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In 2018, restaurants were the largest subsector in the foodservice industry with a sales value of approximately *** billion U.S. dollars in the United Arab Emirates (UAE). The restaurants subsector is expected to reach approximately *** billion U.S. dollars in 2022.

MENA food industry overview

The consumer foodservice industry in the Middle East and North Africa (MENA) region is witnessing several fast-paced changes. There is a general shift towards chained businesses from traditional independent ones. At the same time, dining, fast food restaurants, and coffee shops are focusing more on providing a unique food experience that includes a distinct atmosphere and ambiance.

The fast-food industry witnessed more than ** percent of the food retail growth of the region in 2019. Additionally, health and wellness trends in menus are being increasingly adopted offering items such as organic burgers or grilled chicken instead of fried. On the other hand, delivery services are also seeing an expansion as more and more consumers look for convenience. The highest growth rate of the food delivery service industry in 2020 was in Saudi Arabia at more than *** percent.

UAE food industry trends

  In the UAE, the consumer foodservice market observed growth in fast and casual services. In the first quarter of 2021, Talabat had more than ** percent of the market share of food delivery services in the country with an average order value of ** U.S. dollars. In 2015, there was a significant increase in the number of fast-casual restaurants compared to the previous year. The number of fast-food restaurants in the UAE in 2018 was almost triple the number of full-service restaurants.

With regards to cuisine, top performers included restaurants offering Levantine, Indian, or Italian cuisines, as local tastes continue to shift toward these segments. Having said that, low-income workers in the country living in shared accommodation, with limited kitchen facilities turn to cheap dining. This has led to a boom in restaurants with competitive prices in areas with a high percentage of this consumer segment. An example of a success story focused on this target audience is the chain Karachi Darbar.