KEZAD breaks ground on baby food plant

Khalifa Economic Zones Abu Dhabi has launched construction of a AED150 million baby food manufacturing facility aimed at strengthening food security, expanding local production and easing supply concentration risks in the Gulf’s infant nutrition market.

The project, located within KEZAD’s industrial ecosystem in Abu Dhabi, is expected to produce a range of infant and toddler nutrition products, including powdered milk formula and fortified baby foods. Officials said the facility will serve domestic demand while positioning the emirate as a regional export hub targeting markets across the Middle East, Africa and parts of Asia.

KEZAD, a subsidiary of AD Ports Group, described the development as part of a broader push to attract value-added food processing investments that reduce dependence on imports and diversify the industrial base. The investment aligns with Abu Dhabi’s industrial strategy, which prioritises food security, advanced manufacturing and supply chain resilience.

Industry executives involved in the project said the plant would incorporate automated production lines and stringent quality control systems compliant with international food safety standards. Construction is scheduled to progress in phases, with commercial operations expected once regulatory approvals and commissioning processes are completed.

Infant nutrition remains one of the most tightly regulated and capital-intensive segments of the global food industry. Analysts note that the sector has historically been dominated by a small group of multinational corporations, resulting in concentrated market structures that can limit pricing flexibility and restrict access for new entrants. Such concentration has also exposed markets to supply disruptions during geopolitical tensions or logistical bottlenecks.

By establishing local manufacturing capacity, Abu Dhabi authorities aim to address these vulnerabilities. Officials familiar with the project said the initiative seeks to counter monopolistic dynamics that can constrain competition and increase exposure to global supply shocks. Greater domestic output is expected to stabilise supply, create employment opportunities and encourage downstream investments in packaging, logistics and distribution.

Regional demand for baby food has been rising steadily, driven by population growth, urbanisation and increasing awareness of nutritional standards. Market research firms estimate that the Middle East and Africa infant nutrition market is valued in the billions of dollars annually, with growth supported by higher disposable incomes and expanding retail networks. The United Arab Emirates, while relatively small in population, functions as a trading gateway for neighbouring countries, amplifying its strategic relevance.

Food security has become a central policy objective across the Gulf following pandemic-era disruptions that exposed reliance on global supply chains. Authorities in Abu Dhabi have invested in agri-tech, vertical farming and food processing infrastructure to mitigate risk and ensure continuity of supply. The new baby food plant adds a specialised segment to that portfolio, targeting one of the most sensitive consumer categories.

Executives overseeing the development emphasised that infant nutrition requires strict adherence to quality, traceability and nutritional standards. They indicated that raw material sourcing strategies would combine local procurement where feasible with diversified international suppliers to maintain product consistency and compliance.

Economists say such projects carry both industrial and strategic significance. Beyond immediate economic benefits, local production of essential food items can enhance national resilience. During periods of global shortage or trade friction, countries with domestic manufacturing capacity are better positioned to shield consumers from price spikes and stock shortages.

KEZAD has in recent years expanded its food and beverage cluster, attracting processors of dairy products, grains, edible oils and packaged foods. The integrated industrial zone offers warehousing, port connectivity and customs facilitation, enabling companies to reduce turnaround times and logistics costs. Proximity to Khalifa Port provides exporters with access to global shipping routes.

Government officials have also highlighted the role of public-private partnerships in advancing industrial policy. The baby food facility represents a collaboration between KEZAD and private sector investors, reflecting a model that leverages state-backed infrastructure while drawing on specialised industry expertise.

Employment generation is another expected outcome. Construction activities will create temporary jobs, while operational phases are projected to require skilled technicians, quality assurance specialists and supply chain managers. Training programmes may be introduced to develop local expertise in food technology and manufacturing.

Consumer advocacy groups have long called for greater transparency and competition within the infant nutrition sector. While multinational brands continue to command significant market share, localised production could introduce alternative offerings and improve price competitiveness. Regulatory authorities are expected to maintain oversight to ensure compliance with health and safety standards.

Global baby food markets have also faced scrutiny over marketing practices and nutritional claims. Authorities in various jurisdictions have tightened regulations governing labelling and advertising. Industry observers say any new entrant must navigate a complex regulatory landscape while building consumer trust.