Dubai Textile City warehousing units to be sold out by next month

All warehousing units forming the second phase of Dubai Textile City should be sold out by the end of next month, said senior officials with Texmas, the industry grouping behind the Dh220 million project.

More than 75 per cent of the 130 units in Al Warsan have been booked by textile traders, including newcomers to the Dubai market from Iran, Iraq and Syria.

A membership in Texmas is a prerequisite for a spot at Dubai Textile City, which is available on a 30-year lease.

"In recent days, we have seen an upturn in the interest as prospective investors realise that there is not going to be a third phase to Dubai Textile City as there is no further land available for development within the city's vicinity," said Jhaman Asnani, chairman of Texmas.

"Construction has already started on the second phase and we are on course to meet our launch schedule set for the second half of next year."

Investors can take both individual units, or blocks featuring five units apiece. Each unit measures 5,800 and and 11,800 square feet.

The first phase, featuring 150 units, was sold out within weeks of opening this year.

Under the terms of the agreement, each investor will be eligible for a 15-year rent-free period, apart from some mandatory payments, while for the remaining 15 years, they will pay rent that will be 50 per cent lower than the market rates at the time.

Land for the project - more than six million hectares - was provided by Dubai's Ports, Customs and Free Zone Corp.

With Dubai Textile City coming on board, the multi-billion dollar textile trade through Dubai will be looking to consolidate its position as a supplier to the CIS, African and Middle East markets. The promoters also expect a break into new markets once the venture gets in stride.

"One of the intrinsic strengths of the Dubai textile trade is that it offers a wide choice of fabric varieties even for small and medium sized buyers who typically have smaller spends. In the Far East for example such buyers will have a much restricted choice," said Tejinder Khurana, joint secretary, Texmas.

"Then again, the waiting period in the Far East is on an average about three months, compared to spot delivery in Dubai.