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UAE food prices seen falling 30% with more competition

Retailers in the UAE believe food prices could be up to 30 percent lower if there was greater competition among the importers that dominate the market, it was reported on Wednesday.

Private and co-operative food retailers claimed that measures by the government to increase competition in the wholesale market have failed, and that 20 percent of importers control 80 percent of the market.
Around 200 import agents in the food sector are registered with the Ministry of Economy, but 15 to 30 of them effectively control the bulk of the market, Emarat Alyoum wrote.

The federal government passed a law in June 2006 to allow retailers to import products, including cooking oil, rice, flour, fish, meat, tea and cheese, without going through licensed import agencies.

The deputy general manager of Abu Dhabi Cooperative Society, Faisal Al Arshi, told the paper that the impact of the new law had been limited.

Attempts by the chain to strike distribution deals with international brands had failed, he said, without giving a reason.

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