Asean nations can play key role in boosting UAE’s food security

Dubai / WAM

An analysis released by Dubai Chamber highlights the vital role that countries from the Association of South East Asian Nations (Asean) can play in enhancing the UAE’s food security.
The release of the analysis comes ahead of the first-ever Global Business Forum (GBF) Asean, organised by Dubai Chamber in partnership with Expo Dubai at Expo 2020 Dubai.
The forum, which will be held under the theme “The New Frontiers”, aims to explore the changing dynamics of Asean countries and examine the opportunities to increase bilateral trade, business and investment between the regions.
Titled “Dubai Food and Beverage Trade with Asean “, the report analyses the areas where the 10 Asean member states can contribute to the UAE’s food and beverage (F&B) sector – something that the chamber says is highly significant because the UAE imports around 85% of the total food it consumes.
“A key pillar of the UAE’s National Food Security Strategy 2051 is to diversify the country’s international sources of food – an imperative that was brought home during the coronavirus pandemic that had a major impact on global supply chains. As a country with a growing population and one that cannot grow its food at scale, identifying markets that can supply us with produce is a national priority. Asean countries represent one such important market,” said Hamad Buamim, President and CEO of Dubai Chamber.
“This new analysis that Dubai has compiled aims to show where the gaps in food trade lie, with the report aiming to be beneficial for Asean -based traders and importers and exporters located in Dubai and the UAE. Along with climate change, food security is the world’s most pressing global issue and identifying key areas of improving bilateral trade in food is
vital to ensure adequate food
supplies for all,” he added.
The analysis highlights that Dubai had a deficit in its trade balance in food and beverage products over past ten years with Asean region, meaning that there is strong potential for Asean countries to increase their food exports to the emirate. It cites Dubai Customs’ figures that show that in 2020, Dubai’s F&B imports (excluding tobacco) from Asean reached AED2.99 billion.
The figure was 8.4 percent lower than the 2019 level because of Covid-19 export restrictions on food applied by Asean countries. Vietnam and the Philippines banned the export of rice and Thailand restricted the export of eggs.
The analysis details that the UAE was the second-largest recipient of Asean food exports to the Gulf Cooperation Council (GCC), its share being around 34 percent in 2020. It reports that the share of Asean in Dubai’s food and beverage imports from the world was 6.9 percent in 2020. Still, with food exports lifted, the Asean region has the chance to increase its share in Dubai’s food imports, something that will boost the nation’s food security.
Concerning individual partners within the Asean region, Dubai Chamber’s reports that in 2020, Dubai had a deficit in its trade balance in food and beverage with all Asean countries except Singapore (AED70 million), Cambodia (AED14.7 million) and Brunei (AED29.4 million).
At 22 percent, Thailand represented the highest share in Dubai’s food and beverage imports from ASEAN countries last year, with Vietnam and Indonesia at 20 percent, Malaysia at 18 percent and the Philippines at 10 percent. These five countries accounted for 90 percent of Dubai’s food and beverage imports from the Asean region in 2020.
In terms of products, Dubai Chamber’s analysis reports that Asean countries represent more than a 70 percent share in Dubai’s imports of palm oil and prepared fish from the world, with almost one-third of the emirate’s imported coffee and tea extracts also coming from the Asean region. Other products of note that Asean countries export to Dubai include avocados, mangoes, bananas, pineapples, dried leguminous vegetables and coconuts. The report states that there are more opportunities for Asean traders to increase their food exports to Dubai.
The analysis also points to a huge opportunity existing with rice exports to Dubai, which is one of the world’s largest rice importers. It states that Asean traders could also consider Dubai as a re-export hub and increase their exports to the Middle East and African countries using the emirate’s advanced logistics and infrastructure.
In addition to outlining the potential for Asean countries to improve the UAE’s food security through imports, the report also details Dubai’s food exports to the Asean region. The emirate’s largest partner in this respect was Thailand, which took around one-third of Dubai’s F&B exports to Asean countries, with other significant countries including Malaysia (23 percent), Vietnam (19 percent) and Singapore (10 percent).
Singapore represented the largest partner of Dubai in re-exports of food and beverage products to Asean in 2020, its share of 54 percent reflecting its status as a regional trading hub. The other large regional re-exports partners include Vietnam and Malaysia at 16 percent, and Thailand at seven percent.
The paper draws attention to opportunities for Dubai traders in increasing their exports to the Asean region. It cites the United Nations Conference on Trade and Development (UNCTAD), which reports that the total Asean population reached 667 million in 2020, creating significant food export opportunities for Dubai traders. It recommended that Dubai traders explore the Philippines food market, with the country having a population of 109.6 million – the second largest in the region after Indonesia, where Dubai food exports don’t play a significant role.