#Dubai #UAE #Cushman & Wakefield #UAE Real Estate #KEZAD Group

Exploring the Competitive Landscape of Gulf Industrial Real Estate

As the global economy shifts and supply chains adapt, the industrial real estate sector in the UAE is emerging as a standout performer. Cushman & Wakefield, in conjunction with KEZAD Group, highlights how resilience, talent, and sustainability have become pivotal factors that drive the region's competitiveness. This forward-thinking approach signals a departure from purely cost-driven decisions to valuing reliability and efficiency.

The latest findings underscore that despite a challenging economic backdrop, the UAE is reinforcing its status as a reliable hub for businesses seeking long-term viability. According to Tilana Kruger, Head of Industrial Logistics at Cushman & Wakefield, the focus is shifting. “APAC and CEE may still win on rent levels, but what we see in the UAE is occupiers choosing reliability and efficiency over just chasing the lowest cost.” It is this resilience that is becoming the new standard for both occupiers and investors.

The Current Landscape of Industrial Real Estate in UAE

The report presented by Cushman & Wakefield indicates that major cities like Dubai and Abu Dhabi sit within a mid-tier global rental range of US$5-10 per square foot. This pricing, while not the lowest, is attractive to investors for a variety of other compelling reasons. Rather than simply evaluating rent, companies are now taking a broader view of cost-effectiveness that includes key factors such as energy affordability, logistical connectivity, workforce availability, and the speed of market entry.

“Clients today look at the entire ecosystem around cost competitiveness,” stated Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group. The integrated model offered by KEZAD is a perfect example of this new approach, as it brings together suppliers, manufacturers, and logistics providers in one zone, effectively reducing overall costs, accelerating production, and bolstering supply chain resilience.

Sustainability and Technological Advancements

Sustainability is increasingly shaping business strategies within the industrial sector. KEZAD is spearheading green initiatives, including an extensive 100km gas network and ongoing trials of carbon credit systems and AI-driven energy monitoring technologies. Sitting at the core of this trend is the growing preference among institutional investors for sustainable development practices.

Ben Rose, Director of Capital Markets at Cushman & Wakefield Core, notes that modern investments are prioritizing sustainability. “We are witnessing a surge in institutional investors entering the logistics and industrial markets with sustainable development plans. New-builds now often feature advanced lighting, climate control, certifications, and smart building technologies.”

As the market evolves, companies are aligning their priorities with long-term operational efficiencies rather than solely concentrating on securing the lowest rental costs. Stability in energy prices, readiness for digital innovation, and efficient market entry have come to the forefront, areas in which the UAE demonstrates exceptional capabilities.

Conclusion: A Competitive Future for UAE's Industrial Sector

While the UAE might not compete with emerging Asian markets on headline costs, its unique value proposition rooted in connectivity, stability, and a comprehensive ecosystem continues to entice investors and businesses. As the industrial real estate landscape transforms, the commitment to fostering resilience and sustainability positions the UAE to thrive in an unpredictable global environment, making it a compelling choice for companies seeking certainty and growth potential.

In summary, the analysis reveals a fundamental shift toward sustainability, reliability, and a holistic view of cost-effectiveness within the UAE’s industrial real estate sector, reaffirming its potential as a leading hub in a rapidly changing market.