Imagine a sprawling super logistics hub rising across the Middle East, connecting businesses and consumers with unprecedented speed and efficiency. This is not science fiction but the ambitious vision of e-commerce giant Noon, which is set to construct the UAE’s largest logistics center in Abu Dhabi’s Khalifa Economic Zone (Kezad).
Noon recently signed a landmark agreement with the Abu Dhabi Investment Office to develop the massive 252,000-square-meter facility, slated for operation by 2024. The project is expected to create 6,000 jobs and marks a strategic move to accelerate Noon’s expansion in the Middle Eastern e-commerce market.
The announcement comes months after Amazon unveiled plans to open its own state-of-the-art fulfillment center in Abu Dhabi by 2024—currently the largest of its kind in the region. With both giants vying for dominance, Abu Dhabi is rapidly emerging as the new battleground for Middle Eastern e-commerce. Notably, Noon’s upcoming hub surpasses Amazon’s in scale, signaling its determination to secure a leading position.
Why Logistics Hubs Matter
These facilities are far more than warehouses; they serve as the lifeblood of e-commerce operations, integrating storage, sorting, packaging, and rapid delivery into a single high-tech ecosystem. Noon plans to invest heavily in advanced automation for its new hub, covering storage, material handling, and sorting systems. The goal is to dramatically improve delivery speeds across the UAE while establishing a central nexus for Noon’s broader operations—potentially upgrading the region’s entire e-commerce infrastructure.
A Thriving Market Defying Global Trends
Despite global inflationary pressures, the UAE’s consumer market continues to surge. Data shows a 20% year-over-year increase in consumer spending during the first nine months of 2022. As the Arab world’s second-largest economy, the UAE is expanding at its fastest pace in over a decade. Industry analysts project a 22% growth in the nation’s e-commerce sales this year, reaching $6 billion—a figure that could soar to $9.2 billion by 2026.
Noon’s bet on Abu Dhabi reflects confidence in this booming sector. With its robust logistics network and technological edge, the company is poised to solidify its standing—and possibly emerge as the region’s e-commerce leader.