In order to diversify UAE’s national economy away from its heavy reliance on oil, many measures have been taken to ensure that the country still grows exponentially. One of the measures is launching the largest global wholesale hub, the Dubai Wholesale City which is expected to have a development cost of Dh30 billion during the next 10 years and will span over 550 million sqft. The development was announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. The new advancement is expected to expand UAE’s share of the global wholesale trade sector which is currently esteemed at $4.3 trillion and in the course of five years is anticipated to cultivate to $4.9 trillion.
The new worldwide center will contain concentrated coordinated trading parks that meet all the needs of the local and international wholesale merchants in one place as the same time it will also be an international exhibition facility. Al Maktoum International Airport and the Jebel Ali Port will be relatively close to the Dubai Wholesale City which will make a vital contention between the four principle main lands and aims to be home to more than 15000 wholesale traders. One of its other highlights will be its ‘Country Pavilions’ that will incorporate commercial centers and shopping centers offering items from different diverse nations, including India, Malaysia, Thailand, Turkey, Australia, China, South Korea, Germany, Saudi Arabia, the United States and South America.
The new administration intends to upgrade the UAE’s capacities in the global e-commerce space that is expected to grow from $1.672 trillion to $2.941 trillion by the next two years. This will make Dubai Wholesale City will the world’s largest e-commerce platform for wholesale trade in the region. Some of the other reasons it will become the largest e-commerce platform is through its usage of an innovative system with the best logistics support and its incorporation of smart services. The City will dispatch operations by adjusting key segments and will incorporate concentrated avenues for food, development materials, electrical apparatuses, gadgets, furniture and style, hardware, equipment, wood, vehicles and extra parts, and textiles and apparel.
UAE can fundamentally lead the new growing demand in wholesale trade on an international level due to its strategic location, state-of-the-art infrastructure, and strong institutions. The new development will play a vital role in contributing and maintain UAE’s economic success and will act as an important sector for many of the country’s future development. It will also reinforce the UAE’s position as a critical business sector in global trade. By 2019, the global trade is expected to grow by 12% to US$4.9 trillion making wholesale trade one of the most crucial sectors that could lead to huge growth prospects for the country.
As mentioned above, the hub will also act as an international trade exhibition facility that will offer wholesale traders with many benefits to help facilitate the process of doing business and ensure operational efficiency. Some of these benefits include, state-of-the-art infrastructure, warehousing, storage facilities, roads and support services. The exhibition will hope to help gather many buyers and suppliers from all around the globe and will act as a mediator for global trade and provide an array of services to traders and producers that will also help save time and effort.
According to Mohammed Al-Gergawi, Chairman, Dubai Holding, The Dubai Wholesale City pairs well with all the other projects in the country that are following the unique vision of towards serving diverse economic sectors through integrated destinations. Some of the destinations include the Dubai Internet City and Dubai Media City which together currently host 5,200 organizations and 67,000 professional over different industry verticals. He also mentioned that Dubai Holding is focused on assisting the wise leadership of the country in order to help Sheikh Mohammed bin Rashid’s post-oil vision come to fruition. The hub is expected to have a positive impact on wholesale trade not only in the UAE, but also worldwide.
The task in its first stage will benefit various key segments in an eco-friendly environment following and keeping in mind to maintain the highest quality standards of energy conservation, waste control and industrial cleanliness. Dubai Wholesale City will be set up with the latest innovative technology and a variety of smart city elements to help facilitate trade operations.
Due to UAE’s location, the Dubai Wholesale City will be closely connected to three quarters of the world’s population with a maximum of seven hour flying time which makes it the best meeting point between the east and west. As it is only 10 minutes away from Al Maktoum International Airport and the Jebel Ali Port, the new city will be able to take advantage of Dubai’s advanced logistics services . Other sectors including logistics, financial services, aviation, hospitality, and business tourism are also expected to benefit from the wholesale trade sector.