France reinforces its presence at Gulfood this year

Since the creation of the Gulfood fair, France has always had its own pavilion.

In recent years, the Middle East has become one of the most important food and drink markets in the world. Residents of the UAE and other Gulf states spend up to USD 9.5 billion annually on foods consumed outside of their homes. Food consumption in this region of the world represents 10% of foodstuffs traded internationally. But despite the increase of the local production, GCC countries continue to resort to massive imports to cover the increasing population's needs.

France is the world's third largest exporter of agribusiness products. With nearly €39 billion turnover, the French agribusiness ranks just behind the US and the Netherlands.

French exports to the Middle East are mainly made up of poultry, dairy products and apples. France is the 4th food provider of the Middle East and the 1st European one. Between 2000 and 2004, French exports have witnessed a regular decrease in the Middle East. This was mainly due to the ban on French beef and also to the strong Euro vs. the dollar which did not play the favor of European imports.

In 2005, French food product exports to the middle East have increased by 14.7 % in value. According to French customs' official data, KSA & the UAE rank respectively as France's 23rd and 29th world clients (in value) for agribusiness product exports. They have respectively increased their French food imports by 44% and 30.8% in 2005. Some emerging countries have recorded an astonishing increase of their French food imports such as Qatar with 86.1%!!! This can be mainly explained by the fantastic global economic growth that these countries are experiencing at the moment.

Huge market development perspectives

Indeed, despite this exceptional and amazing growth, the Middle Eastern region continues to offer many important development opportunities in terms of volume but also in terms of offer due to several important factors such as:

• An increase of global consumption linked to the population's growth combined with high disposable incomes and a growing taste for the western - style products

• Moreover, the Middle East has the world's best growth in the tourism sector with ambitious objectives (+36 million visitors for 2010 ; + 69 million visitors for 2020)

• The retail environment is rapidly changing with higher competition and larger shopping areas.

'The revolution of the distribution network with the fast development of French Chain hypermarkets as well as the development of the catering sector with many 4 & 5* Hotel openings in the region are positive factors for French food…' said Eric Santier, Managing Director for Sopexa. 'Moreover, Middle Eastern residents have become more aware of what they are eating and food safety has become a major priority for GCC governments. This is another good opportunity for our food products knowing that France applies very strict regulations and has innovated a lot in the sanitary and healthy food sector…'

The UAE, a specific market

Despite its small size, its quick development outside of the oil industry and its huge success in developing tourism, have made the UAE the second biggest food & beverage market in the GCC (right after KSA). According to the latest report 'foodservice in the Middle East - the UAE, 2005 -2006' by analysts BIS Shrapnel, the UAE foodservice market alone is worth a massive AED16 billion (US$4.36 billion), and is predicted to grow by a rate of 11% per annum over 2005 and 2006.

In 2004 alone, UAE food imports have increased by 10% for a total value worth of 5 billion Euros. During this same period, the main imported food products were fruit & vegetables, meat and dairy products. Main French products exported to the UAE are poultry, dairy products and wine. In 2004, these three sectors represented 45% of French Agribusiness exports to the UAE.