Food waste remains a pressing issue in Gulf Cooperation Council (GCC) countries, where average per capita waste reaches approximately 150 kilograms annually—14% higher than the global average of 132 kilograms. Despite this already elevated figure, it still falls below rates in some developed economies like the United States. The disparity highlights the scope for both concern and improvement within the region’s food systems.
According to Al-Qabas, while food waste in retail outlets in Gulf countries accounts for a relatively smaller share (between 5% and 15%), it is still 38% above the global average. This gap indicates a considerable opportunity for optimization, particularly given the region’s high reliance on food imports and the strategic importance of food security.
In 2022 alone, the retail sector across GCC countries discarded around 1.3 million tonnes of food, translating into an estimated financial loss of between $4 billion and $7 billion annually. This level of waste is significant, considering that it could cover 70% of the daily meals needed for the region’s Muslim population during Ramadan.
Beyond the monetary cost, food waste in the Gulf also carries environmental implications. It contributes to greenhouse gas emissions, and squanders critical resources such as energy, labor, and biological materials. Efficient management of these resources could not only reduce environmental harm but also strengthen food security and economic resilience.
A Booming Food Retail Sector
The Gulf’s food retail sector is expanding rapidly. In 2023, the market was valued at $62 billion in Saudi Arabia and $40 billion in the United Arab Emirates. The surge is driven by rising profit margins, changes in consumer preferences, and intense competition, all of which put pressure on retailers to stock vast quantities of goods.
In many cases, over-purchasing and inefficient inventory management practices lead to unnecessary losses. A significant portion of the waste stems from the inability to accurately forecast demand or adapt to fluctuating purchasing behaviors.
Key Drivers of Food Waste
A report by “Contemporary Middle East” identified four main factors contributing to food waste in the GCC:
1. Supply Chain Dynamics
Unlike Western countries that depend heavily on direct delivery models, many Gulf retailers rely on complex supply chains. This structure leads to overstocking, shorter shelf lives, and eventual food loss.
2. Promotional Pressures
Supermarket chains in the Gulf often operate under high promotional intensity, offering large quantities of discounted goods. In countries like Saudi Arabia, these promotions usually apply to products with limited shelf lives, making it harder for retailers to sell them before expiration. Over time, such marketing dynamics push stores to prioritize sales volume over sustainability.
3. Supplier Contracts and Ownership Limitations
Retailers frequently operate under contracts that prevent suppliers from repurchasing or restocking unsold goods. These terms often result in retailers discarding perfectly edible products due to lack of flexibility in returns or redistribution. The rigid structures of these agreements create inefficiencies and elevate costs for consumers.
4. Forecasting and Inventory Mismanagement
Inventory replenishment is often based on fixed estimates rather than actual demand, leading to overstock and waste. Inaccurate projections cause food to expire before it can be sold, reinforcing the need for smarter inventory practices.
A Call for Policy and Operational Reform
To tackle the issue effectively, experts argue for a complete overhaul of inventory management and supply forecasting systems. Governments in the region are expected to play a central role in shaping sustainable practices, in line with GCC countries’ commitments to the United Nations’ Sustainable Development Goals and national strategies extending through 2030.
Improved storage systems, demand-based ordering, and more centralized and resilient supply chains could significantly reduce food waste. Retailers should also focus on strengthening return policies, optimizing promotion strategies, and enabling flexible inventory mechanisms.
Moreover, investing in workforce training and adopting advanced quality control measures can help prevent spoilage. Public-private partnerships, regulatory incentives, and technological innovation could form the foundation of a more sustainable and efficient food ecosystem.
Ultimately, building a well-informed and adaptive retail infrastructure will be key to addressing food waste in the Gulf. With coordinated efforts across governments, retailers, and consumers, the region has the potential to transform its food systems into models of efficiency and sustainability.
