As in so many regions around the world, food has long been central to Arab culture, bringing communities together and preserving traditions through nourishment and hospitality.
As countries across the GCC have modernised at a record pace in the past few decades, the foodservice industry has adapted well to fast-evolving markets.
In the past decade alone there has been a drastic transformation. While fine dining and home-cooked feasts remain central to the region’s culture, new avenues have emerged and risen in popularity.
Now, a variety of delivery services, home-based food businesses, and ghost kitchens redefine how food is prepared, served and consumed. This also makes employment and business ownership in the food sector accessible to a wider segment of the population.
The market has responded quickly to changing lifestyles, digital innovation and consumer demands. It is also important to acknowledge how fast digitisation has enabled market growth, led by governments across the region.
Food delivery has seen rapid growth across Middle Eastern markets, particularly in the Gulf. Driven by a high use of smartphones, fast and secure digital payment systems, and a rising demand for convenience, third-party delivery, many platforms such as Talabat, Deliveroo, Careem Food, and Jahez (in Saudi Arabia) have become household names.
The Covid-19 pandemic was also a prominent force that accelerated the demand for food delivery services. Lockdowns and limited access to shared spaces made home delivery across various retail sectors a convenience and, in many cases, a necessity.
According to strategy consultants Redseer Consulting, the food delivery market in the Middle East and North Africa (Mena) was valued at over $9 billion in 2022 and is projected to continue growing at a healthy rate.
This shift has resulted in ripple effects across the foodservice value chain. Restaurants that once relied heavily on foot traffic and dine-in customers had to move quickly to online ordering and last-mile logistics. Many have adopted hybrid models that blend physical and digital presences, using delivery apps and social media to maintain visibility and reach. Several businesses welcome new revenue streams that now have easy access to customers. through delivery apps.
Simultaneously, the rise of home-based food businesses has eased their entry into the food industry. With relatively low start-up costs and minimal overheads, many people have channeled their culinary skills into viable enterprises.
This has allowed young entrepreneurs and other strata of the population – who may typically have had to face challenges to working outside their homes – access to an income. Social media has become a powerful tool for marketing, order-taking and building a loyal customer base.
Governments in the region have started to formalise and support these businesses. For instance, Saudi Arabia’s Ministry of Municipal and Rural Affairs and Housing launched a licensing programme for home-based food providers, ensuring quality and safety, which empowered local talent. Oman also has a similar process that started in 2022 where every home-based business owner must obtain a license.
Home-based food businesses are often a jewel in the crown of community as they often provide niche products and traditional cuisine made with great care. The growth of this space not only makes employment and entrepreneurship more accessible but also preserves culture and heritage in an increasingly globalised world.
The other big change has been the emergence of ghost kitchens across the region – delivery-only food preparation facilities that operate without a storefront. Also dubbed "cloud kitchens", "dark kitchens" or "satellite kitchens", these spaces are created for efficiency and allow multiple entrepreneurs access to professional food preparation equipment under one roof.
Companies such as Kitopi, iKcon, and CloudEats have taken this model to scale in the Middle East. These tech-enabled kitchens use data analytics, AI and lean operations to reduce costs, optimise menus and shorten delivery times.
Thanks to cloud kitchens, foodservice entrepreneurs can now begin to operate through a low-risk expansion model without having to invest in real estate, equipment and support staff.
They can enter new markets quicker and try out culinary concepts with minimal financial investment. Add to which, consumers are enjoying an increasingly dynamic dining scene, with plenty of options and faster delivery times.
The ghost kitchen model also supports the growing trend of restaurants that maintain an exclusively virtual presence – only accessible through delivery apps without any plans to have a physical location.
Even as the transformation of the foodservice industry has been phenomenal, there are challenges that cannot be ignored. Third-party platforms, for example, charge high commission fees from restaurants, which is something to consider in a sector where profit margins are not very high. Delivery logistics have room to improve as well, with consumers and entrepreneurs in remote areas still being excluded.
The fast pace at which these concepts have been introduced and grown has meant that regulatory frameworks are still catching up. There are ways to go to ensure food safety, quality and accessibility for both operators and customers.
As GCC nations continue to embrace technology and promote entrepreneurship, the future of the foodservice industry appears to be very promising. I expect cultural influences to play a key role in driving this sector forward, offering unique selling points that combine convenience with heritage.
In the current landscape, it is important to be adaptable, digitally proficient and focus on consumers’ preferences, who will undoubtedly benefit from more choice and easier access. For aspiring and established entrepreneurs alike, this market transformation signals a new era of opportunity to innovate and contribute to their nation’s economy.
