Dubai's logistics park expands with AED90 million investment, strengthening Dubai's status as a global trade hub.
Jebel Ali Free Zone's (Jafza) Logistics Park is undergoing a significant expansion, with an investment of AED 90 million, as announced in mid-2025 [1]. This Phase 2 expansion aims to enhance the logistics handling capabilities within the park, further solidifying Dubai's status as a global trade and logistics hub.
The expansion includes the addition of high-tech and custom-built warehouses to meet the growing demand from high-volume import/export businesses [1][5]. These new facilities are expected to span over 360,000 square feet, bringing the total area of the Logistics Park to 922,000 square feet [1].
The park benefits from duty-free status, tax incentives, and direct access to Jebel Ali Port, the largest port in the region [5]. This strategic positioning is expected to contribute to the success of the expansion, as the logistics sector experiences strong growth driven by e-commerce, 3PL expansion, and government diversification programs [2].
Abdulla Al Hashmi, Chief Operating Officer of Parks & Zones at DP World GCC, emphasized Jafza's commitment to fostering global business growth and attracting foreign investment [4]. This commitment is evident in the fact that Phase 1 of the Logistics Park was fully leased before completion, indicating high demand for top-tier logistics and warehousing solutions [4].
Phase 1 of the Jafza Logistics Park includes Grade-A dry and pharma storage, temperature-controlled warehouses, and modern office spaces [4]. With the completion of Phase 2, Jafza Logistics Park now hosts a diverse range of companies from 150 countries, supporting over 160,000 jobs [6].
The Middle East and Africa's freight and logistics market is projected to reach $235.8 billion by 2031 [7]. This expansion aligns with the UAE's goal of growing its logistics sector to AED200 billion annually within the next seven years [3]. The expansion of Jafza Logistics Park is a testament to the UAE's commitment to this goal.
The expansion also introduces modern offices, customisable units, temperature-controlled warehouses, advanced loading docks, and enhanced power capacity [5]. These improvements aim to meet the evolving needs of businesses operating within the park, bridging the infrastructure gap and catering increasingly to sophisticated logistics needs.
In conclusion, the expansion of Jafza Logistics Park is a significant investment in the future of Dubai's logistics sector. With its strategic location, tax incentives, and commitment to attracting foreign investment, Jafza is well-positioned to continue its role as a global trade hub. The expansion of the Logistics Park strengthens Dubai's role as a critical hub for international trade and solidifies its status as a leader in the freight and logistics market.
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