Today's Edition
MAYS IBRAHIM (ABU DHABI)
Amid a volatile global trade and macroeconomic environment, the UAE is attracting increasing interest from industrial and manufacturing investors, supported by government incentives, strategic economic zones, and infrastructure developments, according to CBRE’s 2025 UAE Industrial Market Review.
“The country’s credentials as a regional and global base for commerce continue to rise rapidly,” the report said. “This has been supported by an eco-system and regulations that are heavily pro-business, at a time when many other governments continue to push more protectionist agendas, restricting foreign investment and reducing competition.”
Manufacturing now accounts for 15% of UAE GDP, with Abu Dhabi’s share reaching its highest level on record, around 10% of total GDP and more than 16% of non-oil output.
The emirate’s manufacturing sector generated Dh111 billion in 2024, up 2.7% year-on-year. During the first half of 2025, output climbed a further 4.3% to Dh57.5 billion.
Rising investor interest in the UAE’s industrial market is reflected in the entry of global institutional capital and the strong upward rental trends across all locations, the report noted.
Notable deals include the new Gulf Logistics Infrastructure Development Enterprise (GLIDE), a partnership between Blackstone and Abu Dhabi-based Lunate, which will invest up to $5 billion in Grade-A logistics assets across the GCC – focusing on greenfield development, strategic acquisitions and sale-and-leaseback deals.
Other major moves followed in quick succession. Abu Dhabi Airports and JD.com formed a joint venture to build a new e-commerce logistics hub at Abu Dhabi Airport Freezone, totaling around 70,000 sqm across bonded and non-bonded space.
JD has also expanded in Jebel Ali Free Zone, supporting growing demand from Chinese automotive companies including Chery, while Tesla confirmed plans to open its first UAE experience, delivery and service centre on Yas Island.
The report predicts that the UAE will see more partnerships and investment deals over the next 12-24 months.
The UAE’s deep trade links with Asia, including China, India, Vietnam, Thailand, and Malaysia, are also reinforcing demand from companies looking to hedge manufacturing exposure while expanding access to Middle Eastern markets, the report stated.
Sectors leading this shift include automotive, semiconductors, e-commerce, electronics and pharmaceuticals, according to CBRE.
A suite of national industrial programmes is helping cement this growth. The report noted that initiatives like Make it in the Emirates, In-Country Value (ICV), Industry 4.0 frameworks, and Operation 300bn, are pushing more companies to base production, R&D and supply-chain functions locally.
Incentives include tariff reductions, land rebates, low utility costs, customs exemptions and specialised credit programmes.
Economic zones are at the heart of the UAE’s industrial expansion, providing the scale and integrated infrastructure needed to develop end-to-end manufacturing and logistics operations, according to the report.
KEZAD, which accounts for 55% of the UAE’s total industrial area across 12 zones, recently announced new land agreements totaling 574,903 sqm and over Dh1 billion in investment, expected to generate nearly 2,300 jobs.
The zone is evolving into a fully integrated industrial city, adding R&D facilities, office districts, staff accommodation, and specialist manufacturing clusters, with mainland-based companies benefiting from generous utility rebates.
With demand accelerating faster than new inventory, the report pointed out that rents across key zones such as KEZAD Al Ma’moura have surged more than 50% over the past two years.
New inventory is under development, including Radius Group’s 90,000 sqm in Al Falah and Aldar’s Abu Dhabi Business Hub, adding 166,000 sqm of Grade-A space in ICAD 3 by 2027.
