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The GCC’s $7 Billion Food Waste Crisis: How Retailers Can Lead The Change

Food waste is a pressing issue in the Gulf Cooperation Council (GCC), where it averages 150 kg per person annually—14% higher than the global average of 132 kg. While not as severe as in countries like the U.S., the GCC’s food waste levels still exceed those of many developed nations, according to the report Tackling Food Waste in the GCC Grocery Market by Oliver Wyman.

Retail food waste accounts for 5-15% of total food waste in the region, but it is 38% higher than the global average, representing a substantial opportunity for improvement. In 2022, the GCC retail sector wasted approximately 1.3 million tons of food, costing between $4 to $7 billion annually—equivalent to providing iftar meals to 70% of the Muslim population during Ramadan. Beyond the financial toll, this waste contributes to environmental damage, from greenhouse gas emissions to the depletion of vital resources like water, energy, and labor, all of which could be better utilized for sustainable development.

The rapid growth of GCC’s grocery and retail markets—valued at $40 billion in the UAE and $62 billion in Saudi Arabia in 2023—has highlighted the scale of the issue. Large hypermarkets and grocery chains, facing low margins, high sales volumes, and intensifying competition, are particularly affected by the waste problem. Promotions such as “buy three, pay for two” encourage the purchase of perishable goods that often end up being wasted. Complex inventory systems and inconsistent stock management practices further exacerbate the problem.

Four Key Drivers Of Food Waste In The GCC

  1. Fragmented Supply Chain Dynamics
    Unlike Western countries, the GCC relies on direct deliveries from suppliers to stores, resulting in increased safety stock and excess inventory, contributing to food waste.
  2. Impact of Supermarket Displays
    GCC supermarkets are typically overstocked to avoid the appearance of empty shelves, which makes products more likely to be discarded when they don’t sell. Additionally, conservative expiry date regulations in countries like Saudi Arabia limit shelf life, leading to waste.
  3. Limited Ownership and Supplier Contracts
    Supplier agreements often require unsold goods to be returned, leaving retailers with surplus stock that can’t be used, which incentivizes excessive sales at the cost of higher consumer prices.
  4. Manual Forecasting and Waste Generation
    Inventory forecasting is often done manually with minimal technological support, leading to inaccurate stock management based on presentation rather than actual demand.

Steps Toward Reducing Food Waste In The GCC

Retailers in the GCC must adopt more sustainable practices. Governments also have a key role to play in creating frameworks that support these efforts, in line with the region’s commitment to the United Nations’ Sustainable Development Goals (SDGs), which aim to halve global food waste by 2030.

Retailers should focus on improving forecasting and replenishment systems to align stock levels with actual demand. Collaborating with suppliers to reduce safety stock and exploring more centralized supply chains for perishable goods could also reduce waste. Furthermore, training staff to handle perishables more efficiently, assess product quality, and place accurate orders is crucial in curbing waste at the retail level.

With supportive regulations, public awareness campaigns, and partnerships, GCC governments can help foster an environment that encourages retailers to adopt sustainable practices and reduce food waste, benefitting both the economy and the environment.

Robust Cyprus Construction Activity Bolsters Vassilico Cement’s 2025 Performance

Vassilico Cement Works Public Company Ltd reported a net profit of €35.52 million for 2025, supported by strong construction activity in Cyprus. Company profit reached €34.99 million, reflecting higher revenues and improved operating performance.

Domestic Market Growth Driven By Cyprus Construction

Group revenue rose to €152.75 million, while company revenue reached €152.66 million, up 11% year on year. Growth was driven by increased sales volumes in the domestic market, where construction activity remained strong throughout the year.

Enhanced Production Efficiency And Cost Management

Gross profit increased to €50.30 million at group level and €50.21 million at company level, compared with €42.49 million in 2024. The improvement reflects gains in production efficiency and cost control, supported by higher use of alternative fuels and improved electricity efficiency. These measures reduced unit costs while supporting environmental targets.

Executive Insights And Macroeconomic Outlook

Executive Chairman Antonis Antoniou said strong domestic demand supported production volumes, with the company maintaining focus on the local market and managing exports selectively. He added that favorable economic conditions in Cyprus contributed to performance, despite regulatory pressures in Europe and broader geopolitical uncertainty.

Navigating Energy And Regulatory Challenges

Future performance will be influenced by energy market volatility and European climate policy, including carbon pricing and the Carbon Border Adjustment Mechanism. Rising fuel and electricity costs continue to affect energy-intensive industries.

The company is expanding its renewable energy capacity, with a photovoltaic park reaching 16MW and plans for an additional 8MW, subject to grid connection. The investments aim to improve cost stability and energy efficiency.

Shareholder Returns And Strategic Investments

The board approved an interim dividend of €0.15 per share, totaling €10.79 million, on September 25, 2025. A final dividend of €16.55 million, or €0.23 per share, will be proposed. Combined, total dividends amount to €27.34 million, or €0.38 per share.

Management said the company will continue focusing on efficiency, cost control and sustainability as it navigates energy market pressures and regulatory requirements.

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