• Non‑oil growth and trade momentum underpin demand across Dubai and Abu Dhabi
  • Yields remain stable (Prime/Grade A 7.25%–8.25%; Grade B 8.25%–9.25%) as the market matures

Dubai, United Arab Emirates – The UAE’s industrial and logistics real estate market is highlighting demand for institutional-grade assets, supported by national industrial priorities, sustained infrastructure investment, and a diversified trade portfolio, according to JLL’s UAE Industrial & Logistics Real Estate: Market Dynamics and Investment Outlook 2026 report.

With an ambitious array of mega infrastructure and transportation projects, including advanced rail networks, cutting-edge transportation technologies, urban mobility solutions, and integrated logistics platforms, the country is strengthening its position as a global logistics and connectivity hub.

Taimur Khan, Head of Research, MEA, JLL, said: “The UAE’s industrial landscape is witnessing a significant transformation. As this market matures, an accelerated focus on technological efficiency, sustainability, and human-centric design will be crucial to meet the diverse needs of international occupiers and optimize new logistical models. Supported by streamlined, long-term trade policies and GCC-wide government infrastructure development, this evolution is driving sustained demand for specialized warehousing and logistics solutions, reinforcing the UAE’s position as a regional gateway for trade, manufacturing and logistics.”

UAE’s foreign trade account has been rising steadily, with imports witnessing a 15.6% increase and non-oil exports recording a substantial year-on-year growth of 41.3% in Q1 2025. Re‑exports totaled AED 0.63 trillion, reinforcing structural demand for warehousing and logistics and strong investor confidence in the sector’s long-term performance.

The unprecedented growth in the industrial and logistics sector is enhanced through major regional and international investment deals. Within the UAE, Dubai and Abu Dhabi have benefited through distinct demand profiles and location requirements. As availability tightens in established zones and occupier requirements become more technical, new logistical models such as flexible warehousing and optimized last-mile delivery are gaining traction.  

Abhishek Mittal, Head of Industrial, JLL, added: “Robust macroeconomic fundamentals, including a growing non-oil economy, population and enhanced business competitiveness, are driving demand and resilience in the UAE’s industrial market. This is solidifying the nation's position as a premier global logistics hub and generating substantial investor confidence, fueling demand for advanced, flexible warehousing solutions that meet evolving occupier needs.”

Economics and trade momentum

UAE GDP is forecast to grow 5.1% in 2026, reaching around AED 2.1 trillion by 2028. A peak of 5.1% growth is projected in 2026, as the UAE moves towards a mature economy equilibrium consistent with developed market benchmarks. Looking ahead, projections indicate a move towards demographic stability, with growth rates moderating from 2.9% in 2025 to 1.1% by 2030, when population is expected to reach 12.5 million.

Trade flows remain robust while expanding e-commerce drives demand for modern warehousing, distribution centers and last‑mile logistics. This growth is reinforced by long‑term industrial policy, including the federal Operation 300bn program, Abu Dhabi’s Industrial Strategy 2031, and Dubai Industrial Strategy 2030.

UAE market trends

Warehousing across core UAE hubs remains tight, with established industrial zones across Dubai experiencing near-full occupancy rates and landlords implementing significant rental increases in response to market conditions, creating a spillover effect extending to Abu Dhabi and Northern Emirates. The Al Maktoum International Airport expansion is shifting the economic focal point toward Dubai South, while smart‑mobility targets and the RTA–Dubai Land Department data‑sharing partnership are improving transparency, enabling faster decision-making and identifying emerging opportunities.

In Abu Dhabi, as KEZAD (Khalifa Economic Zones Abu Dhabi) reaches operational maturity, it is diversifying into new development categories, bringing significant new industrial stock to the market. These range from specialized storage facilities to integrated business districts, including the Aquaculture Zone, Rahayel Auto City, Metal Park, Al Ain Business Park and new logistics parks.

Yields and investment outlook: stability supports income-led strategies

The sector’s unprecedented growth has attracted sizeable investment deals from major regional and international players, reflecting the demand for high-quality institutional-grade assets. All grades, including Prime, A & B, maintained consistent yield ranges over the past two years, with a slight compression evident in Q4 2025 for Prime and Grade A assets. The consistent returns, ranging from 7.25% to 8.25% across both Dubai and Abu Dhabi, indicate a mature, low-risk market with strong fundamentals, making it ideal for income-focused strategies. 

Looking ahead, JLL expects market momentum to remain resilient as the non-oil economy expands and trade-led activity deepens. Occupiers will prioritize flexibility and automation-ready, energy-efficient facilities; landlords and developers will focus on ESG-aligned Grade A supply in well-connected locations; and investors are expected to remain selective, favoring institutional-grade platforms as infrastructure investment broadens viable industrial nodes across the UAE.

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com

About JLL MEA

Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1650 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Johannesburg and Nairobi. For further information, visit jll-mena.com

Media Contact:
Medha Sandrasagara
JLL MEA
Medha.Sandrasagara@jll.com

Nisha Celina
Burson | nisha.celina@bursonglobal.com