How to Set Up a Food Manufacturing Business in the UAE

Author: Hanoof Al Naama
Published: April 22, 2024

Overview of UAE Food Processing Industry

The UAE's food processing industry represents a significant entrepreneurial ecosystem with substantial growth potential. According to market forecasts, the industry is projected to reach a value of USD 23.2 billion (AED 85.4 billion) by 2025, demonstrating remarkable trajectory and immense opportunities for ventures in food product manufacturing.

Market Landscape

The UAE food processing market features both domestic powerhouses and global giants creating a vibrant marketplace:

• Domestic Leaders: Al Islami Foods, Agthia Group
• Market Presence: Global food manufacturing companies
• Projected Market Value (2025): USD 23.2 billion (AED 85.4 billion)

Key Growth Drivers

Several factors are propelling demand in the UAE food processing sector:

1. Surge in Disposable Income: Increased purchasing power among residents
2. Expanding Urban Population: Growing urban centers driving food demand
3. Flourishing Tourism Sector: Tourism industry creating demand for diverse food products
4. Consumer Preferences: Market appetite for processed, convenient, and premium food offerings
5. Innovation Focus: Market embracing innovation and superior quality products

Business Activities for Food Manufacturing License

When establishing food manufacturing companies in the UAE, businesses can select from various activities under the "manufacture of other food products" category. The primary classification is:

1079.00 Manufacture of Other Food Products N.E.C.

Definition: "Manufacture of other food products n.e.c" (not elsewhere classified) encompasses diverse food production activities that don't fit into other specified categories within the food industry.

Scope of Activities:

• Decaffeination and roasting of coffee
• Production of coffee-related products (ground coffee, soluble coffee, coffee extracts)
• Manufacturing of coffee substitutes
• Blending of tea and maté
• Creation of extracts and preparations based on tea or maté
• Production of soups and broths
• Manufacture of special foods (infant formula, baby foods, products with homogenised ingredients)
• Production of spices, sauces, and condiments (mayonnaise, mustard flour, prepared mustard)
• Manufacturing of vinegar, artificial honey, and caramel
• Production of perishable prepared foods (sandwiches, fresh uncooked pizza)
• Manufacture of herb infusions (mint, vervain, chamomile)
• Production of yeast
• Manufacture of extracts and juices from meat, fish, crustaceans, or molluscs
• Production of non-dairy milk and cheese substitutes
• Manufacture of egg products and egg albumin
• Processing salt into food-grade salt (including iodized salt)
• Manufacture of artificial concentrates

Detailed Business Activity Classifications

The following specific business activities fall under the 1079.00 classification:

Coffee and Coffee-Related Products

1079.01 Decaffeinating and Roasting of Coffee

Description: Process of removing caffeine from coffee beans followed by roasting to develop flavor and aroma.

1079.02 Production of Coffee Products

Products Included:

• Ground coffee for brewing
• Soluble coffee (instant coffee that dissolves in hot water)
• Coffee extracts and concentrates
• Coffee syrups

1079.03 Manufacture of Coffee Substitutes

Description: Production of coffee-resembling drinks made from alternative plants such as chicory or roasted grains.

Tea and Maté Products

1079.04 Blending of Tea and Maté

Description: Mixing different types of tea leaves or combining tea with maté (South American herbal drink) to create unique flavor profiles.

1079.05 Manufacture of Extracts and Preparations Based on Tea or Maté

Products Included:

• Tea bags
• Loose-leaf tea
• Instant tea mixes
• Concentrated tea extracts

Soups, Broths, and Special Foods

1079.06 Manufacture of Soups and Broths

Description: Production of liquid foods made from meat, vegetables, or other ingredients.

1079.07 Manufacture of Special Foods

Products Included:

• Infant formula
• Follow-up milks and other follow-up foods
• Baby foods
• Foods containing homogenised (pureed) ingredients for various dietary needs

Condiments and Seasonings

1079.08 Manufacture of Spices, Sauces and Condiments

Description: Processing spices, herbs, and other ingredients into condiments.

Products Included:

• Mayonnaise
• Mustard flour and meal
• Prepared mustard
• Ketchup
• Various sauces

1079.09 Manufacture of Vinegar

Description: Fermentation process converting alcoholic liquids (wine or cider) into vinegar.

Sweeteners and Prepared Foods

1079.10 Manufacture of Artificial Honey and Caramel

Description: Production of sweeteners that mimic honey's taste and texture, and creation of caramel for various uses.

1079.11 Manufacture of Perishable Prepared Foods

Products Included:

• Pre-made sandwiches
• Fresh (uncooked) pizza
• Other ready-to-eat foods with short shelf life

Herbal and Specialty Products

1079.12 Manufacture of Herb Infusions

Description: Processing herbs into teas or tisanes (herbal beverages).

Herbs Included:

• Mint
• Vervain
• Chamomile
• Other herbal varieties

1079.13 Manufacture of Yeast

Description: Production of yeast microorganisms used for baking bread and fermenting alcoholic drinks.

Protein-Based Products

1079.14 Manufacture of Extracts and Juices of Meat, Fish, Crustaceans or Molluscs

Description: Concentrating flavors and nutrients into stocks, broths, or pastes.

Sources:

• Meat
• Fish
• Shellfish
• Crustaceans

1079.15 Manufacture of Non-Dairy Milk and Cheese Substitutes

Description: Creating plant-based alternatives to milk and cheese for people with dietary restrictions or preferences.

Egg and Salt Products

1079.16 Manufacture of Egg Products, Egg Albumin

Description: Processing eggs into various products.

Products Included:

• Liquid egg whites (albumin) used in baking
• Other egg-based food applications

1079.17 Processing of Salt into Food-Grade Salt

Description: Refining raw salt to make it suitable for human consumption.

Products:

• Food-grade salt
• Iodized salt (fortified with iodine)

Concentrates and Additives

1079.18 Manufacture of Artificial Concentrates

Description: Broad category encompassing production of concentrated food additives.

Products Included:

• Concentrated flavorings
• Food colors
• Other food additives used in food manufacturing

Excluded Activities

The following activities are NOT included in the 1079.00 classification:

• Growing of spice crops
• Manufacture of inulin
• Production of perishable prepared foods of fruit and vegetables
• Manufacturing of frozen pizza
• Production of spirits, beer, wine, and soft drinks
• Preparation of botanical products for pharmaceutical use

Regulatory Requirements and Compliance

Third-Party Approval Requirements

General Rule: Most business activities under the 1079.00 classification do not require third-party approval.

Exception:

• Activity 1079.01 (Decaffeinating and Roasting of Coffee) requires:
  • Approval from Sharjah Municipality (post-license)
  • Approval from Food Safety Department

Economic Substance Return Filing

Status: All business activities under the 1079.00 classification are exempt from Economic Substance Return filing requirements.

Anti-Money Laundering Compliance

Status: All business activities under the 1079.00 classification are exempt from Anti-Money Laundering compliance requirements.

Additional Resources and Services

Business Setup Tools

• Cost Calculator: Calculate business setup costs
• Company Setup Packages: Customized packages available
• Name Check: Verify business name availability
• Business Activities Directory: Explore other business activities

Support Services Available

• Customer Portal access
• Business Setup Guide
• Activity Hub for exploring business ideas in Dubai
• Business license acquisition assistance

Value-Added Services (SPC Plus)

• Corporate Banking Assistance
• Spouse and Dependent Visa Processing
• VIP Medical Services
• Documentation Support
• Customs Code Assistance
• SPC Finance
• Virtual Receptionist
• Coworking Space
• Dedicated Account Manager

Related Business Opportunities

For entrepreneurs interested in exploring additional business opportunities in the UAE:

• Business Ideas in Dubai and UAE
• Business Setup from UK
• Business Setup from India
• Investment opportunities in Sharjah
• Various business activities across sectors