The rapid growth of the UAE’s e-commerce sector has led to an increase in demand for warehouse space as e-commerce companies look for suitable distribution centre locations close to prime residential and commercial areas, a new industry report shows.
According to data from the research website Statista, UAE e-commerce revenue is expected to reach US$7.456 billion in 2021 and will reach US$11.034 billion in 2025 at a compound annual growth rate of 10.3%. According to a joint survey by payment company Visa and Dubai Economy, 49% of UAE consumers surveyed said they shopped online more during the epidemic than before.
With the increase of e-commerce business and more and more online shoppers, the demand for e-commerce warehouses is on the rise. And because Amazon and Noon, which provide fast delivery services such as same-day and next-day delivery in the UAE, ensure that goods are delivered to consumers quickly and efficiently, the rising trend of warehouse demand is even more obvious.
However, warehouse owners are facing a dilemma as tenants demand lower rents and better contract terms. Deloitte said the e-commerce and freight industries are expected to expand further in the short to medium term, with more long-term considerations rather than speculative construction.
Despite the growing demand for e-commerce warehouse space, warehouse rents in the UAE have fallen instead of rising. According to a report by Deloitte, warehouse rents for new facilities developed to international standards in 2020 ranged from 22 to 35 UAE dirhams per square foot (about 39 to 62 yuan) , while warehouse rents in 2019 were 28 to 40 UAE dirhams (about 49 to 71 yuan).
Deloitte said the drop in e-commerce warehouse rents was due to the restricted business environment in the UAE in 2020 , with small and medium-sized enterprises focusing more on liquidity, so they are now seeking annual lease contracts . Before the outbreak, warehouse owners required three to five years of warehouse and industrial contracts as standard. middle East United Arab Emirates |
<<: Japan appoints “Minister of Loneliness”: How lonely are the Japanese?
>>: TikTok and UFC collaborate on live streaming to promote platform user diversity
In 2020, 93% of weddings were postponed to 2021 d...
Lululemon is a Canadian sportswear retail giant. F...
Shenzhen Yuanyang Hi-Tech Electronics Co., Ltd. wa...
As Halloween approaches, the popularity of Hallow...
Only by returning to the business and services th...
CIARRA is a smart high-end kitchen appliance bran...
Bodega Aurrera is a sneaker and street fashion cl...
Doug Herrington, CEO of Amazon Global Stores, sai...
The fashion clothing category attracted market at...
If you ask what the best-selling products were la...
Four Seasons International Freight Forwarding is a...
When it comes to home renovation and house repair...
<span data-docs-delta="[[20,{"gallery"...
By leveraging the country's powerful supply c...
In 2021, nearly two-thirds (63.2%) of Canada’s po...