Dubai Logistics Market Expansion

Al Khayyat Investments (AKI) is expanding its warehousing and logistics footprint in Dubai, opening a 1 million square feet facility in Dubai Industrial City. The company is also exploring further expansion within Dubai and potentially in Saudi Arabia and Oman. This move reflects the growing demand for warehousing driven by near-shoring trends and the e-commerce boom.

AKI's investment in the logistics sector is not new, with the company having been in the distribution, logistics, and supply chain business since 1982. The new Dubai Industrial City facility currently handles over half a million units daily, with the capacity to scale up to 1.5 million units and expand by nearly 200,000 sq ft. The facility will serve over 30,000 business customers and support home delivery services for AKI's retail and e-commerce offerings.

A significant portion of the DIC facility's capacity will be utilized in-house by AKI, which acts as an exclusive distributor for numerous international brands. The company also launched a third-party logistics (3PL) business earlier this year and has already secured a major contract from a Dubai Government entity. AKI sees significant opportunities in the 3PL sector, driven by technological advancements and robust infrastructure.

The strategic location of the DIC facility near Etihad Rail cargo operations is also a key factor, allowing AKI to connect Dubai, Abu Dhabi, and other emirates. This highlights the evolving landscape of warehousing in the UAE, with proximity to rail networks becoming increasingly important alongside traditional access to airports, seaports, and free zones.