionery**  | 1\. China: 10.6%   | **China:** Low costing    |
|                    |                    | product of inferior       |
| Net imports:       | 2\. Turkey: 10.3%  | quality                   |
| 18,362 MT          |                    |                           |
|                    | 3\. Indonesia:     | **Turkey:** Low cost of   |
| US: \$1.3 Mil      | 9.6%               | production.               |
|                    |                    |                           |
|                    | US market share:   | **Indonesia:** Low cost   |
|                    | 1.6%               | of production but low     |
|                    |                    | quality products          |
+--------------------+--------------------+---------------------------+
| **Fresh            | 1\. Pakistan: 23%  | **Pakistan, India and     |
| Vegetables**       |                    | Iran:** Proximity, low    |
|                    | 2\. India: 22%     | cost of production.       |
| Net imports:       |                    |                           |
| 530,260 MT         | 3\. Iran: 12%      |                           |
|                    |                    |                           |
| US: \$ 4 mil       | US market share:   |                           |
|                    | Negligible         |                           |
+--------------------+--------------------+---------------------------+

-   The U.S dominates the U.A.E. snack food market. Similar products of
    local origin are of lesser but improving quality. Snack food
    products produced in other Gulf States and Germany are also
    imported. The U.S. snack food brand Pringles is imported into the
    U.A.E. but is sourced from Belgium.

-   U.S. breakfast cereal brands marketed in the U.A.E. are produced
    primarily in Europe under licensing agreements with the U.S.
    companies. Generally, breakfast cereals are sourced from the UK,
    Germany and Australia.

-   Beef destined for the processing industry is sourced mainly from
    India. Beef destined for consumer retail is sourced primarily from
    New Zealand and Australia who already dominates the lamb and mutton
    markets. U.S. beef is popular within the HRI sector, among high-end
    hotels and restaurants. Due to its high cost, only one top-end
    retail chain markets U.S. beef.

-   Poultry and products are primarily of French, Brazilian and Danish
    origin. Collectively those three countries account for nearly 80
    percent of the poultry market. U.S. poultry products, particularly
    leg quarters, are growing in popularity but are considered pricey.
    U.S. whole chicken is expensive compared to similar products from
    France and Denmark.

-   Cheeses are sourced from many countries, led by France, Holland,
    Australia, Switzerland and the U.K. U.S. cheeses command a premium
    price, as most is flown-in by some major retailers in limited
    quantities. Milk powder is imported from Holland, Denmark and New
    Zealand. Other dairy products, such as fresh, re-constituted and UHT
    milk, yogurt and other Arabic-style dairy products, are
    produced/processed locally.

-   Table eggs are sourced from India and Holland (now that the ban has
    been lifted). Locally produced and non-poultry eggs imported from
    other Gulf States are in demand for their freshness, though they are
    much more expensive.

-   Pears are sourced primarily from the U.S. The U.S. is the second
    largest supplier of fresh apples after Iran. Many other fresh fruits
    and vegetables are imported from Iran, India, Pakistan, Saudi
    Arabia, Lebanon, Jordan, South Africa, Australia, Syria, Pakistan
    and Egypt.

-   Almonds are imported primarily from the U.S. Other types of nuts are
    imported from Iran, Turkey and India.

-   Non-alcoholic beverages are produced mostly locally though the
    market carries a broad range of such products from around the globe.
    The U.S. and South Africa remain the primary suppliers of high
    quality juices.

-   Alcoholic beverages are imported primarily from the EU, Australia
    and India. The U.S. ships a limited quantity of beer, wine and
    bourbon to the market.

-   Nursery stock is imported from Holland, India and Pakistan. In
    recent years local nurseries have sprouted.

-   Pet foods are imported from the E.U., Australia and the U.S.

-   Dates, tomatoes, certain other vegetables and, strawberries, are
    widely produced in the U.A.E. Fresh milk is supplied by a handful of
    large local dairy operations. Fresh chicken and table eggs are also
    locally produced but command prices substantially higher than
    similar imported products.

IV\. BEST PRODUCTS PROSPECTS

# A. Products holding strong market potential include:

  -------------- --------- ---------- ------------- --------------- --------------------
  **Product      **2002    **5-Year   **Import      **Key           **Market Attractive
  Category**     Imports   Avg.       Tariff Rate   Constraints for for USA**
                 (MT)**    Annual     (percent)**   Market          
                           Import                   Development**   
                           Growth**                                 

  **Beef**       30,618    5-10 % per 0             Competition     HRI sector which is
                           annum                    from            expanding rapidly to
                                                    established     service the building
                                                    suppliers from  boom and population
                                                    India,          influx
                                                    Australia and   
                                                    New Zealand     

  **Poultry**    130,000   5-10 % per 0             Competition     Poultry parts for
                           annum                    from            the HRI sector
                                                    established     
                                                    suppliers from  
                                                    Brazil, France  
                                                    and Denmark     

  **Almond**     14,772    5-10 % per 5             Competition     Raw, shelled and
                           annum                    from            processed almonds
                                                    alternative     for the Retail and
                                                    nuts            HRI sectors

  **Fresh        100,323   5-10 % per 0             Strong          Retail sector. With
  Apples**                 annum                    competition     the U.S.'s advanced
                                                    from Iran, a    production and
                                                    major producer  storage technology
                                                    of low-priced   US apples are
                                                    red and golden  available to the
                                                    apples, other   market most of the
                                                    varieties from  year.
                                                    Chile, France,  
                                                    China, New      
                                                    Zealand         

  **Juices**     37,731    10 % per   5             Competition     Retail and HRI
                           annum                    from locally    sectors for high
                                                    produced and    quality juices.
                                                    imported low    Wholesale sector for
                                                    quality low     bulk juices to be
                                                    priced products processed/packaged
                                                    from            locally.
                                                    neighboring     
                                                    countries.      

  **Food         43,933    5-10 % per 5             Intense         Retail and HRI
  Preparations             annum                    competition     sectors.
  NES**                                             from low        
                                                    quality         
                                                    products        
                                                    produced in     
                                                    neighboring     
                                                    countries as    
                                                    well as other   
                                                    Asian states    

  **Sauces**     11,971    5-10 % per 5             Increasing      HRI sector,
                           annum                    local           particularly fast
                                                    production,     food and casual
                                                    imports from    dining, and major
                                                    neighboring     retail outlets.
                                                    countries of    
                                                    less expensive, 
                                                    lower quality   
                                                    products        
  -------------- --------- ---------- ------------- --------------- --------------------

**In addition to the products listed above, the following products also
hold strong potential if marketed aggressively:**

-   Alcoholic beverages (beer, wine)

-   Assorted non-alcoholic beverages

-   Pears and strawberries (fresh)

-   Corn (frozen)

-   Health foods and products for special needs such as diabetic foods

-   Honey

-   Ice cream

-   Pet foods

-   Snack Foods (salted, high quality)

# B. Products not present in significant quantities, but which have good sales potential if marketing efforts focus on 'quality':

-   Citrus fruits (fresh)

-   Desserts (frozen)

-   Jams and marmalades

-   Pasta products

-   Cheeses, Powdered milk

-   Spices

-   Whole chicken

-   Breakfast cereals

-   Fruits & vegetables (canned)

-   Confectionery products, candies and chocolates

-   Edible oils

-   Rice

**C. Products Not Present Because They Face Significant Barriers:** This
category is not relevant to the U.A.E. as the market is dependent on
imported food products. Moreover, the U.A.E. applies a free trade policy
that permits importation of food products with minimal or zero import
duty. Staple food products enter duty free.

Retail outlets generally are stocked with a wide range of fresh, canned,
chilled and frozen food products.

Currently, locally produced foods present minimal competition to
imported foods. Locally processed products represent no more than 15
percent of the total volume of food products sold in retail stores.

  -----------------------------------------------------------------------
  Locally produced food and beverage products are limited to salty snack
  foods, to internationally known brand name soft drinks produced under
  licensing agreements, to packaged edible oils and juices, to processed
  dairy products and to a small quantity of locally grown then frozen
  vegetables.

  -----------------------------------------------------------------------

## Food Import Regulations:

The 2003 revised version of the \"U.A.E. Food and Agricultural Import
Regulations and Standards Report,\" currently available via the USDA/FAS
home page. URL: [http://www.fas.usda.gov]{.underline}

# C. Other ATO Publications and Reports Concerning the U.A.E*.*

## 1. Publications

American Food Directory 2002 This annual publication lists American food
companies and franchises operating in the five Gulf countries
administered to buy ATO Dubai as well as their local distributors. A
free copy may be requested from the ATO Dubai.

## 2. Attaché Reports

Latest ATO Dubai market reports may be viewed via the USDA/FAS home
page. URL: <http://www.fas.usda.gov/scriptsw/attacherep/default.htm>

# POST CONTACT AND FURTHER INFORMATION

Agricultural Trade Office

U.S. Consulate General

P.O. Box 9343

Dubai, United Arab Emirates

Tel: 971-4/311-6183

Fax: 971-4/311-6189

E-mail: [atodubai@emirates.net.ae]{.underline}

Homepage: [http://www.usembabu.gov.ae/atodubai.htm]{.underline}