Jafza’s AED90m Expansion to Strengthen UAE Supply Chain
In a strategic response to national growth ambitions, rising market demand and global supply chain trends, Jebel Ali Free Zone (Jafza) is investing AED90m (US$24.5m) in the second phase of its Logistics Park.
The expansion will bring the park’s total area to in excess of 922,000 sq ft by adding 360,000 sq ft of Grade-A infrastructure, such as customisable units, temperature-controlled warehouses and advanced office spaces.
By 2031, the Middle East and Africa’s freight and logistics market is predicted to reach US$235.8bn. Not only will this expansion aim to offer value-added services such as labelling and packaging, but it will also support the UAE’s target of expanding its logistics industry to 200bn annually within seven years.
Abdulla Al Hashmi, Chief Operating Officer, Parks & Zones, DP World GCC, explains: "The expansion of Jafza Logistics Park reflects our commitment to helping businesses compete globally and simultaneously drive foreign investment into Dubai.
“Phase 1 was fully leased before completion, highlighting strong demand for quality logistics and warehousing, and Phase 2 takes this a step further - offering flexible, high-quality solutions to support growth in multiple sectors.
“This brings the total area of Jafza Logistics Park to more than 922,000 sq ft as we continue to grow our state-of-the-art infrastructure.”
How will the expansion meet the rising demand in supply chain infrastructure?
Jafza is a vital hub for global trade and a core driver of economic growth across the UAE.
It currently supports more than 160,000 jobs, hosts 10,890 companies from 150 countries and contributes AED620bn (US$168.8bn) in trade every year.
In November 2023, Phase 1 of the Logistics Park was completed. This featured temperature-controlled warehouses, pharma storage units and office spaces and spanned 562,507 square feet.
The expansion of Jafza Logistics Park will offer advanced capabilities and increased capacity to meet the rising demand for supply chain infrastructure.
By significantly expanding the total park area to more than 922,000 square feet, Jafza can accommodate more businesses across several industries, such as electronics, food, automotive, pharmaceuticals and fashion.
New infrastructure, such as modern office spaces, dry and pharma-grade storage units and enhanced power capacity, will allow businesses to tailor their logistics setups to their supply chain requirements to improve flexibility and operational efficiency
Enhancing supply chain resilience and value creation
The logistics, manufacturing, e-commerce and construction industries are experiencing significant levels of growth, meaning the demand for advanced warehousing is accelerating.
Jafza’s expansion will help to improve supply chain resilience and value creation by tackling inefficiencies and vulnerabilities in logistics operations.
Not only will real-time inventory tracking and integrated services offer end-to-end visibility and control to reduce the risk of stockouts, delays, or overstocking, but flexible infrastructure will allow companies to adapt effectively to supply shocks or demand shifts.
Jafza’s strategic location near Jebel Ali Port will enhance speed and reach by securing multimodal and reliable access to international trade routes.
Businesses can also lower logistics costs, streamline operations and enhance service delivery to unlock sustained value creation as handling, warehousing and value-added services will remain in one hub.
How will this support the UAE’s logistics ambitions?
The expansion of Jafza’s logistics park will directly support the UAE’s ambition to expand its logistics sector to AED200bn (US$54.5bn) every year in the next seven years.
- social development and quality of life
- competitive knowledge economy
- clean energy and climate action
- sustainable environment and valued natural resources
- green life and sustainable use of resources.
Adding 360,000 sq ft of customisable warehousing will enhance progress on the UAE’s economic diversification strategy by meeting the rising demand across industries like manufacturing, e-commerce and healthcare.
The environmentally conscious design and energy-efficient construction will also support the UAE’s sustainability goals, allowing the country to make progress towards its aim of future-ready and smart logistics.
With Jebel Ali Port and Free Zone offering market access to more than 3.5 billion people, this strategic expansion will continue to secure Dubai’s role as a leading logistics and trade hub, improving regional and international supply chain operations.
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