Economy Local 2026-02-04T20:26:12+00:00

Food Sector Growth in Abu Dhabi

The Abu Dhabi Chamber reported a significant increase in food and beverage licenses, reaching 24,594 by September 2025. This growth, fueled by advanced technologies and strategic investments, solidifies the emirate's position as a regional leader in food security and innovation.


Food Sector Growth in Abu Dhabi

Abu Dhabi, UAE — The Abu Dhabi Chamber of Commerce and Industry reported that the number of active licenses in the food and beverage sector of the emirate reached 24,594 by September 2025, reflecting a rapid growth in the sector. According to the Chamber's report, new commercial licenses increased by 42.2% in the first half of 2025 compared to the same period last year. Meanwhile, the sector recorded an annual growth of 40% in 2024, with a compound annual growth rate (CAGR) of 23.8% between 2019 and 2024. This report marks the first sectoral release under the Chamber's strategy for 2025–2028, highlighting the continuous expansion of production capabilities, rising export potential, and the evolution of the innovation ecosystem, which solidifies Abu Dhabi's position as one of the most competitive and resilient food economies in the region. The report confirms that the Abu Dhabi food value chain is experiencing rapid growth across all its stages, from primary production and manufacturing to retail, restaurant activities, and exports. This growth is occurring amid increasing global shifts towards consuming healthy, premium, and sustainable food, creating strong and growing market demand. The emirate's investments in advanced agricultural technologies, including controlled environment agriculture, hydroponics, and precision farming, have achieved productivity levels up to 30 times higher than traditional agriculture. This reinforces Abu Dhabi's leadership in smart farming and long-term food security. At the food manufacturing level, the report indicates strong growth in the processing and manufacturing sector, with the sector in the UAE expected to grow by around 7% annually until 2029. A significant portion of the production is directed to international markets, reflecting growing export capabilities and value-added creation potential. According to the report, the retail and restaurant sectors in Abu Dhabi continue to strengthen their positions, supported by international recognition and growing consumer demand, as well as the availability of world-class logistical and industrial infrastructure linking food production with tourism, lifestyle, and hospitality sectors. Despite global challenges in supply chains, the Abu Dhabi food and beverage sector has shown high resilience, bolstered by diverse trade channels, advanced industrial platforms, and continuous regulatory updates, including enhanced halal standards, the development of food data card requirements, and sustainability frameworks that support consumer and international partner confidence. The introduction of new economic activities into the agricultural sector has enabled producers to expand into areas of agricultural manufacturing, agritourism, and value-added production. The report notes that the city of Abu Dhabi currently accounts for the largest share of the sector's activity, while the Al-Ain region continues to solidify its role as a primary agricultural center for the emirate, and the Al Dhafra region is enhancing its contribution to the integrated system, contributing to building a more integrated and competitive food economy. In line with Abu Dhabi's Industrial Strategy and the 'Make in the UAE' initiative, the UAE continues to expand its local food production and enhance its export capabilities for high-quality products. National food production capacity is expected to increase by 30% to 40% in the next decade, driven by agricultural technology growth, manufacturing expansion, and ongoing retail and consumption market development. Mr. Ali Mohammed Al Mazrouei, Director General of the Abu Dhabi Chamber of Commerce and Industry, stated that the food and beverage sector in the emirate is witnessing a rapid qualitative transformation that reflects the success of strategic visions supporting food security and economic diversification, and cementing the emirate's position as a regional and global hub for innovation in this vital sector. This transformation is based on an integrated ecosystem that includes smart agriculture, advanced technologies, high-quality manufacturing, and value-added exports within a flexible and investment-friendly business environment. The continuous growth in the number of new companies and active members in the sector confirms the vast opportunities for the private sector to contribute to building a competitive and sustainable food system. He highlighted that this development is not limited to the expansion of economic activity but also includes integration with sustainability goals, the adoption of modern technology, and the enhancement of supply chain efficiency, which supports quality of life and boosts investor and international partner confidence. The Abu Dhabi Chamber will continue, through its institutional and international partnerships, to play its role in enabling an environment conducive to the sector's growth, directing investments toward areas of long-term impact, ensuring that the food and beverage sector remains a cornerstone in the UAE's journey of comprehensive economic development and regional leadership.