Dubai Wholesale City (DWSC) has signed an agreement with UAE-based retail giant Lulu Group International to set up a AED300 million ($81 million) logistics hub.
Spanning an area of 1.3 million square feet, the central logistics hub is estimated to take shape within 30 months and once completed, will provide distribution services for Lulu’s growing network of malls and hypermarkets across Dubai, Sharjah and Northern Emirates.
The agreement was inked by Abdulla Belhoul, CEO of Dubai Wholesale City, and Yousuf Ali MA, chairman of Lulu Group, a statement said.
Belhoul said: “We welcome Lulu Group International to Dubai Wholesale City. The upcoming facility will benefit from the DWSC’s world-class infrastructure, governmental support, and full suite of services that can enhance efficiency across all stages of operations.”
He added: “Dubai Wholesale City is keeping a close eye on local, regional, and international market needs in order to provide a fully integrated ecosystem through its two components: Dubai Industrial Park and Dubai Food Park.”
Lulu operates 144 hypermarkets and shopping malls across the region and, according to a recent Deloitte report, is among the top 50 fastest growing retailers globally.
Lulu’s decision to set up a dedicated logistics hub comes at a time when the UAE’s retail sector is projected to grow at a compound annual growth rate (CAGR) of 4.9 percent to $71 billion by 2021.
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