The United Arab Emirates is spearheading a remarkable $22 billion investment initiative in the Arab food and beverage sector, reflecting its critical role in job creation and economic growth. As part of this investment drive, the sector is expected to generate approximately 93,000 new jobs, underscoring the UAE’s status as the leading investment destination in the region. This concerted effort highlights the UAE’s increasing influence in the food and beverage landscape and its pivotal contribution to regional economic development.
In its latest sector report for 2025, the Arab Investment and Export Credit Guarantee Corporation (Dhaman) revealed that the UAE plays a dominant role in the food and beverage investment landscape, accounting for an impressive 45 percent of all inter-Arab projects and 58 percent of total capital expenditures. This data reinforces the UAE’s position as the preeminent investment hub in the region.
UAE Leads Arab F&B Investment
According to Dhaman’s analysis, from January 2003 to December 2024, a total of 12 Arab countries have invested in 108 inter-Arab food and beverage projects, representing roughly 21 percent of all foreign direct investment (FDI) initiatives in this sector. These projects were undertaken by 65 companies with a combined capital expenditure of $6.5 billion, which constitutes 30 percent of the total FDI Capex, and they have generated nearly 28,000 jobs.
The UAE stands out significantly among its counterparts, establishing itself as a key manufacturing base and logistics center for food and beverage production in the Arab world. When considering broader regional trends, Egypt, Saudi Arabia, Morocco, the UAE, and Qatar collectively attracted 421 FDI projects, making up 82 percent of the overall investments, accounting for more than $17 billion and resulting in 71,000 jobs—76 percent of total sector employment during this period.
Global Investment
Dhaman’s report, anchored on several pivotal pillars, including sales projections until 2029 and an overview of Arab foreign trade for 2024, highlights the United States as the largest foreign investor in the Arab food and beverage sector over the last 22 years. US firms have participated in 74 projects, making up 14 percent of all FDI initiatives with a capital expenditure of about $4 billion, creating over 14,000 jobs.
The analysis underscores that the top ten foreign investors in the sector have collectively accounted for 15 percent of all projects, 32 percent of the total Capex, and 29 percent of newly generated jobs. Notably, Swiss-based Nestlé leads in project numbers with 14 initiatives, while Ukraine’s NIBULON excels in capital investment and job creation, contributing approximately $2 billion and supporting 6,000 jobs.
UAE Among Top-Ranked Investment Destinations
Utilizing Fitch Ratings’ risk and reward indicators, Dhaman has classified the UAE, Saudi Arabia, Egypt, and Qatar as the leading markets for food and beverage investments in 2024, followed by other Arab countries like Oman, Bahrain, and Algeria. Sales for food and non-alcoholic beverages across 16 Arab nations are projected to rise by 8.6 percent, surpassing $430 billion by the end of 2025 and accounting for 4.2 percent of global sales. This figure is expected to exceed $560 billion by 2029.
The concentration of sales remains significant, with Egypt, Saudi Arabia, Algeria, the UAE, and Iraq together contributing approximately 77 percent of regional sales by the end of 2025. Meat and poultry are anticipated to lead product categories, projected to comprise 27 percent of overall food sales valued at around $106 billion, followed by cereals and baked goods at $63 billion, which account for 16 percent.
Trade Expansion
Arab external trade in food and non-alcoholic beverages witnessed an increase exceeding 15 percent, reaching around $195 billion in 2024. Countries like the UAE, Saudi Arabia, Egypt, Iraq, and Morocco accounted for a significant 70 percent of this total. This surge was driven by an 18 percent upturn in exports, reaching $56 billion, along with a 14 percent growth in imports totaling $139 billion.
In terms of imports, the top ten supplier countries provided about 53 percent of the Arab region’s food and non-alcoholic beverage needs, valued at $73.5 billion, led by Brazil at $16.5 billion, which constitutes 12 percent of the total. Conversely, the top ten importing countries from the region represented 60 percent of Arab food exports, approximately valued at $33.5 billion, with Saudi Arabia standing out as the largest importer at $6.6 billion, or 12 percent.