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Dubai is launching a new Wholesale City that will span an area of 550 million square feet in close proximity to Al Maktoum International Airport and Jebel Ali port. The aim of the new wholesale city is to expand UAE’s share of the global wholesale trade sector.

The Dubai Government has contributed significantly to help create a world class infrastructure that is ideal for business owners seeking to operate its business in this logistic hub. The new city will be an additional exemplary example to what Dubai has created and the demand for quality logistics that businesses have experienced and expected being located in Dubai.

The declaration additionally answers what Dubai expects to do to keep stirring energy into its real estate space once the Expo 2020 celebration is over. The City intends to help facilitate the whole process of receiving and delivering the goods within the broadened land corridor.

ref: http://www.peninsulabusinesssolution.com/launch-dubai-wholesale-city/

The Chairman of Danube Group, Rizwan Sajan said that China has massive economic zones that combine important economic activities that are within the city limits with the outside. Dubai has achieved such a point in its traditional business operational hubs, some of which are Nasr Square in Deira and Meena Bazaar in Bur Dubai. The country is now provided with an ideal opportunity to move such exercises and starts providing these comprehensive offerings to the wholesale trade that are located outside of the city. The Wholesale City will be the best fit for building material trade as it is in such close proximity to the airport and seaport.

It is expected that many of the wholesalers will be a part of the project, many that are already operating in the market and others will be experiencing it for the first time. More than 15,000 wholesale traders are estimated to be involved in the project.

Investors are keeping a close watch on the development of the city as developers are traveling towards Dubai South which is a mega-city known for its logistics zone, residential and office components, an exhibition cluster and having the world’s largest airport. Areas in the other industrial parks in Dubai are also equally favored. The recipients are Dubai Investments Park, Dubai Industrial City and various smaller clusters like the Techno Park

According to Managing Director of Global Capital Partners, the consultancy, Sameer Lakhani, The Wholesale City will still offer investors the capacity to capitalize on land value appreciation despite the City now rising up out of the planning phase. The foundation of other free zones is an additional example of the city’s preceding dependence on zones to empower sector-specific activity. As Dubai moves away from the oil sector, it focuses its efforts more towards platforms led by trade, tourism, logistics and finance.

Assessing from the planning of the project, it is expected to be significantly an ambition endeavor with a long development period which is why investors are being advised to maintain and adjust their expectations in regards to what they expect to gain in returns and when they expect to receive it.


According to Godchaux one of the main challenges that will be faced by the Wholesale City will be facing is the same that Dubai South has been struggling with which attracting private investors to lease units out instead of building to suit and taking the development risk. Building suit is unfortunately limited to the largest players.

He added that the lack of private investment is preventing them from developing quality facilities for potential occupiers. Despite the demand and positive potential return ratios, Dubai South is still facing these challenges as other beneficiaries have also faced such as the DIP (Dubai Investments Park).

The rent for industrial properties in Dubai South is between Dh45-Dh60 a square foot whereas the rental value is between Dh35-Dh45 a square foot in the Jebel Ali Industrial Area and for Jebel Ali Free Zone, the rent is Dh40 to Dh60 per square feet.

Free zones thrive in Dubai’s landscape

Dubai has made several efforts to combine industrial and trading activities by creating a specified free zone for them. This prompted the expansion of one for the textile trade and another for the offering of second-hand vehicles.

The UAE is pushing ahead with a large number of new advancement activities. The UAE government continues to focus on areas such as transport and social infrastructure despite the economic issues over the last 18 months. The approval of projects is now worth over $1.9 billion in the country and shows the commitment in improving the quality of life whilst elevating the appeal of the region’s most appealing venture destination for outside capital.