28 November 2019
The growing demand for storage spaces and fulfilment centres in Dubai spurred by the boom in online retail shopping and growing consumer confidence ahead of Expo 2020 has led to a growth in enquiries from Chinese investors for warehouses and other cost-effective logistic solutions, according to a top official of Dubai-based Lootah Real Estate Development.

Senaeyat, the UAE's first lease-to-own warehouse concept, was launched Lootah Real Estate Development earlier this year, and allows businesses the ability to own warehouses after a period of only 10 years.

CEO Saleh Abdullah Lootah said in a press statement that he expects China-based businesses to grow further in the region with the increase of e-commerce.

"The warehousing industry offers a huge potential for businesses to effectively expand their reach and save on their rental expenses. Senaeyat continues to receive a great number of inquiries from Chinese investors looking to set-up more businesses in Dubai," he noted.

The CEO further added that the rising demand for warehouses from the Chinese businesses is rooted from the strengthening trade and diplomatic relations between China and the UAE.

The statement, quoting a report by state news agency WAM, said bilateral trade between the UAE and China has grown by 81 per cent over 10 years to around $37.84 billion in 2018 compared to $20.9 billion in 2009. There are now 876 Chinese companies registered in Dubai Customs, 623 of which are companies with trade licenses, 244 with free zone licenses, and 9 with professional licenses. UAE-China trade in the first quarter of 2019 increased by 11.3 per cent to $19 billion.

China also contributes greatly to Dubai's tourism, being the emirate's fourth-biggest market for tourists in the first half of 2019. According to figures released by Dubai Tourism, the emirate welcomed 501,000 overnight visitors from China.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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