Dubai is set to establish the world's largest logistics centre for food trade, aiming to diversify its economy and enhance investment opportunities. This ambitious project was announced following an agreement between Dubai Municipality and DP World, signed on July 10, 2024. The initiative seeks to double the current size of the fruit and vegetable market, with DP World tasked with its development and management. This move aligns with Dubai's D33 economic agenda, which targets significant economic growth and increased foreign trade.
Strategic Expansion for Economic Growth
The new logistics centre is designed to support Dubai's strategic economic goals. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, emphasized that this expansion will bolster the emirate's economic agenda, creating larger commercial and investment opportunities. Dubai's strategic location and advanced infrastructure already attract major companies, and this initiative is expected to further enhance its appeal as a global hub for food trade, especially in the fruit and vegetable sector.
Linking to Global Markets
DP World will leverage its extensive global network to connect the new logistics hub to international markets, enhancing Dubai's role in global trade. Sultan bin Sulayem, Group Chairman and CEO of DP World, highlighted that the project would reinforce Dubai's strong trade foundations by offering innovative logistical and financial solutions. The expansion is expected to facilitate increased growth in both local markets and exports.
Supporting Dubai's D33 Economic Plan
The logistics centre is a critical component of the Dubai Economic Agenda D33, which aims to double the size of Dubai's economy to AED 32 trillion (USD 8.7 trillion) by 2033. The plan includes raising foreign trade to AED 25.6 trillion and expanding Dubai's global reach to 400 additional cities over the next decade. This strategic initiative also aims to support 30 private companies in achieving unicorn status (start-ups valued at over USD 1 billion) and make Dubai a global leader in the digital economy, sustainability, and economic diversification.
Creating Real Estate and Job Opportunities
The establishment of the world's largest food trading logistics centre is expected to have a significant impact on Dubai's real estate market. The demand for logistics facilities, warehouses, and commercial spaces is likely to surge, providing lucrative opportunities for real estate investors. Additionally, the project will create numerous job opportunities in various sectors, including logistics, transportation, and trade.
The influx of international companies and increased trade activities will drive the demand for residential properties, as professionals relocate to Dubai for work. This will further stimulate the real estate market, creating a robust environment for investment and development.
A Boost to Foreign Direct Investment
The project is expected to attract substantial foreign direct investment (FDI), supporting the recently approved Foreign Direct Investment Development Programme. This programme aims to attract AED 650 billion in investment by 2033, with AED 25 billion allocated over 10 years to support the D33 economic agenda.
Dubai's non-oil foreign trade has already reached AED 2 trillion, driven by continuous economic growth. The new logistics centre will further enhance Dubai's attractiveness as a global trade hub, offering immense opportunities for investors and businesses alike.
Dubai's initiative to establish the world's largest food trading logistics centre is a strategic move to diversify its economy, boost investment opportunities, and enhance its global trade connections. By supporting the D33 economic plan, the project will drive significant growth in the real estate sector and create numerous job opportunities. As Dubai continues to develop strategic projects, it solidifies its position as a leading global business centre and an attractive destination for investors.
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