Dubai becomes a hub of coffee roasting activity
Lured by the low- or no-tax credentials of its Jebel Ali Free Zone, Dubai is increasingly viewed as an interesting window of opportunity for those wishing to import into the Gulf’s growing coffee market.
According to information supplied to the local press, it seems that coffee companies have now established roasting facilities in Dubai and operate by securing long-term supplies of raw coffee beans from producer countries, importing and roasting them, and then re-exporting to the Gulf countries and the wider Middle East, as well as to other continents such as Africa and Europe.
This represents a considerable shift in the way in which coffee previously entered the area, a change that has manifested itself over the past five years. Under earlier models, coffee beans were roasted in the UK and Germany and brought into the region further along the production process.
UAE-based company Coffee Planet is an example of the new set-up’s success. Managing Director Richard Jones revealed that his business grew 17 per cent in 2009 and 28 per cent in 2008. In addition, Coffee Planet, which also sells to supermarkets and hotels and runs outlets at over 100 petrol stations across the country, has seen its coffee imports rise from around two tonnes per month four years ago to 18 tonnes per month at present.
With one of the highest per capita consumption of beverages, the GCC countries are said to hold considerable potential for coffee companies. Headway has also been made in increasing the region’s tea imports, with a Dubai Tea Trading Centre set up two years ago to provide trading impetus.