The Dairy Market in the United Arab Emirates

The United Arab Emirates (UAE) has crafted a significant niche in the Middle Eastern dairy market, effectively overcoming the challenges posed by its arid climate. The country skillfully balances local dairy production with substantial imports, catering to a rising consumer demand for an array of dairy products.

Dairy Cattle and Milk Production

Due to the UAE's climatic conditions, the number of locally reared dairy cattle is limited. To meet livestock needs, the UAE often relies on imports while adopting advanced farming techniques to boost milk yields. Currently, there are approximately 75,000 dairy cattle in the UAE, contributing to an annual milk production volume of approximately 283,000 liters.

Milk Processing and Cheese Production

The UAE processes both locally produced and imported milk, facilitating the production of diverse dairy products. Urbanization and changing dietary preferences have led to a rise in cheese production, estimated at 60,000 tons per year. This rising demand reflects the evolving palate among the UAE's population.

Milk Powder and Whey Production

Leveraging its strategic trade location, the UAE has focused on milk powder and whey production to strengthen its domestic dairy sector. This emphasis positions the UAE as a potential exporter of dairy products to neighboring regions.

Key Dairy Plants and Farms

Notable dairy enterprises in the UAE include Al Ain Dairy, Al Rawabi Dairy Company, and The National Dairy Company. These key players contribute significantly to the growth and development of the UAE's dairy sector.

Significant Market Events

A pivotal market event includes the establishment of the Pure Ice Cream facility in Dubai Industrial City, representing an AED 80 million (approximately $21.7 million) investment. This facility aims to bolster local production and introduce innovative dairy products. Furthermore, the development of the Al Qou’a Dairy Plant underscores the UAE's commitment to sustainability in the dairy sector.

Export and Import of Dairy Products

As a net importer, the UAE imports substantial quantities of dairy products such as milk, cheese, and butter. Notably, in 2024, the UAE imported 17,000 tons of whole fresh milk. However, with facilities like Pure Ice Cream, the UAE is enhancing its export capabilities. In November 2024, the UAE exported 90 tons of butter to Russia, successfully broadening its international market reach.

Upcoming Events and Developments

• The Dairy Olympics 2025, slated for April 7-11, 2025, is expected to boost the UAE's profile in global dairy innovation.
• The Al Wathba Livestock Festival in Abu Dhabi, in conjunction with the Sheikh Mansoor Bin Zayed Agricultural Excellence Award, continues until January 28.
• A free trade agreement with New Zealand is anticipated to strengthen economic relations and trade partnerships.
• The Gulfood trade show in Dubai is predicted to drive significant trade engagements and highlight halal export requirements for British dairy products.

Market Leaders

Hayatna, part of the Emirates Food Industry group, has maintained its leadership position in the UAE dairy market for over two decades, showcasing sustained market dominance. Al Rawabi Dairy remains a key player, leading the market space for more than 20 years.

Consumer Insights

At the 2025 Dairy Olympics, held from April 7-10 in Al Ain, Andrey Dvoychenkov presented an overview of consumer trends in the MENA region, covering key markets in the Middle East and North Africa. Furthermore, Ahmed Eltigani Elmansouri, CEO of UAE-based Al Rawabi Dairy, presented a strategic vision for a smart farm based on AI.

The UAE has made significant investment agreements with Indonesia in dairy production and renewable energy.

Modified: 2025/04/27

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