How UAE Food Retailers and Producers Built Resilient Supply Chains Amid the Iran Conflict

Faced with the uncertainties of the Iran war and the closure of the Strait of Hormuz, UAE food producers and retailers have successfully adapted by establishing new trade routes and altering long-standing business practices. With approximately 80 per cent of food in the UAE being imported, local firms had to find innovative ways to secure supplies and prevent disruptions.

Sea shipments that previously took a standard timeline were stretched to up to 70 days due to the conflict, posing significant challenges for items with short shelf lives. Shamin Sainulabdeen, director of private labels at Lulu Group International, noted that the company shifted its sourcing from distant regions in Europe and North America to Asian markets, and prioritized local suppliers. Speaking at the Global Food Week conference in Abu Dhabi, Mr Sainulabdeen explained that the company bypassed traditional shipping delays by chartering its own flights and exclusive vessels from countries such as India, Thailand, China, Indonesia, Spain, Turkey, and Italy.

Meanwhile, essential goods manufacturer United Foods adopted a different strategy to cope with shipping hurdles. Mohamad Ziad Al Najjar, B2B senior manager at United Foods, stated that the company placed maximum orders for raw materials and made future bookings months in advance. This approach helped maintain low material prices and ensured that bulk supplies could last for up to five months despite global fluctuations.

Al Ain Farms Group increased its focus on home-grown products, emphasizing the high value and positive reputation of domestic manufacturing. Chairman Tareq Al Hosani highlighted the strength of the 'made in the UAE' slogan, noting that the country's well-regulated market ensures strict adherence to food security, health, and safety.

Companies also credited government backing as a vital element in overcoming these operational hurdles. At this year's Global Food Week, discussions centered on building long-term resilience and leveraging artificial intelligence to improve efficiency. Sumaya Al Marzooqi, official spokeswoman for Global Food Week, emphasized that the UAE's focus on readiness and future-forward thinking has delivered strong results.