The city of Dubai plans to establish “the world’s largest” logistics center for fresh food and food products, marking a significant step in diversifying its economy and enhancing investment opportunities, Gulf Business reports.
A memorandum of understanding (MoU) to expand the current fruit and vegetable market and double its size was signed between Dubai Municipality and DP World.
The development and management of the project will be handled by DP World, which will also connect the facility to global markets, the Dubai Media Office stated. Further details have not been disclosed.
“This expansion and doubling of the current market area will support our economic agenda and create larger commercial and investment opportunities,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai said.
Food trade sector growth
A 2020 report by Business Registration & Licensing (BRL) in Dubai revealed that the number of businesses operating in vegetable and fruit trading stood at 2,495, including 557 companies in dried vegetables and fruits. The report underscored Dubai’s modern infrastructure and logistics services that have helped businesses succeed in their ventures, with many having been licensed since 1963.
Sultan bin Sulayem, group chairman and CEO of DP World, noted that Dubai’s strategic location has cemented its status as a global market for food trade, particularly in fruits and vegetables.
“This sector is witnessing increasing growth in both local markets and exports, indicating immense opportunities that can be leveraged through strategic projects that Dubai continues to develop,” he said.
The report added the vegetable and fruit trading sector in Dubai employed 8,799 individuals, predominantly businessmen, with an operational and survival rate of 86 percent.
Dubai Economic Agenda
Earlier this month, Dubai also announced plans to establish one of the world’s largest car markets in partnership with DP World.
The new logistics hub aligns with the Dubai Economic Agenda (D33), which aims to double the size of the emirate’s economy to $8.7tn by 2033, positioning it as one of the top three economic cities globally.
The agenda also targets raising foreign trade to Dh25.6tn and expanding Dubai’s global reach to 400 additional cities over the next decade.
Additionally, the plan aims to support 30 private companies in achieving unicorn status—start-ups valued at over $1bn—and identifies 400 promising companies for growth through business incubators.
The strategy further aspires to make Dubai a global leader in the digital economy, the fastest-growing and attractive business center, a hub for sustainability and economic diversification, and an incubator for talent.
