Abu Dhabi FNB Licenses Jump 42 Percent In 2025 Indicating Strong Sector Growth

Abu Dhabi’s food and beverage sector is entering an accelerated expansion phase, according to a new report from the Abu Dhabi Chamber of Commerce and Industry, which links strong licence growth, expanding production and rising export capacity to the emirate’s broader economic diversification plans under the 2025–2028 Strategy.

The study confirms that Abu Dhabi’s food value chain is scaling up across farming, manufacturing, retail and dining, while also building export reach. It notes that global demand for healthier, premium and sustainable products is aligning with Abu Dhabi’s strengths, helping the emirate position itself as one of the region’s most competitive and resilient food economies.

ADCCI reports that Abu Dhabi had 24,594 active food and beverage licences as of September 2025. New business registrations in the first half of 2025 rose 42.2 percent compared with the same period in 2024. The sector recorded 40 percent year-on-year growth in 2024 and a compound annual growth rate of 23.8 percent between 2019 and 2024.

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The report, which is the first sectoral publication issued under ADCCI’s 2025–2028 Strategy, states that this momentum is supported by Abu Dhabi’s advanced industrial base, strong logistics and investor-friendly business environment. It adds that national food production potential is expected to rise by around 30–40 percent over the next decade, driven by Agri tech, manufacturing and expanding consumer markets.

On the production side, the document highlights large-scale investment in Agri tech, including climate-controlled agriculture, hydroponics and precision farming. These technologies are reported to deliver productivity up to 30 times higher than traditional field farming methods, supporting long-term food security and helping Abu Dhabi strengthen its leadership in smart agriculture and sustainable food systems.

The report describes how new economic activities for the agriculture sector are enabling producers to move into processing, agritourism and value-added production. This is gradually reshaping the structure of Abu Dhabi’s F&B industry, as farms integrate more closely with processing facilities, retail channels, tourism projects and hospitality offerings across the emirate.

Abu Dhabi F&B sector manufacturing, exports and domestic demand

Midstream, the report points to solid growth in food processing and manufacturing across the UAE, with the sector forecast to expand by about 7 percent annually through 2029. A significant share of current output already supplies international markets, which underlines Abu Dhabi’s growing export capability and the sector’s contribution to value creation.

Abu Dhabi’s retail and dining network is also expanding, helped by international culinary recognition, steady tourism flows and growing local consumption. The report notes that world-class logistics corridors and industrial zones are increasingly integrating production with tourism, lifestyle and hospitality segments, reinforcing Abu Dhabi’s position within the national "Make it in the Emirates" industrial initiative.

Abu Dhabi F&B sector regional distribution and resilience

According to the report, Abu Dhabi City holds the largest portion of food and beverage business activity. Al Ain maintains its role as the emirate’s agricultural centre, while Al Dhafra is strengthening its place within the wider ecosystem. Together, these regions are building a more integrated, diversified and competitive food economy across the emirate.

Despite global supply-chain pressures, the report finds that the sector has remained resilient. It attributes this to diversified trade routes, advanced industrial platforms and regulatory improvements, including reinforced halal standards, updated food labelling rules and sustainability frameworks that support consumer confidence and international trust in Abu Dhabi’s F&B products.

In this context, Ali Mohamed Al Marzooqi, Director-General of the Abu Dhabi Chamber of Commerce and Industry, stated, "The food and beverage sector in the Emirate of Abu Dhabi is undergoing a rapid and qualitative transformation, reflecting the success of strategic visions that support food security, economic diversification, and the consolidation of the Emirate’s position as a regional and global hub for innovation in this vital sector. This transformation is underpinned by an integrated ecosystem encompassing smart agriculture, advanced technologies, high-quality manufacturing, and value-added exports, all within a flexible and investment-friendly business environment. The continued growth in the number of newly established companies and active sector members clearly demonstrates the expanding opportunities for the private sector to play a central role in building a competitive and sustainable food ecosystem."

He added, "This progress extends beyond economic expansion alone. It also reflects strong alignment with sustainability objectives, the adoption of advanced technologies, and enhanced efficiency across supply chains, contributing to improved quality of life and reinforcing the confidence of investors and international partners. Through its institutional and international partnerships, the Abu Dhabi Chamber remains committed to enabling the sector’s growth, directing investment towards areas of long-term impact, and ensuring that the food and beverage sector continues to serve as a cornerstone of comprehensive economic development and regional leadership for the United Arab Emirates."

The Chamber notes that the publication of this report is a key step within ADCCI’s 2025–2028 Strategy, aimed at providing data-based analysis to guide private-sector planning. By mapping trends across licences, production, exports, regulation and regional roles, the report is intended to support investment decisions and reinforce Abu Dhabi’s long-term economic diversification agenda.

With inputs from WAM