Export guide:UAE

Market research report

UNITED ARAB EMIRATES

Overseas Market Introduction Service 2018

Produced by:

Ogundimu Wuraola Trade Manager, Consumer & Retail

Contents

THE UNITED ARAB EMIRATES (UAE) ............................................................................................................. 4

UAE FOOD AND DRINK SECTOR .................................................................................................................... 6

UAE SEAFOOD INDUSTRY ............................................................................................................................ 11

Local Fisheries Statistics .......................................................................................................................... 11

Economic Importance of the Seafood Industry ...................................................................................... 12

Consumer Trends and Opportunities ..................................................................................................... 15

Expo 2020 ................................................................................................................................................ 16

Relevant Trade Shows ............................................................................................................................. 16

FOOD AND DRINK IMPORTS REQUIREMENTS ............................................................................................ 18

Labelling and Packaging .......................................................................................................................... 18

Dating of Foodstuffs ................................................................................................................................ 19

Inspection and Clearance Procedures .................................................................................................... 20

Documents Required .............................................................................................................................. 20

Banned Food Additives in the UAE ......................................................................................................... 21

Tariffs and Duties .................................................................................................................................... 21

ROUTES TO MARKET ENTRY ........................................................................................................................ 23

Consolidator ............................................................................................................................................ 23

Distributor ............................................................................................................................................... 23

Direct to Retailer ..................................................................................................................................... 24

Export Management Company ............................................................................................................... 24

Free Zone Set Up ..................................................................................................................................... 25

Onshore Set Up ....................................................................................................................................... 25

BUSINESS ETIQUETTE AND GENERAL INFORMATION ................................................................................. 26

Language ................................................................................................................................................. 26

Meetings and Presentations ................................................................................................................... 26

Negotiations ............................................................................................................................................ 27

Cultural Considerations ........................................................................................................................... 27

Working Hours ........................................................................................................................................ 27

Currency .................................................................................................................................................. 28

Telephones .............................................................................................................................................. 28

Hotels ...................................................................................................................................................... 28

Getting Around ....................................................................................................................................... 28

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BRITISH EMBASSY CONTACTS ..................................................................................................................... 29

British Embassy, Abu Dhabi .................................................................................................................... 29

British Embassy, Dubai ............................................................................................................................ 29

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THE UNITED ARAB EMIRATES (UAE) The UAE is a member of the Gulf Co-operation Council (GCC) which includes Saudi Arabia, Kuwait, Oman, Bahrain and Qatar. The UAE is a federation of seven Emirates. Abu Dhabi is the capital which includes Abu Dhabi city as well as the Western provinces including Al Ain, together making it the largest Emirate. Dubai is the most significant emirate from a trade and commerce perspective. The other emirates are Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain. More than half of the population lives in Dubai, Sharjah and Abu Dhabi. The remaining are in the other four Emirates. In the last few years, especially after the fall of oil prices, the UAE has diversified its economy away from oil. This has always been the case for Dubai who diversified into other income generators such as tourism. Abu Dhabi, where most of the oil reserves are concentrated, has been actively following a policy of economic diversification. Non-oil sectors now contribute to 70 percent of GDP and it’s expected to increase to 80% by 2021. The UAE has developed into a major regional economy over the past 10 years and is expected to see real GDP growth of between 4 and 5 percent per year from 2018 to 2020.

Indicators Unit 2017 GDP per capita £ billion 32,336.13 Population million 9.4 Inflation % 2.9

Source: IMF The UAE is the UK’s biggest export market in the Middle East & North Africa (MENA) region and the 12th biggest export market globally. There are over 5,000 British companies operating in the UAE. UK-UAE bilateral trade in goods and services reached £12.4 billion in 2013 from £7.5 billion in

Key Facts The UAE had a population of 9.4 million in 2017 comprising of around 12-15 percent Emiratis & 85-88 percent expatriates.

The UAE welcomed 15.8 million tourists in 2017, up by 6.2% over the previous year.

Dubai is expected to attract 20 million tourists by 2020.

The United Kingdom was the third-largest source of tourists, delivering 1.27 million travellers – up by 2 per cent over 2016.

Around 120,000 UK nationals reside in the UAE.

The UAE is the second largest Arab economy. Holds 10 percent of the world’s oil reserves; expected to last for more than 100 years.

GDP per capita was £32,336.13 in 2017.

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2009. It is expected to double to £25 billion by 2020. The UAE is a diverse and multi-cultural country represented by various ethnic and religious groups. Local Emiratis make up about 12-15% of the population, based on different estimates. The other major ethnic groups are Arab and Iranian (20%), South Asian (50%), Filipino, Western expatriates etc. The table below shows the statistics breakdown of UAE population:

Nationals of Population Population % India 2,600,000.00 27 Pakistan 1,200,000.00 13 UAE 1,084,764.00 11 Bangladesh 700,000.00 7 Philippines 525,530.00 6 Iran 450,000.00 5 Egypt 400,000.00 4 Nepal 300,000.00 3 Sri Lanka 300,000.00 3 China 200,000.00 2 All other countries 1,696,334.00 18 Total UAE Population 9,456,628.00 100

*Source: Abu Dhabi Information for residents and travelers1 More than 50% of the UAE expert population are from South Asia. UAE has a relatively young population: more than 70% of the population within the ages of 0-55. The table below shows the statistics breakdown of the age group breakdown:

Age Group Women (in millions)

Men (in millions)

Total (in millions)

Percentage

0-14 years 0.67 0.69 1.36 14% 15-24 years 0.4 0.81 1.21 13% 25-54 years 1.46 4.83 6.29 66% 55-64 years 0.09 0.45 0.54 6% 65 years and over 0.03 0.11 0.14 1%

*Source: Global media Insight2 1 http://www.abudhabi2.com/uae-population-by-nationality/ 2 https://www.globalmediainsight.com/blog/uae-population-statistics/

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UAE FOOD AND DRINK SECTOR “In line with consumer spending more broadly, our outlook for the UAE food and drink market remains positive over our 2017-2021 forecast period. Ongoing rises in disposable incomes combined with increasing adoption of Westernised consumption patterns will drive industry growth, particularly for premium food and drink products. While we note downside risks posed by regulatory changes such as the imposition of a tax on tobacco and sugary drinks in late 2017, and VAT in 2018, we believe the overall impact will be limited due to the affluence of the consumer base and relatively low retail prices to begin with.”

BMI UAE Food & Drink Report Q1 2018 The UAE has quickly earned itself a reputation as one of the leading destinations to enjoy quality food and five-star hospitality services. Both the growing affluence and numbers of the UAE population and visitors over the last two decades, has led to a rise in the consumption of food and beverage products in general; it has also encouraged the adoption of a whole new range of products with habits and tastes changing at a similar pace. The country’s growing population, thriving economy, and profile as one of the world’s hottest tourist destinations has only whet the UAE’s appetite for quality food products and hospitality services. Gourmet food stores, organic supermarkets, spice markets, speciality food stores, fish markets, international hypermarket chains and local convenience stores now stock everything from quail eggs to white truffle oil. The UAE food and drink sector is estimated to reach £31 billion by the end of 2018. Due to harsh climatic conditions and scarce water resources, the UAE and other GCC member states are heavily reliant upon imports for their food supplies. Limited home-grown sources of food in the UAE obviously mean that the country’s import demand for overseas products is perennially strong. Agriculture represents a very small share of the UAE's economy. The total cultivated land has

Key Facts Sector estimated at £21 billion in 2014, based on consumer expenditure.

Total value of food & drink imports, exports & re-exports reached £28 billion in 2013.

Agriculture accounts for 1 percent of GDP; 80 percent of food & drink is imported.

£8.26 billion worth of imports from UK in 2015 out of which around £184.2 million was food & drink.

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decreased in recent years, and the UAE remains a major net food importer. In 2017, the UK was the 12th major supplier of food products into the UAE. The tables below summarise UAE imports across different countries:

Number of imported shipments 2017

Country of Origin Number of imported shipments India 68,796 Oman 46,487 Pakistan 16,640 Egypt 15,193 Netherlands 13,714 United States 11,911 Australia 11,187 China 9,025 Iran 8,806 Thailand 8,447 Kenya 8,062 United Kingdom 7,879 Turkey 7,289 Ethiopia 6,965 France 6,872 Italy 6,705 Sri Lanka 6,524 Spain 6,319 South Africa 6,079 Vietnam 4,717 *Source: Dubai Municipality 2018 data Although in the 12th position in the number of shipments, the UK is the number one in the number of imported food products into the UAE. See table below:

Number of imported items 2017

Country of Origin Number of imported items United Kingdom 291,843 India 267,654 Netherlands 174,959 Oman 173,657 United States 109,628

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Thailand 78,709 Italy 67,768 Australia 57,063 Pakistan 48,061 Egypt 40,741 *Source: Dubai Municipality 2018 data

Country of Origin Quantity of food imported per kg

India 1,632,872,787 Canada 801,240,442 Australia 420,574,205 Pakistan 343,436,286 Iran 316,027,918 Egypt 294,045,971 China 287,410,134 United States 263,835,178 South Africa 248,273,096 Oman 219,208,507 Romania 181,532,101 Turkey 178,647,529 New Zealand 177,364,031 Ukraine 158,981,253 France 154,488,140 Russian Federation 152,031,391 Philippines 151,668,409 Brazil 135,150,188 Thailand 128,411,490 Argentina 124,936,810 Netherlands 116,237,460 Malaysia 111,494,078 Vietnam 111,238,792 Italy 104,986,415 Spain 102,001,726 Indonesia 100,612,440 United Arab Emirates 86,634,888 Germany 75,407,023 Ecuador 72,493,376 Lebanon 63,517,566

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Kenya 62,229,878 Myanmar 56,866,248 United Kingdom 49,752,724 Belgium 42,182,561 *Source: Dubai Municipality 2018 data

Based on Dubai Municipality records, the most imported item group is the grains and cereals. Seafood is the 10th highest imported item into the UAE. See below table

Top imported food group items 2017

Groups Name Total Weights / TONS Grains, Cereals and Products 14,041 Dairy Products 9,026 Chocolates, Confectionery, Sugar, and Products 4,714 Vegetables and Products 4,154 Beverages and Soft Drinks 4,140 Water 3,406 Pulses, Seeds, Nuts, and Products 2,415 Soups, Sauces, Dressing and Products 1,565 Herbs, Spices, Coffee and Products 1,458 Fish, Seafood and Products 1,116 Snacks and Ready to Eat Food 964 Fruits and Products 757 Food Additives 681

Meat, Poultry and Products 598

Special Nutritional Use Products 294 Miscellaneous Food 248 Oils, Fats, And Products 175 *Source: Dubai Municipality 2018 data Dubai’s strategic position as the gateway between the three continents of Europe, Asia and Africa and the establishment of the many free trade zones have supported the growth in food & drink exports and re-exports from the UAE. The majority of the food & drink exports and re-exports from the UAE are to Iran, Oman, Iraq, Saudi Arabia and Qatar. The UAE is the primary entry point for doing business in the Middle East and North Africa (MENA). Food & drink exports and re-exports from UAE stood at around £5.64 billion in 2013.

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The UAE food & drink market has performed well during the last few years on the back of a growing population, a surge in visitor numbers coupled with increased per capita income and consumption. The construction boom, especially related to hospitality sector including hotels, restaurants and malls, has significantly supported the UAE food & drink industry. The growing tourism industry is positive for the sector with plans to increase hotel room capacity to add almost 30,000 rooms with an additional 140 hotels in the coming few years. Dubai currently has a stock of 676 hotels with 101,502 rooms. In total there are currently 71 known hotels in varying stages of planning or construction in Dubai which are estimated to provide over 22,000 additional rooms. The increasing demand from the catering industry providing for in-flight meals has also benefited the sector. Emirates Airline, the world’s largest international carrier, has a very sophisticated catering division that is already active buying from UK suppliers. Emirates Flight Catering’s (EKFC) facility in Dubai is the largest of its kind in the world, with a capacity of 250,000 meal trays a day. Last year, EKFC supplied 50 million meals for Emirates flights and 8 million for other airlines. Modern retailing and western consumption trends are creating a host of opportunities in the retail and tourism sectors. Rising health awareness means that there are increased opportunities for producers of healthy and organic products; the market for packaged and ready-made meals is similarly robust. The UAE population is increasing on an average of 2 percent annually. The UAE’s sustained population growth creates a solid food market base with diversified consumer habits.

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UAE SEAFOOD INDUSTRY Local Fisheries Statistics Fishing is an embedded tradition in the Emirati culture as many of the Emirati ancestors depended on fishing for survival due to the limited agricultural activity. The strategic position of the UAE at the southern end of the Gulf, lying between the Arabian Peninsula and Iran has contributed significantly to this trade. The country has sea borders to two very distinct water bodies: the largest coastline borders the embayment-like Gulf while the East coast has a border to the more oceanic Gulf of Oman and Arabian Sea( also knowns as the Persian Gulf).

The majority of catch is taken from Abu Dhabi, since this Emirate comprises over 72% of the sea area of the United Arab Emirates. However, the most productive areas are inshore areas near to the Straits of Hormuz, around Ras al-Khaimah. This can be attributed to the lower population in the Ras Al Khaimah area. Abu Dhabi has an estimated 70% of the landed catch in the UAE which equals 4,438 tons per year. There are over 30+ designated landing sites for seafood in UAE and most are located along the coast and these

Key Facts Abu Dhabi has an estimated 70% of the landed catch in the UAE which equals 4438 tons per year.

UAE is reliant on import to meet demand for sea food.

70% of seafood product UAE is imported.

Salmon was the most imported seafood product in the UAE.

Consumers are seeking more healthy food options and seafood products are helping to fill the gap.

There are opportunities around the Expo 2020 for the expo branded products.

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products are generally auctioned at the market in which they are landed. Most landing places incorporate facilities for landing, storing, auctioning, wholesaling and retailing the catch, while some of the larger landing places/markets also have simple processing facilities for wholesale and retail customers. Some imported and trans-shipped product is also sold in the markets, although locally captured fish pre-dominate. According to the Ministry of Climate Change and Environment (MOCCAE), there are approximately 5,115 national and 13,288 expatriate commercial fishermen in the UAE, operating in 5,985 vessels. There are about 16,000 recreational vessels registered with the Federal Authority for Land and Sea Transport in UAE. There are 2,818 active commercial fishers in Abu Dhabi with vessels crewed by 468 Emirati fishers and 2,350 expatriates. Economic Importance of the Seafood Industry Economically, the UAE seafood sector comprises only 0.12 % of the country’s GDP contribution - about 39 million pounds. Similarly, in Abu Dhabi, the total ex-vessel value of the landed catch for the commercial fishery is estimated to be less than 0.0077 % of the Emirate’s GDP - valued at 27.9 million pounds. The economic contribution of the fisheries sector is relatively small in terms of the overall output of Abu Dhabi Emirate and that of the UAE. However, this is outweighed by the cultural importance and significance of the seafood industry to the UAE population. Currently the UAE imports 70 % of seafood products, with the 29% from local fisheries catch and 1 % from aquaculture. Salmon continues to be the most imported seafood product in the UAE. The table below shows some of the most popular seafood products into the UAE. Top imported seafood products 2017 Product Name Total Weights KG Salmon 628,707 Cod fish 84,226 Mackerel 57,958 Haddock 37,717 Tuna 31,160 Fish fingers 26,757 Turbot fish 24,332 Dover sole 22,825 Oyster 22,638 Mussel 16,074 Halibut fish 14,578 Prawns 14,297 Scallops 13,853

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Shrimps 13,550 Octopus 10,448 Crabs 9,774 Sea bass 8,497 Herring fish 8,327 Fish fillets 7,733 Sardines 7,702 Fish cakes 6,237 Monk fish 4,834 Pollock 3,711 Sole fish 3,488 Lobster 3,392 Trout 3,343 Clams 3,182 Crab legs 3,074 Red king crab 2,420 Cord fish 2,398 *Source: Dubai Municipality 2018 data The UK is one of the top exporters of seafood to the UAE. The table below compares the increase/decline of seafood imported from the UK to UAE between 2015 and 2017

Fresh & Chilled Items

2015

Imports Weight in KG

2015 Imports Value in GBP

2017

Imports Weight in KG

2017 Imports Value in GBP

% Import weight change

% Value

change

Pacific salmon 267,233 2,176,828 11,989 75,069 -96% -97% Atlantic salmon and Danube salmon 247,770 1,291,024 499,181 3,398,773 101% 163% Crabs 4,277 33,332 562 3,582 -87% -89% Halibut 19,234 291,510 42,128 358,017 119% 23% Lobsters 1,708 37,075 79 1,983 -95% -95% Plaice 156 944 145 805 -7% -15% Sole 22,611 370,945 23,081 352,961 2% -5% Trout 12,244 170,075 3,462 39,289 -72% -77% Turbots 23,165 456,499 26,889 468,246 16% 3% Cod 24,030 105,811 36,615 162,645 52% 54% Haddock fish 30,712 114,392 20,854 84,144 -32% -26%

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Oyster 22,733 69,658 25,189 107,800 11% 55%

Clams, cockles and arks shells 313 2,540 3,076 11,750 883% 363% Mackerel 36 242 481 1,898 1237% 684% Ray fin fished and others in the family 14 163 295 3,441 2034% 2006% Other fish fillet 2,387 11,612 21,749 129,028 811% 1011% Other fish fillets dried, salted, or in brine but not smoked 25 9 60 320 142% 3547% Pacific salmon fish fillet 1,190 4,099 28,901 53,308 2330% 1201% Salmonidae 1,526 22,862 2,997 34,266 96% 50% Seabass 48,586 773,917 8,382 117,250 -83% -85% Catfish 9,762 116,170 4,554 50,244 -53% -57% *Source: Federal Competitiveness and Statistics Department UAE

Frozen Items

2015

Imports Weight in KG

2015 Imports Value in GBP

2017 Imports Weight in KG

2017

Imports Value in GBP

% Import weight change

% Value

change

Albacore or long finned tuna 1,508 23,172 325 4,905 -78% -79% Crabs 6,540 50,984 1,250 9,848 -81% -81% Lobsters (Homarus spp.) 305 2,414 594 11,198 95% 364% Atlantic salmon and Danube salmon 453 2,317 11,280 16,414 2390% 608% Cod 716 4,503 185 1,441 -74% -68% Cold-water shrimps and prawns 396 4,589 327 6,072 -18% 32% Flours, meals and pellets of fish, fit for human consumption 189 539 13,388 20,156 6984% 3638% Haddock fish 360 2,264 3 40 -99% -98%

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Haddock fish fillet 5,311 29,577 297 2,298 -94% -92% Livers and roes, dried, smoked, salted or in brine 202 3,223 50 321 -75% -90% Other type of Mackerel fish 488 2,022 52,500 102,573 10658% 4972% fish fillet of other type of fish 8 116 2,741 7,832 34163% 6667% Other fish 9,755 13,214 90 2,074 -99% -84% Other shrimps and prawn' frozen whether in shell or not 843 11,573 1,166 12,722 38% 10%

Pacific salmon fish fillet 2,881 27,636 24,840 33,987 762% 23% Snails, other than sea snails 72 430 5 80 -93% -81% Toothfish fillet 4,635 45,614 1,371 12,389 -70% -73% Pacific salmon, Atlantic salmon, and Danube salmon 3,622 44,284 40,778 44,082 1026% 0% *Source: Federal Competitiveness and Statistics Department UAE

For more data on the UAE’s general seafood imports, see attached document Consumer Trends and Opportunities The UAE food and drinks sector has experienced tremendous growth over the last few year driven by a number of factors such as high disposable income, increasing expat community and busy schedule of resident. Hence, UAE residents are ordering food for convenience and consuming more unhealthy food. In a recent poll carried out by KPMG, 70% of residents claim they ate out more in 2017 than they did in 2016. According to the World Health Organization, the UAE has one of highest rates of obesity and diabetes in the local and expatriate community. Consequently, the government has taken necessary measures to increase health awareness in the country while discouraging the consumption of unhealthy food. There is an increasing healthy drive among residents and lifestyle trends are gearing towards more green options in diets. Seafood, which serves as a healthy alternative, is one of the products to benefit from the increasing awareness due to its high content of omega-3 fatty acid. Some of the most common popular seafood products include: Mackerel, Salmon, Sardines, Tuna, Grouper, and Seabass.

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This changing dietary requirement will increase demand for more seafood products in the country.

Expo 2020 The Expo 2020 is a six-month long event taking place in Dubai from Oct 2020 to April 2021. The Dubai Expo is expecting a footfall of 25 million people with 70% of visitors projected to come from outside the UAE representing over 200 nationalities. The mixed population provides an opportunity for varieties in fine dining, dining, snacking, impulse food, food trucks etc. The value of potential food and beverage sales during the Expo is estimated at over 2 billion Dirham from over 200 food outlets spread across the venue. Meals served by the hour is estimated at 85,000 meals. The value of seafood served during the event is set to be significant as there is a great appreciation for seafood products in UAE. The opportunities around the Expo includes Expo branded product which will be made available prior to and during the event. To ensure equal opportunity to everyone, the Expo team have launched an e-sourcing portal that allows companies to access and compete for procurement tender. See below link to access the Expo portal:

https://esource.expo2020dubai.ae/esop/uae-e20-host/public/web/login.jst

Relevant Trade Shows The growing importance of UAE as an international business hub is driven by the increased demand from the public and private sectors. UAE hosts annual trade shows in various industries including: automotive, education, food, aviation, medicine, hospitality, IT, and security. These shows have become an essential part in both expanding business locally, and even more so internationally. Attending a trade show will provide a better understanding of the depth and breadth of the potential market and highlight the maturity of the market and sales potential. In addition, business in the GCC region is highly based on relational business development. Showing up in market to meet with potential commercial partners and customers is critical to sustainable business from the region. Although the GCC markets are price sensitive, it will be strong relationships that yield sustainable market success. GULFOOD 2019 Date: Feb 17- 21, 2019 Website: www.gulfood.com Location: Dubai UAE

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About: Gulfood is the Middle East’s largest food and beverage event currently in its 24th edition. The event hosts over 5,000 exhibitors who are joined by over 98,000 visitors during the 5-day event. SEAFEX 2019 Date: to be announced Website: www.seafexme.com Location: Dubai, UAE About: The Seafex exhibition is a more focused event for players in the seafood industry. The event attracts approximately 15,000 buyers to the global centre for international foodservice and retail trade. SEAFOOD EXPO 2019 Date: to be announced Website: www.dubaiseafoodexpo.com Location: Dubai, UAE About: The Seafood EXPO serves as a platform to connect with key personnel from seafood processing and seafood product manufacturing plants and industries. SIAL MIDDLE EAST Date: to be announced Website: www.sialme.com Location: Abu Dhabi, UAE About: Sial Middle East is focused on the food, beverage and hospitality industries in the UAE. The event focuses on sectors such as the airline catering program; foodservice and HORECA sector; and healthy and organic food.

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FOOD AND DRINK IMPORTS REQUIREMENTS The UAE authorities have succeeded in unifying a number of food & drink standards and regulations. All food products imported through their entry points must be registered and labels are pre-approved by the local municipality. Prior authorisation is required from the UAE Ministry of Environment and Water for all foodstuff imports, animals and their products, animal feeds, additives, all alcoholic beverages, pork products and tobacco products. Imported and locally produced food products are treated equally regarding food safety regulations and labelling requirements. All food shipments to the UAE are inspected to ensure compliance with labelling and shelf-life regulations. Labelling and Packaging All labels must be written in Arabic or both Arabic and English. The labelling must be difficult to remove or altered and must be clear and easy to read. The label must show the following:

• Brand name • Product name (a summarised description of the

food product) • The food ingredients (arranged according

weight or volume) • Production & expiration dates of all products • Name of the food manufacturer, packer,

distributor or importer • Net weight or volume • Country of origin • Product barcode • Lot (batch) number • Storage conditions (if applicable) • Mentioning the ingredients which may cause

hypersensitivity • Language of the label should be in Arabic.

Approved stickers could be used to translate the food labels in the Arabic language

• Instructions for using the product (if needed)

Key Facts Arabic label is compulsory

UAE is reliant on imports to meet the demand for seafood

The date format acceptable in UAE is Day/month/year.

Alcohol as an ingredient in any product is prohibited in UAE

The UAE import tax is 5%

The value added tax (VAT) is 5% on all products

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• Displaying the nutritional information is optional (except the products with special uses such as baby foods, foods for patients, etc).

The label must not be:

• False, misleading or deceiving • Suggest that it is another foodstuff • Data must not be covered, altered or obliterated.

Dating of Foodstuffs Requirements:

• Production and expiration date should be printed on the original package or label

• It is prohibited to write such dates manually or indicate them on a sticker (including the sticker that is used for Arabic translation)

• Double dates are not allowed • Production & expiration shall be clearly printed, embossed, or engraved and

difficult to erase • Day – month – year shall be indicated on food products with a validity of three

months or less. Month – year shall be indicated on food products with a validity of more than three months

Production/expiry dates must be engraved, embossed, printed or stamped directly onto the original label or primary packaging at the time of production, using indelible ink. P/E dates printed on stickers are not an acceptable alternative, as well as U.S. bar coding in lieu of P/E dates. Only one set of P/E dates on the label is permitted. P/E dates must be printed in the following fashion, depending upon the shelf life of the product:

• Day/month/year for products with a shelf life of three (3) months or less • Day/month/year or month/year for products with a shelf life longer than three (3)

months. Under the month/year format, the last day of the month is considered the expiry date. Exporters who list the first day of the month following the expiry date have run into issues when trying to clear shipments. The month may be printed in numbers or letters. For example, both 3/18 and March 18 are acceptable formats. The word “Production” or the letter “P” must precede the production date. The expiry date must be preceded by one of the following statements: “Expiration (date)”; “Fit for…..from the date of production”; “Use by (date);” “Use before (date);” “Sell by (date);” “Valid until (date) from the date of production;” or the letter “E." Example of correct format:

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P: 15/02/2016 E: 14/02/2017 Specialty food product labels, for items such as diet, health and infant foods, must contain detailed ingredient information (vitamins, minerals, supplements, additives including food colourings, preservatives etc), nutritive value per 100 grams, health warnings if any, and instructions for proper use and storage. Inspection and Clearance Procedures All consignments of foodstuff arriving at any ports are physically inspected, there is no exception to this requirement. Certain foodstuffs, such as baby foods, fish/seafood and edible oils, get sampled frequently for analysis at the central laboratory. When the consignment has been sampled for analysis, the decision as to their fitness normally takes five working days or more depending on the item. Documents Required The following are the documents required to clear any cargo on entrance to the UAE:

• Bill of entry or Airway bill • Delivery order in case of containers only • An original health certificates approved by the governmental health authority at

the country of origin • Consignment packing list • An original Halal certificate issued by an Islamic Organisation which is approved

by the UAE authorities (for meat, poultry and by products) • Other significant certificates which might be required in case of any international

epidemics (such as GMO Free Certificates, Avian Flu Free Certificates, Dioxin Free Certificates, etc)

• Other certificates as decided by the authority Prior to importing it is always advisable to consult the Tariff Department with the original invoice and catalogue to obtain the correct HS codes and confirm that the products are not restricted or prohibited by any of the government authorities in the UAE. This will allow the consignee to avoid any delays after the goods have arrived to obtain any permission if required. All meat and poultry products must be accompanied by an Islamic (Halal) slaughter certificate prior to exporting into the UAE. Animal fats and ingredients should be sourced from animals that are Halal slaughtered. Legalisation of the documents is completed by UAE embassies in the country of export before exporting and by the Ministry of Finance and Industry after the goods have entered the country.

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Banned Food Additives in the UAE The following are the most popular banned additives in UAE. The Municipality has the right to stop any product which contains other chemicals they deem unacceptable in the country.

E.Number Name E104 Quinoline Yellow E105 Fast Yellow E107 Yellow 2 G E123 Amaranth E124 Ponceau 4 R E127 Erythrosine E131 Patent Blue V E142 Green S E924 Potassium Bromate (Bread products) E952 Cyclamate E1510 Ethanol (alcohol)

Tariffs and Duties There is a 5 percent duty rate on most imported food and drink products which enter the UAE. Alcoholic beverages are subject to duty of 50 percent. Products brought into a free zone within the UAE are exempt from import duties. However, goods exported from a free zone into any of the Emirates are treated as imports and are liable for customs duty. Such duties are levied on the Cost, Insurance and Freight (CIF) value. Some goods including all transit cargo, are exempt from duty (for example foodstuffs, medicines and public sector imports) although the customs authorities may call for a cash or bank guarantee as security, refundable to the owner of the goods on their re-export outside the UAE. The UAE's customs tariffs are based on the World Customs Organisation nomenclature system. Duties may be levied ad valorem or specific to the goods concerned. The UK customs classification helpline (Tel: 01702 366 077) provides advice on customer classification numbers. The helpline is open from 09.00-16.30. Enquiries can also be e-mailed to classification.tso@hmrc.gsi.gov.uk. VAT was introduced in the UAE on 1st January 2018 which will of course have implications for the food and drink retail sector. It is hoped that this will not have any negative impact on growth in the sector, although it will take a period of adjustment for consumers initially. As a general rule, 5% is being applied to goods and services in the

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UAE. There are some major exemptions for ‘big ticket’ items such as school fees, healthcare and private lease agreements which have assuaged concerns about VAT fueling inflationary pressures. Just as in the UK, companies are collecting the levy on behalf of the government and firms should now know their filing deadlines, with SMEs typically having to report on a quarterly basis and larger firms obliged to file monthly. There will be no direct impact on exporters as VAT only applies to UAE based companies. However, it is important that UK companies are aware of developments and how, for example, their distributors & resellers are applying VAT in terms of the end price for the consumer. British exporters should also be aware that UAE importers are obliged to record and pay a ‘reverse charge’ when bringing in goods from overseas meaning that the tax and administrative burden falls on the UAE buyer. Further information on UAE food and drink regulations can be found here - https://www.dm.gov.ae/wps/wcm/connect/2a153865-07d6-4ed1-a661-68f2990d3ac2/IMPORT+AND+RE-EXPORT+REQUIREMENTS+FOR+FOODSTUFF+Eng.pdf?MOD=AJPERES

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ROUTES TO MARKET ENTRY There are several routes to entering the market in the UAE. Most food & drink retail outlets have a preference to import through a consolidator which can ease out the pressure of labelling requirements. There is also the option of setting up a manufacturing base in one of the UAE’s economic free zones. The following gives a general idea to the various routes to selling your product: Consolidator A consolidator is probably the most efficient and practical way of distributing food products in the UAE. The advantage for UK companies is that they can export very small quantities, without the hassle of sending in bulk to various distributors. The big disadvantage in this method is the inability to monitor the products in market and really understand marketing factors and potential. Several supermarkets in the UAE have tie-ups or their own consolidating offices in the UK, which makes it easier for UK food and drink companies to export their products to the retailer via those in-house consolidators. Distributor Most of the larger distributing companies cover all sectors in the trade, including hotels/service industry and retail. The majority of hotels in Dubai prefer to buy products through a well-established local distributor. In addition, a good distributor should be able to offer advice on the local market, product potential and detailed import regulations. The average importer mark-up on food products is about 10-15 percent. Most distributors supply the retail and/or the food service industry including hotels, restaurants, catering companies and airline companies.

Key Facts The distributor model is the most common route to market

Smaller food manufacturers prefer to use a consolidator to sell products into the UAE as volumes required are usually smaller

Jebel Ali is the most popular free trade zone in UAE

The BCB has incubator platform that allows for easy set up of a branch or representative office

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Some larger well-established distributors supply the retail industry and describe themselves as sales and marketing support service companies. They work extensively around the year on product launches, advertising, public relations, events and exhibitions. Some distributors are proactive in working with renowned chefs to conduct workshops, kitchen courses and other business development activities that promote new products to their network. There are many retail distributors in the UAE. Some of the major ones are:

o 4 Corners UAE o Al Maya Distribution o Al Seer Group o Choithrams o Baqer Mohebi Enterprises LLC o Ghassan Ahmed Al Sulaiman Trading o Lootah Premium Foods o Safco International General Trading Co LLC o Truebell Marketing & Trading LLC o Transmed

Direct to Retailer The majority of supermarkets prefer to procure directly from a consolidator. There are some leading supermarkets who still favour the traditional route of sampling the product directly from the manufacturer. Retail food prices are generally 20-25 percent above import/wholesale prices. The following are some of the popular retailers in the UAE:

Food & Drink Retailer

Number of Stores in the UAE

Carrefour 58 Lulu 49 Spinneys 49 Al Maya 42 Choithrams 39 Union Cooperative 11 Waitrose 7 Park N Shop 4 Dubai Duty Free 4

Export Management Company Apart from working directly with retailers, food service operators and distributors in the UAE, international companies can also appoint an export management company who

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can manage their brands in the UAE. Such companies would source out relevant distributors and end-customers, look after marketing for the brands and act as their brand representatives/branch office in the UAE. Some of the major export management companies in the UAE are McCarthy Middle East, Richmond Enterprises, The Goods Collective Co and Tudor Rose International. Free Zone Set Up The option of setting up a manufacturing base in the UAE is becoming more popular within the sector. The free zones are the most effective way of owning 100 percent of the company, thus offering a more productive business and tax incentive to foreign companies. However, companies in the free zones can’t trade onshore and would still need onshore distributors/agents for them to supply to the foodservice and food retail sectors. There are more than 37 free trade zones operating in the UAE and below are some of the popular free zones in UAE

• Jebel Ali free trade zone • Dubai airport free zone • Dubai Multi Commodities Centre • Dubai Internet City (DIC) • Dubai Logistics City • Ras Al Khaimah Free Trade Zone • Dubai International Financial Centre • Twofour54

Onshore Set Up There is also an option for companies to set up onshore in the UAE by partnering up with an Emirati company, or individual, and setting up a Limited Liability Company (LLC). The BCB also provides UK companies with incubator-style support to help them get underway in the UAE. Companies attain a Dubai Department of Economic Development trade licence and are established ‘onshore’ allowing for complete market access (i.e. rather than having the restrictions of a free zone). The company formation types available are ‘Branch of a Foreign Company’ or ‘Representative Office’ maintaining 100 percent ownership by the UK parent company. UK firms can incubate with the BCB for a period of up to 24 months. This model would allow promotional and administrative activities, but goods would need to be sold either directly from the UK, or through an onshore distributor.

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BUSINESS ETIQUETTE AND GENERAL INFORMATION

As mentioned earlier in this report, the UAE has a diverse and multi-cultural society with 80% expat population. Consequently, the laws in the UAE are regarded as relatively liberal compared to the other GCC countries.

The UAE is a Muslim country and it is important that visitors are aware and show respect to the local traditions and sensitivities and always behave and dress modestly, particularly when visiting religious sites. However, although the national culture revolves around the religion of Islam, other religions are also respected and churches and temples can be found alongside mosques.

The Islamic dress code is not compulsory and visitors are allowed to dress as they would generally in their various countries, albeit more modestly (with clothing which covers shoulders and knees). Most Emirati males wear a kandura, an ankle length white shirt and most Emirati women wear an abaya, a black flowing-over garment covering most of the body and a head scarf covering their hair.

Language

Arabic is the most commonly spoken language, followed by English. When dealing with a government agency, Arabic is required for all official documents, forms, laws and decrees are in Arabic. Arabic is often preferred within some public sector organisations. Therefore, it helps to have a working knowledge of the language – although you will find English is the common language of business.

English is widely spoken throughout the country. It is preferable to have one side of your business card printed in Arabic; however, this is not compulsory. During meetings you should:

• exchange business cards immediately after introductions, presenting with both hands or with the right

• do not offer anything with your left hand, nor receive anything with your left hand

• keep cards on the table, do not put them away immediately.

Meetings and Presentations

Personal relationships are a vital key to success in doing business in UAE. It is preferable for exporters to have a face-to-face business dialogue with their UAE counterparts. Face-to-face meetings are preferred, as phone or emails are sometimes seen as

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impersonal. Appointments should be made no more than two weeks in advance and confirmed a few days before the actual meeting as priorities may change. This step is necessary to build trust and bond with your local partner. It’s important to connect with the decision maker in your target organization. This can be achieved via introduction by a mutual contact, exhibitions, networking receptions or through the British Centres for Business (BCB) in the form of a Trade Advisory Service (TAS). Through a TAS, the BCB can provide a programme-arranging service, whereby your company would be introduced to the most appropriate contact and an appointment can be confirmed on your behalf.

Continuous personal contact with potential and existing partners/clients and regular visits to the market are of the utmost importance and it is natural for the business relationship to be built with time.

The customary greeting is “As-salam alaikum" (peace be upon you), to which the reply is "Wa alaikum as-salam” (and upon you be peace). When entering a meeting, general introductions will begin with a handshake. You should greet each of your Emirati counterparts individually. Avoid shaking hands with the opposite sex unless they extend their hand first.

When you are in the UAE, especially on business, coffee, as well as tea, will often be offered to you in offices and at Arab's homes. Offering coffee is symbolic of hospitality.

Negotiations

It is essential to obtain legal, financial and taxation advice, along with undertaking necessary research, all of which are critical when considering new markets. Ensure all your documents are reviewed by an appropriate advisor before signing anything.

Cultural Considerations

The UAE is a considerably modern country in relation to the rest of the Middle East region. As such, many traditional attitudes and business practices are evolving towards a more westernised approach. Nevertheless, it is still important to be aware and respectful of some of the differences that might exist.

Working Hours

Working hours can vary between the Emirates and may also change between summer and winter. The public sector takes a Friday/Saturday weekend. In the private sector some companies take Friday and others Friday/Saturday. Friday is the Muslim holy day and many smaller retailers are closed until mid-afternoon or evening. Most retail outlets remain open until late evening.

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The private sector has traditionally worked a split shift from 0830-1300 and 1600-1900 Saturday to Thursday. Increasingly though the private sector is adopting a 0900-1700 working day.

Federal government and administrative offices in United Arab Emirates generally work from 0730-1430 Sunday to Thursday. Working hours vary during Ramadan, the Muslim holy month of fasting. Most officials work from 0900-1300, but many useful contacts can be made and renewed during and after the evening 'Iftar' meal.

Banks are open from 0800-1300 Sunday to Thursday.

Currency

The unit of currency is the UAE Dirham (AED). One Dirham is made up of 100 fils. The currency is pegged to the US Dollar at a rate of AED 3.67 to $1.

Telephones

The international dialing code for the UAE is +971. Landline numbers in Dubai are prefixed with 04; Abu Dhabi with 02 and mobile numbers with 050, 052, 055, 056, or 058.

Hotels

When you are planning your visit to the UAE please bear in mind that hotel space is at a premium. During the high season (October-May) it can be very difficult to find good quality hotel accommodation. The problem is particularly acute around the dates of major exhibitions.

Getting Around

The easiest way to get around during a visit to the UAE is by taxi. They are generally clean, inexpensive and efficient. There are a number of taxi companies in the UAE and taxis are available at all major hotels and shopping malls.

They can also be flagged on the street. All are metered. The starting charge for a taxi flagged in the street is 3 Dirhams between 0600 and 2200 (3.50 between 2200 and 0600).

Taxis from the airport start at 20 or 25 Dirhams depending on the time of day. There are many local and international car hire companies operating in UAE. Visitors will require an international driving licence in order to hire a car in UAE.

Uber also functions in the UAE and can we used to commute around. The Uber app is the same as the one in the UK. There is also a local based Uber style company called Careem. Unless you are going to a major landmark (e.g. a hotel or mall) a public taxi

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will expect you to direct them to your desired destination. While Ubers and Careems are slightly more expensive than a public taxi, the advantage of an Uber or Careem is that they are reliable, trackable and use GPS and you will not need to direct them.

BRITISH EMBASSY CONTACTS British Embassy, Abu Dhabi Address: Khalid bin Al Waleed St (Street 22), PO Box 248, Abu Dhabi

Tel: +971 2 610 1111

Fax: +971 2 610 1585

Email: commercial.abudhabi@fco.gov.uk

British Embassy, Dubai Address: Al Seef Road, PO Box 65, Bur Dubai

Tel: +971 4 309 4444

Fax: +971 4 309 4302

Email: ukti.dubai@fco.gov.uk

For more information on this report, please contact:

Trade Manager, Consumer & Retail ☎: +971 4 369 2899 📱📱: +971 52 905 3143 📧📧: wuraola.ogundimu@bcbuae.com :www.linkedin.com/in/wuraola-ogundimu-4523a872/

@BCBUAE