Top 10 Warehouse Hubs In The Middle East
These warehouse hubs are a selection of existing and under-development warehouse hubs that have made great changes in the logistics industry.
1-Bahrain Investment Wharf
Bahrain Investment Wharf (BIW) as one of the Middle Eastern warehouse hubs has boosted Bahrain’s logistics industry. This warehouse hub is being constructed on a land measuring 1.7 million square meters in the Hidd industrial area, near to Bahrain International Airport and the new Sheikh Khalifa Bin Salman port.
This warehouse hub includes a 900,000m2 logistics park for supply chain activities such as warehouse storage, packaging and distribution.
To support its economic growth, the emirate of Ajman established a free zone in 1996. This industrial center at the entrance to the Arabian Gulf has become the emirate’s sole regulator, exporting to over 64 countries around the world while housing 20% of the UAE’s manufacturing units.
The proximity to Sharjah and Dubai provides easy access to two international airports and four seaports, with Ajman Port becoming a leading maritime hub, serving over 1000 vessels annually. As well, Ajman Free Zone Authority (AFZA) secured financing last month from Ajman Bank to complete the third phase of its large-scale warehouse complex. This agreement is a type of Islamic finance known as Ijarah and will support the free zone’s continued growth as a storage and transportation hub.
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There are a number of factors contributing to the continued success of Dubai Airport Free Zone (DAFZ), including its accessibility to over 1.5 billion consumers and over 100 leading international airlines. With revenue increasing by 48% during the first half of 2009, the facility experienced another period of growth as a pioneer of the Middle East’s free zone revolution.
DAFZ’s extensive air cargo networking services are one of the main highlights of the facility. These services are boosted by a close working relationship with the airport’s Dubai Cargo Village and the Free Zone Logistics Center, which are both located in the Free Zone.
4-Bahrain Logistics Zone
Bahrain Logistics Zone’s management team has adopted a full-throttle marketing campaign, visiting all corners of the globe to promote their forthcoming “boutique” logistics zone in Khalifa Bin Salman Port.
This warehouse hub brings massive benefits to the Kingdom’s economy. In addition to generating US$600 million in foreign direct investment, the project is expected to create 2400 medium- to high-wage jobs. In addition, the improved logistics infrastructure and the attractive business prospects are expected to draw many other companies to the Kingdom.
5-Dubai Logistics City
The Dubai Logistics City (DLC) is a 25 square kilometer complex designed to handle the warehousing and transportation needs of the Middle East for the next 40 to 50 years. Twelve million square feet of land will be allocated for the multibillion-dollar development, which is near Jebel Ali Port and the Al Maktoum International Airport and industrial companies.
6-Salalah Free Zone
The Salalah Free Zone was developed to provide its tenants with access to one of the fastest growing markets in the world, including over 1.6 billion consumers in the Middle East, East Africa, and the Indian Ocean Rim. Located near Salalah Port, this warehouse hub combines warehousing, industrial and manufacturing facilities on 200 hectares of land.
7-Emirates Industrial City
Emirates Industrial City is quite an achievement for the Sharjah project, which has been conceptualized by Al Hanoo Holdings and will eventually spread across 83 million square feet in the Al Sajaa district.
In total, the project will be divided into eight sections, two of which will be used for warehousing operations, and 400 storage facilities will be constructed on a total of 20 million square feet of land, with a total of 400 storage facilities to be constructed. It is understandable why Al Hanoo Holdings is capitalizing on the logistics angle of the project as it is located alongside Dubai Ring Road, close to Sharjah International Airport, and therefore benefits from strong transportation links – the complex is located, as it were, alongside the Dubai Ring Road. It is also important to note that Emirates Industrial City differs from similar projects in the Middle East because of the lack of traffic.
8-Dubai Industrial City
It has taken many candidates over the years to become the ultimate Middle Eastern warehouse hub. Dubai Industrial City has emerged as another success story in the emirate, carving an enviable niche for itself in the logistics industry despite receiving more media attention than Jebel Ali Free Zone and Dubai Logistics City. It is being developed on 56 million square feet of land, with six different zones being constructed for different industries.
As part of the project, 2.8 million square feet of open storage yards and 3 million square feet of warehouse space will be added, as well as supporting infrastructure for industrial training and labor accommodation. Since the project was so successful, a second stage was launched earlier this year, encompassing 3.5 million square feet and marketed to automotive, equipment, and construction businesses.
9-Jebel Ali Free Zone
Several major investments have helped boost Jebel Ali Free Zone’s status as a regional warehouse hub in recent years. Black & Decker, Procter & Gamble, DaimlerChrysler and Xerox, among others, have offices in the free zone, along with more than 6000 companies from 120 countries.
In addition, Danzas, TNT, Swift Freight and Mohebi Logistics have opened warehouses in Jebel Ali’s south zone primarily centered on a multi-billion dollar expansion project.
10-Rak Free Trade Zone
International and regional businesses have been successfully attracted to the Rak Al Khalifah Free Trade Zone.
In 2000, RAK Free Trade Zone was established across the mountainous northern emirate, where it consists of an industrial park, a business park, and a technology park. As well as rental warehouse spaces, which range in size from 150m2 to over 500m2, free zone benefits include tax exemptions and 100% foreign ownership.
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