ALL IN GOOD TASTE

With food security high on the UAE’s agenda, local F&B operators are investing heavily in innovation and new technologies, as was evident at the annual Gulfood exhibition in Dubai. What comes next?

- AARTI NAGRAJ

Navigating through the crowds at the annual Gulfood event, a showcase of the regional food and beverage trade business, it was evident that any perceived slowdown in the global economy was not on anyone’s mind. From the launch of a new energy drink manufactured in Dubai – which aims to go global, to the introduction of sustainable packaging and new food alternatives, the show was a barometer of the evolving and fast-growing industry.

“Basically, food is considered one of the defensive sectors. So the resilience of the sector will always remain. Despite the ongoing trade tensions worldwide, food has proven to maintain stable prices,” explains Yousef Al Sadi, head of Risk Underwriting, Middle East at credit insurance company Euler Hermes.

However, the recent coronavirus outbreak, which has already led to a drop in oil prices and will impact sectors such as airlines, transportation and tourism regionally in the short term, is also set to affect the entire supply chain and commodities in the longer-term, he opines. While the direct impact may not be significant on the GCC’s food industry, it could see a bearing. “The GCC is a big importer of food – it imports approximately 90 per cent of its supplies. I’m sure some part of the supply chain at some point is connected either through China or Hong Kong or Singapore,” states Al Sadi.

But it is precisely to avoid any major disruptions in its food supply chain that the GCC – and the UAE specifically – is investing heavily in food security. Appointing its first minister for Food Security in 2017, the Emirates has announced a national goal of becoming the world’s best in the Global Food Security Index by 2051 and among the top 10 countries by 2021 (it ranked 21 in 2019, up from 31 in 2018).