UNITED ARAB EMIRATES

THE PEPPER TRADE

Presented by

Parsram Dhirani

Royal Golden General Trading LLC Dubai

UNITED ARAB EMIRATES

POPULATION: 8,264,070 (2010)

CAPITAL: ABU DHABI CURRENCY: DIRHAMS OFFICIAL LANGUAGE: ARABIC EMIRATES (7) : ABU DHABI, DUBAI, SHARJAH, AJMAN, FUJEIRAH, RAS AL KHAIMAH, & UMM AL QUWAIN

UNITED ARAB EMIRATES MAJOR COMMERCIAL HUB SEAPORTS: Dubai, Jebel Ali AIRPORTS: TERMINALS 1,2,3 and Al Maktoum International Airport BEST AIR LINE CONNECTIVITY LAND: METRO, BUSES, TAXIS,

UNITED ARAB EMIRATES

SECURE & CRIME-FREE EXCELLENT INFRASTRUCTURE POPULAR TOURIST DESTINATION NO INCOME TAX

Spices

• Black Pepper

• White Pepper

• Cloves

• Cardamom

• Cumin Seeds

• Nutmeg

• Ginger

• Chilies

• Saffron

Dry Fruits

• Almonds • Cashews • Pistachio • Pine Seed • Raisins

UNITED ARAB EMIRATES “THE KING OF SPICES”

Black Pepper – Piper Nigrum

Traditional Origins Vietnam India Brazil Indonesia Malaysia Sri Lanka Madagascar Others

UNITED ARAB EMIRATES Pepper Trade in UAE

Preferred origins

Refundable 5% Custom Duty

Physical inspection

Gross for net

Payment Terms

80-90% Re-export

UNITED ARAB EMIRATES

Pepper Trade in UAE (Contd)

Problems faced:

◦ Arabic Labeling

◦ Quality

◦ Un Timely Shipments

◦ Defaults

Annual UAE Imports of Black Pepper (MT) Country 2009 2010 2011 2012

Vietnam 11,056 13,325 12,310 10,310

India 439 534 1,218 281

Brazil 127 108 211 103

Indonesia 61 28 28 47

Sri Lanka 34 129 16 141

Malaysia 1 1 1 2

Others 300 300 300 300

Total 12,018 14,425 14,084 11,184

TOP THREE IMPORTING COUNTRIES FROM VIETNAM

Imports Per Year (Metric Tons)

2008 2009 2010 2011 2012

America 13,450 14,917 16,414 22,336 17,417

Germany 6,067 14,012 14,997 10,059 10,764

UAE 7,832 11,053 13,180 11,016 10,324

UNITED ARAB EMIRATES Why Dubai? Gate way to many markets Inspect material before purchase Raw materials from multi origins Fair price and well dried goods Assorted container Quick shipments Fast custom clearance Short transit time Fast and efficient banking Visa within 24 hours Buyers enjoy credit facility

UNITED ARAB EMIRATES • Major Export Destinations

• GCC (7 days)

• Egypt (16)

• Iraq (3)

• Jordan (10)

• CIS states (25-30)

• Libya (29)

• Iran (1)

Afghanistan (7)

Algeria (20)

African destinations (25-30)

Yemen (5)

Pakistan (3)

Oman (1)

Turkey (18)

UNITED ARAB EMIRATES Recommendation

• Pepper Conclave during: • Gulf Food Exhibition - Dubai

• SIAL Middle East – Abu Dhabi

• Food Agro – Tanzania

UNITED ARAB EMIRATES Glimpse into the Future

• Past – 500 faq • Present – Clean and heavy pepper • Future – Tougher food laws • Increasing demand for superior and

sterilized goods • New airport will serve 160 mil

passengers • Popularity of food exhibitions • Candidate city for Expo 2020

Thank You