By: Economy middle east

Amazon announced on Thursday the launch of its first fulfillment center in Abu Dhabi, in partnership with the Abu Dhabi Investment Office (ADIO). The new facility is designed to advance logistics and fulfilment capabilities, accelerate delivery speeds and broaden product selection for customers.

It also supports Abu Dhabi’s growing retail landscape by empowering entrepreneurs and small to medium-sized enterprises (SMEs) to thrive in the digital economy.

“The launch of Amazon’s first fulfillment center in Abu Dhabi marks a significant milestone in our strategic partnership. Through ADIO’s collaboration with Amazon, we are not only creating opportunities for small- and medium-sized enterprises, we are also strengthening the advanced logistics and digital commerce ecosystem in Abu Dhabi. This is aligned with our initiatives to enable businesses in priority sectors such as retail and wholesale trade, SMEs, and ICT to grow, thrive and expand,” said His Excellency Badr Al-Olama, director general of ADIO.

Advanced automation to accelerate deliveries

Located in Khalifa Economic Zones Abu Dhabi (KEZAD), the site sets a benchmark for technological innovation and operational excellence. It was officially inaugurated during a visit by  His Excellency Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), His Excellency Badr Al-Olama, director general of ADIO, His Excellency Rashed Lahej Al Mansoori, director general of Abu Dhabi Customs, and His Excellency Mohamed Al Khadar Al Ahmad, CEO of Khalifa Economic Zones Abu Dhabi – KEZAD Group, alongside senior officials and representatives from ADDED and Abu Dhabi Chamber of Commerce.

Supporting Abu Dhabi’s digital transformation and entrepreneurship agenda, the state-of-the-art fulfillment center leverages Amazon’s advanced automation to accelerate deliveries, enabling same-day delivery across a wide range of products for customers throughout the UAE. This is further enhanced by Abu Dhabi Customs’ efficient clearance processes and trade facilitation efforts, which play a crucial role in enabling seamless operations.

“This new fulfillment center represents a step forward in our long-term commitment to Abu Dhabi and the UAE. By combining technology with our customer-obsessed approach, we are expanding our operational footprint in Abu Dhabi while setting new standards for online retail. Through our partnership with ADIO, we are leveraging Amazon’s expertise and technology capabilities to support the UAE’s digital economy, while empowering local businesses with the tools and infrastructure they need to succeed online and support customers,” said Ronaldo Mouchawar, vice president of Amazon Middle East, Africa, and Turkey.

Innovation Lab reduces process lead times by 59 percent

For his part, H.E. Rashed Lahej Al Mansoori, director general of Abu Dhabi Customs, affirmed that Abu Dhabi Customs, as part of its efforts to strengthen strategic partnerships with the private sector and in line with its strategic plan and initiatives, is committed to supporting major global companies, particularly those in the e-commerce and logistics sectors. This commitment aligns with the Abu Dhabi Government’s vision to position the emirate as a central hub for smart trade at both regional and global levels.

Al Mansoori added that Abu Dhabi Customs aims to deliver a smart, integrated customs ecosystem powered by advanced technologies and digital platforms. This includes automated and proactive services, as well as solutions based on AI and data analytics, enabling the business sector to complete transactions with greater precision, speed and transparency.

Aligned with ADIO’s vision to foster innovation and accelerate Abu Dhabi’s economic transformation, Amazon’s new Abu Dhabi fulfillment center houses an Innovation Lab, where innovative technologies are developed and refined, achieving a 93 percent success rate across over 500 tests, and successfully reducing process lead times by 59 percent to date.

The lab is equipped with package testing equipment, 3D printing systems and ergonomic assessment tools to support operational efficiencies and customer service excellence. The new facility also features analytics-driven processes to reduce consumption, highlighting Amazon’s commitment to embedding sustainable practices across all its operations as it expands its presence across the UAE.

8 million units of storage capacity  to empower selling partners

With a storage capacity of up to 8 million units, the facility empowers selling partners to scale their businesses online and reach millions of customers. Nearly half of the fulfillment center is dedicated to sellers using Fulfilled by Amazon (FBA), allowing them to benefit from Amazon’s storage, picking, packing and shipping services.

Storing products across more than 30 categories, including home, kitchen, groceries, beauty and electronics, the facility operates around the clock to ensure fast delivery of the items customers need and want most.