(MENAFN- Khaleej Times) As Saudi Arabia sets on a new path away from an oil-based economy, non-oil sectors such as food companies in the kingdom say that they have a key role to play.
Speaking to Khaleej Times at the recent Gulfood 2018 exhibition, several exhibitors from Saudi Arabia spoke about the government's plans to increase investments in non-oil sectors, and how several Saudi food companies are confident about looking beyond their borders at other markets for their exports.
In 2016, the kingdom unveiled its ambitious Vision 2030 plan, which aims to lessen the economy's dependence on oil.
Non-oil revenues in the third quarter of 2017 hit SR47.8 billion, and total revenues were up 11 per cent to SR142.1 billion.
Based on statistics from the International Monetary Fund's World Economic Outlook Database, Saudi Arabia's total GDP amounted to $1.796 trillion as of April 2017. Therefore, exports accounted for about 11.6 per cent of total Saudi economic output.
Saudi Arabia's exports of dairy, eggs, and honey, in particular, rose 0.6 per cent in 2016 to $1.2 billion. Given the kingdom's population of 28.2 million people, its total $207.6 billion in 2016 exports translates to roughly $7,400 for every resident in the country.
"Saudi Arabia has gradually moved on to become a country that looks to innovation for answers," says Hisham Hamdi, sales manager at Zamil Food Industries.
"There has been an increased focus on non-oil sectors, especially the food industry, where several companies are looking to increase their exports. Smaller food brands also have an opportunity especially since the popularity of small food trucks and carts have taken off in the GCC."
Hamdi also pointed out that the number of players in the food industry in recent years has also increased.
"Small- and medium-sized enterprises especially have an opportunity today to slowly build up their brand before they can take it outside of the country. Looking at the GCC region, we know that the UAE and Kuwait are important destinations for our exports because of the large number of international visitors that they welcome, as well as the large number of restaurants that have opened in recent years."
Another exhibitor, Tomran, also spoke about increasing exports to markets in the GCC.
"Right now, a large percentage of Saudi dates are consumed by the population within Saudi Arabia, however, there are plans to increase our exports to countries such as the UAE," said Omar Al Jaser, co-founder and CEO of Tomran.
"Saudi dates are known across the world for their quality and are one of the main exports of the Kingdom. They are popular in countries across the GCC, as well as markets in Asia, and both Europe and North America. Every year, we have been increasing our exports, and we know that they will continue to increase in the coming years as more markets become aware about the quality of our food exports."
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Rohma Sadaqat I am a reporter and sub-editor on the Business desk at Khaleej Times. I mainly cover and write articles on the UAE's retail, hospitality, travel, and tourism sectors.Originally from Lahore, I have been living in the UAE for more than 20 years. I graduated with a BA in Mass Communication, with a concentration in Journalism, and a double minor in History and International Studies from the American University of Sharjah.If you see me out and about on assignment in Dubai, feel free to stop me, say hello, and we can chat about the latest kitten videos on YouTube.
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