Food hub emerges in Qatar as Philippines vies for distribution trade

18-Apr-2017 - Last updated on 19-Apr-2017 at 15:07 GMT

Qatar is emerging as a major regional food manufacturing hub as more warehousing and logistics parks reach completion.

This potential leadership role will not only boost business in the country, but it will also play a part in maintaining food security in Qatar and other Gulf countries.

That is according to Abdulaziz bin Hamad Al Ageel of Doha-based think tank Gulf Organisation for Industrial Consulting, who estimates the food trade between GCC members now employs almost 260,000 workers and is worth over US$25bn. This figure represents 6.3% of overall manufacturing in six-member bloc.

A number of “special economic zones” have been under construction for a range of industries, including food processing zones that are being viewed as a priority under the emirate’s Qatar National Vision 2030 strategy.

"GCC countries' interest in developing the food industry have played a major role in promoting this sector,” he said.

Speaking at the Foodex trade event in Doha, Al Ageel said support from local banks and public bodies would help Qatar “establish a vibrant food and manufacturing industry”.

He said it was necessary to promote the local food industry “to ensure that food security is not a choice but a fact of life”.

“Food manufacturing is a highly important activity in the GCC. It is one of the necessary pillars to shape the strategic economic dimension as it actively contributes to providing nutrition for humans, guaranteeing maximum self-sufficiency and reducing dependency on imports, which leads to food security,” he added.

Qatar’s fledgling food economy could benefit from another burgeoning logistics hub over 7,000km away, in the Philippines. The Southeast Asian nation, according to the director-general of the Philippine Economic Zone Authority, could offer a “strategic location” for the distribution of Qatari goods to the region.

Charito B Plaza’s comments follow a three-day state visit to the country by President Duterte, which resulted in over US$200m in deals with Qatari investors across a number of industries, including poultry and halal food processing.

Peza signed letters of intent with 13 investors as she sets out to court more foreign direct investment for her economic zones and logistics hubs.

Prior to his visit to Qatar, Duterte had been in Bahrain and Saudi Arabia where a further US$469.34m worth of investments were secured.