Unlocking the Potential of Fruit Exports to the Middle East

The Middle East market is increasingly becoming an attractive destination for export enterprises, especially in the context of the region's continuous strong economic and international trade development. Countries in the region, such as the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain, are not only famous for their oil-rich economies but are also striving to transform themselves into leading commercial, financial and tourism centers in the world.

Support policies and a favorable business environment

One of the important factors creating great export potential from Vietnam to Middle Eastern countries is the import tax support policies of countries in the region. Countries like the UAE, especially Dubai, are implementing a strategy to turn themselves into the largest trading hub in the world. The UAE government has implemented investment incentives such as tax exemptions, facilitating business establishment and providing preferential policies for international exporters and investors. Vietnam-UAE CEPA: In October 2024, Vietnam and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA), marking Vietnam's first free trade agreement with a Middle Eastern country. The CEPA aims to enhance trade relations, including in the agricultural sector, by eliminating tariffs on a significant portion of exports between the two nations.

High and diverse food consumption demand

A special point to note when referring to the Middle Eastern market is that the demand for food consumption in this region has always been high and has tended to grow strongly in recent years. The processed food market in the Middle East and Africa was valued at USD 3.28 billion in 2024 and is expected to grow at a CAGR of 5.7%, reaching approximately USD 5.19 billion by 2031.

In 2021, per capita fruit consumption in the Middle East varied by country. For instance, Saudi Arabia reported an average consumption of approximately 73 kilograms per person per year. Middle Eastern countries are not only crowded with merchants and tourists from all over the world but are also strongly influenced by war, and political and social fluctuations. This leads to an increasing demand for food, especially processed products, long-term preserved foods and safe foods.

Halal Food - One key opens the doors

One of the great advantages of Vietnamese enterprises when exporting to the Middle East is meeting Halal food standards. For Muslim countries, Halal food is not only an option but also a mandatory requirement. Therefore, the production and export of Halal-certified food will open up great opportunities for Vietnamese businesses, especially processed food products, spices, frozen food, seafood, and agricultural products. Currently, 13 countries in the Middle East are required to apply Halal standards to imported food products, including Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, Bahrain, Iran, Iraq, Jordan, Yemen, Syria, Lebanon, and Palestine. The rest are not mandatory (Turkey, Egypt, Cyprus, Israel).

Halal food is trusted and chosen by consumers in Middle Eastern countries more than products that do not meet this standard. Vietnam, with its rich agriculture and diverse, high-quality food products, can easily enter this market if it complies with Halal certification regulations. These certifications will help Vietnamese products gain trust and easily reach consumers in the Middle East, and can expand to other Muslim markets such as Indonesia, Malaysia, and African countries.

The Future of Food Exports to the Middle East

With strong support from Middle Eastern governments, especially in developing transport and trade infrastructure, along with the increasing demand for Halal food, the Middle East market will certainly be one of the potential export markets in the coming years. Vietnamese enterprises need to focus on meeting quality standards, Halal certification and seizing cooperation opportunities with local partners to expand the market.

In particular, with the growth of the middle class and the demand for high-quality food, processed food products, functional foods, spices, fruits and seafood will have many opportunities to develop in this market. Financial wealth in the UAE increased by 7.6% annually from 2018 to 2023, reaching USD 1 trillion in 2023. This upward trend is expected to continue at an annual rate of 7.3%, potentially reaching USD 1.5 trillion by 2028. By focusing on building brand reputation, improving product quality and appropriate marketing strategies, Vietnamese enterprises can completely capture a part of this promising export market.

The Middle East market, with its import tax support policies and high demand for food consumption, especially Halal products, is opening up a great opportunity for Vietnamese enterprises to export goods. This is a potential market not only for food products but also for other consumer products. Seizing this opportunity, improving product quality, meeting Halal standards and building a distribution network will be the key to helping Vietnamese businesses succeed in expanding the Middle East market in the future.