By: Khaleej times

The UAE’s industrial and logistics sector is entering a new phase of expansion, propelled by ambitious government strategies, significant infrastructure investments, and robust economic fundamentals.

A new 2026 outlook report from JLL shows the country strengthening its position as a global trade and logistics hub, underpinned by record population growth, surging foreign trade, and rapid technological transformation. 

At the federal level, the Ministry of Industry and Advanced Technology’s Operation 300bn remains the centerpiece of the UAE’s industrial policy. The programme aims to double the industrial sector’s GDP contribution from Dh133 billion in 2021 to Dh300 billion by 2031, driven by SME development, foreign investment attraction, and enhanced competitiveness of locally made products. In parallel, Abu Dhabi’s Dh10 billion Industrial Strategy 2031 targets doubling manufacturing output to Dh172 billion, creating 13,600 specialised jobs and boosting non-oil exports to Dh178.8 billion.

Dubai’s industrial transformation continues under the Dubai Industrial Strategy 2030, the Commercial and Logistics Land Transport Strategy 2030, and the Dubai 2040 Urban Master Plan. Together, these policies aim to create a knowledge-driven, innovation-led industrial ecosystem while optimising land use, raising environmental resilience, and integrating advanced mobility technologies. 

The strategic push is reinforced by the UAE’s world-class infrastructure network. The country boasts globally ranked ports and airports, a highly connected road system, and the recently inaugurated Etihad Rail, a 900‑kilometre freight network linking all seven emirates from Ghuwaifat to Fujairah. The railway is expected to cut transport costs, reduce emissions, and strengthen supply-chain linkages between ports, industrial zones, and free zones. Plans are underway to extend the network into the GCC, including links to Oman and Saudi Arabia. 

Economic indicators continue to support the sector’s growth trajectory. The UAE’s GDP reached Dh1.8 trillion in 2024 and is projected to climb to Dh2.1 trillion by 2028, with 2026 expected to mark the fastest rise at 5.1 per cent. Non-oil sectors now account for 75.5 per cent of GDP, reflecting deepening diversification. Foreign trade has surged, with imports hitting Dh1.63 trillion and non-oil exports reaching Dh0.54 trillion in 2024. Re-exports also grew to Dh0.63 trillion, reinforcing the UAE’s role as the region’s main redistribution hub. 

This macroeconomic momentum is driving unprecedented demand for Grade A warehousing, cold storage facilities, last‑mile logistics hubs, and build-to-suit industrial assets. Dubai’s supply crunch has pushed occupiers to consider Abu Dhabi and the Northern Emirates, as near-full occupancy across key industrial districts continues to lift rents. JLL notes Dubai’s warehouse occupancy reached up to 100 per cent in several zones, while Abu Dhabi’s prime industrial clusters are similarly nearing full capacity. 

Developers are responding with major new projects. In Dubai, Terralogix — a JV between Dutco and Sweid & Sweid — will become the emirate’s largest privately owned logistics park, spanning 306,000 sqm. Aldar and DP World are delivering a 144,000 sqm Grade A logistics centre by 2026, while JD Properties is adding 70,000 sqm of warehousing at ADAFZ. Abu Dhabi’s KEZAD is expanding aggressively, with projects ranging from the 350,000‑ton capacity Metal Park to new logistics parks, an aquaculture zone, and automotive hub Rahayel Auto City. 

Investment appetite is soaring. Aldar, Brookfield, GFH Partners, Arcapita, and Musharaka REIT have all completed major acquisitions, signalling strong investor confidence in the sector’s long‑term income stability. Yields for prime and Grade A assets remain steady at 7.25 per cent–8.25 per cent, reflecting a mature, transparent, and low‑risk investment environment.

As technology adoption accelerates — from IoT and automation to blockchain-enabled supply chains — the UAE’s industrial and logistics sector is set to become even more sophisticated. With mega-projects reshaping its logistics landscape and regional integration deepening, the country is well-positioned to remain the Middle East’s industrial powerhouse in the decade ahead.