Coffee Trade in Arab Countries: Saudi Arabia, Kuwait, Qatar, UAE, Egypt, and Jordan

Coffee is one of the most traded agricultural commodities globally and plays an important role in the economies of many Arab countries. In this article, we will explore the volume of coffee trade, including the import of green coffee beans, roasting activities, and the growing demand for specialty coffee in Saudi Arabia, Kuwait, Qatar, UAE, Egypt, and Jordan.

Saudi Arabia:

Saudi Arabia is the largest coffee market in the Middle East, experiencing significant growth in coffee consumption. According to a report by the Saudi Ministry of Commerce, Saudi Arabia imported about 73,000 tons of green coffee beans in 2022, valued at 1.16 billion SAR (approximately $310 million USD).

Most imported coffee in Saudi Arabia comes from countries like Brazil, Ethiopia, and Colombia. The demand for specialty coffee has been growing by 4.5% annually, with the rise of specialty coffee shops offering various roasting styles. Premium green coffee beans now account for 15% of total coffee imports.

United Arab Emirates:

The UAE is a key hub for coffee trade, both as an importer and as a major re-exporter to neighboring markets. The UAE imported over 30,000 tons of green coffee beans in 2022, valued at 367 million AED (approximately $100 million USD).

According to Dubai Chamber of Commerce statistics, the UAE also re-exports coffee to other Gulf countries, with re-exports valued at over $50 million USD annually. The specialty coffee sector in the UAE is one of the fastest-growing, with local cafes and roasters reporting an 8% annual increase in demand for premium beans.

Kuwait:

Kuwait, despite its small size, has an active coffee market. Kuwait imports about 22,000 tons of green coffee beans annually, valued at around $70 million USD, according to data from the International Trade Centre (ITC).

Specialty coffee is also seeing significant growth in Kuwait, with an increasing number of cafes offering custom roasts and premium beans. Most imports come from Brazil, Vietnam, and Colombia, with a rising demand for specialty Ethiopian coffee.

Qatar:

Qatar has seen a continuous rise in demand for coffee, particularly specialty coffee. In 2022, Qatar imported around 16,000 tons of green coffee beans, valued at $50 million USD, according to a report from the Qatar Chamber of Commerce.

The increasing demand for specialty coffee and local roasting has led to rapid growth in Qatar’s specialty coffee shops, with a 6.2% annual increase in consumption of premium beans. Most coffee imports come from Brazil and Colombia, but Qatar has also begun importing from Ethiopia and Kenya to meet the growing demand for African specialty coffee.

Egypt:

While tea is traditionally the most consumed beverage in Egypt, coffee has been gaining popularity, especially among younger generations. Egypt imported approximately 44,000 tons of green coffee beans in 2022, valued at about $150 million USD, according to reports from the Central Agency for Public Mobilization and Statistics.

Most of these beans are processed and roasted locally, with Turkish coffee and espresso being particularly popular in local cafes. Brazil and Vietnam are the primary suppliers of coffee to Egypt, with increasing demand for specialty coffee from Ethiopia and Colombia.

Jordan:

In Jordan, coffee is an integral part of daily life. The kingdom imported about 12,000 tons of green coffee beans in 2022, valued at $35 million USD, according to a report from the Jordan Chamber of Commerce.

While traditional coffee is dominant, the specialty coffee sector is seeing notable growth. The number of cafes offering specialty coffee and local roasting has been increasing by 3.8% annually, reflecting a rising interest in quality and diversity in coffee consumption.

Local Roasting and Market Trends:

With the growing demand for coffee in these countries, many local businesses have shifted focus toward local roasting. This trend adds value locally and allows consumers to access freshly roasted, high-quality coffee. For instance:

• In Saudi Arabia, statistics show that 70% of imported green coffee beans are roasted locally.
• In the UAE, the number of local specialty roasters has grown by 25% in the past five years.

Challenges and Opportunities:

Despite the strong growth in coffee demand, there are challenges facing the Arab markets, including:

1. Global Coffee Price Fluctuations: Most Arab countries rely on coffee imports, making them vulnerable to global price fluctuations, which can affect import and distribution costs.
2. Quality and Sustainability: As demand for specialty coffee grows, there is an increasing need for sustainable and high-quality coffee sources. Arab countries are becoming more aware of sustainability in the supply chain, prompting some to seek suppliers offering coffee certified for sustainability.

Coffee continues to grow as one of the most popular beverages in Arab countries. With increasing demand for specialty coffee and local roasting, it is clear that the coffee industry represents a significant economic opportunity in the region. Countries like Saudi Arabia and the UAE are seeing significant growth in green coffee imports, while others like Qatar and Kuwait are embracing local roasting to meet consumer demands. Overall, the coffee trade in the Arab world is a growing sector with vast potential for growth and investment.