$1.5 billion wholesale Dubai Food Park

The UAE, after first announcing its intent back in July, has unveiled a $1.5 billion wholesale Dubai Food Park (DFP) to be spread over an area of about 4.5 million m².  And it will be the first destination totally dedicated to serving the food sector in the Middle East. The DFP will feature a central wholesale market and will also provide food safety and inspection together with various other related governmental services. It is  mainly aimed at meeting the demand of the food sector of not only the UAE but of all the Gulf region.
Dubai where up to 80% discounts at its usual summer Big Clearance Sale could be grabbed as per Khaleej Times in not only its streets shops and numerous malls but in Three expansive halls of its World Trade Centre.
We republish this article published on July 12, 2017 by Al Bawaba  for a further spread of Dubai’s entrepreneurial dynamism and enthusiasm. Trade and retail have always been the engine of the UAE’s since its inception but still is tied to its hydrocarbons products exports related revenues. The volatility elements of these are perhaps the underlying factors that are the root cause of not only the future introduction of taxation but also of whipping this retail and wholesale alike in the country.

Dubai Launches $1.5 Billion Food Park in Wholesale City

 

The Dubai Food Park will occupy around 48 million square feet and play a vital role in supporting food security in the UAE. (WAM)

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has launched the Dh5.5 billion ($1.5 billion) Dubai Food Park to be developed at Dubai Wholesale City.

Sheikh Mohammed attended a briefing by Abdulla Al Habbai, chairman of Dubai Holding, and senior officials from Dubai Holding. The briefing highlighted key features of the park that is positioned as an attractive environment for business operators and investors in the food sector to facilitate access to new markets and global investments.

A first-of-its-kind in the region, the Dubai Food Park will occupy around 48 million square feet and play a vital role in supporting food security in the UAE. It will benefit from Dubai’s world-class infrastructure in land, marine and air transport and establish the emirate’s position as a leading regional hub for food trade and re-export of foodstuffs.

The park will offer all categories of food-related services, including modern infrastructure and ancillary services. Food trade makes up 11 percent of the UAE’s gross domestic product, with estimates for the food industry to grow by 70 percent to Dh23 billion by 2030.

The park will provide a range of government services, including customs, clearance, licensing, food safety and supervision all under one roof. Providing a full suite of services will help boost the growth of food companies and reduce supply chain costs.

Al Habbai said the development projects by Dubai Holding support Dubai’s economic diversification. “The Dubai Food Park has been established to meet the growing demand of the food sector in the UAE and the region, triggered by population growth and development of the tourism sector,” he said.

“There is an increased need for specialised logistical services that ease supply chain costs, as well as for more dedicated spaces to accommodate the fast-growing operations of food companies in Dubai,” he added.

The Dubai Food Park includes a central wholesale market that serves the retail, hospitality and food service sectors, a logistics area, an area for complementary services such as packing, repacking and processing, and a dedicated area for handling packaged goods. It will also host employees’ accommodation, in addition to hotels, financial services, a centre for integrated government services and recycling organic waste.

Dr. Amina Al Rustamani, group CEO of Tecom Group, said the Dubai Food Park is set to bolster Dubai’s status as a regional hub in the food sector.

“These services will reduce paperwork and allow companies to focus on providing quality products at par with global standards, benefiting from 11 million sqft as a free zone for re-export activities. The park will also play a pivotal role in enhancing food security and revitalising the growth of the food sector in the region and the world.”

Abdulla Belhoul, CEO of Dubai Wholesale City, said the park is designed to meet the highest global standards to ensure efficiency of operations and ease of procedures. He said the park will be a model one-stop destination for governmental, administrative and logistical services related to the food sector.

“Through the development of the Dubai Food Park, we seek to provide an advanced infrastructure that meets the current and future needs of this sector.”

Dubai Holding said it is currently in final stages of negotiations with leading international food companies headquartered in Dubai that are seeking further growth and expansion. The aim of these negotiations is to facilitate these companies’ plans to join the Dubai Food Park.

 

Currently, food trade makes up 11% of the UAE’s GDP and the food industry is estimated to grow by 70% to $6.3-B by Y 2030. The sector supports 18,400 blue-collar and 4,600 white collar workers and 2,500 businesses, according to government figures.

It is also hoped to support global food security and foster innovation across the sector.

“DFP has been established to meet the increased need for specialized logistical services to reduce supply chain costs,” said Mr. Belhoul.

“The park will be a one-stop destination for government, administrative and logistical services related to food wholesale, import, export and re-export.”

The wider Dubai Wholesale City is the largest wholesale hub in the world, occupying 550-M sqf that will take shape over a 10-year frame at an estimated cost of $8.2-B.

 

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