In response to rising demand in the UAE’s freight and logistics sector, GFH Partners Manrre REIT, managed by GFH Partners Ltd, together with development manager Palmon Group FZCO, has officially commenced construction of a state-of-the-art logistics facility in North Jafza.
The UAE’s logistics market, valued at approximately Dh73.58 billion in 2024, is projected to grow to Dh101.03 billion by 2029, at a compound annual growth rate (CAGR) of 6.55%, according to Mordor Intelligence. Key sectors such as pharmaceuticals, FMCG, and e-commerce are driving structural demand for temperature-controlled logistics.
Set on a 214,000 sq ft plot, the new development will feature one of the country’s first high-bay, temperature-controlled warehouses, setting a benchmark for Grade A logistics assets in the region. The facility will offer 144,000 sq ft of built-up area, including 32,000 pallet positions, 16 loading bays, an FM1 super-flat floor slab, and 15,000 sq ft of modern office space with a rooftop viewing deck overlooking DP World’s Jebel Ali Port. Its vertical, high-bay design maximises cubic volume, addressing land constraints while enhancing operational efficiency.
Construction is slated for completion in Q1 2027, with advanced leasing discussions already underway with one of the region’s leading logistics providers. “By optimising cubic volume rather than horizontal footprint, the project maximises throughput and efficiency. For investors, this translates into a facility capable of generating superior returns through higher occupancy and rent premiums,” said Kunal Lahori, CEO of Palmon Group and Board Member of Manrre.
Nael Mustafa, CEO of GFH Partners Ltd, added, “This development reinforces our confidence in the UAE and GCC as key growth markets and demonstrates our commitment to delivering long-term value to investors while strengthening Dubai’s position as a global logistics hub.”
Palmon Group plans to expand its portfolio of institutional-grade logistics and industrial assets across the UAE and Saudi Arabia, focusing on high-growth sectors including e-commerce, warehousing, and FMCG. Lahori also highlighted growing demand in manufacturing and industrial assets, positioning the group to capitalise on upcoming market opportunities.
The UAE’s transport infrastructure developments continue to drive economic growth, with the logistics sector embracing sustainable and autonomous solutions for enhanced efficiency. “With over 27,000 shipping companies operating in the UAE, the maritime sector remains a cornerstone of the country’s logistics landscape, contributing approximately Dh89.98 billion annually to GDP. Further development of road and air infrastructure is expected to boost overall cargo trade,” Lahori said.
