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Research and Markets: United Arab Emirates Food and Drink Report Q2
2008 Providing an Essential In-depth Market Overview & Competitive
Landscape Analysis
(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:04072008
Dublin - Research and Markets
(http://www.researchandmarkets.com/research/7541f0/united_arab_emirat)
has announced the addition of the "United Arab Emirates Food and Drink
Report Q2 2008" report to their offering.
This report provides independent forecasts and competitive intelligence
on United Arab Emirates' food and drink industry.
Inflation continues to be a major concern in the UAE economy, and the
food and drink sector in particular, as discussed in BMI s recently
published UAE Food & Drink Report for Q208. With all of the Gulf
oil-producing States looking to offset inflation by introducing price
controls on rents, raising wages and increasing food subsidies, the UAE
government has been considering giving its citizens discounts on basic
food products. Under the proposed scheme, UAE nationals will be able to
purchase rice, bread, tea, sugar, milk, butter and other basic food
items at cost, by presenting an identification card. While economies
worldwide have had to deal with major food price inflation, the Gulf
region has been hit particularly hard due to its major negative food
and drink trade balance, and the local currency's peg to the dollar,
which has been plummeting against a wide range of currencies,
particularly the euro, making imports far more expensive.
In February the government of the emirate of Dubai announced its plans
to establish a chain of supermarkets, giving few details, apart from
saying that the name of the new chain will be Aswaaq and that it will
raise a part of the capital for this new project by selling shares in
an initial public offering in which it will sell the equivalent of 55%
of the new company. As many of the country's flashy Western style MGR
outlets focus on the higher end of the market, with a noticeable lack
of discount stores, there are not many established chains that would be
interested in carrying very low-end products, for fear of damaging
their image and looking 'cheap'. Therefore the government s decision to
establish these stores may be a means of catering to this lower end of
the market at a time when food prices inflation is expected to
continue. Then, the government made an even bigger move, with the
Ministry of Economy sending out a maximum price list for a number of
basic goods, saying that it will fine retailers AED100,000 (US$2,724)
for selling above these prices. Following this announcement the Union
Co- Operative Society agreed to fix the retail price of 16 basic goods
at their 2007 levels in its stores, and has recommended that other
retailers follow suit.
The nuisance of high inflation will continue to hang over the UAE
economy in 2008. Although we do forecast a slight easing in
inflationary pressure in 2008 to an average of 7.9% year-on-year
(y-o-y), down from 9.7% y-o-y in 2007, this is still elevated by
historic standards and inflationary expectations remain high. Inflation
is also becoming a major political issue, with the falling real value
of wages, particularly among unskilled workers, fuelling discontent,
with migrant workers having staged riots last November in Dubai.
Inflation is also discouraging highly skilled workers from relocating
to the UAE, thereby impacting the business environment, highlighting
what a serious concern this is for the country.
Key Topics Covered:
-Market Overview
-Agriculture
-Industry Developments
-Competitive Landscape
-Key Players
-Company Analysis
-Food & Drink Ratings Appendix
-BMI Forecast Modelling57
Companies Mentioned:
- Unilever Arabia
- Abu Dhabi National Foodstuff Company (Foodco)
- Al Ain Dairy
- Masafi
- EMKE Group LuLu Hypermarket
- Carrefour MAF
For more information visit
http://www.researchandmarkets.com/research/7541f0/united_arab_emirat
CONTACT: Laura Wood, Senior Manager, Research and Markets
Fax: +1 646 607 1907 (US)
Fax: +353 1 481 1716 (Rest of World)
e-mail: press@researchandmarkets.com
((M2 Communications Ltd disclaims all liability for information
provided within M2 PressWIRE. Data supplied by named party/parties.
Further information on M2 PressWIRE can be obtained at
http://www.presswire.net on the world wide web. Inquiries to
info@m2.com)).
Copyright ? 2008 M2 Communications Ltd.
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