kizad food processing cluster Serving the Middle East Middle East Food Sector GCC Region – $ 1 Trillion Global Hub for Opportunity Food Trading Middle East and North Africa (MENA) region’s food products market could exceed $1 trillion The GCC region plays a major role in global food industry. GCC is a major hub for food by 2030*. A growing population, economic diversification efforts and increasing disposable re-export and the value of its food retail sector is estimated to be $106 billion*. income contribute to the long term future prospects of the food sector in the MENA region. Key Facts & Trends Key Facts & Trends 59.2 $1 $319 3.4% $106 6.1% MILLION 7.4% TRILLION BILLION BILLION TONS estimated annual projected growth expected GCC food estimated CAGR of projected food products estimated market size estimated compound retail food sales rate (CAGR) of food consumption total packaged foods market in the MENA by 2021** average growth rate in GCC* sales in GCC during by 2021*** market in the GCC region by 2030** of food sector in MENA 2015 - 2021** during 2014-2019*** between 2015 - 2021** Cereals, dairy products, fruits & vegetables and meat products are the major food categories consumed in the region MENA Food Sales (billion USD)** 319 301 GCC Food Consumption (Volume)*** 267 283 261 257 254 2016E 22.4 Million MT 2016E 5.5 Million MT 2016E 6 Million MT 106 2021F 27.5 Million MT 2021F 6.5 Million MT 2021F 7.2 Million MT 93 99 81 87 31 32 74 78 27 28 2% CAGR 2% CAGR 2% CAGR 25 Cereals Vegetables Fruits 22 23 2016E 7.55 Million MT 2016E 2.9 Million MT 2016E 3.7 Million MT 2021F 9.7 Million MT 2021F 3.4 Million MT 2021F 4.9 Million MT 2015 2016 2017F 2018F 2019F 2020F 2021F Dairy 3% CAGR Meat 2% CAGR Others 3% CAGR MENA GCC UAE *World Bank **Business Monitor International *AT Kearney Report **BMI ***Alpen Capital 2 3 UAE UAE Food Sales (billion USD)* 1.3 1.4 Others 1.2 Largest Re-Export 1.1 1.3 1.3 1.0 1.0 1.1 1.2 Baked Gds & 1.1 2.6 2.8 1.0 1.0 Pasta Products 1.0 1.0 2.3 2.4 0.9 2.1 7.0 7.5 Centre in the GCC 1.9 1.9 Sugar Products, 5.6 1.8 6.2 Oi&Fat for Food Sector 5.4 5.5 5.8 5.2 Fruits & United Arab Emirates, 2nd largest economy and the most important business hub in the GCC, is 4.1 4.4 3.5 3.8 Vegetables also the largest re-export centre for food products serving the entire MENA markets. 3.0 3.3 3.0 4.4 2.9 3.8 4.1 3.6 Dairy 3.1 3.1 3.3 3.0 10.8 Key Facts & Trends 9.5 10.1 Breads & Cereals 7.6 7.7 8.2 8.8 7.4 2014 2015 2016 2017F 2018F 2019F 2020F 2021F Fish, Meat &Poultry $100 # 1 10.1 BILLION MILLION TONS estimated value of UAE’s rank in food food consumption in UAE UAE Food Sales (Volume)** UAE’s food products sector risk-reward by 2021 (CAGR of 4.4% 2016E 2.7 Million MT 2016E 1.7 Million MT 2016E 1.6 Million MT imports* index in the MENA during 2016 – 2021)*** region (lowest risk and 2021F 3.5 Million MT 2021F 2.1 Million MT 2021F 2.1 Million MT highest reward)** 5.2% GROWTH 4.4 %GROWTH 5.3% GROWTH Cereals Vegetables Fruits 2016E 0.5 Million MT 2016E 0.6 Million MT 2016E 0.9 Million MT 15% 2021F 0.6 Million MT 2021F 0.7 Million MT 2021F 1.1 Million MT $5.6 $357 Dairy 1.9% GROWTH Meat 2.8% GROWTH Others 2.9% GROWTH BILLION MILLION MILLION TONS forecast for retail sales forecast of healthy share of organic, low CAGR 4.4% value of packaged packaged food sales fat and glutton-free Over all Volume/year: 2016: 8.1% I 2017: 8.6% I 2019: 9.3% I 2021: 10.1% foods market in the UAE in UAE by 2020 (CAGR of products in packaged by 2020*** 9.2% during 2015 – 2020)*** foods market*** Major food re-exports - coffee, tea, sugar and rice make UAE the largest re-export centre in the region United Arab Emirates, 2nd largest economy in the GCC *Ministry of Economy-UAE **Business Monitor International ***Alpen Capital *Business Monitor International **Alpen Capital 4 5 Global Hub Why UAE for Halal Products worldwide on World Competitiveness Index UAE is a global hub for halal food products – one of the fastest growing product segments in the in MENA region on World # world. Abu Dhabi, located at the centre of the most important consumer base for halal products Competitiveness Index 17 offers the ideal platform for serving the markets in the GCC and MENA region. # 1 worldwide on Goods Market Efficiency worldwide on Labor Market Efficiency #3 Business Monitor on Transport #11 International worldwide on Network Institutions #1 $3.7 $53.1 $20 #5 on Trade Procedures & Governance TRILLION BILLION BILLION # in MENA region on 2 BMI’s Logistics worldwide on forecast of international projected requirement UAE’s annual imports of Risk Index Infrastructure Food & Drink Risk/ halal industry by 2019* of halal food imports in halal meat (314,000 tons)*** #1 # Reward Index the GCC by 2020** 5 #1 World Competitiveness Index Business Monitor International *Global Islamic Economy Report **Alpen Capital ***Farrelly & Mitchell ABU DHABI, OFFERS THE IDEAL PLATFORM Why Abu Dhabi FOR SERVING THE MARKETS IN THE GCC AND MENA REGION. in the Middle East – Safest in the world – among the city in the region* fastest growing tourism #1 #3 destination** Among the highest GDP per capita in the world AA credit rating from Fitch and S&P, AA2 from Moody’s * Safe Cities Index 2015 - Economist Intelligence Unit ** Global Cities Index Report 2016Unit 6 7 KIZAD KHALIFA PORT Khalifa Industrial Zone Abu Dhabi FREE TRADE ZONE Khalifa Industrial Zone Abu Dhabi, is the integrated deep-water port and the Khalifa Port Free Trade Zone, is ranked among the largest free trade zones in the largest industrial zone in UAE that offers wide range of business setup solutions region offering a unique investment environment for foreign investors to explore and infrastructure facilities. the lucrative markets in the Middle East. THE LARGEST INDUSTRIAL ZONE IN UAE RANKED AMONG THE LARGEST FREE TRADE ZONES IN THE REGION Located midway between Abu Dhabi and Dubai and integrated with Khalifa Port, KIZAD enables Located within Khalifa Industrial Zone Abu Dhabi (KIZAD) and covering an area of 100 million m2, businesses to benefit from its strategic location, easy access to markets, low operational costs, Khalifa Port Free Trade Zone offers the facilities and benefits provided by Khalifa Port and KIZAD world-class infrastructure, and efficient investor support services to facilitate business growth. in addition to customized free trade zone business policies such as 100% foreign ownership, no restriction on repatriation of capital and profit, duty free import and re-export etc. Covering an area of over 400 million m2 across its free zone and non-free zone facilities, KIZAD provides a comprehensive solution including unmatched competitive advantage and multimodal With a fast–track business formation process and liberal labor policies Khalifa Port Free Trade connectivity with Khalifa Port (fastest growing deep-water port in UAE), Abu Dhabi International Zone is an attractive platform for international investors to set up a business venture in UAE Airport, express-highways and planned railway network forming the pillars of infrastructure facilities. within a quick time-frame and explore the regional markets. 8 9 Key Benefits for Less Time. Food Sector in More Business Serving the markets in the Middle East and GCC through only exports results in significant lead KIZAD & KPFTZ time. Through its multi-modal connectivity and infrastructure, KIZAD and Khalifa Port Free Trade Zone are ideally positioned to help businesses to reach the target customers in the region within Integrated with Khalifa Port – 2nd fastest growing deep water port in the world a few hours. and the first semi-automated port in the region The graphic below shows savings in lead time - in number of days - if companies from the respective Located midway between Abu Dhabi and Dubai countries/regions serve the markets in the gulf from KIZAD and Khalifa Port Free Trade Zone. Free trade zone benefits Canada • 100% foreign ownership in the Free Zone companies • 100% repatriation of capital and profit 5 EU Russia • No corporate and income taxes USA 6 5 • No customs duty on import and re-export China 7 South First Free Zone in the UAE to be connected with the planned railway network 7 Korea Japan India Large plots of industrial land, modular warehouses and office space 6 6 Modular highway – 8 lane highway - dedicated for large equipment movement 3 Extensive network for power, water, waste management etc. Brazil Competitive lease rates and utility rates 4 Lower cost of shipment to the markets in the Middle East, Europe and Africa Australia Significantly faster time to markets in the Europe and Africa 5 Lower terminal handling charges and fast truck turnaround time Food Cluster in KIZAD & Khalifa Port Free Trade Zone KIZAD Advantage. KIZAD and KPFTZ have become home to some of the largest food products manufacturers in the region. Both international and regional companies in the food products sector get benefited from the unmatched competitive advantages offered by KIZAD and Khalifa Port Free Trade Zone.