Major Dubai cocoa trading and processing plans devised by DMCC

Ambitious plans have been put forward by Dubai’s DMCC business district to forge a new Cacao Centre with processing and innovation facilities for the region, writes Neill Barston.

The move is reportedly set to include a sourcing partnership with Kumbi Cocoa, which operates on basis of direct relationships with longstanding cooperatives based in Ghana. 

According to DMCC, the venture is based around a desire to create an expanded commodities trading hub in Dubai, which it stated already includes some 88 companies active across cocoa, chocolate manufacturing and the wider confectionery sector.  

As the group asserts, the cocoa processing market is around around $16 billion according to official figures, with the ICCO projecting its overall value to hit $28 billion by 2030, which is despite considerable volatility that has hit the sector in the past couple of years.

Notably, as Confectionery Production has covered, a combination of climate change, price swings from $12,000 a tonne to under $3,000 in the past year, crop disease and long-term failure of farmers to attain a living wage have created major pressures on the industry in West Africa, which accounts for two thirds of the global trade.

Despite these significant tests, there remains an expectation that the market will continue to grow, with the DMCC noting that the premium segment, driven by single-origin products, artisanal offerings and health-conscious formats – will rise from  $31.9 billion in 2024 to USD 40.6 billion by 2030.

Furthermore, it added that Dubai’s role in the cocoa trade remains emergent but is supported by clear growth indicators. In 2023, the UAE imported USD 17.3 million in raw cocoa beans and $65.3 million in finished chocolate and cocoa products. Exports of raw beans reached $16.4 million, positioning the UAE as the 28th-largest exporter globally, underlining its emerging status, which the new centre is anticipated to positively bolster.

As the group added, its goal is to bring a more structured approach to activities in the immediate region with its platform, which spans the complete value chain, from sourcing and processing through to branding, distribution and access to finance.

Furthermore, DMCC noted that the venture will also involve the Ribezzi Group, a diversified conglomerate headquartered in Dubai, which will lead development and execution.

Together, the parties will evaluate the feasibility of establishing integrated infrastructure in Dubai capable of storing, trading and processing cacao beans into semi-finished products such as cocoa liquor, cocoa butter, and cocoa powder. This will ultimately serve global markets while enhancing efficiency, transparency and value creation across the cocoa supply chain.

Existing success
The scheme is set to emulate the success of its existing DMCC Coffee Centre and DMCC Tea Centre, which it noted had reflected a growing shift towards integrated market platforms that unify logistics, processing, as well as access to crucial finance for specific projects. 

According to the business group, the Cacao Centre is set to incorporate advanced infrastructure and services, including grading, storage, blending, branding and packaging. These capabilities will be directly linked to trade finance solutions for cocoa boards, cooperatives and farmers through DMCC’s FinX platform, providing critical tools in a market defined by price volatility and liquidity constraints.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, welcomed the project.

He said: “Cocoa today is not only about production, but about how value is structured, financed and distributed across the supply chain. With the DMCC Cacao Centre, we are building a platform around that reality. By bringing together producers, traders, manufacturers and capital within a single platform, we are creating the conditions for more value to be captured closer to origin while strengthening Dubai’s role as a global hub for agri-commodities trade. This is a natural extension of our cluster model and the next step in positioning Dubai at the centre of global food and commodities flows.”

In addition, Kwadwo Boachie-Adjei, Founder and CEO, Kumbi Cocoa, expressde enthusiasm in its potential.

“Kumbi Cocoa’s mission has always been to build transparent and equitable supply chains that directly connect farmers with global markets. As a strategic partner to DMCC, we are proud to support the development of infrastructure that benefits growers while delivering high-quality, traceable cocoa to international markets.”

For its part, the Ribezzi Group added that in a fast-evolving cocoa market, there would be notable gaps in the market for innovation such as the venture being put forward with the DMCC. It asserted that the the cacao centre could offer a new benchmark for standards in the sector.

.