October 31, 2018 | Kassem Younes, Regional Director of Trade to the Middle East, Trade Victoria
If you’re a Victorian exporter of whole, organic and functional food or beverage items, have you ever thought about entering the Middle Eastern market?
With the rise of a middle-class demographic that has plenty of disposable income and an increasingly westernised palate, there’s a craving for premium quality products, so it’s a worthwhile consideration.
Accounting for 22 countries, the Middle East is a region not to be sneezed at. It’s huge! So let’s break it down into digestible, bite sized chunks.
We’ll focus on trade and export opportunities that currently exist for the Middle East’s second largest economy which enjoys low expropriation and political risk. We’re talking, namely, about the United Arab Emirates (UAE).
Trade Victoria’s Regional Director of Trade to the Middle East, Kassem Younes, shares his expertise and a few tips on how to do business with the UAE.
Clean, green and safe
The typical UAE middle-class consumer is young, affluent and demands high-value food items that are full of flavour and sourced from origins regarded as clean, green and safe. With a solid reputation for supplying some of the world’s cleanest and tastiest food products, Australia is an attractive option for many UAE importers.
Do your homework
Ask any successful exporter and they’ll agree – visiting the country you’re thinking about trading with is essential.
Travel to the region and see what it’s like. If you can afford to, travel there regularly.
Join a trade mission and attend a food trade fair such as Gulfood – the Middle East’s largest food show. Trade missions provide unique business matching and networking opportunities.
Visit the supermarkets. In Dubai, the shelves are full fresh produce and food products from Australia.
What are other Australian exporters selling? How do their products match up with your value proposition?
Do your detective work
The Middle East is a very competitive market.
Supporting your brand financially is essential to be able to grow your business. Get a full picture of any associated or hidden costs of doing business in the Middle East.
Modify your structure to fit in with theirs
Time moves in a different, more relaxed fashion in the Middle East when it comes to work schedules.
Many laws in the region are based on Islamic principles.
Are you Halal and export certified? While not all importers require Halal certification, if your products are certified, your business will enjoy a larger share of the booming halal food industry.
A halal certificate issued by a UAE approved Islamic centre in Australia is compulsory for exporting any meat, poultry products or products containing gelatine. This documentation may also require attestation by the Australia Arab Chamber of Commerce and UAE Embassy.
Labelling is one of the most important issues for food exporters and you must be sure to include production and expiry dates, which need to be printed on the original package or label. Arabic labelling is a requisite and can be printed on a sticker.
Companies expanding into the Middle Eastern market have to deal with bureaucratic minefields and an uncertain, ever-changing regulatory and tax climate.
While the UAE presents a low risk, if you’re looking to enter the region, it’s crucial to conduct a thorough risk analysis.
For example, local laws can have an impact on how businesses and business people need to operate. It’s imperative to be fully aware of the legal environment in which you’re operating. Working closely with your potential local buyer is essential to understanding their requirements and local import rules and regulations.
Don’t be put off.
Despite instability in the Middle East, there are good reasons why the commercial outlook is promising.
For example, an eight-hour flight from Dubai can put your business in contact with two-thirds of the world’s population, including the 420 million people in the Middle East and North Africa.
Choose your business partner wisely
Exercise due diligence when finding potential business partners and minimise any correspondence with middle-men or brokers. Check with the Dubai VGTI office before making a commitment.
Once you’re confident you’ve connected with the right person or people, take your time to build a genuine relationship.
Working closely with your potential local buyer will be essential to understand their requirements and the region’s import rules and regulations.
Connect with the Dubai VGTI office
If you’re really serious about exporting your food product to the UAE, it’s highly recommended that you reach out and engage with a Government representative at Dubai’s Victorian Government Trade and Investment office.
They’ll provide you with valuable in-market intelligence about doing business with the Middle East and will play an important role in helping you to succeed in the Middle Eastern market.
Austrade UAE can also provide Australian businesses looking to grow their business in the UAE, Libya and/or Qatar with their full suite of export services.
Want to know more?
Visit Trade Victoria’s website to find out about up and coming trade missions to the region and local events designed to assist you on your export journey.