Jebel Ali Free Zone (JAFZA) is investing $24.5 million (AED 90 million) in the second phase of its Logistics Park to meet the rising demand for high-quality logistics and warehousing solutions.
In a strategic move aligned with national growth goals, increasing market demand, and global supply chain trends, JAFZA is set to invest $24.5 million in the second phase of its Logistics Park. This expansion will increase the park’s total area to over 922,000 square feet. The expansion will also include 360,000 square feet of Grade-A infrastructure, including customizable units, temperature-controlled warehouses, and advanced office spaces.
$235.8 Billion Target for the Transportation and Logistics Market
The transportation and logistics market in the Middle East and Africa is expected to reach $235.8 billion by 2031. This expansion not only aims to provide value-added services such as labeling and packaging but will also support the UAE’s goal to increase its logistics sector to $200 billion annually within the next seven years.
Abdulla Al Hashmi, Chief Operating Officer of Parks and Zones at DP World GCC, said: “The expansion of JAFZA Logistics Park reflects our commitment to helping businesses compete globally while simultaneously attracting foreign investment into Dubai.” Al Hashmi further explained, “Phase 1 was fully leased before its completion, demonstrating the strong demand for high-quality logistics and warehousing. Phase 2 takes this a step further by offering flexible, high-quality solutions to support growth across multiple sectors.”
How the Expansion Will Meet the Rising Demand for Supply Chain Infrastructure
JAFZA serves as a key hub for global trade and is a central driver of economic growth in the UAE. Currently, it supports over 160,000 jobs, hosts 10,890 companies from 150 countries, and generates AED 620 billion ($168.8 billion) in trade annually. The first phase of the Logistics Park was completed in November 2023, featuring temperature-controlled warehouses, pharmaceutical storage units, and office spaces, spanning 562,507 square feet.
The expansion of JAFZA Logistics Park will offer advanced capabilities and increased capacity to meet the growing demand for supply chain infrastructure. With the significant expansion of the park to more than 922,000 square feet, JAFZA will be able to accommodate more businesses across industries such as electronics, food, automotive, pharmaceuticals, and fashion.
New infrastructure, including modern office spaces, dry and pharmaceutical-grade storage units, and enhanced energy capacity, will allow businesses to tailor their logistics setups according to supply chain requirements, increasing flexibility and operational efficiency.
The expansion of JAFZA Logistics Park will directly support the UAE’s plans to grow its logistics sector to AED 200 billion ($54.5 billion) annually within the next seven years.
What is JAFZA?
JAFZA (Jebel Ali Free Zone Authority) is the governing body of the Jebel Ali Free Zone in Dubai, UAE. JAFZA offers businesses opportunities such as tax advantages, duty-free trade, and modern infrastructure in a region that serves as a global trade hub. The zone is a strategic platform that encourages international companies to invest in the UAE. As an important logistics and trade center contributing to global commerce, JAFZA also provides a favorable investment environment for businesses across various sectors.
