AGP Executive Report

Market Outlook: MarketsandMarkets pegs the global food encapsulation market at $21.79bn by 2030 (from $14.50bn in 2025), driven by demand for functional, shelf-stable foods and protection of sensitive ingredients. Saudi Dining & Expansion: Chipotle is set to debut in Saudi Arabia, while the brand also rolled out the “Salish Matter Order” kid’s menu item via its app and website, leaning into Gen Alpha creator influence. Hospitality on the Red Sea: Rosewood AMAALA opened on Saudi Arabia’s Red Sea coast, positioning the 110-key wellness resort around private pools and immersive wellbeing experiences. UAE Restaurant Launch: Athar, an Emirati all-day dining and specialty coffee spot in Dubai, is opening with a heritage-led menu and traditional décor. Food & Beverage Growth in the Region: Oman’s tea and coffee imports topped RO 49m as café culture expands, signaling continued demand for hot beverages. Packaging Watch: In-mold labels are forecast to reach $4.9bn by 2035 as recyclability rules push brands toward recyclable-by-design packaging. Syria Food-Safety/Trust Angle: Protests in Aleppo followed the death of a detained White Helmets volunteer, renewing scrutiny of custody conditions.

Coffee Quality & Trading: Massimo Zanetti Beverage USA VP Nora Johnson becomes the youngest woman to pass ICE Certified Coffee Grader exams, joining another MZB-USA leader, Dorothea Hescock, as Arabica grading standards underpin global benchmark trading. Oman Tea & Coffee Demand: Oman’s tea and coffee imports surged 2021-2025, with tea value up to RO28.2m (+103.2%) and coffee to RO21m (+144.1%), led by Kenya for tea and the UAE for coffee. Saudi Hospitality Expansion: Aroya Cruises’ second Mediterranean season (Turkey, Greece, Egypt) is framed as a growth play, including new interporting from Alexandria. Food Culture & Community: Sanctuary Kitchen in New Haven hosts a “sanctuary kitchen lunch” with CT AG William Tong and a valedictorian graduate, spotlighting immigrant-led catering and training. Market Signals: A Colombo stock slide cites rising global oil prices, while food, beverage & tobacco still contribute to sector turnover. Coffee Luxury Debate: A deep dive revisits kopi luwak’s civet-based process and the welfare concerns behind the luxury brand.

AI in Foodservice: Sagtec officially launched its HALO AI food-serving robot and booked a US$3m order for 1,500 units via its Dubai distributor, aiming to build an initial Middle East installed base. Gulf Hospitality & Retail: Fraport-TAV highlighted Antalya Airport’s €850m commercial expansion, with 33,000 sq m of upgraded dining and retail space set to boost the airport’s food & beverage pull. Middle East Tourism: Israel’s tourism ministry is pushing beyond pilgrimage with an “I AM ISRAEL” campaign, targeting Indian travellers with experiential, faith and gastronomy packages. Food & Drink Business Moves: Chipotle plans its first Saudi outlet in Riyadh, signaling continued US fast-casual expansion into the Kingdom. Regional Food Prices & Supply: Iran’s annual inflation hit 66%, with food and beverage prices up 128% year-on-year—raising pressure on household budgets. Syria Detention Scrutiny: A man’s death after police detention in Latakia has triggered renewed calls for accountability in Syria’s post-Assad security system. Local Dining Buzz: Hyderabad’s August openings spotlight new cafes and regional concepts beyond biryani and chai.

Restaurant Operations & Talent: Middle Eastern dining group Aalia in Martin Place unveiled a refreshed menu and “next era” under newly appointed Executive Chef Adam Wolfers, leaning into fire-led cooking with seafood and vegetables. Food Safety & Service: A Turkish doner kebab restaurant owner in Reyhanli, Hatay, reportedly saved a choking customer using the Heimlich manoeuvre after meat lodged in his airway. Detention & Public Trust: Syria’s public debate over prison abuse resurfaced after the death of former White Helmets volunteer Mohammad Ghamira shortly after release from jail, with rights groups warning abuses persist. Trade & Consumer Demand: Hong Kong’s Food Expo and related fairs wrapped up with 520,000+ public visits and 1,850+ exhibitors, underscoring strong regional appetite for gourmet and healthier products. Travel & Beverage Demand Signals: Reports say Seoul Incheon has overtaken Dubai as the world’s busiest international airport in H1 2026, with Gulf closures linked to Middle East trading disruptions—an indirect read-through for travel retail drinks.

Saudi Fast-Food Expansion: Chipotle will open its first Saudi outlet in Riyadh later this month with Alshaya, bringing burritos, bowls and tacos to Sidra at Granada Mall. Iran War & Food Affordability: In Iran, families say they’re in “survival mode” as food prices surge—some staples up to 400%—with imports squeezed by conflict and inflation. Education Pressure With Food-Chain Fallout: Reports from Cambodia’s Tonle Sap link Iran-war fuel spikes to higher transport costs, forcing poorer families to skip school and even work for food, while UNICEF warns millions could fall into poverty. Packaging Cost Risk: Beverage makers are urged to plan for aluminium volatility through 2026, reviewing supply contracts for total landed costs and diversifying sources. F&B Business Moves: OZOP Energy Solutions highlighted Egypt Dean’s investment in Ballislife HYDRO sports drink, while Hilton opened its 100th Türkiye hotel at Istanbul Airport, adding more premium dining touchpoints for travelers.

Middle East Tourism Shock: Dubai’s hotel occupancy and visitor flow have been hit hard after the Iran war shock, with occupancy plunging to about 19.6% in mid-March before a brief Eid lift, and many conferences/exhibitions postponed or canceled. Real Estate & F&B Expansion: Egypt’s Zawaya Developments and EDIC Developments are partnering on the EGP 3.5bn SIA Boulevard in 6th of October City, adding retail, office, medical, hospitality, entertainment and food & beverage operators, aiming to operate within three years. Investment Push: Al Salem Holding says it will grow its Egypt portfolio from EGP 15bn to EGP 50bn over five years, citing North Coast tourism momentum and expanding into sectors including hospitality and food & beverage. Food & Culture on the Menu: Syrian restaurant Naranj opens its first Egyptian branch in New Cairo, bringing Damascus dishes like labneh makdous, moussakhan and shish barak to a new upscale dining spot. Aviation & Travel Demand: Turkish Airlines will add Chengdu from Nov. 11, positioning the city as a key China tourism and “UNESCO City of Gastronomy” stop. Public Health Watch: Syria detains seven after a man died following alleged torture in police custody, raising accountability concerns.

Plant-Based Dairy Breakthrough: Hebrew University scientists say engineered plant seeds can produce and store real milk proteins (ß-casein), a potential boost for sustainable dairy ingredients. Food Safety & Public Health: India’s CAG audit found E. coli in drinking water from railway station coolers at multiple stations, alongside major gaps in passenger amenities. Retail & Culinary Promotions: LuLu Qatar launched “India Utsav 2026,” spotlighting Indian spices, millets, hot-food counters and sweets across stores. Hospitality & Travel Demand: UAE hotels are rolling out incentives to lure tourists back after Iran-war shock, including Dubai voucher offers and Abu Dhabi visa giveaways, while airlines add flexibility. Middle East Dining Expansion: Chipotle is set to open in Saudi Arabia (Riyadh/Jeddah pipeline), signaling continued US QSR momentum in the Kingdom. Local Food Culture: A Lebanese brasserie in London (Kinz) leans into Lebanese classics in a bank-vault setting, reflecting ongoing Levantine food interest.

Hospital & Media Fallout: Israeli TV host Oded Ben-Ami apologized to Rambam Hospital staff in Haifa after a broadcast appeared to question the professionalism of Arab medical teams treating IDF soldiers, following claims from a soldier’s brother about ICU access and treatment. Gulf Tourism & F&B Demand: UAE hotels are gearing up for a rebound after the Iran-war travel shock, rolling out guest incentives (Dubai vouchers; Abu Dhabi visa offers) while staffing ramps up across front office and food & beverage. Coffee Business: Strauss Group reported a 44.3% jump in Q2 Coffee International EBIT, with margin gains offsetting revenue declines tied to FX pressure and lower green coffee prices. Saudi Industrial Services: Universal Inspection Co. marked 16 years in Saudi Arabia, highlighting ISO-accredited calibration, inspection, testing and training services. Egypt Food Security Push: Silo Foods in Sadat City is expanding from school-feeding support into a full food processing complex spanning mills, factories, labs and logistics, tied to food security and exports. Ube Export Race: Philippines processors are scrambling for higher-quality ube supply as global demand rises, warning that low raw material and quality risks could let ASEAN rivals take buyers. UAE Banking Tie-ins: ADIB-Egypt launched “Summer Pros” with up to 50% cashback and zero-fee auto financing, plus F&B partner discounts for cardholders. Restaurant Openings/Concepts: Dubai’s Brew Cafe and Ounass run a limited summer menu collab with beauty add-ons, while Tel Aviv’s The Norman leans into a quieter, heritage-meets-modern hospitality vibe.

Saudi Expo Strategy: Saudi Arabia is using Osaka 2025 as a playbook for Expo 2030 Riyadh, stressing procurement discipline, early transport readiness, and contingency buffers—plus the promise of lasting legacy infrastructure that can keep benefiting hospitality, retail, F&B and tourism after the gates close. Egypt Food Security Push: Egypt’s “Silo Foods” complex in Sadat City has evolved into a full food-processing hub (mills, silos, factories, labs, packaging and logistics) tied to food security, supply-chain stability and exports, with state-military ownership links keeping it at the center of economic debate. Israel Coffee Profit Boost: Strauss Group’s Coffee International posted a 44.3% jump in Q2 EBIT as margins improved, even as revenue fell on FX pressure and lower green coffee prices. Philippines Food Division Drag: San Miguel’s first-half profit slid 44% as foreign-exchange losses and last year’s one-time gain faded, though operations and its food division helped cushion results. UAE Resort Dining & Wellness: Six Senses The Palm, Dubai is set to debut with a more boutique, experience-led wellness model on Palm Jumeirah, pairing personalised service with regional design cues. Food Safety Watch: Berks County restaurant inspections flagged sanitizer and hygiene lapses at multiple venues, with follow-up required for some violations.

Food Safety Watch: Berks County inspections flagged sanitation gaps at KPOT Korean Bbq & Hot Pot, including low sanitizer residuals in dishwashing and open beverage containers in food prep areas, with required corrections. Cairo Incident: A helium gas cylinder explosion at Arabella Plaza in New Cairo killed three and injured 17, triggering a fire that civil defence contained; authorities say it was the sole cause and investigations continue. Beverage & Health Research: A study from Amsterdam links higher intake of non-sugar-sweetened beverages to higher type 2 diabetes risk, with substitution from sugar drinks to non-sugar options also raising risk in some groups. Hospitality Leadership: Rixos Al Mairid Ras Al Khaimah named Ismail Alcay as General Manager and Bilgehan Ay as Director of Revenue as it prepares enhanced facilities. Dining Culture (UAE): Google-review roundups keep spotlighting top mall dining across Dubai and Abu Dhabi, with Mall of the Emirates, Dubai Hills, Yas Mall and Dubai Mall all featuring standout sit-down picks and family-friendly options. Restaurant Business (US): Sip Crave founder Jeremy Dunn claims the “World-Renowned Mad Dog 20/20 Sommelier” title, formalizing a tasting method for the fortified wine. Hotel Openings (Türkiye): Hilton opened Hilton Istanbul Airport, its 100th hotel in Türkiye and first Hilton-branded airport property in the country. Food & Politics (US): A New Jersey restaurant owner detained by ICE after a check-in is set to return home, highlighting ongoing detention and healthcare concerns.

UAE Healthcare Tech: Abu Dhabi and Dubai are rolling out AI and digital tools in hospitals, from AI-assisted mammogram analysis and smart wards with fall-risk sensors to early sepsis detection and remote consultations for remote areas. Hospitality Expansion: Hilton Istanbul Airport opened with a 485-room property next to the terminal, adding destination-inspired dining and a design nod to Istanbul’s heritage. Dubai Dining Guide: Aroos Damascus Restaurant is spotlighted across three UAE branches (Deira, Al Manara, Sharjah), with late-night grills and mezze driving repeat visits. Baghdad Restaurant Growth: Lebanese chain Al Beiruti plans its first Iraqi branch at Iraq Mall in Baghdad, bringing manakish, hummus, baba ghanouj and grills. Saudi Culinary Heritage: The Saudi Culinary Arts Commission showcased local food traditions at the Buraidah Dates Carnival, including date molasses and classics like kleija and maamoul. Food & Safety Incident: Egypt’s Arabella Plaza Mall in New Cairo saw a helium cylinder explosion inside a restaurant, killing 2–3 people and injuring 12–17, with investigations underway. Film Meets Food Storytelling: China’s anti-war hit “Once Upon a Time in the Middle East” is drawing attention for its kitchen-centered plot and “eat well” theme, filmed in China and Egypt.

Saudi F&B Expansion: Chipotle is set to open its first Saudi restaurant this month in Riyadh’s Sidra retail center, with Alshaya Group as franchise partner, adding to its growing Middle East footprint. Culinary Heritage Spotlight: Saudi Arabia’s Culinary Arts Commission is showcasing Buraidah’s date culture at the Buraidah International Dates Carnival, using publications and recipes to preserve and promote local gastronomy. Food Safety/Disaster Response (Egypt): A helium cylinder explosion at Arabella Plaza Mall in New Cairo killed 2 and injured 12, with emergency teams and ambulances dispatched. Fire & Injuries (Egypt): A separate fire at Arabella Plaza Mall left 3 dead and 17 injured, with Civil Protection units containing the blaze and an investigation launched. Industry Earnings Watch: Shakey’s Pizza Asia Ventures reported a 33% drop in first-half profit as consumer spending softened and Peri-Peri network restructuring weighed on results, even as systemwide sales rose. Local Community Food: A Kentucky Mediterranean bakery, Al-Taj Mediterranean Bakery and Sweets, says it’s exploring a sale but insists it’s not closing. Beverage Policy Push: A beverage industry group urged the Philippine government to reconsider proposed sugary drink and ice taxes, warning higher prices could offset income tax relief benefits.

Saudi Arabia F&B & Hospitality: Alshaya Group will open Chipotle in Riyadh this August at Sidra Mall, bringing made-to-order burritos, bowls, tacos and guacamole to the Kingdom—while Saudi inflation hit 1.8% in July, with food and beverage prices up 1.5% (GASTAT), a sign costs are still creeping into menus. Iran Enforcement on Dining: Iran has reportedly stepped up closures of cafés and restaurants across multiple cities over hijab and “public chastity” rules, adding operational risk for hospitality operators. Turkey Macro Watch: Türkiye’s central bank signaled it will keep a strict policy stance despite a slight CPI easing to 31.75% in July, with volatile energy and food costs still threatening disinflation. Regional Trade & Ingredients: Azerbaijan is betting big on pomegranates, exporting €48.2m in 2025 and scaling orchards for fresh fruit, juice and concentrate to Gulf and European markets. Industry Events: Arabian Travel Market (ATM) 2026 in Dubai (Sept 14–17) will focus on how Middle East hotels are using innovation and personalised experiences to stay resilient.

Etihad Rail’s UAE onboard menu: Etihad Rail launched a curated onboard culinary experience on passenger services between Abu Dhabi and Fujairah, with Emirati flavours designed by chef Maitha Warshaw (dates, saffron, cardamom, local honey, Arabic coffee) and a signature machboos-style short rib dish. Food safety & crime spillover: Israeli prosecutors filed declarations in an arson case targeting a Japanika branch in Givatayim, part of a wider spate of attacks on Japanika sites investigated by the Tel Aviv District Central Unit. Middle East F&B talent spotlight: A Hillcrest barista in South Africa won Starbucks’ 2026 national championship and will represent South Africa at the Starbucks EMEA Championship in London, with a drink inspired by his mother. Lebanese brand refresh in Ohio: Falafel Café reopened in Uptown after a redesign and menu trim aimed at “Lebanese authenticity,” bringing back a Middle Eastern retail foods section. Corporate food distribution update: The Chefs’ Warehouse announced it will redeem all $287.5m of its 2.375% convertible notes due 2028 on Oct 15, 2026. Bakery entrepreneurship in Dubai: Home Bakery co-founder Hind Al Mulla’s story highlights how a homegrown Dubai bakery scaled to five UAE branches after early mall rejections.

Iran Food Safety Crackdown: Authorities sealed multiple cafes and businesses across Iranian cities, including Tehran and Ardabil, citing hijab and “norm-breaking” violations, with arrests reported. UAE Hospitality & Dining: Etihad Rail rolled out an onboard culinary menu between Abu Dhabi and Fujairah, built around Emirati flavors and ingredients like dates, saffron, cardamom, honey and Arabic coffee. Saudi Luxury Travel Expectations: KBLT chairman Sulaiman Al Romi urged luxury brands to win Saudi travelers with privacy, cultural understanding and discreet service ahead of the Kingdom Business & Luxury Travel Congress in Riyadh (6–7 Sept). Hotel Openings in Saudi: IHG signed Cantonal Hotel Riyadh Noted Collection by IHG, the first Noted Collection property in the Middle East, expected to open by end-2026 in Al Olaya. Middle East Beverage Packaging Push: Gulf beverage makers are leaning into premium, health-focused drinks, driving demand for advanced aluminum can formats discussed around Gulfood Manufacturing. Palestinian Jobs & Tourism Pressure: West Bank employment rose 4.6% in Q2, with commerce, restaurant and hotel sectors improving after tourism shocks tied to regional instability.

Food processing investment: Alpecon Group plans to invest 2.3 billion tenge to modernize a tomato processing plant in Kazakhstan’s Kyzylorda region, targeting up to 600 tons of tomatoes per day and boosting domestic tomato paste output to cut import reliance. Health & regulation (Kuwait): Kuwait’s Ministry of Health issued new rules tightening standards for bariatric surgeries and non-surgical interventional procedures, setting BMI-based criteria and outlining approved procedures and facility requirements. Food safety oversight (Saudi Arabia): Saudi Arabia’s Ministry of Municipalities and Housing strengthened restaurant inspections and monitoring, including portable cameras linked to the Mumtathil app, plus updated employee health certificates and training. Hospitality & dining openings (UAE): Dubai’s hospitality sector continues to navigate near-term headwinds while maintaining long-term fundamentals, with ongoing focus on service and demand resilience. Tourism-linked food demand (Cambodia): Siem Reap vendors report a sharp drop in foreign visitors, with domestic tourism helping but not fully offsetting lost sales. Industry finance (coffee): Black Rock Coffee Bar reported Q2 2026 results with revenue up 25% year-on-year and same-store sales growth of 4.2%.