The United Arab Emirates (UAE) has a very low food production mainly because of the unfavorable climatic conditions for the cultivation of fruits and vegetables and because of the high cost of labor. As a result, the UAE is highly dependent on food and beverage imports to meet the needs of its 9.4 million inhabitants. That is why it is an interesting market for Chilean products, including agricultural food products, according to the report "How to do business with the United Arab Emirates" carried out by the Chilean Commercial Attaché in that country.
According to the document, the UAE's food industry is very varied because of the high level of tourism. The country's permanent consumers, that is, those living in UAE, including Europeans, Americans, and Latinos, all of whom have a medium-high purchasing power, seek to purchase gourmet products to use in their recipes. In addition, according to ProChile's report, the UAE has more than 600 hotels that are constantly searching for new flavors and innovative presentations to captivate their visitors.
Opportunities for Chile
ProChile experts stress that despite having a high demand for food the UAE was "a competitive market, sensitive to brand development for sophisticated products, and the price of those that are more competitive." This means that the Chilean sector with the greatest opportunities, thanks to its quality and competitiveness, would be the wine sector, especially in the hotel and restaurant sector, since there are few spaces in the retail stores.
It also indicates that there are opportunities for shelled and unshelled walnuts. In addition, there is an interesting space for almonds, plums, and raisins. "It's a market that values the mix of products," the report stated.
The fresh fruits with the greatest demand are the red apples, grapes, and kiwis. "Other Chilean fruit varieties, such as blueberries, oranges, and cherries are slowly gaining ground thanks to their origin and the improvement of Chilean air logistics," the report states.
"There are clear opportunities for products of the gourmet category; products with a high degree of differentiation and prices above average," as well as for organic products, which are a highly profitable niche, according to information from ProChile.
The UAE has a high rate of obesity and the population has a sedentary lifestyle, which has led to an important level of diabetes. Therefore, the United Arab Emirates are looking for ways to promote healthy eating, such as fresh fruits and vegetables.
According to the report, another growing trend is the halal food segment.
"The halal food segment continues to grow in the Middle East and the long-term prospects for the industry are encouraging as the Muslim population accounts for nearly 25% of the world's population. Australia, New Zealand, Ireland, Brazil, Canada, and the USA are all importing halal food," the report states.
Trust is key
According to ProChile's report, the parties interested in taking their products to the UAE should know that the Arabs believe it is key to build trusting relationships, as human relationships are more important than commercial relations.
Other aspects that are considered essential to be successful when exporting to the UAE are having fast, constant, and timely response times to their requirements.
"Business meetings may be delayed, postponed, interrupted or over- extended, but Chilean entrepreneurs must be in all of the meetings and appointments in a timely manner. They consider that patience is a virtue, and they believe everyone can wait. Expressing anxiety is not well viewed and meetings should not end abruptly, mainly because their pace of life is more relaxed."
Source: El Mercurio