Dubai: Dairy & fruit juice industry registers 10% annual growth to meet 56% of local demand
The Dairy and Fruit Juices Industry in Dubai is expanding at a rate of 10 per cent annually and currently meets 56 per cent of the demand in the UAE, according to a recent study by the Department of Economic Development (DED), which identifies UHT juices and UHT milk as products that have great potential for export.
The study further recommends that the dairy industry should research and develop new differentiated products, designed to meet specific needs and tastes of the local market, as imports do not completely satisfy this demand.
This study is part of a series entitled ‘Manufacturing Sub Sectors Studies Series,’ which has been undertaken by the Business Sector Development Division at the DED as part of the Departments’ plan to develop the manufacturing sector in Dubai.
“The growth of indigenous industry is crucial to the sustainable economic development in a country,” said Mr. Fareed Al Abdulla, Head of Business Sector Development Division, DED. “The Department is currently focusing on facilitating the development of local industry by instituting a series of studies on the manufacturing sectors currently operating in Dubai, as a basis to consolidate and further expand the process of industrialization,” he added.
The main sectors that have been studied include the Vegetable Oil and Fats, Dairy Products and Juices, Meat and Vegetables, Medicines, Detergents, Medical and Surgical Requisites, Paints, Fertilizers, Cement, and Footwear industry. Each study also includes a number of recommendations to further develop the industrial sector in the emirate.
Citing the huge gap in the import and export figures for Medical and Surgical requisites, the study recommends developing local industry for export. In particular, it suggests producing medical dressings for export to Saudi Arabia, S. Africa and India and dental cements and filings to Russian Federation, S. Africa and Turkey.
Highlighting the huge demand for oils and fats in the regional market, the study points out that imports by the Middle East and Africa alone touch about AED3 billion, representing a huge potential market for Dubai’s industry. The study further recommends the use of capital-intensive technology like solvent extraction for Dubai as it states that refining imported crude vegetable oil will tend to be less economical, especially given the competition from the neighbouring states.
Each of the studies also present an overview of the manufacturing sector in the UAE, in addition to detailing the market size and potential for growth in each of the sub sectors.