Camel milk producer given VAT exemption for trade with GCC

By RJ Whitehead

- Last updated on GMT

Related tags: United arab emirates, Milk

Camel milk producer given VAT exemption for trade with GCC
Dubai-based camel milk producer Emirates Industry for Camel Milk & Products has been awarded a VAT exemption certificate by the UAE’s Ministry of Economy, which the company hopes will help it increase exports of camel milk to other Arab countries.

In line with a plan to introduce a VAT in Gulf countries in 2018, the new levy will be implemented at the rate of 5%. However, the member states of the GCC have reportedly agreed to exempt around 100 food items from the tax, including camel milk and products. 

EICMP’s exports to Arab states and GCC, which last year accounted for more than one-quarter of its total shipments, registering a growth rate of 8% in the same period.

The company’s general manager, Saeed Juma Bin Subaih, said that he expects his Gulf customers to order more milk from the company as the certificate means they will pay less for supplies.

The benefits will also reflect on consumers as they will be getting our products at the lowest prices. We currently export camel milk and products to the European Union, Malaysia, Brunei, as well as the Gulf Co-operative Council and Jordan​,” he said.

Producing camel milk and associated products under the Camelicious brand name, EICMP claims to have the first manufacturing facility in the Middle East to obtain the European Commission’s approval to export products in this category to trade bloc. 

It produces milk, flavoured milk, yoghurt and ghee, and recently established two new production lines, one for instant powdered milk, the other to produce ice cream. Its integrated facility for camel milk production hosts more than 4,600 dromedaries.

Domestic and international demand for camel milk products is still greater than supply. As a result, EICMP is seeking to increase its production, and maintain a solid and sustainable camel milk industry, both in the UAE and worldwide.

Recent studies show that camel milk has a positive effects on patients with type 2 diabetes, autism, hepatitis and autoimmune diseases. It also contains a high proportion of unsaturated fatty acids, lanolin and minerals such as calcium. 

Related topics: Business, Supply chain, Middle East, Dairy

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