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UAE Cold Chain Market - What's Driving the Expansion in Dubai and Abu Dhabi's Logistics Hubs?

11-11-2024 02:38 PM CET | Logistics & Transport

Press release from: Makreo Research And Consulting

UAE Cold Chain Market - What's Driving the Expansion in Dubai

According to Makreo Research, the UAE Cold Chain Market has experienced significant growth, achieving a compound annual growth rate (CAGR) of 8.42% from 2020 to 2023. This growth is a testament to the increasing demand for temperature-controlled supply chain solutions, driven by the country's strategic location, growing population, and the rising need to preserve the integrity of perishable goods.

Employing approximately 5,000 professionals across cold storage, transportation, and logistics operations, the UAE Cold Chain Logistics Market plays a crucial role in the country's broader logistics sector.

The market is concentrated primarily in Dubai and Abu Dhabi, where nearly two-thirds of the nation's cold storage facilities are located. These key hubs, including Dubai's Jebel Ali Free Zone and Abu Dhabi's Khalifa Industrial Zone, serve as pivotal logistics centers that shape the nation's cold chain infrastructure. The majority of cold storage warehouses are strategically situated within free zones such as JAFZA, DIP, DIC, and Al Aweer, contributing significantly to the expansion of the UAE's cold chain sector and enhancing its logistics capabilities.

Request Free Sample Report:
https://www.makreo.com/report/uae-cold-chain-market-size-and-forecast-2019-2029

► UAE Cold Chain Logistics Market: Advancing Infrastructure and Growth Opportunities
The UAE Logistics Sector is recognized for its advanced infrastructure, which plays a pivotal role in the growth of the UAE Cold Chain Market. The country's world-class roads, ports, airports, and specialized storage facilities ensure the smooth transport of temperature-sensitive goods across industries such as pharmaceuticals, food, and agriculture. Both local and international operators oversee the UAE Cold Storage Infrastructure, providing efficient and reliable cold storage and transport services.

The recent launch of the 900 km Etihad Rail in March 2023 further strengthens the UAE Cold Chain Logistics Market, improving the movement of goods across the Emirates. This expansion in the logistics network is set to support the increasing demand for Cold Storage and Transport in UAE. As the need for temperature-controlled services grows, the Dubai Cold Chain Sector is positioned for substantial growth, offering ample investment opportunities to enhance digital capabilities, increase economic competitiveness, and promote sustainable development.

► Etihad Rail: Strengthening the UAE Cold Chain Market and Logistics Network
Etihad Rail is the UAE's national railway system, linking all 7 Emirates and extending to 5 Gulf Cooperation Council (GCC) countries. Established in June 2009, it is responsible for the planning, construction, and operation of the country's freight and passenger railway services. Built to meet global standards, this advanced infrastructure plays a crucial role in supporting the UAE Cold Chain Market by providing a reliable, safe, and efficient transportation network.

Etihad Rail enhances the UAE Logistics and Transportation Market by offering a modern transportation system that connects all Emirates and facilitates trade with neighboring GCC countries. This infrastructure is key to the seamless movement of goods, including temperature-sensitive products, across the region, contributing to the growth and development of the UAE Cold Chain Market and strengthening the country's logistics capabilities.

► UAE as a Leading Global Transport and Logistics Hub
The United Arab Emirates (UAE) is recognized as one of the most dynamic and advanced global centers for transport and logistics, featuring some of the busiest and most significant facilities in the Middle East and Africa. The UAE's ports are well-integrated with road and air transport networks, supported by its two national carriers, Emirates and Etihad Airlines, which facilitate dedicated cargo and freight shipments worldwide.

The UAE is home to 12 commercial trading ports, equipped with 310 berths and a cargo capacity of 80 million tonnes. Notable ports include Zayed Port, Mina Rashid, Jebel Ali Port, Khor Fakkan Container Terminal, Mina Saqr (Ras Al Khaimah), Fujairah Port, and Khalifa Port.

► UAE as a Premier Warehousing Hub
The United Arab Emirates (UAE) has become a leading warehousing hub, offering advanced facilities and infrastructure to meet the growing demands of logistics and supply chain management. With its strategic location, business-friendly policies, and investment in modern warehousing solutions, the UAE has become an attractive destination for companies looking to establish a presence in the Middle East and Africa.

• Warehousing Infrastructure: The UAE is home to a wide range of modern warehousing facilities, including free zone warehouses, bonded warehouses, and temperature-controlled warehouses. Key warehousing hubs include Dubai Logistics City, Dubai World Central, and the Jebel Ali Free Zone.

• Future Developments: The UAE Warehousing Market is expected to experience significant growth, driven by increasing demand for e-commerce fulfilment, cold chain logistics, and pharmaceutical storage. The integration of advanced technologies such as automation, robotics, and artificial intelligence is also set to improve operational efficiency and reduce costs, further enhancing the UAE Cold Chain Market.

► Top Industrial & Logistics Zones in the UAE
The United Arab Emirates has positioned itself as a key global shipping hub, with its transport and logistics sectors playing a vital role in its free zones. Strategically located, the UAE acts as an essential trade link between the East and West, making its logistics, shipping, warehousing, and trading sectors among the busiest in the world.

Key free zones for trading, shipping, logistics, and warehousing in the UAE include:
• Sharjah Airport International Freezone (SAIF)
• Sharjah Hamriyah Free Zone Authority (HFZA)
• Jebel Ali Freezone (JAFZA) in Dubai
• Khalifa Industrial Zone Abu Dhabi (KIZAD) in Abu Dhabi
• Ajman Freezone (AFZ) in Ajman

Other notable industrial and logistics zones in the UAE include:
• Dubai Investments Park (DIP)
• Dubai World Central (DWC)
• National Industrial Park (NIP)
• Dubai Industrial City (DIC)

► Dubai Industrial City: Driving Industrial Growth and Advancing Flexible Warehousing Solutions
Dubai Industrial City (DIC), a key component of Dubai Wholesale City, is one of the largest industrial zones in Dubai. Designed to drive the growth of the industrial sector in the UAE, DIC targets businesses in light and medium manufacturing industries, such as food and beverage, base metals, transport equipment and parts, machinery and mechanical equipment, workshops, logistics, chemicals, and mineral products.

► UAE Cities Boost Cold Storage Capacity to Meet Rising Demand

Dubai:
• Jebel Ali Free Zone (JAFZA): A major logistics hub with ongoing cold storage developments.
• Dubai South: A rapidly expanding industrial area near Al Maktoum International Airport.

Abu Dhabi:
• Khalifa Industrial Zone Abu Dhabi (KIZAD): A significant area for cold storage investments due to its strategic location for international trade.

Sharjah:
• Hamriyah Free Zone: Attracting investments in cold storage to support various sectors including food and healthcare.

Ajman:
• Ajman Free Zone (AFZ): Expanding cold storage capabilities in its industrial zones to meet growing demand.

Fujairah:
• Port and Free Zone Areas: Emerging as key locations for cold storage due to its strategic eastern coast position.

Ras Al Khaimah (RAK):
• Industrial and Logistics Areas: Building cold storage capacity, with a focus on attracting industrial investments.

Makreo Research has published a comprehensive report titled "UAE Cold Chain Market Size and Forecast (2019-2029) - Analysis by Emirates, Cold Chain Type, Temperature Range, and Industry Applications". This in-depth analysis examines the historical performance and current status of the UAE cold chain market, identifying key opportunities and drivers that will influence its future growth.

The report begins by assessing the UAE's economic, political, technological, and demographic factors and their impact on the cold chain market. It then explores the logistics and warehousing sector, highlighting key trends, warehouse rental rates, and logistics infrastructure. Subsequently, the report provides a detailed examination of the UAE cold chain market, focusing on the prevalence of cold storage, rental rates, key locations, and market segments and their respective shares.

Furthermore, it highlights significant companies within the UAE cold chain market, analysing their merger and acquisition activities, funding timelines, services offered, pallet locations, temperature ranges, and more. The report also addresses the challenges and opportunities present in the UAE cold chain market and offers a future outlook. This report equips stakeholders with a thorough analysis of the UAE cold chain market, enhancing their understanding of its current state, future growth potential, and strategic investment opportunities

Period of Study:
• 2020 - 2023: Past and Present Scenario
• 2023: Base year of study
• 2024 - 2029: Future Prospects

Competitive Landscape:
This section provides a detailed market comparison of key players in the UAE cold chain market based on various parameters such pallet positions, temperature ranges, geographic presence and certifications etc. It also highlights their recent investments, merges and acquisitions (M&A), and funding activities. Additionally, it includes comprehensive profiles of selected industry players, covering their financials and latest business activities.

Emirates Covered:
• Abu Dhabi Emirate
• Dubai Emirate
• Sharjah Emirate
• Ajman Emirate

Market Segmentation Covered:
• Segmentation: by Type of Temperature-Controlled Storage
• Segmentation: by Emirates
• Segmentation: by Application
• Application by Food Sector
• Application by Pharmaceuticals

Companies Covered:
• Gulf Warehousing Company Q.P.S.C
• Dubai Ports (DP) World Ltd
• Gulf Agency Company Ltd. (GAC)
• Emirates SkyCargo
• Arab-American Express (Aramex)
• Global Shipping And Logistics LLC (GSL)
• Mohebi Logistics LLC
• Rais Hassan Saadi (RHS) Logistics LLC
• RSA Global
• Tameem Logistics & Warehousing
• Al-Futtaim Logistics LLC
• DHL Group
• CEVA Logistics
• Hellmann Worldwide Logistics SE & Co. KG.

Looking for targeted insights to excel in the UAE Cold Chain Market? Our Custom Research Services provide the comprehensive data and expert analysis needed to drive strategic decision-making and capitalize on growth opportunities.
https://www.makreo.com/custom-research

For more details:
UAE Cold Chain Market Size and Forecast (2019-2029) - Analysis by Emirates, Cold Chain Type, Temperature Range, and Industry Applications
https://www.makreo.com/report/uae-cold-chain-market-size-and-forecast-2019-2029

Similar Related Reports:
Global Pharmaceutical Logistics Market Size and Forecast (2018-2029)
https://www.makreo.com/report/global-pharmaceutical-logistics-market-size-and-forecast-2018-2029

Makreo Research and Consulting
801, Trishul Goldmine, Palm Beach, Sector 15, Belapur, Navi Mumbai, Maharashtra 400614

Contact us at:
Meetu Bhasin, Director of Research and Operations
Phone Number
+91-9619699069
Email Address
info@makreo.com

Makreo Research, a top global market research and consulting firm, specializes in Syndicated Research, Custom Research, Consulting, and Market Surveys. Serving both domestic and international markets across developed and developing economies, we provide tailored insights to help businesses thrive amid complex global dynamics. Our client-centric approach ensures satisfaction by delivering context-rich market trends and strategies. Additionally, our Commercial Due Diligence services support investors and stakeholders in making informed decisions regarding acquisitions, mergers, and investments. Partner with Makreo Research to gain a competitive edge and confidently navigate today's dynamic business landscape.

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