Over 500 firms operate in Dubai’s spices trading sector, says DED
The production and packaging of spices offer strong growth opportunities.
The report, which includes statistics on the number of companies operating in Dubai and their activities, aims to familiarise entrepreneurs with the spices sector, and highlight its role in adding value to the economy.
Of the 514 companies, 375 licences were issued for “Trading of spices”, 132 for “Packaging of spices”, and seven for “Preparation of sauce and spices”. The first three companies were established in 1963 and are still operational.
The report also showed that Indians led the top ten nationalities investing in this sector followed by the citizens of Kuwait, Pakistan, Saudi Arabia, Egypt, Lebanon, Jordan, USA, Britain and France. The number of investors in the spices sector stands at 2,642 including 2,497 businessmen (95 per cent) and 145 businesswomen (5 per cent). The number of workers in the spices sector reached 1,210, while the operational rate of the companies is 72 per cent.
Despite the growth in imports of spices, locally produced spices have been able to compete and sustain growth. This is evidenced by the increase in the number of local brands and the continued growth in demand with the products serving as basic food items for Emiratis, Arab, Asian and European families living in the country.
Brands that are locally produced or packaged have grown in recent years led by competitive factors including quality and cleanliness, and high standards of packaging, compared to similar Asian products.
The Department of Economic Development (DED) is the government body entrusted to set and drive the economic agenda of the emirate of Dubai, UAE. DED supports the structural transformation of Dubai into a diversified, innovative service-based economy that aims to improve the business environment and accelerate productivity growth. DED 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.
Spices has probably been the oldest item that has been traded globally and has its origins from China and India. The global demand of spices is high and UAE tales pivotal role in distributing this product internationally.
As per 2015 ITC data, more than $442 Million worth of Cinnamon and cinnamon-tree flower products were imported globally.
Largest importers of this product in 2015 were USA (18 per cent); Mexico (14 per cent), India (10 per cent), Netherlands (3 per cent), followed by UAE, Peru, Bangladesh and Germany (2.5 per cent).
UAE’s exports (in 2015) totaled nearly $832,000, with Oman being UAE’s main partner for this product with 68 per cent of UAE’s exports going here. Other importers apart from GCC include Maldives, Spain, and Canada (2.2 per cent), however, all in very low quantities.
Potential exists both in terms of market diversification (e.g. US, Mexico) as also increased export potential to the surrounding ME Region. In 2015, ITC data cloves indicated an import value of $368 Million. Top importers as a percentage of global imports include India (41 per cent); Singapore (12 per cent); Vietnam (6.2 per cent); USA (Nearly 5 per cent); Germany & Netherlands (together at 4.5 per cent), apart from Saudi Arbia, Mexico, Peru and Malaysia (1.3 per cent). Apart from exports to the GCC (58 per cent), the only significant importer from UAE is Dominican Rep 1.5 per cent) and India (though UAE is a net importer for this product from India). USA and the EU remain a high potential importer which we need to pursue actively, apart from increasing exports to regional importers.
Out of a global import value of nearly $669 billion in 2015, main imports of Nutmeg, mace and cardamom were from KSA (19 per cent); UAE (15 per cent); India (10.5 per cent, though a net exporter); Vietnam (5.5 per cent); USA (5 per cent), apart from EU (15 per cent).
UAE’s exports of this product was concentrated to the GCC (83 per cent), apart from small quantities to Maldives, Malaysia, Ethiopia & Pakistan. Clearly potential exists for new or increased exports to USA and EU countries.
As per 2015 ITC data, more than $699 million worth of seeds like Anise, badian, fennel, coriander, cumin, etc. were imported globally with EU (20 per cent); USA (10.5 per cent); India (7.2 per cent); Vietnam (6.5 per cent); Malaysia (6 per cent) and the rest among many other countries. UAE’s exports however was only approx.
Agencies
