Dairy Industry in the United Arab Emirates

The United Arab Emirates (UAE) stands as a vital player in the global dairy market, showcasing remarkable achievements despite the region's challenging climate conditions. The nation manages approximately 75,000 dairy cattle, contributing to an impressive annual milk production of around 283,000 liters. This production volume supports a robust processing sector, which caters to both local and imported milk demands.

Milk Processing and Cheese Production

Driven by urbanization and evolving dietary preferences, the UAE has developed a substantial processing sector with a particular focus on cheese production. The country produces approximately 60,000 tons of cheese annually, reflecting changing consumer tastes and preferences.

Milk Powder and Whey Production

Positioned as a strategic trade hub, the UAE emphasizes the production of milk powder and whey, enhancing its domestic dairy sector and boosting potential export capabilities to neighboring regions.

Key Dairy Plants and Farms

Prominent companies such as Al Ain Dairy, Al Rawabi Dairy Company, and The National Dairy Company lead the UAE's dairy industry. These companies are instrumental in driving growth and innovation, with a strong commitment to sustainability.

Significant Market Events

Recent developments include the establishment of the Pure Ice Cream facility in Dubai Industrial City, with an AED 80 million investment aimed at local production and innovation. Additionally, the Al Qou’a Dairy Plant underscores the UAE's dedication to sustainable practices.

Export and Import of Dairy Products

The UAE is a major importer of dairy products, with plans to import 17,000 tons of whole fresh milk in 2024. Its export capabilities are highlighted by the export of 90 tons of butter to Russia in November 2024.

Upcoming Events and Developments

Key events on the horizon include The Dairy Olympics 2025, scheduled for April 7-11, 2025, in Al Ain, which will focus on global dairy innovation. Other significant developments include the Al Wathba Livestock Festival and enhanced economic relations with New Zealand through a Free Trade Agreement.

Market Leaders

Al Rawabi Dairy and Hayatna, part of the Emirates Food Industry group, are recognized as market leaders with over two decades of influence in the UAE's dairy industry.

Consumer Insights

Industry experts like Andrey Dvoychenkov and Ahmed Eltigani Elmansouri provide valuable insights into consumer trends in the Middle East and North Africa. Elmansouri envisions a smart AI-powered farm, indicating a shift towards technological advancements in the sector. The UAE's trade relations with Russia have strengthened, evidenced by a 7.7-fold increase in Russian dairy exports to the UAE.

Innovative Collaborations

The UAE's largest national provider of protein and beverages, Al Ain Farms Group, has partnered with Finnish food-tech company FoodIQ to implement Multi-Layer Cooker (MLC) technology on an industrial scale. Investments in biotechnology, such as camel cloning, aim to enhance food security and preserve cultural heritage.

In June, H&N dispatched a trial batch of 700 kg of cream and ultra-pasteurized milk to the UAE, marking it as a target market for halal dairy exports. Ecuador's engagement in exporting rice to the UAE showcases a renewed focus on foreign trade to drive economic growth. The UAE's participation in the WorldFood Istanbul exhibition further underscores its active engagement in the global food market.

Location of the Food Security SummitX 2025

The summit will take place in Dubai, UAE, on September 17–18, 2025. The UAE serves as a hub for Super Foods FZCO's laboratories and a strategic location for engaging with the MENA Dairy Congress. Super Foods FZCO conducts sensory, stability, and compliance testing in the UAE, fostering innovation and collaboration in the dairy industry.

The UAE's trade agreements with India are influenced by dairy policies, with India's dairy protectionism posing challenges for these agreements. The UAE is transitioning from a flat excise model to a tiered, sugar-content-based tax. Initially introduced in 2017, the excise tax on 'harmful products' was later extended to sweetened beverages at a flat 50% rate, which now varies based on sugar concentration. The UAE is moving toward global nutrition standards. The UAE’s National Nutrition Strategy 2022–2030 emphasizes transparency, reformulation, and consumer education — all pillars that align with Nutri-Score principles.

Fonterra has invested in a 4-million-litre precision fermentation facility in the UAE. This facility is designed to produce high-purity, animal-free proteins that comply with Halal standards, catering to the Middle East's growing demand for sustainable proteins. The UAE implements sugar taxes to encourage sugar reduction. Countries like the UAE have already shown that fiscal measures drive meaningful reformulation, but only when technology allows it. The Middle East — especially the UAE — is rapidly emerging as a center of beverage innovation. Consumers are more health-conscious, and governments are supporting this transformation through labeling and taxation policies. Combined with the region’s export capacity, this creates a powerful base for long-term growth.

Recycling Initiatives

Advancing liquid packaging cartons recycling value chain and circularity in the UAE. Tetra Pak formalized two strategic partnerships aimed at advancing liquid packaging cartons recycling value chain and circularity in the UAE, including a partnership with Veolia through their RECAPP solution and another with TERRAX, a Dubai-based recycler.

The UAE is home to Al Ain Farms and hosts the MENA Dairy Congress 2026. Al Ain Farms, the UAE's first dairy company, plays a significant role in the country's dairy industry and supports the UAE’s long-term Food Security Strategy 2051.

In a strategic move to expand its global footprint, Parag Milk Foods has established a subsidiary in Dubai. This development positions the company among a select group of Indian dairy companies transitioning towards international competitiveness.

Modified: 2025/11/17

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