By its nature, the Agrifood sector is a non-discretionary industry, and therefore, demand and growth are uncorrelated to the economic cycles of the Region.

Growing population, high disposable incomes, rising tourism, increasingly urbane lifestyles, and evolving consumer preferences have propelled food consumption growth in the GCC.

The volume of the agricultural and food supplies and their prices are dependent on climate changes, agricultural and technological developments in producing countries, and trade relations with exporting countries.

The Covid-19 outbreak significantly impacted travel & tourism, and hospitality sectors resulting in a dual impact on the agricultural and food industries: online food deliveries are sky-rocketing, whereas the industry is grappling with restrictions/controls on restaurants and cafes.

In 2020, the agricultural and food industries saw high to stable growth across all segments, exceptions being ex-posed to HORECA segment and were unable to offset business loss in the first quarter of 2020.

An essential, challenging segment is the B2B distribution/wholesale with limited/non-structured financial reporting, impacting the insurance appetite and stance from Allianz Trade perspective.