Jafza Unveils AED 90M Expansion to Reinforce UAE’s Position as a Regional Logistics Powerhouse

By Eva Richardson | Published on April 4, 2025

In a decisive move to fortify the UAE’s standing as a regional and global logistics hub, Jebel Ali Free Zone (Jafza) has announced the launch of a major expansion project valued at AED 90 million (US$24.5 million). The development, which marks the second phase of its Logistics Park, will add 87 state-of-the-art warehouse units—each equipped with integrated mezzanine offices—to meet surging demand for flexible and scalable logistics space.

This strategic investment by DP World-owned Jafza comes amid rising global supply chain realignments and increasing investor interest in the UAE as a gateway to Asia, Africa, and Europe. The new units are designed to accommodate a wide spectrum of industries including automotive, food and agriculture, healthcare, and consumer goods, all of which rely heavily on efficient, interconnected logistics networks.

Building the Backbone of UAE’s Future Trade

“Jafza’s Logistics Park is more than just a warehousing complex—it’s a catalyst for trade and innovation,” said Ahmed Al Haddad, CEO of Parks and Zones at DP World UAE. “With this second phase, we are reinforcing our commitment to providing future-ready infrastructure that empowers businesses to scale operations seamlessly while enhancing supply chain resilience.”

Each unit within the new expansion phase is expected to offer customizable layouts, high ceilings for racking, and loading docks that meet international freight standards. The goal is to create plug-and-play solutions for multinational firms and SMEs alike—companies that require agile logistics bases without the delays of ground-up construction.

A Timely Investment Amid Geopolitical Shifts

The expansion comes at a critical moment in global logistics, as companies seek alternative trade corridors and centralized distribution hubs to mitigate geopolitical risks and rising operational costs elsewhere. The UAE, with its world-class port and aviation infrastructure, remains a preferred alternative to more congested or unstable shipping zones.

Jebel Ali Port, one of the top 10 container ports globally, connects with over 150 shipping lines and offers unmatched multimodal integration. By enhancing adjacent logistics capacity, Jafza is ensuring it can handle both growing volume and complexity, particularly in e-commerce fulfillment, temperature-controlled goods, and just-in-time manufacturing components.

Economic and Sustainability Benefits

Beyond direct trade facilitation, the Logistics Park expansion is expected to contribute to the UAE’s broader economic diversification strategy. It aligns with Dubai’s D33 agenda, which aims to double the size of the emirate’s economy by 2033 and position it among the top global business centers.

Additionally, Jafza has committed to sustainability benchmarks in the construction of the new facilities. Energy-efficient systems, solar-ready rooftops, and water conservation features are being integrated as part of DP World’s broader ESG initiatives.

A Global Logistics Magnet

Jafza is already home to more than 9,500 companies from over 130 countries, contributing nearly 24% of Dubai’s total foreign direct investment. The Logistics Park expansion is expected to draw new entrants looking for a competitive edge in the Middle East and beyond.

“Global supply chains are evolving rapidly, and businesses are looking for locations that offer speed, stability, and scalability,” said Al Haddad. “This expansion ensures that Jafza remains the destination of choice for future-focused enterprises.”

As the logistics sector shifts into a more digitally enabled, resilient phase post-pandemic, developments like Jafza’s Logistics Park underline the importance of investing in infrastructure that is built not just for today’s trade—but tomorrow’s transformation.

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