UAE Logistics Markets Continues To Attract Global Players

The UAE's freight and logistics market, as of 2024, is estimated to be valued approximately at Dh73.58 billion. According to a report by Mordor Intelligence, it is projected to reach Dh101.03 billion by 2029, growing at a CAGR of 6.55 per cent during the forecast period.

Seeking to cater to the rising demand, GFH Partners Manrre REIT, managed by GFH Partners Ltd, together with its development manager Palmon Group FZCO, recently marked the start of construction of a new state-of-the-art logistics facility in North Jafza.

The facility enhances Dubai's logistics infrastructure at a time when pharma, FMCG, and e-commerce sectors are driving structural demand for temperature-controlled logistics. Also, as Dubai's logistics sector faces increasing demand within a constrained land environment, the vertical, high-bay design offers an innovative solution.

The development is set on a 214,000 sq ft plot and will introduce one of the UAE's first high-bay, temperature-controlled warehouses, establishing a new benchmark for Grade A logistics assets in the region. Built to international specifications, the facility is designed for efficiency, scalability, and tenant convenience, directly addressing the rising demand for premium logistics space across high-growth sectors.

With a 144,000 sq ft built-up area, the facility will offer 32,000 pallet positions, 16 loading bays, an FM1 super-flat floor slab, and 15,000 sq ft of modern office space, including a rooftop viewing deck overlooking DP World's Jebel Ali Port.

Construction is scheduled for completion in the first quarter of 2027, with advanced leasing discussions already underway with one of the region's leading logistics providers to occupy space in the facility, reflecting the strong market appetite for Grade A assets.“By optimising cubic volume rather than horizontal footprint, the project maximises throughput and efficiency on a prime 214,000 sq ft plot. For investors, this translates into a facility that can generate superior returns by commanding higher occupancy and rent premiums,” Kunal Lahori, CEO of Palmon Group and Board Member of Manrre, said.

Nael Mustafa, CEO of GFH Partners Ltd, said:“This development reinforces our confidence in the UAE and GCC as key growth markets and reflects our commitment to delivering long-term value to investors while reinforcing Dubai's position as a global logistics hub.”

Palmon Group plans to continue developing institutional-grade logistics and industrial assets across the UAE and Saudi Arabia, focusing on sectors with strong fundamentals such as e-commerce, logistics, warehousing and FMCG.“In recent times we have also expanded our manufacturing and industrial asset porfolio as we see incoming demand in the near future,” Lahori said.

Rising transport infrastructure development in the UAE is leading to massive economic growth and the logistics sector is rapidly embracing sustainable and autonomous solutions to enhance operational efficiency.“With over 27,000 shipping companies in the UAE operating in the country, the maritime sector remains a cornerstone of the UAE's logistics landscape, contributing approximately Dh89.98 billion annually to the country's GDP. Developing road and air infrastructure expected to boost overall cargo trade in the country,” Lahori said.

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