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Pandemic underlines need for F&B sector to pursue sustainability: Al Bayader CEO

One of the world’s mega food and hospitality shows – Gulfood 2022 – opened on Sunday in Dubai with food and beverage producers and traders from around the world showcasing their products and services.
The event is noteworthy on many fronts, foremost of which is the fact that the hotel, restaurant, and catering (HORECA) sector has proven its resilience during the past two years of the pandemic and emerged as one of the key contributors to the economy.
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Among the many local, regional, and international participants at Gulfood 2022, UAE-based Al Bayader International unveiled on the opening day a new business division exclusively catering to the food and beverage sector.

Al Bayader International, which has been established over three decades, is the leading sustainable and innovative manufacturer and supplier of packaging and cleaning solutions. The launch of the food division extends its current F&B packaging business to provide a one-stop solution in the HORECA sector.
“The launch of the new brands Baya Food and Baya Agua, in fact complements the announcement of our new division dedicated to the F&B sector. The two new brands represent a wide range of frozen, canned food, and beverages that can be offered to customers along with many existing products related to food packaging and cleaning products,” said Nidal Haddad, Founder & CEO of Al Bayader International, in an interview with Al Arabiya English.
As the pioneers in the region in food packaging, Al Bayader “aims to expand [its] footprint across the Middle East.”
“With the F&B sector gaining traction and governments increasingly focusing on driving food security and cutting food waste, we see a strong opportunity to showcase our differentiating strengths. Our commitment to sustainability is indeed our strength and through our diverse portfolio of products and strong domestic manufacturing competencies, we can serve the region effectively. In fact, the launch of our new food and beverage division will play a central role in this,” Haddad said.
“We have also rolled out several initiatives to serve the hotel, restaurants and catering (HORECA) sector, including private labelling,” he said. The various solutions customised for the HORECA sector takes into consideration the certifications needed, such as Hala, Kosher, and Organic.
“With the UAE placing emphasis on promoting national food security, we believe it is important to support the sector through sustainable packaging solutions that help to enhance the longevity and quality of food manufactured in the country.”

As a sustainability champion in the industry, Al Bayader International recently made waves when it inaugurated the UAE’s first and largest solar rooftop within the food packaging plant in the Jebel Ali Free Zone (JAFZA). The 980 kWp solar rooftop plant spans an area of 4,000 square meters and will generate over 1.5 GWh of clean electricity annually.

Another sustainability best practice includes a Botanical Garden in Jebel Ali that has over 20 types of plants and 240 plus trees native to the Mediterranean region, which is irrigated using treated water. The garden offsets 2.5 tonnes of carbon dioxide annually.
Al Bayader International currently owns and operates six manufacturing and nine logistics locations with a current production capacity of over 31,000 tonnes per annum covering more than 1,700 products.

The company’s manufacturing processes in Jebel Ali are also zero waste – all industrial scrap produced during production is recycled and reused in production.

Speaking about the prospects going forward, Haddad said: “There is strong growth potential for the HORECA sector, which has demonstrated impressive resilience following the pandemic. In fact, what shines through from the past months is how the industry has pivoted online, and are exploring creative avenues to sustain their growth.”

“The opening of the tourism sector, no doubt, will further enhance its prospects as do large-scale events being hosted in the region – current, the Expo 2020 Dubai and the upcoming FIFA World Cup. Across the board, we see the MICE sector too gaining traction, which will also add value to the sector.”

From a consumer point of view, the pandemic has brought a new dynamism to the food industry, Haddad explained.

He cited a report by Alpen Capital that demand for food in the GCC is expected to grow at a CAGR of 2.3 percent to reach 52.4 million tons in 2025 from 46.8 million tons in 2020.

When asked about the lessons learnt during the last two years, Haddad is quick to point out that “one of the key lessons from our industry perspective is the need for the industry to pursue sustainability across its value chain.”

“Embracing sustainable food packaging solutions plays a significant role in how the industry can contribute to the environment while ensuring they use only quality packaging solutions that helps maintain the freshness and hygiene of food. The key is to limit food waste and contribute to national food security, which was evident during the pandemic. We must continue to focus on staying committed to responsible food storing and consumption practices.”

Key F&B trends in the Gulf region

With more than 134,000 food service outlets in the GCC, according to Marmore Media Intelligence, and the demand for food expected to rise, as mentioned above, the F&B sector is one of the most promising, points out the CEO of Al Bayader International.
“While the pandemic impacted every business, F&B was among the first to innovate and pivot to an online model of delivery to meet the needs of customers. This digitalization of processes is a defining trend in the industry,” he said.
“On the consumer side, there has also been a change in food habits, especially in the growing popularity of quick service restaurants, and a focus on authentic culinary fare.

“The rising demand for food and the need to deliver the community seamlessly has also led to the rise of cloud kitchens and kitchen-as-a-service model, which help meet increased demand.”
The third key trend is an increasing awareness on the need to limit food wastage and to embrace sustainable practices, added Haddad.

Read more: Saudi consumers expected to spend more on online shopping in 2022: Checkout.com

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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