Dubai has more than 615 companies engaged in trading coffee, including manufacturing, wholesale and retail, import and re-export, as well as the retail of hot coffee in cafes and restaurants, ready-to-drink coffee in grocery stores, and retail outlets
Dubai has reinforced its reputation as a global hub for trading coffee as a commodity, with more than 615 companies engaged in the business within the emirate, according to a recent report issued by the Business Registration and Licensing (BRL) sector of the emirate’s Department of Economy and Tourism (DET).
These businesses include the manufacturing, wholesale and retail, import and re-export, as well as the retail of hot coffee in cafes and restaurants, ready-to-drink coffee in grocery stores, and retail outlets.
The size of the global coffee market reached approximately $108 billion in 2021, and is expected to reach $144.68 billion by 2025, the report stated.
The momentum to retail sales powered by e-commerce, the increased preference for instant coffee, and the demand for the specialty drink has led to growth in the number of companies engaged in the coffee business.
According to the BRL sector report, Bur Dubai accounted for the largest share of the companies engaged in the trading of coffee with 368 licences followed by Deira with 243 licenses, and Hatta with four licences.
The top sub-regions for the commodity trading included Burj Khalifa, Al Ras, Al Barsha 1, Dubai Investments Park 1, Al Marar, Hor Al Anz East, Al Quoz 3, Al Karama, Trade Centre 1, and Port Saeed.
Limited liability companies accounted for 64 percent of the total, followed by sole establishments at 20 percent, and one-person limited liability companies at 13 percent.
The rest of the legal forms included branches of companies based in other Emirates, branches of free zone companies, and civil companies.
Emiratis take the lead in lead the coffee trading businesses
The report showed that the total number of licences issued during 2021 increased by 148 percent to 171 licenses in 2021, compared to 69 licences issued in 2020.
Emiratis top the list of investors in the trading of the commodity at 31 percent of the total, followed by other nationalities such as the UK, Italian, Turkish, French, Egyptian, Jordanian, and Kuwaiti.
Several Emirati companies in the trading of coffee have expanded to global markets from Dubai as well opening their branches in several countries through the services provided by Dubai Industries and Exports, an agency of DET, in a short period of time.
Coffee Planet Dubai
The UAE-origin Coffee Plant, for example, has expanded to more than 20 countries around the world. The company is an example of the vital role played by Dubai Industries and Exports, in driving the sustainability and expansion of local factories at the international level, and the diverse channels offered to enter the products into global markets.
The increase in population, the growth in the number of visitors from all over the world, in addition to the increase in income and the multiplicity of options in coffee types, and the increase the number of cafes and retail outlets, were among the reasons behind the high consumption of the drink in Dubai.
The market has become more competitive with the increase in the number of companies operating in the field of coffee and the introduction of high-quality coffee to fulfil the needs of consumers.