The Swiss company Nestlé plans to deliver a Dh500 million (US$136.1m) caffeine hit to the Dubai economy with the creation of up to 800 jobs at a new factory in the emirate.
The maker of Nescafé coffee and Kit Kat and Quality Street chocolates has signed a deal with Dubai World Central to develop a plant on a 175,000 square metre plot.
The facility will make coffee, culinary and nutritional products and follows a similar-sized investment in the city by the company two years ago.
"Producing locally allows us to bring products faster, and therefore fresher, to consumers," said Hans Juergen Jung, the technical director at Nestlé.
"The construction of a new facility at Dubai World Central strengthens our local manufacturing capabilities, giving us more flexibility in adopting our products to local consumer preferences."
Global consumer goods companies are pumping billions of dollars in investment into the Middle East to tap the growth opportunities offered by young populations and rising levels of spending in many countries. The food and retail sectors are benefiting most from the trend.
Last December Coca-Cola paid almost $1 billion for a 50 per cent stake in Aujan Industries, one of the region's biggest drinks makers. Mars is also investing $60m in a new chocolate-making factory in Saudi Arabia's King Abdullah City, with plans to spend an additional $150m over the next decade. Mars opened a $40m factory in Dubai in 2010.
Nestlé already has 17 other facilities throughout the Middle East.
"There's been a pick-up in fast-moving consumer goods in Dubai," said Edward Batten, a commercial leasing manager at Knight Frank, an international property consultancy. "We are seeing the third-party logistics guys looking at an expansion of accommodation."
Dubai World Central is being developed on a 140 sq km site in Jebel Ali that will be home to the new Al Maktoum International Airport. On completion it is expected to handle up to 120 million passengers and 12 million tonnes of cargo per year.
"Nestlé is committed to strengthening our presence in the Middle East markets," said Yves Manghardt, the chairman and chief executive of Nestlé Middle East. "We will continue to invest in projects that enable us to better serve consumers in the region."
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