ProLogis is developing its first distribution centre in the Middle East, following a signed agreement to build a 798,000 sq.ft facility in Dubai for Aramex.
Aramex's new facility is being developed in Dubai Logistics City (DLC), a new logistics hub located less than twenty minutes from the Port of Jebel Ali and the future Dubai World Central International Airport.
Construction on the distribution centre has already begun, and is scheduled for completion in the second half of 2008.
According to ProLogis chairman & CEO Jeff Schwartz, the company has been investigating business opportunities in the Middle East for more than a year.
"Dubai, which benefits from a centralised location and immediate access to major modes of transport, is quickly becoming a gateway to the Middle East, with DLC set to serve as one of the largest supply chain communities in the world," said Schwartz. "Having a presence in this rapidly growing global logistics hub will enable us to become part of this burgeoning economic environment, and we are confident continued infrastructure development will drive further demand for our modern distribution space."
DLC is the first phase of a government-backed 140 square kilometre master-planned urban community called Dubai World Central. The US$33 billion project currently under construction 40 km from the existing Dubai International Airport will eventually comprise one of the world's largest, integrated multi-modal logistics platforms, including DLC, the planned Dubai World Central Airport and Jebel Ali Port. When completed, DLC will operate as a global logistics hub serving the Middle East, India, Africa and the Common Wealth of Independent States.
Joseph Ghazal, senior vice president for ProLogis in the Middle East, added that this agreement with Aramex is the first step in the company's strategy to develop a platform in the Middle East. "We expect to grow our business by securing build-to-suit and fee development agreements with leading companies, many of which are multi-national, and through strategic land transactions in key markets throughout the UAE."
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