UAE bolsters food security, stocks shelves
The United Arab Emirates is quietly tightening its food security defences. From chartered cargo planes to tighter stock monitoring, authorities and retailers are reinforcing supply chains to ensure supermarket shelves stay stocked even if regional trade routes remain disrupted.
Retailers have been asked to submit daily evening reports on stock levels and prices to flag early signs of shortages, while supermarkets have been advised to secure alternative logistics routes.
The government signalled it is willing to absorb increased freight costs to keep supplies uninterrupted. Retailers told ET that they remain well buffered. Lulu Group International currently holds around six months of supplies, while Al Maya has reported three to four months of inventory. It is increasingly sourcing fruits and vegetables from local farms.
More from the east
ADX-listed Lulu Group, operating over 100 retail stores in the UAE, opened one more on Saturday in Dubai and is planning to open another in Abu Dhabi on Monday. It has also used chartered cargo planes to bring in supplies, as critical local ports and airport operations remained intermittent for close to eight days following the first Iranian strike in the UAE.
While the 5-km wide Strait of Hormuz, a key maritime passage between Iran and Oman, remains choked, retailers are pivoting eastwards for supplies depending on local port operations. An executive at a retail chain said, “Hormuz might still be affected, which will hit supplies from the West, but after Iran’s President announced it will no longer attack the Gulf neighbours, local ports and airports are likely to return to full functionality, allowing us to bring in more supplies from the East.”
Food supplies in the UAE are largely routed through the Jebel Ali port in Dubai and is the country’s primary gateway for food imports. It handles 73% of UAE’s total food and beverage (F&B) trade by value. Together with the Jebel Ali Free Zone (Jafza), it acts as the central hub for the majority of these imports.
Abdulla bin Touq Al Marri, minister of economy and tourism, announced earlier this week that the UAE’s strategic stockpile of essential commodities was sufficient for four to six months. Authorities have also warned of action against retailers who resort to raising food product prices to exploit the current crisis.
Chartered Flights & Costs
Notably, the UAE government is absorbing the additional cargo costs to prevent price rises for consumers. On Friday evening, Lulu Group flew in 80 tonnes of fresh fruits and vegetables from Kochi airport, which landed in Abu Dhabi on Saturday. Another chartered cargo flight brought in meat and other food supplies from New Delhi airport on Friday.
“The government is supporting the initiative of bringing in supplies through chartered planes,” said an industry official. “Hence, the additional cost will not be passed on to the consumers. Authorities are working very closely with retailers to ensure prices remain stable and low.”
Chartered shipments cost about three times more than regular sea freight. Standard shipping from India typically costs $1-1.5 per kg, while chartered flights cost $3-3.5 per kg. “Fresh foods and vegetables, meat and poultry imports from India have helped tide over challenging times,” said MA Yusuff Ali, chairman of Lulu Group. “We are importing not only for our own supermarkets but also for the wider industry, including hotels and restaurants.”
The 80 tonnes of imports would cover about three days of supplies. More chartered flights could be flown in the coming days if port and airport operations take longer to normalise. Al Maya retail chain imported mutton from India ahead of Eid via a normal commercial cargo flight. Its deputy chief executive Kamal Vachani said, “We are closely coordinating with logistics partners and port authorities to adjust shipment schedules and ensure smooth movement of goods.”
Retailers have been asked to submit daily evening reports on stock levels and prices to flag early signs of shortages, while supermarkets have been advised to secure alternative logistics routes.
The government signalled it is willing to absorb increased freight costs to keep supplies uninterrupted. Retailers told ET that they remain well buffered. Lulu Group International currently holds around six months of supplies, while Al Maya has reported three to four months of inventory. It is increasingly sourcing fruits and vegetables from local farms.
More from the east
ADX-listed Lulu Group, operating over 100 retail stores in the UAE, opened one more on Saturday in Dubai and is planning to open another in Abu Dhabi on Monday. It has also used chartered cargo planes to bring in supplies, as critical local ports and airport operations remained intermittent for close to eight days following the first Iranian strike in the UAE.
While the 5-km wide Strait of Hormuz, a key maritime passage between Iran and Oman, remains choked, retailers are pivoting eastwards for supplies depending on local port operations. An executive at a retail chain said, “Hormuz might still be affected, which will hit supplies from the West, but after Iran’s President announced it will no longer attack the Gulf neighbours, local ports and airports are likely to return to full functionality, allowing us to bring in more supplies from the East.”
Food supplies in the UAE are largely routed through the Jebel Ali port in Dubai and is the country’s primary gateway for food imports. It handles 73% of UAE’s total food and beverage (F&B) trade by value. Together with the Jebel Ali Free Zone (Jafza), it acts as the central hub for the majority of these imports.
Abdulla bin Touq Al Marri, minister of economy and tourism, announced earlier this week that the UAE’s strategic stockpile of essential commodities was sufficient for four to six months. Authorities have also warned of action against retailers who resort to raising food product prices to exploit the current crisis.
Chartered Flights & Costs
Notably, the UAE government is absorbing the additional cargo costs to prevent price rises for consumers. On Friday evening, Lulu Group flew in 80 tonnes of fresh fruits and vegetables from Kochi airport, which landed in Abu Dhabi on Saturday. Another chartered cargo flight brought in meat and other food supplies from New Delhi airport on Friday.
“The government is supporting the initiative of bringing in supplies through chartered planes,” said an industry official. “Hence, the additional cost will not be passed on to the consumers. Authorities are working very closely with retailers to ensure prices remain stable and low.”
Chartered shipments cost about three times more than regular sea freight. Standard shipping from India typically costs $1-1.5 per kg, while chartered flights cost $3-3.5 per kg. “Fresh foods and vegetables, meat and poultry imports from India have helped tide over challenging times,” said MA Yusuff Ali, chairman of Lulu Group. “We are importing not only for our own supermarkets but also for the wider industry, including hotels and restaurants.”
The 80 tonnes of imports would cover about three days of supplies. More chartered flights could be flown in the coming days if port and airport operations take longer to normalise. Al Maya retail chain imported mutton from India ahead of Eid via a normal commercial cargo flight. Its deputy chief executive Kamal Vachani said, “We are closely coordinating with logistics partners and port authorities to adjust shipment schedules and ensure smooth movement of goods.”
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