Middle Eastern food is ‘leading sales growth’ in US consumer markets

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Updated 25 August 2023
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Middle Eastern food is ‘leading sales growth’ in US consumer markets

Middle Eastern food is ‘leading sales growth’ in US consumer markets
  • Strong rise reflects integration of Arab culture into American society, argue industry experts
  • Official data needed to confirm overall impact in US, say Marissa Ziyad and Matthew Jaber Stiffler

CHICAGO: Eating Middle Eastern food has become far more acceptable and popular today than it was more than 20 years ago, say experts in the industry.

Although it appears that the popularity of Middle Eastern food is growing at a pace faster than many other ethnic food products in America, no one is collecting data in a comprehensive manner to demonstrate how impactful that increase has been.

Appearing on The Ray Hanania Radio Show, Middle East food experts Marissa Ziyad, marketing director for Ziyad Brothers Importing based in Chicagoland, and Matthew Jaber Stiffler, research and content manager at the Arab American National Museum in Dearborn, Michigan, said that despite the lack of official data, they believe the growth is strong and reflects a robust integration of Arabs and their culture into American society.

“In the late 1880s and early 1900s, wherever there was a concentration of Arabic-speaking folks, there was at least one cafe, coffee house, restaurant. You knew where the community was concentrated,” said Stiffler, who is also director of the Center for Arab Narratives, a national research institution through ACCESS, the largest Arab-American community non-profit in the country.

“Why would you put a place that serves Arab food in an area where there are no Arabs who are going to come eat. This is back, you know, the early 1900s … before the general American palate was interested in ethnic food and exploring different food options. So, if you had an Arab restaurant it was to serve the community. Some of the first businesses that Arab immigrants opened, besides their dry good stores and things like that, were cafes and restaurants to serve the community.”

Stiffler said there is an absence of comprehensive, nationwide research on Middle Eastern food sales and restaurants, unlike the abundance of data and statistics for products from the Italian, Polish, Jewish, African and other ethnic communities.

The history of the Arab community in America, however, has shown the process by which the popularity of its food and restaurants has spread to the American public.

As the Arab community grew and the economic value of their businesses became recognized, they began serving their food to non-Arabs.

“Part of it is the economic stream. The idea … in the early 1900s (was that) Arab restaurants served the Arab community. But then they realized we could make more money if we served everybody. So, they started marketing the kinds of food they had in different ways. They didn’t call it Arab food, they called it Mediterranean. They called it Middle Eastern. They called it Lebanese. And it made it more palatable to the American public,” Stiffler told Arab News.

“And then what happened in the 50s and 60s it became more fashionable in America to sample ethnic cuisine. You think of the mall food court where there is like a small restaurant from every kind of nationality. Arabs were really in the mix in there in making sure they had restaurants that related to that.

“It is still happening. You see it in every community. But because Arab communities are not as concentrated around churches and mosques and things as they used to be, they are much more spread out except in certain places in the country, you now find Arab restaurants just randomly. There might not be in an Arab community at all. It might just be one Arab family in a town but they opened a restaurant because they knew that nobody else could serve that food in the way they could so they are bringing their culture to the general public while also making some good money, hopefully.”

There is no data on Arab restaurant growth, numbers or locations in America. The National Restaurant Association, the largest foodservice trade association in the world which manages data on eateries, acknowledged they did not have enough data to discuss the topic on the radio show.

“There is no data on this. No one is tracking it,” Stiffler said. “Nobody is tracking how many of those restaurants exist in each city. Food entrepreneurship in the Arab community is huge and has grown in the last 20 years.”

Stiffler said that a common question from visitors to the Arab American National Museum is where they can eat Middle Eastern food. Dearborn, he said, has over 100 options, including Iraqi, Syrian, Lebanese, Yemeni and Palestinian food.

The growth of the Arab restaurant symbolizes the presence of “a thriving community” and demonstrates that a community has “economic strength.”

One of the leading distributors of Middle Eastern food to ethnic retailers, major grocery store chains and restaurants is Ziyad Brothers Importing which is based in a western suburb of Chicago.

“We have seen an increase, I think we have seen 7 to 8 percent annually outpacing dry grocery stores, where the Middle Eastern and Mediterranean category fits. And I really do think that COVID had something to do with it. I think that a lot of consumers were being a lot more adventurous with different cuisines and of course during that time we were pushed to have to cook at home and try new things,” Marissa Ziyad said.

“But even people discovering the Mediterranean diet over the last couple years has really grown our food category as well because the Mediterranean diet is one of the healthiest and most popular diets in ways of eating that a lot of people really follow. All the ingredients, all the products that you need for that kind of cooking, that kind of eating, that is us. And grocery stores are recognizing that. They are recognizing the need for different ethnic products, and just a larger variety.”

Ziyad Brothers Importing was founded in 1966 as the Syrian Bakery & Grocery, one of the first pita bread bakeries in the country. Today, the company is an ingredient-based distributor of 90 percent of Middle Eastern/Mediterranean food options in the US retail market. That includes Ziyad-branded products, along with more than 20 other Mediterranean brands that they distribute exclusively .

“There is one thing that holds in our brand. It really is the authenticity of the products, of the flavors and the tastes that have remained consistent and true to what all of you are used to eating back home. We are proud to represent that. We really did start out as a small bakery, grew into a distribution company and then grew larger into the largest distribution company of Middle Eastern, Mediterranean foods,” Ziyad said.

She said that the company has seen a 7 percent increase over other brands in the mainstream US market. The company began with about 20 products, she said, “but today have over 900, close to 1,000 ingredients and products.”

“Now as we grow, we will be encompassing more companies like ours to make sure we are covering different parts of that world. So we are going into Turkish food, we’re going into North African, Eastern European, but mainly of course, Middle Eastern Mediterranean food.”

Ziyad said that Middle Eastern food became popular over the past 30 years due to several factors, including the presence of American soldiers who served in the region — especially along with the Saudi-led coalition that expelled Iraq’s Saddam Hussein from Kuwait in the 1990s. American soldiers tasted the food there and wanted more when they returned home.

Another factor was the spread of COVID-19 in early 2020. Ziyad said that during that nearly three-year pandemic, Americans sought to explore more exciting recipe options and turned to Middle Eastern foods. Ziyad maintains an exhaustive recipe list on Arab and Middle Eastern food on the company’s website at Ziyad.com.

The third major factor is the rising popularity of healthy dieting. Ziyad said the Mediterranean diet “is one of the most popular” and is based on staple Middle Eastern ingredients and foods including legumes, olive oil, hummus and lentils.

Ziyad said the company’s top sellers in the US market are tahini, ghee, red/green lentils, falafel mix, chickpeas, orange blossom and rose water, and labneh and yogurts including jameed, a key ingredient in mansaf.

Hummus is the number-three seller in the country behind Mexican chips, salsa and guacamole, she said.

More needs to be done to produce data on the fast-growing Middle Eastern food market, which both Ziyad and Stiffler agree reflects the growth and advancement of the Arab community in America.

Ziyad and Stiffler made their comments during an appearance on The Ray Hanania Radio Show, broadcast Wednesday Aug. 23, 2023, on the US Arab Radio Network in Detroit on WNZK AM 690 radio and Washington D.C. on WDMV AM 700 radio.

You can listen to the radio show’s podcast by visiting ArabNews.com/rayradioshow.


SNB becomes the first Saudi bank to enter the Taiwanese Formosa Market

SNB becomes the first Saudi bank to enter the Taiwanese Formosa Market
Updated 08 July 2024
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SNB becomes the first Saudi bank to enter the Taiwanese Formosa Market

SNB becomes the first Saudi bank to enter the Taiwanese Formosa Market

RIYADH: Saudi National Bank has successfully become the first financial institute in the Kingdom to access the Taiwanese Formosa market. 

This achievement marks a pioneering move for SNB, underscoring its commitment to advancing Saudi Arabia’s financial sector, according to a press release.

The issuance of a $500 million five-year senior unsecured floating-rate note bond under its $5 billion Euro Medium Term Note Programme has been met with resounding success.

SNB’s issuance exceeded initial expectations, with final pricing set at a secured overnight financing rate of +120 basis points, demonstrating efficient pricing inside SNB’s five-year US sukuk levels.

The transaction’s success was bolstered by strong investor demand, leading to an upsizing from an initial expectation of $300 million to $500 million. This outcome reflected SNB’s engagement with a diverse range of international investors and underscored the bank’s credit appeal globally.

“We are pleased to witness robust demand for SNB’s credit from a growing base of investors, benefiting from its prominent role in a rapidly expanding economy,” remarked SNB CEO Tareq Al-Sadhan.

“This builds off of the bank’s continuous efforts to extend its reach and foster new relationships through investor engagement. As the benefits of the various 2030 initiatives continue to materialize, SNB will strive for commensurate growth in the innovation of its own operations to meet the needs of its investors and customers,” he added.

Established in April 2021 following the merger of the National Commercial Bank and Samba Financial Group, SNB stands as the Kingdom’s largest financial institution by total assets listed on the Saudi exchange.


Riyadh projected amongst top 15 fastest-growing cities by 2033: Savills report

Riyadh projected amongst top 15 fastest-growing cities by 2033: Savills report
Updated 08 July 2024
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Riyadh projected amongst top 15 fastest-growing cities by 2033: Savills report

Riyadh projected amongst top 15 fastest-growing cities by 2033: Savills report

RIYADH: Saudi Arabia’s capital is projected to be amongst the top 15 fastest-growing cities by 2033, driven by a 26 percent population increase and continued government infrastructure spending. 

According to the Savills Growth Hubs Index, Riyadh is the only non-Asian city on the list, with its growth linked to a population surge from 5.9 million to 9.2 million over the next 10 years, necessitating enhanced amenities and services. 

This aligns with Saudi Arabia’s Vision 2030 program, which aims to develop Riyadh as a residential and business hub while diversifying the economy and reducing dependency on oil. 

Richard Paul, head of professional services & consultancy at Savills Middle East, said: “Saudi Arabia boasts a population of around 36 million people and, astonishingly, 67 percent are under the age of 35. The employment potential and ultimate spending power of this segment of the population over the next decade are enormous.” 

The Savills report noted Riyadh’s office market is bolstered by regional headquarters demand, and tourism growth is driving retail sector demand near popular tourist destinations.  

The city’s business development sector saw over 120 international firms relocate their regional headquarters to Saudi Arabia in the first quarter, marking a 477 percent year-on-year increase. 

Through the regional HQ program, Saudi Arabia introduced new incentives for multinational companies moving their regional headquarters to the Kingdom.

These incentives include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside discounts and support services.

Some of the prominent firms that opened their regional headquarters in the Kingdom include Northern Trust, Bechtel and Pepsico as well as IHG Hotels and Resorts, PwC, and Deloitte.

In June, PayerMax, a global provider of payment solutions, expanded its presence in the Kingdom by establishing its regional headquarters in Riyadh.

“We are thrilled to establish our RHQ in Saudi Arabia, which signifies a strategic move to strengthen our presence in the region and demonstrates our long-term dedication to Saudi Arabia and the surrounding region,” said Wang Hu, co-founder at PayerMax.

In the same month, multinational professional services firm EY decided to establish its regional headquarters in Riyadh, joining a growing roster of international companies in the city.

Abdulaziz Al-Sowailim, EY MENA chairman and CEO, said: “EY is proud to be playing a part in the innovative and cutting-edge strategies that are elevating KSA’s position as a trailblazer, both regionally and globally.”

Ramzi Darwish, head of Savills in Saudi Arabia, cited the regional headquarters drive as key reason for the city’s anticipated growth.

“The 30-year tax relief for regional headquarters, expanding market, and promising prospects are attracting international companies and reinforcing Riyadh’s position as a vital regional hub for leading businesses across diverse industries,” he said.

Citing government data released earlier this month, the UK-based real estate consultancy firm highlighted that foreign direct investment into the Kingdom surged by 5.6 percent in the first quarter of this year to SR9.5 billion ($2.53 billion), compared to the same period in 2023. 

“Riyadh is experiencing a remarkable surge in corporate interest, with over 180 foreign companies establishing their regional headquarters in the city in 2023, surpassing the initial target of 160. This growing confidence reflects the robust potential of the Saudi capital,” added Darwish. 

In May, an analysis by S&P Global highlighted that the opening of free economic zones and the regional headquarters program could accelerate foreign direct investment inflows into the Kingdom. 

Earlier this year, Saudi Arabia’s Small and Medium Enterprises General Authority also emphasized that the program has significantly boosted Riyadh’s economic growth. 

In January, Saudi Minister of Economy and Planning, Faisal Al-Ibrahim, noted that Riyadh’s successful bid to host EXPO 2030 underscores the Kingdom’s commitment to achieving sustainable economic and social development.  

He added that the international event will further strengthen the country’s position as a leading global destination for business, tourism, and innovation. 

Additionally, a report released by Henley & Partners in June projected that over 300 millionaires will move to Saudi Arabia in 2024, with Riyadh and Jeddah becoming increasingly popular among high-net-worth individuals. 

Global perspectives 

The Savills Growth Hubs Index, alongside the Resilient Cities Index, examines economic strength and forecasts trends up to 2033 to identify cities experiencing high growth in wealth and economic expansion.  

Indian and Chinese cities dominate with five spots each in the top 15, followed by Vietnam with two, and the Philippines, Bangladesh, and Saudi Arabia with one each. 

The index factors in projected gross domestic product by 2033, future credit ratings at the country level, personal wealth of residents, population growth, and migration trends.  

According to the report, Indian cities including Bengaluru, Delhi, Hyderabad, Mumbai, and Kolkata have emerged among the top 15 growing cities. 

Chinese cities making their entry to the list include Shenzhen, Guangzhou, Suzhou, and Wuhan. 

Manila, the capital of the Philippines, has also secured a place. 

“In economic terms, cities in India and Bangladesh are set to average GDP growth of 68 percent between 2023 and 2033, followed by those in Southeast Asia, including Vietnam and the Philippines, at 60 percent,” said Paul Tostevin, director and head of Savills World Research.  

He added: “As global growth pivots further from west to east, the real estate implications for cities multiply. The new centers of innovation will become magnets for growing and scaling businesses, and this will underpin demand for offices, manufacturing and logistics space, and homes.”  

Tostevin further pointed out that increasing personal wealth and disposable incomes will drive opportunities for new retail and leisure developments in these expanding cities. 

Savills emphasized that Asia’s economic transformation, with its growing focus on technology-driven growth, underlies the dominance of the region’s cities in the rankings.  

Tostevin also highlighted that sustainable development, education, and labor growth are crucial factors that will shape the future growth of cities. 

“Today’s global growth hubs won’t automatically turn into tomorrow’s Resilient Cities. For this, they’ll need to consider their own pathways to more environmentally sustainable development and improve education and labor force participation. They’ll also need to facilitate stable, transparent, and liquid real estate markets,” he added.  

The report further noted that a large proportion of Asian cities are also set to record an expanding middle class, as personal wealth rises significantly across the region.  

The analysis added that Asia’s traditional manufacturing competitiveness will continue to drive the growth of the cities in the region.  

“You wouldn’t want to overlook traditional manufacturing drivers. They’re still significant, particularly where traditionally low-cost land and labor markets are becoming more expensive, forcing industries to consider relocating to other areas,” said Simon Smith, senior director of research & consultancy at Savills, based in Hong Kong.  

Savills conducted the study using city-metro level data from Oxford Economics, specifically analyzing cities with a GDP exceeding $50 billion.


Closing Bell: Saudi main index closes in green

Closing Bell: Saudi main index closes in green
Updated 08 July 2024
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Closing Bell: Saudi main index closes in green

Closing Bell: Saudi main index closes in green

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 29.56 points, or 0.25 percent, to close at 11,718.17. 

The total trading turnover of the benchmark index was SR5.59 billion ($1.49 billion) as 79 of the listed stocks advanced, while 147 retreated.   

Similarly, the MSCI Tadawul Index increased by 7.61 points, or 0.52 percent, to close at 1,463.57.

However, the Kingdom’s parallel market Nomu decreased by 154.36 points or 0.59 percent, to close at 26,000.39. This comes as 28 of the listed stocks advanced while as many as 35 retreated.

The best-performing stock of the day was Saudi Reinsurance Co. The company’s share price surged by 9.69 percent to SR28.30.

Other top performers include the Mediterranean and Gulf Insurance and Reinsurance Co. and Salama Cooperative Insurance Co., whose share prices soared by 4.75 percent and 4.36 percent, to stand at SR32.00 and SR28.70 respectively.

In addition to this, top performers included Saudi Awwal Bank and Jazan Development and Investment Co.

The worst performer was Saudi Advanced Industries Co., whose share price dropped by 6.32 percent to SR41.50.

Other worst performers were National Medical Care Co. as well as Al-Babtain Power and Telecommunication Co., whose share prices dropped by 4.87 percent and 3.86 percent to stand at SR211.00 and SR36.10, respectively.

Additional poor performers included Al Taiseer Group Talco Industrial Co. and Al-Jouf Agricultural Development Co.

On the announcements front, Emirates NBD Capital KSA announced the intention of Al-Hokail Specialized Medical Digital Academy Complex to offer its shares and list them on the parallel market, Nomu.  

In a statement on Tadawul, the company said that in its capacity as the financial advisor, offering manager, and bookrunner for the potential offering of Al-Hokail Specialized Medical Digital Academy Complex, it intends to offer just over 2 million ordinary shares, representing 29 percent of its total capital, and to list the shares on the parallel market.  

The company received approval on Dec. 21, 2023, to list the shares on the parallel market and approval from the Capital Market Authority on March 11 to register and offer the shares for subscription on Nomu.  

The final offering price for all subscribers will be determined after the end of the order book-building period. The offering period began on July 7 and will end on July 10.


MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 
Updated 08 July 2024
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MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

RIYADH: Investment activity in the Middle East and North Africa region’s startup space slowed in June with 38 tech startups raising $116 million, bringing the half-year total to $882 million, according to the latest data. 

The amount raised in June saw a 59 percent month-on-month decline from the $282 raised in May but marked a 182 percent increase compared to the same period last year, according to venture news platform Wamda. 

In its latest monthly report, the platform stated that UAE-based startups led the region, securing $82.5 million across 15 deals. Egyptian startups followed with $15 million raised by four companies, marking the second-highest total. 

Saudi Arabia dropped to third, with seven initiatives raising $13.5 million. Notable activity was also observed in Iraq, with six startups raising an estimated $1.2 million, though this amount could be higher as Orisdi, Bonlili, and Alsaree3 did not disclose their investment values. 

June was marked by an absence of mega deals, with Tenderd’s $30 million agreement having the biggest ticket size. 

Sector-wise, fintech reclaimed its position as the most funded field, securing $38 million with over 10 deals, closely followed by construction technology, thanks to Tenderd’s deal. Meanwhile, three proptech startups raised $19.6 million in June, reversing the lead it achieved in May. 

The majority of June’s investment went to the pre-series A stage, with four startups receiving $45 million, followed by the seed stage, where five startups raised $27.3 million. 

However, when considering investment volume, early-stage startups are still capturing the attention of investors, with eight startups at their pre-seed stage garnering $3 million and an additional eight securing $140,000 in grants. 

Startups operating the business-to-business model dominated most of the funding in June, raising $66.4 million across 18 deals, accounting for 74 percent of the total investment, while 20 business-to-consumer startups raised $49.5 million.  

The majority of funding went to male-founded startups, which received $103.4 million, or 89 percent of the total, while two female-led startups raised $200,000. 

The UAE was the top-funded ecosystem in the region in the first half of 2024, with 91 UAE-based startups raising $455.5 million, down from $604 million in the same period last year. 

Saudi Arabia followed, attracting $300 million in total funding, down from $554 million last year. 

Egypt’s economic crisis has pushed the Egyptian startup ecosystem to a drastic decline, with just 33 startups raising $83 million, an 80 percent drop from the same period last year. 

In contrast, the Moroccan ecosystem gained momentum, with six startups securing $12.5 million in funding in the same period. 


Saudi banks’ money supply surges over 8% in May to reach record high

Saudi banks’ money supply surges over 8% in May to reach record high
Updated 08 July 2024
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Saudi banks’ money supply surges over 8% in May to reach record high

Saudi banks’ money supply surges over 8% in May to reach record high

RIYADH: Saudi banks’ money supply hit record levels in May, reaching SR2.825 trillion ($753.31 billion) after seeing an annual increase of 8.56 percent, official data showed.

According to the analysis released by the Saudi Central Bank, also known as SAMA, this represented a rise of more than SR222.93 billion compared to the same period last year.

These liquidity levels strongly support economic and commercial activity, contributing effectively to the economic development process and enabling the achievement of the goals of Saudi Vision 2030. This reflects the strength and solidity of the banking and financial sector.

This surge was mainly fueled by an 23.4 percent increase in banks’ term and savings accounts, which reached SR889.55 billion.

These deposits represented the second-largest portion, comprising 31.4 percent of the total money supply, following demand deposits, which constituted 49.2 percent at SR1.390 trillion.

On the other hand, quasi-money holdings comprised 11.1 percent of the total, experiencing an annual 6.3 percent decrease during this period. 

Meanwhile, currency outside banks accounted for an 8 percent share, reflecting an 8.85 percent growth.

Quasi-money deposits include residents’ deposits in foreign currencies, deposits against letters of credit, outstanding transfers, and repurchase agreements entered into by banks with the private sector.

At the end of January, the money supply was valued at SR2.720 trillion. It also increased by roughly 1.2 percent per month, totaling SR32.402 billion, compared to SR2.793 trillion at the end of April of the same year, the Saudi Press Agency reported.

It is noteworthy that during 2022, SAMA raised key policy rates seven times, followed by an additional four increases in 2023.

The central bank’s repo rate was last raised by 25 basis points to 6 percent in its July 2023 meeting, marking its highest level since 2001. Since then, rates have remained unchanged.

Meanwhile, US inflation surged to a six-month high in March, prompting investors to delay their expectations for Federal Reserve rate cuts.

Deposits represent a costly funding source for banks, with heightened competition in the financial market significantly driving up their average cost.

Despite this, the surge in interest rates also strengthened Saudi banks’ profits on the asset side. Higher borrowing rates led to increased income, offsetting the challenges posed by the expensive funding environment.