Dubai South, Aldar to develop build-to-suit facility for ‘Kuehne+Nagel’

By Arya M Nair, Official Reporter
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Kuehne+Nagel's facility at Dubai South
Rep.Image | Courtesy: WAM

Dubai South and Aldar Properties (Aldar) have partnered to develop a build-to-suit facility for Kuehne+Nagel, one of the world’s leading logistics providers, at EZDubai, the fully dedicated eCommerce hub in Dubai South.

Located near and with direct access to Al Maktoum International Airport, as well as Jebel Ali port via a bounded logistics corridor, the logistics facility is being developed as part of the joint venture between Dubai South and Aldar to develop Grade A logistics facilities at Dubai South’s Logistics District. The facility is expected to be handed over to Kuehne+Nagel by Q2 2025.

Spanning 22,915 square meters, the facility provides third-party logistics (3PL), eCommerce, and goods handling services, and is designed to include office space, warehousing capabilities, and an amenities block.

The facility was designed to attain a LEED Silver certification by incorporating efficient design and energy-saving elements. The building’s flooring will feature an innovative system utilizing high-performance steel fibers, including those sourced from repurposed end-of-life tire wire and cord, ensuring both strength and reduced carbon footprint.

The agreement was signed at Dubai South headquarters in the presence of Mohsen Ahmad, CEO of Logistics District, Dubai South, Jonathan Emery, CEO, of Aldar Development, Lee I’Ons, GCC+ Managing Director at Kuehne+Nagel, as well as other senior executives from the three entities.

Mohsen Ahmad_Dubai South_Aldar Development partnership
Mr. Mohsen Ahmad
Logistics District – Dubai South

We are pleased to sign this agreement with Kuehne+Nagel, who will benefit from our state-of-the-art infrastructure and customized advanced services to expand their presence and cater to the demand for logistics services regionally. Our partnership with Aldar is a strategic one, and we are committed to attracting the top players to contribute to the key priorities of the Dubai Economic Agenda ‘D33’- in establishing Dubai as one of the top five logistics hubs in the world.”

Jonathan Emery, Chief Executive Officer at Aldar Development, said that, “The logistics sector represents a hugely promising opportunity for Aldar, and we are delighted with the accelerated progress we are making in collaboration with Dubai South. Together, we are building scalable logistics facilities that respond to the burgeoning demand for high-grade facilities in the UAE from global firms such as Kuehne+Nagel. We continue to activate the initial $272 million investment we committed to the sector and look forward to making further announcements this year.”

Lee I’Ons, GCC+ Managing Director at Kuehne+Nagel, stated that, Kuehne+Nagel’s longstanding relationship with Dubai South and Aldar was pivotal in choosing the right partners to facilitate our expansion. Thanks to the strategic location of EZ Dubai, a carefully designed eCommerce zone by Dubai South, Aldar’s strong development capabilities, and Kuehne+Nagel’s global expertise in handling eCommerce, the new fulfillment center will further strengthen our successful cooperation.”

Representing the epitome of logistical innovation encapsulated within a premier infrastructure network, Dubai South’s Logistics District offers premier services and operations as well as uninterrupted access to Jebel Ali Port via a bonded logistics corridor. The district comprises multiple zones, which have direct access to the cargo terminals at Al Maktoum International Airport; EZDubai, a fully dedicated eCommerce free zone; and a Contract Logistics Zone.

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