Gulf Market Update 2026 for Food, Drink & Health Brands

On the Ground Insights from UAE and Saudi Arabia

Over six weeks on the ground across the UAE and Saudi Arabia, we met with retailers, distributors, partners and government stakeholders, and attended both Gulfood and WHX Dubai (formerly Arab Health).

In this video, Victoria shares:

  • The latest regulatory changes affecting food and beverage brands
  • What retailers are prioritising in 2026
  • How distributor expectations are evolving
  • Where the real commercial opportunities sit

Key Market Developments You Need to Know

UAE Sugar Tax Reform, A Major Shift for Beverage Brands

As of 1 January, the UAE has moved from a blanket 50 percent excise tax on sweetened beverages to a tiered system based on sugar per 100ml.

What this means:

  • Lower sugar beverages can now benefit from significantly reduced taxation
  • Sweetener-based beverages may qualify for 0 percent excise tax, subject to lab verification
  • Shelf prices are already adjusting
  • Retailers and distributors are showing renewed appetite for the category

For compliant brands, this creates genuine re-entry and expansion opportunities in the UAE beverage space.

However, brands must be prepared for lab testing and formal proof of sugar thresholds. Compliance is now strategic, not optional.

Checkout Space Is Opening for Healthier Brands

Regulatory shifts are also affecting checkout merchandising in the UAE.

Traditional confectionery dominance at tills is being challenged, creating potential entry points for:

  • Better-for-you snacking

  • Functional confectionery

  • Health-led impulse formats

For brands with a strong nutritional positioning and clear differentiation, this could represent a rare opportunity to access premium in-store shelf space.

Saudi Arabia Halal Regulation, A Critical Compliance Update

Saudi Arabia has strengthened its halal requirements.

It is no longer limited to obvious animal-based products.
Any product containing animal-derived ingredients or by-products now requires approved halal certification.

Important considerations:

  • Certification bodies must be recognised by Saudi authorities

  • Approved bodies vary by GCC country and are reviewed annually

  • Existing brands are being required to update documentation

For prepared brands, this creates opportunity.
For unprepared brands, it creates delays and cost implications.

Trade Show Insights

Gulfood

Gulfood 2026 marked a notable shift in format, with the event split across both the Dubai World Trade Centre and the former Expo 2020 site. While the World Trade Centre retained its usual intensity and volume, the Expo site offered a more spacious and structured environment, allowing for more focused, higher quality conversations.

From a commercial perspective, this change is important. The ability to have more meaningful discussions, rather than purely high-volume traffic, is increasingly defining the value of trade shows in the region. For brands attending, the focus is shifting away from visibility alone towards the quality of meetings and the strength of follow-up opportunities.

WHX Dubai

WHX Dubai, previously known as Arab Health, has now fully transitioned to the Expo site, bringing with it a more streamlined and modern event experience. The show saw a strong UK Pavilion presence alongside consistent international attendance, particularly across the supplements, nutraceutical and healthcare categories.

For health and wellness brands, WHX Dubai continues to be a highly relevant entry point into the region. The calibre of attendees and the focus on innovation and product development make it a valuable platform, particularly for brands looking to build credibility and initiate distributor or buyer conversations in the Gulf market.

Planning Your Gulf Market Entry

We continue to stay closely connected to the market through ongoing conversations with retailers, distributors and partners across the region.

If you are currently assessing the Gulf, or reconsidering your plans in light of recent developments, we can help you understand what this means for your category, your route to market and your level of investment.

Whether you are ready to move forward or simply need clarity before making a decision, we are happy to talk.

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