Dairy Industry in the United Arab Emirates

The United Arab Emirates (UAE) has established itself as a notable player in the global dairy industry. With its advanced production capabilities and innovative approaches, the UAE not only meets local demand but also engages actively in international trade.

Dairy Cattle and Milk Production

The UAE sustains a dairy cattle herd of approximately 75,000, producing an annual milk output of about 283,000 liters. This production level supports a dynamic dairy processing sector, reflecting the country's strategic focus on self-sufficiency and economic diversification.

Milk Processing and Cheese Production

Urbanization and shifting consumer preferences have propelled the UAE's dairy processing industry forward. Cheese production in the UAE has reached an impressive annual output of around 60,000 tons, catering to growing regional demand.

Milk Powder and Whey Production

The UAE leverages its strategic location as a trade hub to boost its milk powder and whey production sectors, creating export opportunities to neighboring regions and beyond.

Key Dairy Plants and Farms

Prominent companies like Al Ain Dairy, Al Rawabi Dairy Company, and The National Dairy Company play crucial roles in the industry, focusing on growth, innovation, and 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 and the Al Qou’a Dairy Plant, highlighting the UAE's commitment to sustainable practices.

Export and Import of Dairy Products

The UAE is a major importer of dairy products, planning to import 17,000 tons of whole fresh milk in 2024. On the export front, the UAE is set to export 90 tons of butter to Russia in November 2024, demonstrating its active participation in international dairy trade.

Upcoming Events and Developments

Noteworthy events include The Dairy Olympics 2025 in Al Ain and the Al Wathba Livestock Festival. The UAE is also enhancing economic ties with New Zealand through a Free Trade Agreement.

Innovative Collaborations

Al Ain Farms Group's partnership with Finnish food-tech company FoodIQ to implement Multi-Layer Cooker technology on an industrial scale marks a significant advancement. Additionally, investments in biotechnology, such as camel cloning, aim to enhance food security and preserve cultural heritage.

Recycling Initiatives

Tetra Pak is advancing the recycling value chain of liquid packaging cartons in the UAE through collaborations with Veolia and TERRAX, a Dubai-based recycler.

Food Security and Safety Initiatives

The UAE hosts Al Ain Farms and the MENA Dairy Congress 2026, reinforcing the country's long-term Food Security Strategy 2051. New food safety standards, including a Digital Traceability System and the Nutri-Mark labeling system, are being implemented to enhance food safety and promote healthier eating habits.

Gulfood Exhibition

The Gulfood exhibition in Dubai attracted over 8,500 exhibitors from 195 countries, including 12 Ukrainian companies producing dairy products. The MENA Dairy Congress is scheduled for November 5-6, 2026, in Al Ain.

International Trade and Imports

The UAE imports approximately 80-90% of its total food consumption, producing about 250-300 thousand tonnes of fresh milk annually through industrial-scale operations. It relies heavily on imported feed, breeding genetics, veterinary inputs, machinery, and specialized dairy ingredients.

Unique Product Innovations

Plaquette's Emirate Flag butter, combining four flavors into the shape of the UAE flag, was recognized at the Gulfood Innovation Awards.

Expansion Opportunities

Sudha Dairy targets the UAE for expansion into GCC countries, while Three Robins secures its first export listing through 300 Carrefour stores in Dubai. Camel-based dairy operations exemplify locally adapted systems.

Principal Buyer of Saudi Dairy Exports

In 2024, the UAE accounted for 50.5% of Saudi Arabia's drinking-milk export shipments.

Part of Abu Dhabi's Healthy Living Strategy

The UAE focuses on reducing added sugars in dairy products as part of Abu Dhabi's Healthy Living Strategy, promoting healthier food choices to combat non-communicable diseases.

Camelicious and Research Innovations

Camelicious, a UAE-based brand, manages over 6,000 camels using advanced production systems, with research starting in 2003.

Notable Increase in US Dairy Exports

The UAE has seen smaller but notable increases in US dairy exports.

Industry Goals and Initiatives

The UAE aims to increase the food industry’s GDP contribution from AED 30 billion to AED 40 billion by 2028. The country plans to increase food trade from AED 25 billion to AED 40 billion, create approximately 20,000 jobs, support up to 200 food companies, and replace AED 2 billion worth of imports with locally manufactured products annually.

Locations for Upcoming Events

Private Label Middle East 2026 will take place at the Dubai World Trade Centre. The 2nd MENA Dairy Congress will take place in Al Ain, UAE, on January 25-26, 2027.

Market Valuation and Trends

The UAE's dairy market was valued at about $2.53bn in 2025 and is expected to reach $3.28bn by 2031. Dubai represents about 40% of the market. Milk is the largest category, accounting for about 40% of sales, while cheese ranks second. The National Food Security Strategy 2051 supports local production.

Vegan Foods and Dairy-Free Alternatives

Vegan foods and dairy-free alternatives are more readily available in Dubai, reflecting evolving consumer preferences.

Paneer and Fresh Cheese Imports

The UAE is a principal destination for Indian paneer and fresh cheese, with shipments totaling 675 tonnes across 23 markets.

Location of the Regional Innovation Centre Opened by Kerry

Kerry has opened a regional innovation centre at Expo City Dubai to help food and drink companies develop products for local tastes, serving customers throughout the Middle East and beyond.