The complex from Dubai’s Noon, which will be constructed in Kezad and inaugurated in 2024, will support the Emirates’ digital economy program and create 6,000 jobs.
Noon To Construct The Largest Fulfilment Centre In The UAE
To serve the rapidly expanding e-commerce sector in the country, the Abu Dhabi Investment Office and the Dubai-based online marketplace Noon have agreed to construct the largest fulfilment centre in the UAE.
The 252,000 square metre complex is expected to be completed at Khalifa Economic Zones Abu Dhabi (Kezad) and will open in 2024. According to a statement released by Adio on Thursday, it is expected to generate 6,000 jobs, which will help the Emirates’ digital economy programme.
How Abu Dhabi Plays A Major Role In E-Commerce
The massive fulfilment facility, which complies with Estidama 2 Pearl sustainability standards, will further Abu Dhabi’s status as a major player in emerging e-commerce and logistics.
In June, the capital of the UAE became the location of the world’s largest delivery centre for Amazon, the world’s largest online shopping platform.
However, the hub at Noon will be larger than that at Amazon. On a 175,000 square metre plot, Amazon is developing its fulfilment centre.
According to Abdulla Alshamsi, the acting director general of Adio, Abu Dhabi is meeting expectations for the global e-commerce sector by fostering an environment where ambitious, innovative businesses can flourish.
“Noon’s collaboration with Adio and Kezad Group is significant in scope and impact, generating thousands of jobs and opening up new doors for the private sector to connect to an e-commerce platform and the emirate’s innovation ecosystem.”
The Adio-Noon partnership also benefits related sectors like transportation and warehousing, both essential to the supply chain for e-commerce, according to Mr Alshamsi.
E-Commerce Business is Flourishing in The UAE
For e-commerce businesses, the UAE offers a significant opportunity. According to Euromonitor International, the sector in the country is expected to increase by 60% from 2021 and reach more than $8 billion by 2025 as consumers in the region continue to gravitate toward online retail.
With net sales of about $169 million last year, Noon was the third-largest e-commerce player in the United Arab Emirates, according to data from e-commerce DB.
Amazon was the biggest player, with net sales of $500 million last year. Namshi, the e-commerce division of Dubai’s Emaar Malls, which Noon acquired in August for $335.2 million, came in second with $249 million. Amazon is also constructing the Middle East’s most technologically advanced fulfilment centre in Abu Dhabi, which is also scheduled to open in 2024.
E-commerce companies use fulfilment centres extensively. Fulfilment centres store items that will be packed and delivered to customers faster than ordinary warehouses.
E-Commerce Fulfilment Services
According to Grand View Research, the global e-commerce fulfilment services market will grow at a compound annual rate of 9.5 per cent, from $86.4 billion in 2021 to about $195 billion by 2030.
According to the statement, Noon’s fulfilment centre, which will use new automation technology for material movement, storage, and sorting, aims to speed up product delivery throughout the UAE and will also serve as a hub for Noon’s other smaller units.
The next phase of growth for the UAE’s digital economy will be fueled by the new e-commerce hub in Abu Dhabi, which will bring together millions of customers and thousands of businesses. Mr Alabbar said it is their responsibility as a local technology company to innovate, create, and offer the best infrastructure for a digital-first future.