Dubai is set to add more than 5.4 million square feet of Grade A warehouse space over the next two years, marking one of the largest expansions of modern logistics infrastructure in the emirate’s history as demand from e-commerce, manufacturing, trade and regional distribution companies continues to accelerate.
According to a new report by Bright Rich | CORFAC International, nearly 85 per cent of the new supply is scheduled for delivery in 2026, highlighting strong investor confidence in Dubai’s growing role as the Gulf’s primary logistics and supply-chain hub.
The development pipeline comes at a time when businesses are increasingly using Dubai as a single regional distribution base to serve markets across the GCC, reducing operating costs and improving supply-chain efficiency.
The bulk of the new warehouse developments are concentrated in Dubai South, Jebel Ali and Dubai Investment Park, areas that have emerged as the backbone of the emirate’s logistics ecosystem thanks to their proximity to Jebel Ali Port, Al Maktoum International Airport and major road networks connecting the UAE to neighbouring Gulf countries.
Among the largest projects under construction are the 1.6 million sq ft Aldar Logistics Centres in Jebel Ali Industrial Area and the nearly two million sq ft Terralogix Logistics Park in Al Warsan. Several additional logistics facilities in Dubai South and Dubai Investment Park are also expected to come on stream next year.
Industry experts say the concentration of new projects within established logistics clusters reflects strong occupier demand rather than speculative development.
“Dubai’s competitive advantage lies in its ability to serve multiple GCC markets from a single location,” said Viktor Zaglumyn, Co-Founder and Partner at Bright Rich | CORFAC International.
“This allows occupiers to consolidate logistics operations, reduce costs and improve supply-chain efficiency. As more international companies adopt this model, demand for high-quality warehouse space is increasingly being supported by regional trade flows rather than domestic demand alone.”
Dubai’s emergence as a logistics powerhouse has been driven by its strategic location between Asia, Europe and Africa, world-class transport infrastructure and business-friendly policies.
The emirate is home to Jebel Ali Port, the largest container port in the Middle East, which handles millions of containers annually and serves more than 150 shipping routes. Combined with Dubai International Airport and the rapidly expanding Al Maktoum International Airport, the city offers one of the world’s most integrated multimodal logistics networks.
To measure this advantage, Bright Rich developed a proprietary GCC Logistics Accessibility Index assessing road, sea and air connectivity between Dubai and key Gulf markets. The index gave Dubai an average score exceeding 4.5 out of five, reflecting what the consultancy describes as approximately 90 per cent logistics accessibility across the region.
The UAE and Saudi Arabia achieved the highest scores, while Qatar, Oman, Bahrain and Kuwait also ranked strongly, reinforcing Dubai’s ability to serve as a regional distribution gateway.
The findings mirror broader market trends. According to industry estimates, the GCC logistics market is expected to expand significantly over the coming decade, supported by growing intra-regional trade, rising e-commerce penetration and government investments in transport infrastructure. The UAE has been among the biggest beneficiaries of these shifts, attracting global logistics operators, third-party logistics providers and multinational distributors seeking regional headquarters.
The scale of projects currently under development also reflects changing occupier requirements.
The average size of a new warehouse project in Dubai now stands at approximately 392,000 square feet, indicating growing demand for large-format facilities capable of functioning as regional fulfilment and distribution centres.
Companies are increasingly moving away from fragmented warehouse networks and adopting centralised logistics models that allow them to serve multiple markets from a single location.
Despite the record development pipeline, analysts do not expect an oversupply of warehouse space.
Georgy Martyanov, Director of Bright Rich | CORFAC International in the UAE, said the market’s growth is being driven by structural demand rather than speculative activity.
“Record construction volumes do not mean a surplus is forming,” he said. “The market is growing not so much because of the number of projects but because of their scale and quality. Companies are increasingly seeking comprehensive logistics solutions that enable them to consolidate operations, improve efficiency and scale their businesses.”
The strong demand outlook is also attracting institutional investors to the sector.
Warehouse assets have become one of Dubai’s most sought-after commercial real estate segments due to limited availability of modern Grade A facilities, rising rental rates and strong tenant demand. High levels of pre-leasing in new developments are helping reduce vacancy risks and providing greater income visibility for investors.
As Dubai continues to strengthen its position as the Middle East’s leading logistics gateway, the latest wave of warehouse development is expected to reinforce the emirate’s competitive advantage and support its ambitions to become one of the world’s most important trade and supply-chain hubs.
