Top 10 Middle East warehouse hubs

Our annual rundown of the region's leading centres for supply chain activities is much-awaited by readers of Logistics Middle East magazine. Once again in 2009, we have profiled a selection of existing and under-development warehousing hubs that are creating a stir in the logistics industry.

Bahrain Investment Wharf

Bahrain's logistics industry has received a positive boost with the launch of Bahrain Investment Wharf (BIW), which is being constructed on a plot of land measuring 1.7 million square metres in the Hidd industrial area, within close proximity to Bahrain International Airport and the new Sheikh Khalifa Bin Salman port.

The ambitious development will include a dedicated logistics park, with 900,000m² of land for supply chain activities such as warehouse storage, packaging and distribution. This will be supported by a range of incentives that include complete customs duty exemption on capital goods, raw materials for manufacturing, re-export goods and imports required for development projects.

Ajman Free Zone

Lacking the natural advantages of gas and petroleum, the emirate of Ajman established a free zone development in 1996 to support its economic growth. Strategically located at the entrance of the Arabian Gulf, the industrial centre has become the emirate's sole regulatory agency and claims to house 20% of the UAE's total manufacturing units, exporting to over 64 countries around the world.

It's proximity to Sharjah and Dubai provides easy accessibility to two international airports and four seaports, with Ajman Port emerging as a leading maritime focal point, serving over 1000 vessels a year. In addition, Ajman Free Zone Authority (AFZA) secured financing with Ajman Bank last month to complete the third phase of its large-scale warehousing complex. Valued at Dhs54 million, the agreement is a type of Islamic finance known as Ijarah and will be utilised to support the free zone's continued growth as a storage and transportation hub.

Dubai Airport Free Zone

A number of factors have contributed to the continued success of Dubai Airport Free Zone (DAFZ), including its accessibility to a market of over 1.5 billion consumers and over 100 leading international airlines. As a pioneer of the Middle East's free zone revolution, the facility has experienced another period of growth in 2009, with a revenue increase of 48% during the first half of the year.

One of the major highlights for tenants is DAFZ's extensive air cargo networking services, boosted by a close working relationship with the airport's Dubai Cargo Village and the Free Zone Logistics Centre. In addition, a number of business advantages are provided, including 100% tax and commercial levies exemption, 100% ownership rights and rapid cargo clearance. It's therefore easy to understand why the free zone has made business sense for over 1500 companies, including the likes of Airbus, DHL, Gati Express and FedEx.

Bahrain Logistics Zone

The management team at Bahrain Logistics Zone has adopted a full throttle approach for their marketing campaign over the past year, visiting all corners of the world to promote their forthcoming "boutique" logistics zone in Khalifa Bin Salman Port.

Its little surprise, therefore, that a number of industry heavyweights have already expressed their interest in the project, with Danzas and CEVA being signed as the first companies to confirm their participation.

With this in mind, it seems clear that Bahrain Logistics Zone will bring massive benefits to the Kingdom's economy. Aside from the US$600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs. Moreover, it is believed that many other companies will be drawn to the Kingdom as a result of the improved logistics infrastructure and the attractive business prospects for the future.

Dubai Logistics City

Spread over 25 square kilometres, Dubai Logistics City (DLC) has been created to handle the warehousing and transportation requirements of the Middle East for the next 40 to 50 years. The multi-billion dollar project, which is located in close proximity to Jebel Ali Port and the forthcoming Al Maktoum International Airport, will allocate 12 million square feet of land to industrial and distribution companies, with each tenant either building their own facilities or renting shared premises.

The commitments to build dedicated warehouses have already come from a diverse mixture of freight forwarders and logistics providers, including Panalpina and Kuehne + Nagel, which completed the construction of their large-scale warehouse facilities in 2008. In addition, a local family-owned company, RSA Logistics, became the first tenant to start warehouse operations in the first quarter of 2009.

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