Sugar prices in the United Arab Emirates have declined by around 20 per cent over the past year despite rising demand driven by population growth, a senior industry executive said, according to Khaleej Times.
Jamal Al Ghurair, managing director and principal shareholder of Al Khaleej Sugar, said the decline in white sugar prices is largely due to excess global supply from major producers such as Brazil and India. He noted that when these countries have surplus output, it influences international markets, and the impact is quickly reflected in the UAE, which operates as an open market.
According to Al Ghurair, the UAE’s population has increased by around five per cent, with sugar demand rising at a similar pace. Data from Worldometers.info shows the country’s population expanded from 11 million in 2024 to about 11.54 million in February 2026, supported by strong economic growth, expansion of non-oil sectors and increasing job opportunities.
He added that sugar consumption is declining in major economies such as the United States and Europe, prompting some refiners to shut down operations. Market conditions, he said, remain closely linked to developments in key producing and exporting nations.
While the 2025–26 sugar season (October to September) is expected to record a surplus, Al Ghurair said this could narrow in 2026–27 if lower prices discourage production and stock levels adjust in line with consumption trends.
He cautioned that the market continues to face uncertainty amid a volatile global economic environment, geopolitical tensions, currency fluctuations and climate-related factors, all of which contribute to price volatility.
Al Ghurair also said that changing trade policies, climate variability, sustainability goals and rapid advances in data, digitalisation and artificial intelligence are reshaping how the global sugar market operates.
On production, he said India is likely to see a strong recovery in the 2025–26 season, with output estimated at around 31 million tonnes. The government has permitted exports of 1.5 million tonnes, supported by favourable weather conditions and an improved monsoon, which are expected to ensure comfortable supplies.
Speaking on the sidelines of the Dubai Sugar Conference, Al Ghurair said Al Khaleej Sugar, which exports around 70 to 80 per cent of its output, is currently operating at about 70 per cent capacity utilisation.
