Dubai-based Neweast General Trading has signed a lease agreement with Jebel Ali Free Zone (JAFZA), the flagship free zone of DP World, to establish a 500-million-UAE-dirhams ($136.2 million) automotive spare parts distribution hub, among the largest in the Middle East and Africa.

Ahmed Juma Ahli, CEO, Neweast General Trading and Abdulla Al Hashmi, COO, Parks and Zones, DP World UAE, signed the agreement.

The construction of the new hub is on track, with completion expected by October 2024, the company said in a statement on Monday.

The hub, which covers 165,000 square metres, will support efficient order fulfillment and delivery for more than 160 premium brands in the region.

The company will distribute a range of automotive spare parts for various vehicles, including passenger cars, vans, buses, trucks, trailers, and heavy equipment.

In addition, Neweast expects a 50 percent increase in its current workforce to support the latest expansion move.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)