Dubai’s SLG Group to build Dhs200m manufacturing facility in food security push

Dubai-based SLG Group (also Silver Line Gate Group) is building a Dhs200m manufacturing facility at Dubai Industrial City as part of the company’s bolder strategy to bolster the UAE’s food security initiatives.

The new facility, which is set to open its doors for business in 2025, will support the distribution of wholesale bakery products such as butter, whey powder and vegetable shortening to bakeries, restaurants, ice cream manufacturers, hotels and caterers in the UAE.

It is also expected to meet the demands of business-to-business (B2B) and business-to-consumer (B2C) customers across the GCC, African and Southeast Asian markets.

SLG Group manufacturing facility

SLG Group’s new facility is the latest in a growing number of food manufacturers, processing firms producing and exporting foodstuffs globally from the Dubai Industrial City, boosting foreign trade and supporting the Dubai Economic Agenda D33.

Shereen Saeed, general manager at SLG Group, said, “Dubai Industrial City offers us fully equipped industrial infrastructure to easily set up a state-of-the-art manufacturing and logistics centre from which we can better cater to many other markets.

Dubai’s strategic location coupled with Dubai Industrial City’s extensive transport network that includes land, air, sea and soon Etihad Rail will offer SLG Group unrivalled and convenient access to key markets. The company manufacturing hub is designed to meet the growing market by leveraging the latest technologies with fully automated machinery and equipment and is expected to create more than 300 jobs.

With over 15 years of experience, SLG Group is one of the Middle East’s biggest suppliers of milk powder, including leading brands such as Lancy, Gardo, Silva, SLG, Sama, Zain and Al Sahem.

According to Mordor Intelligence, the Middle East and African dairy ingredients market is projected to grow at a CAGR of 5.7 per cent between 2020 and 2025, by a renewed focus on active lifestyles and fitness and the growing use of infant milk formula.

SLG Group supports UAE food security

Meanwhile, the UAE has made substantial investments towards its food security strategy and the country benefits from several key strengths that have made it food secure.

The Gulf state’s strong bilateral and trade ties, easy access to trade markets and transport and logistics infrastructure have advanced the country’s access to food supplies through food import strategies.

Read: UAE leads Arab nations in ‘Food System and Economic Resilience’ ranking

The country established the Emirates Food Security Council to coordinate and lead the National Food Security Strategy implementation in conjunction with federal and local entities in November 2018.

The council is led by Mariam bint Mohammed Almheiri, the Minister of Climate Change and Environment.

We launched the first phase of Food Tech Valley, a new modern & vibrant city that will serve as a global destination for start-ups and industry experts in the food ecosystem. It will host R&D facilities, innovation center, smart food logistics hub and areas for vertical farming. pic.twitter.com/5Hfyi9Ngc1

— HH Sheikh Mohammed (@HHShkMohd) May 1, 2021

Under the National Food Security Strategy 2051, the government plans to put the country at the top of the Global Food Security Index, forge international partnerships to diversify food sources, improve nutrition and introduce legislation to reduce waste.

Dubai unveiled plans to build a new business park to host specialised agricultural firms in 2021. The first phase of the project, which is called “Food Tech Valley,” will include headquarters, research and development facilities, an innovation centre, a smart food logistics hub and areas for vertical farming.

Last year, Emirates Flight Catering also opened Bustanica, the world’s largest vertical farming plant backed by a $40m investment by US-based Crop One. The facility is expected to produce more than 1 million kg of high-quality leafy greens annually while requiring 95% less water than conventional agriculture.

Read: Emirates Flight Catering opens world’s largest vertical farm in Dubai

The UAE has increased its support of agritech companies over the years to reduce reliance on food imports, which is estimated at 90 per cent of food consumed in the country.