Aldar Properties and DP World have announced a significant partnership to develop a state-of-the-art logistics park in the National Industries Park (NIP) in Jebel Ali, Dubai. The 1.55 million sq ft (144,000 sq m) Grade A logistics park is set to address the increasing demand for high-quality warehousing facilities in the region.
Strategic Location and Connectivity
The new logistics park will be strategically positioned near Jebel Ali Port and Al Maktoum International Airport, providing seamless connectivity to major road networks such as the E11 and E311. This prime location within NIP ensures excellent access to key logistics hubs, facilitating efficient transportation and distribution operations.
Project Timeline and Development
Construction of the logistics park is slated to commence in Q4 2024, with the first tenants expected to move in by Q4 2025. The development will cater to third-party logistics (3PL), eCommerce, and retail tenants seeking to expand or relocate their operations. The logistics park will be built on a 2.36 million sq ft (220,000 sq m) plot and will feature three modular buildings. These buildings can be modified to accommodate single or multiple tenants, offering flexible unit sizes to meet diverse business needs.
Sustainability and Innovation
The logistics park will be Grade A and LEED certified, reflecting Aldar's commitment to sustainability and innovation. The development will incorporate cutting-edge design and construction practices to ensure energy efficiency and environmental sustainability. Aldar will oversee the entire development cycle, from concept and design to execution and management, ensuring the project meets the highest standards.
Significant Investment and Economic Impact
The project is part of Aldar's recently announced AED 1 billion ($272 million) investment to expand its logistics real estate business in Abu Dhabi and Dubai. This significant investment underscores Aldar's strategic focus on diversifying and growing its logistics portfolio to meet the evolving needs of the market.
Leadership Perspectives
Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, highlighted the strategic importance of the project's location. "The site within NIP is significant, strategically positioning us in a logistics hotspot with excellent access to the port and the main highway to Dubai and Abu Dhabi. Leveraging our expertise in both development and asset management, this unique project will play an integral role in the continued growth and diversification of our logistics offering," he stated.
Abdulla bin Damithan, CEO and Managing Director of DP World GCC, emphasized the value the development will bring to the logistics sector. "With more than 330 businesses operating their facilities out of NIP, the development of this logistics park will ensure that the right infrastructure and services are in place to meet the growing demands of our customers. This partnership underscores our dedication to delivering cutting-edge facilities and supply-chain solutions with our partners," he said.
Market Dynamics and Future Outlook
The logistics sector in Dubai has experienced robust growth, with increased demand for warehousing facilities driving up rents in industrial areas such as Al Quoz, Dubai Industrial City, National Industries Park, and Jebel Ali Industrial Area. This demand has surpassed pre-pandemic levels in 2023, prompting local and international developers to explore new opportunities in the market.
Maxim Talmatchi, Knight Frank's co-head of industrial and logistics in the UAE, noted the significant market potential. "This growing pool of demand has prompted both local and international developers to explore opportunities to enter the market with Grade A logistics build-to-rent products. We expect approximately 9-10 million square feet of Grade A logistics warehousing to be delivered in the next 10 years," he stated.
The partnership between Aldar Properties and DP World marks a significant milestone in the development of Dubai's logistics infrastructure. The new logistics park in Jebel Ali is poised to become a vital hub for logistics and warehousing, supporting the growth and diversification of the region's economy. As construction begins in Q4 2024, the project promises to deliver cutting-edge facilities that will meet the evolving needs of businesses and contribute to the continued success of Dubai's logistics sector.