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Environmental Scanning of UAE

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Moreover, customers have to pay higher rates when they go to restaurants because restaurants have to use the imported material for example; executive chef of Murooj Rotana argued that hotel spends huge money to buy 5000kg to 8500kg on fruits and vegetables each month (Arabian Businesses). The income level of people in UAE has increased and it is now comparable to the income level of industrialized states, however, thirty years ago, UAE was considered among the least developed nations (Shihab). Shihab also highlighted that the number of working female in UAE is increasing.

Therefore, the increasing number of working class has enhanced the demand for readymade food in UAE. The current financial crisis has affected the UAE economy severely, however, because of the naturally gifted resources, UAE has been always a hub of huge multinationals and businesses. The stable economy of UAE is being considered very attractive to operate a successful business. Sociological The increasing number of expatriates in UAE has increased the demand for convenience food. The lifestyle of consumers in UAE is also changing because the working class prefers easy-to-cook or readymade food.

The increasing awareness among consumers has increased the demand for healthy organic food (Lowe). Lowe also stated that Alyasra Food Co has started offering organic food on its 60 outlets in UAE because Mohammad Khataab, the sales manager of the company believes that there is a growing demand of organic food in health-conscious customers. Although the recent financial crisis has hit UAE market and spending power of consumers have also reduced, however, health food is always a need and preference of consumers.

The awareness of consumers to a healthy lifestyle is also encouraging the use of organic and healthy food UAE. Millions of dollars are spent to provide an excellent health care system, however, still, a major chunk of UAE’ s population is overweight and facing obesity-related problems (Saberi). To avoid such problems, the government is also motivated to promote a healthy lifestyle among the people in UAE. business in UAE. What is the reason because of which UAE food industry is very attractive for the foreign company though they know that they can face major raw material problems in UAE?

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