Dubai's trade hub is set to grow with a AED90 million investment by Jafza, aimed at expanding the logistics park.
Jafza's Logistics Park Expands, Strengthening Dubai as a Global Hub
Dubai's Jebel Ali Free Zone (Jafza) has announced a significant expansion of its Logistics Park, a move that underscores the region's growing importance as a global trade and logistics centre. The AED 90 million investment will see the development of a new modular logistics building with a gross leasable area (GLA) of about 67,000 square meters, set to be completed in the first half of 2026.
The expansion, part of a fifth development phase, will offer integrated, ready-to-use infrastructure tailored for logistics activities. This includes modern warehouses and industrial units designed to support storage, distribution, and supply chain operations. The facilities aim to meet the growing demands of global trade and logistics companies operating in the region.
The expansion of Jafza's Logistics Park is expected to have a substantial impact on the UAE's logistics sector. Jafza, a key hub driving the country's economic diversification, provides a vibrant business ecosystem with tax advantages and excellent connectivity to international markets, utilising Dubai’s strategic location. This expansion underpins ongoing growth in the logistics and manufacturing sectors, bolstering Dubai's reputation as a global logistics hub.
The new facilities will enable Jafza to accommodate more logistics companies, further strengthening Dubai's role as a critical hub for international trade. The expansion follows the successful leasing of Phase 1 of the Logistics Park before completion, indicating high demand for top-tier logistics and warehousing solutions.
With this latest expansion, Jafza Logistics Park now spans over 1,525,007 square feet, up from the previous 922,000 square feet. This growth aligns with the UAE's aim to grow its logistics sector to AED200 billion annually within the next seven years. The Middle East and Africa's freight and logistics market is projected to reach $235.8 billion by 2031, making Dubai's strategic positioning even more crucial.
Jafza's commitment to fostering global business growth and attracting foreign investment is evident in this expansion. Abdulla Al Hashmi, Chief Operating Officer of Parks & Zones at DP World GCC, emphasized this commitment, stating, "We are committed to supporting the growth of businesses in the region and beyond, and this expansion is a testament to our continuous efforts to provide world-class infrastructure and services."
The expansion of Jafza's Logistics Park also supports the rapid growth of manufacturing, logistics, construction, and e-commerce in the region, which is driving the demand for advanced warehousing. Jafza currently hosts 10,890 companies from 150 countries, contributing AED620 billion in trade annually. With over 160,000 jobs supported by Jafza, this expansion is set to create even more opportunities for businesses and individuals in the region.
In summary, the expansion of Jafza's Logistics Park is a strategic move that underscores Dubai's position as a global leader in the freight and logistics market. The new facilities will provide integrated, ready-to-use infrastructure for logistics activities, supporting the growth of businesses in the region and beyond, and further strengthening Dubai's role as a critical hub for international trade.
| Aspect | Detail | |-----------------------------|-------------------------------------------------------------------| | Investment Value | AED 90 million | | Expansion Facility | New modular building with 67,000 sqm gross leasable area (GLA) | | Completion Timeline | H1 2026 | | Facility Features | Warehousing, logistics, industrial units, ready-to-use infrastructure | | Strategic Importance | Strengthens UAE's logistics sector, supports economic diversification | | Business Environment | Tax advantages, in-zone support services, global supply chain connectivity |
- The AED 90 million investment in Jafza's Logistics Park is a strategic move to provide integrated, ready-to-use infrastructure, supporting the growth of businesses in the region and beyond, and strengthening Dubai's role as a critical hub for international trade, involving both logistics activities and trade.
- The expansion of Jafza's Logistics Park, which includes modern warehouses and industrial units, aims to meet the growing demands of global trade and logistics companies, contributing to the transformation of Dubai's business environment, finance, and economic diversification.
