The demand for warehouses is growing exponentially in the UAE as the popularity of e-commerce and online shopping continues to increase, indicates Lootah Real Estate Development. Despite the increase in demand, the supply for storage space in the country remains low, according to global real estate services and investment firm CBRE.
According to Saleh Abdullah Lootah, CEO of Lootah Real Estate Development – and developer of Senaeyat, UAE’s first lease-to-own industrial warehouses – online shopping transactions in the region and in the UAE have been increasing by double-digit year-on-year.
UK-based consultancy firm Business Monitor International (BMI) puts the average annual online spend per person in the UAE at around $300, more than three times than Saudi Arabia’s $90 and France’s $94. Visa recently reported that payment volumes in MENA region surged by 44% in 2018 over the previous year.
These numbers also, in turn, indicate rising interests for warehousing. In this context, Lootah said, “All over the world, e-commerce has been driving the expansion in the warehouse leasing market. This is evident in the UAE, which enjoys the world’s highest mobile penetration, high purchasing power per capita and large consumer spending. All these factors result in a huge demand for warehouses, which are also interchangeably called fulfilment centres, today. However, the warehouse inventory in the UAE has not been catching up with this upward trend.”
“The Senaeyat project will strongly contribute to the growth of UAE’s industrial and logistics ecosystem by providing cost-effective options for businesses without compromising excellence. As an affordable industrial partner, Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset,” he added.
Lootah launched Senaeyat in June 2018 to fill in the demand for logistical needs and easy warehousing solutions in the UAE.
Words by Farimah Moeini, Snapchat Head of Industry – Retail and Travel TheJuly 5, 2021 | By RetailME Bureau
Snapchat has been betting big on Augmented Reality’s (AR) retail future consideringJune 22, 2021 | By Jibran Chouguley
Union Coop, a consumer cooperative in the UAE, revealed that 78% of
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
UAE-based Al Maya Group announced that it will be boosting import of
UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
The Ministry of Human Resources and Social Development in Saudi Arabia has
Extravagant, conceptual, great food and views are some of the ways that
Abu Dhabi’s state investment company ADQ is in talks to invest about $500 million
The once powerful department stores that anchored malls and streets around the
Who isn’t a sucker for discounts? Customers today are spoiled for choice
The various e-commerce and virtual retail stores that cater to different product
A private helicopter carrying the chairman and managing director of Lulu Group,
Tighter restrictions on hotels, restaurants, shopping malls and entertainment venues on account of
All hotels and restaurants have been directed to temporarily hold entertainment activities
The new Dubai Gold Souk is “very much on track”, according to
Gone are the days of traditional brick-and-mortar as well as purely e-commerce
The Dubai Gold & Jewellery Group’s ongoing jewellery campaign, held in association