Demand for logistics and industrial facilities grows in Dubai
The economic diversification model adopted by Dubai has accelerated trade activities and driven up demand for industrial and logistics spaces in the emirate, according to the latest Industrial Market Bulletin from Cluttons.
The report attributes the current momentum to the investments in logistics undertaken by a number of major brands in recent months.
The real estate consultancy's bi-annual real estate outlook report for the 2017 summer highlighted a new wave of demand by technology companies during the first six months of the year, including Noon.com which is set to open a modern warehouse sprawling over 195,000 sq m in Dubai South, while 'Amazon.com' is weighing up options for establishing on-demand-designed warehouses after its purchase of SOUQ.com.
Panalpina meanwhile has established a new distribution centre and 3D printing-ready facility in Dubai South, while RSA Cold Chain recently opened its new cold store logistics hub in the freezone as well.
The report also highlighted the plans declared by Siemens to establish a global centre for logistics and distribution in the venue of Expo 2020 Dubai, a move which reflects the growing strategic geographical importance of the city for global distribution and logistics players.
UPS, which has won the contract to handle the logistics for the Expo 2020, is planning to hire 1,000 additional staff for its Dubai operations.
Faisal Durrani, head of research at Cluttons, said that Dubai is forging ahead with its aggressive development plans, paving the way for the establishment of new companies and for the expansion of other leading brands working in the local market.