The Jebel Ali Free Zone (JAFZA) announced today that it is making a strategic AED90 million ($24.5 million) investment in Phase 2 of its cutting-edge logistics park. Adding 360,000 square feet of Grade-A facilities, the expansion aligns with the UAE’s push to grow its logistics sector to AED200 billion annually in the next seven years and cements Dubai’s role in international trade.
“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 over 922,000 square feet as we continue to grow our state-of-the-art infrastructure,” stated Abdulla Al Hashmi, chief operating officer, parks and zones, DP World GCC.
Expansion to meet growing demand for advanced warehousing
The second phase will deliver world-class infrastructure, including modern offices, customisable units, temperature-controlled warehouses, loading docks and enhanced power capacity to support diverse industries.
With the Middle East and Africa’s freight and logistics market set to hit $235.8 billion by 2031, demand for advanced warehousing is accelerating, including in Dubai, where sectors like manufacturing, logistics, construction and e-commerce are driving unprecedented growth.
JAFZA’s newly expanded park will help close this gap, offering market access by leveraging the free zone’s connectivity with Jebel Ali Port and providing advanced storage and handling solutions, including contract logistics, freight forwarding and freight management for everything from tech and automotive parts to fashion and packaged food.
It also provides value-added services like packaging, labelling and quality control, with real-time inventory tracking, and enables re-exports, domestic fulfilment and import-export consolidation.
JAFZA contributes AED620 billion in trade annually
Designed with sustainability in mind, JAFZA’s logistics park incorporates precast concrete and off-site construction methods to minimize environmental impact, as well as skylights to maximize natural daylight and cut energy consumption. JAFZA currently hosts 10,890 companies from 150 countries, supporting over 160,000 jobs and contributing AED620 billion in trade annually.
Phase 1, completed in November 2023, spans 562,507 square feet, featuring Grade-A dry and pharma storage units, temperature-controlled warehouses, and office spaces.
“The expansion of JAFZA logistics park reflects our commitment to helping businesses compete globally and simultaneously drive foreign investment into Dubai,” added Al Hashmi.
