March 2022 / United Arab Emirates

15 Marzo 2022

Dubai has 615 coffee trading businesses reinforcing its reputation as global hub

A report issued by the Business Registration and Licensing (BRL) sector in the Department of Economy and Tourism (DET) states that Dubai now has 615 companies engaged in the trading of coffee, one of the most consumed beverages in the world. This reinforces the reputation of Dubai as a global trading hub for the commodity, with businesses involved in manufacturing, wholesale and retail, import and re-export, as well as the retail of hot coffee in cafes and restaurants, ready-to-drink coffee in grocery stores and retail outlets. According to Research and Marketing’s coffee market report 2021, the size of the global coffee market in 2021 is estimated at $108 billion, and anticipated to reach $144.68 billion in 2025. The momentum to retail sales powered by e-commerce, the increased preference for instant coffee, and the demand for specialty coffee led to the growth in the number of companies engaged in the coffee business. According to the BRL sector report, Bur Dubai accounted for the largest share of the companies engaged in the trading of coffee with 368 licences followed by Deira (243) and Hatta (4 licences), while the top sub-regions are based in Burj Khalifa, Al Ras, Al Barsha 1, Dubai Investments Park 1, Al Marar, Hor Al Anz East, Al Quoz 3, Al Karama, Trade Centre 1, and Port Saeed. Limited Liability companies accounted for 64% of the total, followed by Sole Establishments at 20%, and One-Person Limited Liability Companies at 13%. The rest of the legal forms included; Branches of companies based in other Emirates, Branches of Free Zone Companies and Civil companies. The report showed that the total number of licences issued during 2021 increased by 148% compared to 2020, when 69 licences were issued, compared to 171 licenses in 2021. Emiratis top the list of investors in the trading of coffee at 31% of the total followed by other nationalities such as British, Italian, Turkish, French, Egyptian, Jordanian, and Kuwaiti. Several Emirati companies in the trading of coffee have expanded to global markets from Dubai as well opening their branches in several countries through the services provided by Dubai Industries and Exports, an agency of DET, in a short period of time. The UAE-origin Coffee Plant, for example, has expanded to more than 20 countries around the world. This company is an example of the vital role played by Dubai Industries and Exports, in driving the sustainability and expansion of local factories at the international level, and the diverse channels offered to enter the products into global markets. The increase in population, the growth in the number of visitors from all over the world, in addition to the increase in income and the multiplicity of options in coffee types, and the increase the number of cafes and retail outlets, were among the reasons behind the high consumption of coffee in Dubai. The market has become more competitive with the increase in the number of companies operating in the field of coffee and the introduction of high-quality coffee to fulfil the needs of consumers.

Source: Media Office
28 Marzo 2022

Dubai attracts 57% of scaleup funding in MENA region

New report, developed by Dubai Chamber of Digital Economy, in collaboration with Mind the Bridge and Crunchbase, examines key trends reshaping the maturing entrepreneurial ecosystem in MENA.

Dubai is home to 39% of scaleups in MENA and a majority of the region’s tech giants.

Scaleups in UAE have raised $5.4 billion as of December 2021, accounting for over 59% of total funding within the region.

Dubai accounts for 57% of scaleup funding in the Middle East and North Africa, while the emirate is home to 39% of the region’s scaleups, according to a new report developed by Dubai Chamber of Digital Economy in cooperation with Mind the Bridge and Crunchbase.

The report, titled UAE Venture Outlook, examined key trends reshaping the maturing entrepreneurial ecosystem in the region, and highlighted the leading roles of the UAE and Dubai in attracting promising scaleups and tech giants.

The number of scaleups in MENA saw exponential growth in 2021, compared to 2020, as 587 scaleups were accounted for in the region by December 2021, compared to 139 in the previous year.

MENA scaleups have collectively attracted $9.1 billion, representing 0.12% of the region’s GDP. Data shows that a few countries are driving the effort of the MENA region to compete with the top global tech ecosystems.

On a country level, the UAE accounted for the largest number of scaleups (251) which attracted the majority of funding in the region, or 59%, having raised $5.4 billion. Meanwhile, Dubai alone accounted for 57% of funding, as the emirate is home to a major of the region’s tech giants. Saudi Arabia came second as the kingdom is home to 106 scaleups (18.1% of total) that raised a total of $1.2 billion of growth funds. Egypt ranks third, accounting for 84 scaleups and $1.4B raised.

The report revealed that 26 MENA scaleups (4.4% of total) relocated their headquarters inside the region to boost their growth. The UAE was the preferred destination for relocation with 8 scaleups setting up in the country, followed by Saudi Arabia with 7, and Egypt (4). Additionally, a total of 41 scaleups opted to expand their footprint beyond MENA, primarily to the US (13), the UK (5), France (5), India (3), and Canada (2).

H.E. Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications and Chairman of Dubai Chamber of Digital Economy said the findings of the report reflect ongoing efforts to advance Dubai’s digital economy and create a conducive environment in the emirate for scaleups to thrive and grow.

He noted that the report’s results indicate that Dubai is achieving considerable headway in achieving the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, position Dubai as a global leader in digital economy. He also said the Dubai Chamber of Digital Economy last year, along with the market research conducted by the Chamber would support the sector’s growth and development.

“Despite its vast competitive advantages, the UAE continues to add more incentives for businesses and startups. The introduction of golden visas, green visas, freelancer and entrepreneur visas are all bold and positive steps the country has taken to boost its value proposition,” said H.E. Hamad Buamim, President & CEO of Dubai Chambers.

“Venture capital is a crucial element needed to nurture thriving entrepreneurial ecosystems and advance digital economies. We will continue to work closely with public and private sector stakeholders to ensure a conducive environment for VC firms and investors, as well as entrepreneurs from around the world,” H.E. Buamim added.

To view the full report, please click here.

Source: Dubai Chamber