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Abu Dhabi is building a ‘food hub’ and securing its future food supply chain

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Abu Dhabi Food Centre – Will Kezad primarily serve the local market or is it more of a re-export centre?

Graham Sanders: As the largest multi-category wholesale food trading and logistics hub in the region, Abu Dhabi Food Hub – Kezad will leverage the emirate’s position as a gateway to Asia, Africa and the MENA region. The scale and ambition of the project will support the UAE’s National Food Security Strategy 2051, help speed up the flow of food trade through Abu Dhabi and the UAE, and boost the growth of the country’s agriculture.

Adjacent to Khalifa and Jebel Ali Ports, Abu Dhabi Food Centre provides direct access to world-class transport hubs, including three major international airports, unobstructed multi-lane highways and the future rail line of Etihad Rail.

By bringing together wholesale buyers, sellers, logistics players, aggregators and distributors from around the world, the food hub will enhance the diversity, quality and quantity of all food categories available to consumers in the UAE and the wider region.

suresh and ghazan

This is a public-private partnership bringing together the blocks and networks that make up Abu Dhabi Food Hub – Kezad. Pictured are Ghassan Aboud Group Group CEO Suresh Vaidhyanathan and Abu Dhabi Food Centre – Kezad CEO Graham Sanders.

Is the Food Center project a joint venture? Does this only apply to fresh produce?

Graham Sanders: Abu Dhabi Food Centre – Kezad is a public-private partnership between AD Ports Group and Ghassan Aboud Group. It is a food trade and logistics hub designed to facilitate domestic and international food trade in all food categories including fruits and vegetables, meat, poultry, seafood, dry goods, dry goods, dairy products, gourmet and flowers.

On 3.3 square kilometers of land, we are building a “food ecosystem” where you can store, pack, trade, finance, clear customs, inspect and transport all categories of food. (And) not just fresh produce – all food.

The food hub will be supported by an ecosystem of logistics service providers, government-backed services and general business services, and will be a new hub for food trade and logistics in the region.

Would you say that food commodity prices have returned to stability?

Graham Sanders: Shipping prices have recently started to fall, which is easing the price of some food commodities, however, the impact of inflation on food is very real and widespread.

Our work at Food Hub Abu Dhabi is to improve logistics efficiency, reduce food waste and encourage more local food production. We will focus on the things we can improve and help reduce the cost and availability of food.

When will the project in Abu Dhabi go live?

Graham Sanders: The opening time of the project has not been officially announced. However, the project is being completed rapidly by the partners and rapid progress is expected.

In addition to being a one-stop wholesale trade and logistics hub for food commodities, Abu Dhabi Food Centre – Kezad will also drive digital trade through a first-of-its-kind platform that supports e-commerce and inbound and outbound trade formalities, all within a single window of digital on the platform.

Is this Ghassan Aboud Group’s first foray into the wholesale food market?

Suresh Vidyanathan: The food business is one of the Group’s key verticals, including distribution, catering, retail, logistics and digital platforms.

The Abu Dhabi Food Hub – Kezad joint venture represents the Group’s further foray into the food value chain. The group also leverages its partnership with Rungis International Market, one of the world’s leading wholesale fresh produce markets, to provide the UAE with a world-class hub. As a new build project, we have the unique advantage of designing and building what could be one of the most optimized markets in the world.

Does the group plan to go ‘upstream’ in the food chain through direct farming or investing in farms?

Suresh Vidyanathan: The Group has no plans to directly invest in agriculture in the near future. However, we are considering opportunities in processing, logistics, technology and value-added services in the food value chain.

Is the food vertical a recent interest for the group?

Suresh Vidyanathan: Ghassan Aboud Group has been investing in and developing capabilities in the food vertical. The food business has become the core business of the Group, and its business portfolio in this field is rapidly expanding. The group is aligned with the UAE’s ambitions for food security-related innovation in this critical industry.

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