The GCC relies on imports for up to 80 per cent of its needs, a reliance that leaves the region vulnerable to supply disruptions and rising global prices. At the same time, demand is climbing as the population grows and e-commerce accelerates. That dependency is the central challenge for the region. Meeting it calls for investment in local manufacturing, stronger cold storage, and regulatory systems that keep trade flowing.
These pressures are not unique to the UAE. Across the globe, extreme weather and geopolitical shocks are disrupting supply chains. Last year’s heat waves damaged cocoa trees, cutting yields and pushing prices up by 136 per cent between July 2022 and February 2024. Other staples like maize, peanuts, olive oil, sugar, and coffee have seen similar shocks, forcing F&B companies to resort to “shrinkflation” and pass increased costs onto consumers as a short-term fix.
That transition is putting pressure on F&B manufacturers around the world to rethink their operations. Traditional strategies, such as centralised production in low-cost regions or reliance on a single market, are becoming less viable. Companies need infrastructure that reduces risk, shortens supply chains, and strengthens resilience. In response, many F&B players are turning to trade zones.
Free zones in Dubai have become hubs for food manufacturers looking to scale operations closer to their end markets. They combine specialised infrastructure, simplified regulation, and world-class logistics to give companies confidence in uncertain times.
One area of rapid growth is cold storage. Preserving perishables is essential to reduce food waste and safeguard food security. The UAE alone needs an additional 125,000 square metres of cold storage to meet domestic food production goals. To address this, DP World and RSA Cold Chain have developed a 100,000 square metre cold storage facility in Jafza to optimise temperature-sensitive food flows across the Middle East.
Dubai is also redeveloping the former fruit and vegetable market into the region’s largest food hub, expanding from 1 million square metres to 2.7 million square metres with built-in cold chain infrastructure. By 2030, it is expected to boost trade from 1.8 to 2.95 million metric tonnes, create jobs, and increase food trade’s contribution to the GDP.
This shift is already visible. Spring Valley, a homegrown agro-commodity supplier, has invested AED 184 million in a Jafza hub that process 65,000+ metric tonnes of pulses, spices, and nuts annually, creating a reliable regional supply chain worth an estimated AED 440 million in turnover.
Beyond infrastructure, regulatory complexity is often the biggest hurdle for food producers. Onshore, companies can face lengthy licensing processes, fragmented oversight from multiple authorities and inconsistent standards. For perishable goods, every extra day in customs or compliance checks means higher risk of spoilage and higher costs.
Free zones simplify this process. In Jafza, for example, companies benefit from a digital single-window approach through Dubai Trade that integrates licensing, customs and other necessary approvals in one place. Food safety certifications are aligned with international benchmarks, reducing duplication and accelerating time-to-market. For manufacturers sourcing ingredients from multiple geographies, this regulatory clarity ensures that products move quickly from port to shelf without bottlenecks.
This is in sharp contrast to other markets where compliance can involve several agencies and weeks of paperwork. By streamlining procedures, free zones are lowering operating costs and making it easier for global F&B players to test new products, expand production lines and scale sustainably.
Momentum is building. At Gulfood this year, Jafza and NIP secured over AED 330 million in new F&B investments from different ISC countries, including facilities for staple food processing and regional distribution.
Looking ahead, companies that invest in resilient supply chains, local manufacturing, and sustainable logistics will be better positioned to navigate market volatility. The UAE’s trade zones are providing the blueprint, and more F&B manufacturers are turning to them to grow with confidence.
