Gargash Prime, JD.com to Build 2.5M Sq Ft UAE Logistics Hub

A 2.5 million square foot logistics facility, roughly 250,000 square metres, is set to take shape in the UAE, and its reach extends well beyond the companies behind it. Gargash Prime and JINGDONG Property, the infrastructure investment and asset management arm of JD.com, Inc., have signed a memorandum of understanding to jointly develop the land for a logistics facility in the UAE. The project is envisioned as a regional distribution and fulfilment hub intended to support local and regional supply chain needs across the Middle East, with direct implications for how goods move and reach people in the region.

For everyday businesses and consumers, the significance lies in what the facility is designed to do. Infrastructure of this scale touches the availability, speed and reliability of supply chains that ultimately serve households and enterprises alike. The partners describe the project as one that will provide high-quality logistics infrastructure to local and international customers, and as a step toward more efficient and resilient supply chains in the UAE and across the wider region.

The memorandum was signed on 13 October on the sidelines of the Dubai Business Forum – China, organized recently by Dubai Chambers in Shenzhen, with the signing witnessed by H.E. Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers. The setting matters from a public standpoint: the announcement came during Dubai Chambers’ visit to Shenzhen, which the parties say reinforces Dubai’s role as a platform for international partnerships, investment and trade, and underscores the growing commercial ties between UAE- and China-based businesses.

Government and institutional duty-bearers frame the project in terms of its contribution to the public economy. The partnership aligns with the UAE’s ambition to strengthen its position as a global trade and logistics hub and with the broader objectives of economic diversification and the Dubai Economic Agenda D33. It also forms part of Gargash Prime’s strategy to develop large-scale real estate and logistics infrastructure in the UAE through partnerships with global category leaders.

Shehab Gargash, Founder of Gargash Prime, said the joint venture is about building the infrastructure the UAE eyes to cement its position as a global logistics and trade hub, bringing together two partners with a shared ambition to build at scale and reflecting the kind of strategic partnerships that will support the UAE’s next phase of economic growth. Walid Hizaoui, Chief Strategy Officer at Gargash Prime, said the facility gives the company the scale and the partner to establish a serious logistics footprint in the region, calling it a clear example of translating the firm’s real estate ambitions into infrastructure that supports the UAE’s trade and logistics economy.

Meanwhile, the Chinese partners pointed to the UAE’s role as a gateway between major global markets. Carl Chen, CEO of JINGDONG Property, described the partnership as an important step in the company’s long-term development in the UAE, saying the new distribution and fulfilment facility will strengthen regional capabilities while providing high-quality logistics infrastructure to local and international customers. Feng Guo, CEO of JD.com Middle East, noted that the UAE is a key gateway between major global markets, supported by its connectivity, world-class infrastructure and pro-business environment, and said the partners will combine JINGDONG Property’s technology and logistics capabilities with strong local expertise to develop a hub that supports more efficient and resilient supply chains.

JINGDONG Property manages more than 300 infrastructure assets globally, covering over 28 million square metres of gross floor area, with over USD 16 billion in assets under management. The company specialises in the investment, development and management of high standard and green logistics parks, business parks and data centres, serving customers across e-commerce, third-party logistics, manufacturing, retail and other emerging industries. The announcement was carried by markets.businessinsider.com at https://markets.businessinsider.com/news/stocks/gargash-prime-and-jingdong-property-sign-joint-venture-to-develop-a-2-5-mn-sq-ft-land-for-a-dubai-logistics-facility-in-the-uae-1036634662.

For Gargash Prime, a diversified investment and operating holding company rooted in more than a century of entrepreneurial heritage, the joint venture marks a significant step in building its real estate and logistics portfolio and in translating its strategy of partnering with global category leaders into large-scale infrastructure assets serving the UAE and the wider region.

Whether the hub delivers on its promise of more resilient regional supply chains will become clear as the 250,000 square metre development moves from memorandum to construction.