MAYS IBRAHIM (ABU DHABI)
Abu Dhabi has established itself as a central contributor to the UAE’s industrial sector, according to the latest UAE Industrial and Logistics Report by global property consultancy Knight Frank.
The total value of industrial contracts awarded across the UAE reached $5 billion in 2025, with Abu Dhabi alone responsible for 33% of that total, based on data from MEED Projects.
In the first quarter of 2026, Abu Dhabi’s industrial project completions are forecast to exceed $1 billion, compared with a national peak of more than $2.4 billion in the same period.
“Abu Dhabi is assertively positioning itself at the forefront of the UAE’s industrial sector, advancing a strategic vision focused on economic diversification and the establishment of a robust, sustainable industrial base,” the report said.
“Our analysis of the industrial projects landscape highlights a clear trend: while the UAE demonstrates strong industrial activity overall, Abu Dhabi’s contribution is both substantial and pivotal in shaping the country’s future industrial trajectory.”
Knight Frank’s analysis also points to long-term momentum. The cumulative number of industrial projects completed and awarded in Abu Dhabi is projected to rise to 367 by 2029.
“This sustained expansion underscores the depth of investment and policy commitment by the authorities,” the report said.
This expansion is underpinned by the Abu Dhabi Industrial Strategy (ADIS), which aims to more than double the size of the manufacturing sector to Dh172 billion by 2031.
The strategy is structured around the circular economy, Industry 4.0 adoption, talent development and ecosystem enablement, with particular emphasis on attracting foreign direct investment while strengthening domestic industries in sectors such as chemicals, machinery, electronics and pharmaceuticals.
Economic zones have also been instrumental in delivering this growth, notably those managed by KEZAD Group.
KEZAD has a total land bank of 550 square kilometres allocated for industrial development and, as of the third quarter of 2025, managed more than 848,000 square metres of warehouse space with occupancy at 97%. More than 2,260 occupiers operate across its zones under long-term land lease agreements typically spanning 25 to 50 years.
Specialised industry hubs developed by KEZAD span metals, automotive, agri-technology and food production.
Recent major investments include a Dh50 million development with StockSpace and Axione Development for a 14,000-square-metre food and FMCG facility, and a Dh200 million project with Al Asmawi Group covering 71,000 square metres of industrial and retail space.
Meanwhile, Broaden Energy has committed Dh455 million to develop an 80,000-square-metre facility delivering sustainable solutions using renewable energy sources.
Rental performance across Abu Dhabi’s industrial submarkets remains firm, supported by record-high occupancy levels and sustained demand from manufacturing and regional distribution occupiers.
Abu Dhabi Airport Free Zone commands the highest average rents at Dh625 per square metre, reflecting its free zone status and proximity to the international airport.
KEZAD Mussafah (ICAD) and Al Falah both averaged Dh550 per square metre by the end of the fourth quarter of 2025, while Mussafah remains a core industrial hub at around Dh500 per square metre, appealing to cost-sensitive tenants seeking established infrastructure.
More affordable options are available in KEZAD Al Ma’moura and Al Markaz, where rents stand at Dh425 and Dh375 per square metre respectively, catering to secondary logistics, storage and light industrial occupiers prioritising rental efficiency.
Knight Frank expects market conditions in Abu Dhabi to remain broadly stable through 2026, with demand anchored around the ICAD and KEZAD clusters.
Prime assets are forecast to maintain high occupancy levels, supported by steady occupier requirements and a disciplined approach to land release that continues to limit excess supply and rental volatility.