Analysts predict that a number of GCC states in particular ¨Cthe United Arab Emirates, the Kingdom of Saudi Arabia and Qatar - are now major growth markets for the food industry.

As a region, the Gulf has historically been reliant on imported foodstuffs. In recent years - driven by the buoyant economy, growing populations, increasing numbers of travellers to the region and a major expansion of retail outlets ¨C the market has reached an all-time high in terms of volume of imports.

According to the latest report from analysts BIS Shrapnel, ¡°Foodservice in the Middle East ¡ª the UAE, 2005 ¨C 2006¡±, the UAE foodservice market alone is worth a massive Dh16 billion (US$4.36 billion), and predicted to grow by a rate of 11% per annum over 2005 and 2006.

Tourism in particular is creating demand in the market. For the first time, according to the World Tourism Organisation (WTO), more tourists visited the Middle East (35 million visitors in 2004) than Africa, which attracted around 33 million tourists. The resulting expansion of the hotel and hospitality sector is opening a range of new market opportunities, especially for the producers of speciality and fine foods, and for the manufacturers of kitchen equipment.

¡°There¡¯s no doubt that new opportunities are emerging in the Middle East food market, and that the industry is increasingly discovering more avenues for business development. The rapid expansion of the retail and hospitality sectors is creating concurrent demand for food products and preparation equipment,¡± said Helal Saeed Al Marri, Director General of the Dubai World Trade Centre (DWTC), Organiser of Gulfood, the largest trade fair of its kind in the Middle East and Africa.

International interest is such that DWTC made the decision to switch Gulfood from a biennial event to an annual one in 2005, and have been rewarded with a sold-out exhibition ¨C with over 300 potential exhibitors currently sitting on the waiting list for Gulfood 2006.

Leading up to its 11th edition, the exhibition has grown to become the region¡¯s biggest trade hub for professionals from the foodservice and hospitality sector, with an estimated reach of a staggering two billion consumers.

¡°In 2005, trade visitors at Gulfood represented 127 countries, from Azerbaijan through to Zambia, indicating the growth of global interest in this market,¡± added Al Marri.

Rising investment and the introduction of international brands to the market has served to raise the overall level of infrastructural investment. Higher sales have enabled major distributors to develop the facilities necessary to import, prepare and package food ¨C even speciality foodstuffs ¨C and the market is now better equipped to handle international brand names.

This combination of factors has spurred wide interest from organisations in a broad range of countries. ¡°British food companies have a major opportunity to reach new markets within the Middle East in 2006 and we¡¯re seeing an increasing number of specialty companies looking to partner with distributors with local experience to tap this significant group of potential customers,¡± said Emma Walters, International Marketing Executive at Food from Britain, a strategic export consultancy which provides UK companies with advice on selling their products overseas.

For those groups with historic ties to the Middle East, the current period is one of the most exciting to date. Dr. PSS Thampi, Deputy Director of India¡¯s Spices Board, explains some of the new developments: ¡°India and the Middle East have a relationship within the spice trade that dates back centuries, and the region remains an extremely important market for us. What has changed relatively recently is the rising demand for specific brands and higher standards within the market, which are creating new areas of opportunity for our members. We see great potential in the coming years.¡±