The Arab Investment & Export Credit Guarantee Corporation (Dhaman) has reported that the United Arab Emirates (UAE) leads in inter-Arab investments in the food and beverage sector, holding 45% of the total number of Arab inter-projects and 58% of the overall investment costs.
In its third sector report for 2025, published from its headquarters in Kuwait, the organization highlighted that the food and beverage sector in the Arab region attracted 516 foreign projects, with an investment value nearing $22 billion over the past 22 years. These projects created approximately 93,000 jobs from January 2003 to December 2024. The report further indicated that five Arab nations—Egypt, Saudi Arabia, UAE, Morocco, and Qatar—accounted for 421 of these foreign projects, representing 82% of the total, with an investment cost exceeding $17 billion and providing around 71,000 jobs, which also accounted for 76% of the overall job creation in this timeframe.
Inter-Arab Investment
Regarding inter-Arab investments within the sector, the report stated that 12 Arab countries participated in 108 projects, comprising about 21% of all foreign initiatives in the sector over 22 years. These projects were undertaken by 65 companies and exceeded $6.5 billion in investment costs, representing approximately 30% of the total costs of foreign projects in this sector, providing around 28,000 job opportunities. The UAE again led with 45% of the number of inter-Arab projects and 58% of the total investments.
The report emphasized that the United States has been the top investor in the region’s food and beverage sector over the last 22 years, with 74 projects accounting for 14% of the total and valued at nearly $4 billion, or 18% of the total investment. These projects have created more than 14,000 jobs. It also mentioned that the top ten foreign companies accounted for approximately 15% of foreign projects, 32% of investment costs, and 29% of total new jobs, with Nestlé leading in the number of projects at 14. Meanwhile, the Ukrainian company Nibulon was the largest investor regarding estimated investment value, amounting to $2 billion and generating 6,000 jobs.
Investment Incentives
When examining the risks and incentives for investment and business in the food and beverage sector across 14 Arab countries, the UAE, Saudi Arabia, Egypt, and Qatar emerged as the most attractive nations for investment in this sector for 2024, followed by Oman, Bahrain, Algeria, Morocco, and Kuwait.
The report forecasts an 8.6% increase in sales of non-alcoholic food and beverage products in the Arab region (16 countries), expected to exceed $430 billion by the end of 2025, accounting for 4.2% of the global total, with expectations that sales will surpass $560 billion by 2029.
Moreover, a significant geographical concentration in sales was noted within the Arab region, as Egypt, Saudi Arabia, Algeria, UAE, and Iraq collectively accounted for approximately 77% of these sales by the end of 2025. In terms of product type distribution, meat and poultry products led with nearly 27% share of total food sales in the 16 Arab countries, valued at around $106 billion by the end of 2025, followed by grains, pasta, and bakery products at $63 billion, or 16%.
The report also pointed out that the average annual spending per individual on non-alcoholic food and beverages in the Arab region would rise by 7.2% to exceed $1,845 by the end of 2025, nearing the global average of $2,048. It is expected to continue increasing, reaching approximately $2,255 by the end of 2029. The Arab average for food and beverage spending as a share of total household expenditure in 13 Arab countries is expected to rise to 25.8% by the end of 2025, surpassing the global figure of 24.2%.
Focus Areas
The report emphasizes four main areas: sales projections up to 2029, Arab foreign trade for 2024, foreign projects in the sector from 2003 to 2024, and an evaluation of investment and business risks in the sector for 2024.
Foreign Trade
Concerning the external trade of Arab countries in non-alcoholic food and beverages, the report noted an increase of over 15% to nearly $195 billion in 2024, with five countries—UAE, Saudi Arabia, Egypt, Iraq, and Morocco—accounting for 70% of this figure. This uptick resulted from an 18% rise in Arab exports of non-alcoholic food and beverages, reaching approximately $56 billion, and a 14% increase in imports, amounting to nearly $139 billion during the same year.
The report added that the top ten exporting countries accounted for around 53% of the total imports of Arab non-alcoholic food and beverages, valued at $73.5 billion, with Brazil leading as the largest supplier to the region at $16.5 billion, making up 12% of the total. Conversely, the list of the top ten countries importing from the region represented 60% of the total Arab exports in this category, valued at $33.5 billion, with Saudi Arabia being the largest importer at $6.6 billion, or 12% of total Arab exports.