One of the Gulf’s top food companies has initiated a push into the populous Iraqi market and seeks to capture a greater market share in Saudi Arabia, expecting its Sharia-grade products will appeal to consumers there.
Al Islami Foods, anticipating higher sales, is also investing in a new plant in Dubai’s Techno Park to supplement output from its existing Jebel Ali Free Zone production facilities.
The company has signed a distribution agreement with the Baghdad Company for Poultry and Meat Preparing.
Commenting on the agreement Saleh Abdullah Lootah, chief executive officer of Al Islami Foods, says “With the gradual gaining of political stability and opening up of the economy in Iraq, we believe the country will re-emerge as an economic power in the Middle East region. Therefore, we have adopted a forward-thinking approach to establish Al Islami in Iraqi.”
The UAE company says an initial consignment of its frozen chicken products received an overwhelming response.
Iraq imports only $7.5 million worth of whole chicken and the value of incoming processed meat is just $1.5 million, according to figures released by the company. The country’s population is around 30 million indicating there is great scope for suppliers.
Al Islami also recently signed a distribution agreement with Arabian Trading Supplies, a leading distributor in Saudi Arabia.
Saudi Arabia, with a population of 28 million, constitutes 63 per cent of the GCC food market.
Al Islami will make available to Saudi consumers premium products such as processed meat and frozen seafood with its unique selling proposition of ‘real halal,’ which is explained as hand slaughtered without stunning. To ensure a seamless halal process, the company deploys its representatives at source.
Al Islami foods, formerly Co-op Islami, was established in 1981 by Hajj Saeed Bin Ahmad Lootah. Earlier it operated as Co-Op Islami but assumed its new name in 2006.
The product range comprises 150 fresh and frozen items includes burgers, sausages, kebabs, minced meat and samosas. The company ensures that the ingredients used to make these products are also completely halal.
Recent additions to the product range include dates, tuna in premium white and light meat sourced in Thailand and honey sourced from Australian bee farms.
The company plans to consolidate its market share in the Gulf and Middle East states including Syria, Jordan and Sudan.
It does not think the worldwide economic woes will affect the food business. Ahmed Zahran, director of marketing and sales, commented: “If we do a psycho-analysis of comsumer attitudes during crises, we observe people will not be eating less. Therefore, the food sector is least affected.”