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Spinneys to build processing unit in Food Tech Valley

Spinneys says the deal with Food Tech Valley is a 'significant step in our ambitious growth plans' Spinneys
Spinneys says the deal with Food Tech Valley is a 'significant step in our ambitious growth plans'
  • Partnership with Food Tech Valley
  • Deal signed to last 27 years
  • Plan to build 500,000sq ft unit

The UAE supermarket chain Spinneys has signed a deal to build a 500,000 square foot food processing unit in Dubai’s Food Tech Valley as part of the plan to increase its locally sourced produce.

The deal, which will last for 27 years, is intended to foster innovation in food processing as part of the wider Food Tech Valley project, which hosts producers, logistics companies and research facilities.

The agreement was signed between Rashed Mohammad Al Awadhi, chief real estate officer of Wasl, which owns Food Tech Valley, and Sunil Kumar, CEO of Spinneys.

Adult, Male, Man Sunil Kumar, CEO of Spinneys, says the deal will bring cutting-edge facilitiesSpinneys
Sunil Kumar, CEO of Spinneys, says the new unit will include cutting-edge facilities

Kumar said: “Spinneys has always championed local farmers and food producers, hence our partnership with Food Tech Valley assumes greater importance.

“This partnership marks a significant step in our ambitious growth plans, enabling us to better serve our customers with cutting-edge food processing capabilities.”

Spinneys operates 79 stores in the UAE, Oman, and Saudi Arabia. In its latest earnings report, it reported that revenue had jumped 10 percent year on year in the first half of 2024.

In 2022 the chain held a 12 percent share of its target market in the UAE and 27 percent of its target market in Dubai, in 2022. 

Spinneys listed on the Dubai Financial Market this year in a successful IPO that was 64 times over-subscribed in aggregate. The company raised AED1.4 billion ($375 million) in a sale of 25 percent of its shares, implying a market capitalisation of AED5.5 billion. 

Shares in the chain started trading in May at AED1.53. Currently, Spinneys shares trade at AED1.58.

Food Tech Valley acts as an incubator for companies involved in the food and agriculture supply chain. Companies operating from Food Tech Valley work to develop new farming techniques and processes, food distribution and logistics, research into proteins and crop modifications.

The UAE imports an estimated 85 percent of its food, and the country’s demand for food is expected to swell 50 percent by 2030. An important pillar of the UAE’s National Food Security Strategy 2051 is enhancing local production of food and improving the national food system using modern technologies.