The United Arab Emirates (UAE) is Malaysia’s second largest trading partner, export destination and import source within West Asia, with total trade between the two countries recorded at RM39.63 billion in 2023. The UAE market is a potential market for Malaysian food and beverage companies to explore, as processed foods are among the top five exports from Malaysia to the UAE.

The UAE’s food and beverage sector is growing progressively and is projected to reach USD 23.2 billion by 2025. This growth has been attributed to the growing population, rising income and increased number of tourist arrivals. The top Malaysian food products exported to the UAE includes vegetable oils and fats, dairy products, flour products (biscuits, noodles, pastry), chocolates, processed meat (frozen chicken products), fresh fruit, sugar and syrups. There is also a demand for halal food and beverage products in the UAE market, driven by the growing Muslim population, tourism and global trade. Halal food and beverage products with high potential includes meat and poultry, processed food, beverages and ingredients.

The Kingdom of Saudi Arabia (KSA) is the largest country in the Arabian Peninsula, with an estimated total population of 32.2 million. The Kingdom of Saudi Arabia is Malaysia’s third largest export destination, and largest trading partner and largest source of imports. Total trade between the two countries was recorded at RM50.51 billion in 2023, marking a notable increase of 8.3 percent compared to 2022.  

There is a high demand for packaged and processed foods in the Saudi Arabia market, driven by urbanisation, busy lifestyles and a growing preference for healthy food options. The country’s fast-growing economy and the expansion of modern food retail outlets throughout the region offers significant opportunities for the distribution of processed food products. However, the Saudi Arabian market is highly competitive, and Malaysian companies will face strong competition from suppliers in the EU and Asia, particularly Belgium, Brazil, China, Egypt, France, India, New Zealand and Thailand.

The top growth food and beverage products in the Saudi Arabia market are processed meat, baby food, baked goods, frozen treats, breakfast cereals, processed fruits and vegetables, ready meals, savoury snacks, fruit pie fillings and beverages. There is also a growing demand for healthy food products, especially organic food, innovative food and functional food. With increased awareness of the benefits of healthy eating and sustainable practices, consumers are seeking food options that are organic, plant-based, sustainable and nutritious.

It is recommended for Malaysian companies interested in penetrating the Saudi Arabian market to partner with industry players and end consumers. This includes collaborating with brand manufacturers for OEM, food services and food manufacturing players, distributors and importers. Additionally, Malaysian companies should ensure their products comply with local standards and regulations.

For enquiries, please contact:

MATRADE Dubai
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T: +971 4 335 5528

MATRADE Jeddah
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T: +966 12 653 2143

Corporate Trade House
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T: +971 404 8743

References
MATRADE Webinar (Seize The Opportunity, Expand Your Reach Beyond Borders: Connect, Conquer, And Captivate The Middle East Market Through Mihas@Dubai)