Warehousing capacity at all of UAE’s major locations have had near full occupancy levels for some time now. The new capacity increases by Kezad will thus come in real handy. Image Credit: Supplied

Dubai: The Abu Dhabi economic zone operator Kezad has started building new warehouses, which will create more than 250,000 square metres of new capacity. This would require an investment of Dh621 million and bring additional capacity of pre-built industrial and logistics facilities online by end 2025.

This investment will boost Kezad’s total warehousing capacity by 43 per cent.

The group started on this due to strong and sustained demand for warehousing and prebuilt facilities such as logistics and distribution warehouses, cold stores, light industrial units and showrooms of various sizes and specifications across Abu Dhabi, both within free zones and domestic industrial areas.

The construction includes more than 97,500 square metres of leasable area in Khalifa Industrial Area (Kezad Al Ma’mourah A & B) and more than 153,000 square metres of leasable area in ICAD 3 (Kezad Musaffah).

“We are committed to develop more facilities for customers seeking ‘plug and play’ assets that leverage our zones' global connectivity and highly competitive cost of doing business,” said Mohamed Al Khadar Al Ahmed, CEO of Kezad Group.

Why is warehousing demand booming?

Kezad provides businesses with significant advantages through its utilities infrastructure, waste management, internal transport network, advanced laboratory testing services, and provision for essential products and services in the value chain. The demand for warehouse space in the UAE has been increasing due to the increase in ecommerce and local economic diversification strategies leading to a surge in investments on new builds. The rapid expansion of online shopping during the pandemic increased the need for storage and distribution centers, along with the investing in the food production and processing industries, led to increased demand of cold storage facilities as well.