Amazon increases storage capacity in the UAE by 70% with new centre in Dubai

The hub in Dubai South with nearly 60,000 cubic metres of capacity will support an expected rise in customer demand during Ramadan

Amazon's new fulfilment centre in Dubai South covers an area of more than 32,500 square metres over five floors. Photo: Amazon

Amazon, the world's biggest e-commerce marketplace, has opened a new centre in Dubai, increasing its total capacity in the UAE by 70 per cent, boosting the logistics sector in the Emirates.

The hub in Dubai South, an aviation and logistics urban master development, has a storage capacity of nearly 60,000 cubic metres and will support an anticipated rise in demand during Ramadan, Amazon said on Tuesday.

The high-tech facility, which was opened on Monday, has almost 3km of conveyance equipment spread across more than 32,500 square metres over five floors, it said.

Its location within Dubai South’s Logistics District gives it “uninterrupted access” to Jebel Ali Port and Al Maktoum International Airport.

“We have created a world-class logistics, supply chain and warehousing infrastructure ecosystem, making it an ideal location for Amazon’s new facility,” said Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South.

“Hosting a global e-commerce company like Amazon expanding its investment in the UAE brings us closer to our mission to catalyse the UAE’s economic growth.”

Seattle-based Amazon's latest hub continues its commitment to the UAE, where it has invested heavily in logistics and technology in recent years.

It is building the Middle East's most technologically advanced warehouse in Abu Dhabi and also opened a major warehouse in the UAE capital last June.

“Fulfilment centres have a ripple effect across the economy, contributing significantly to the growth of e-commerce sales, building capacity and accelerating entrepreneurship,” said Ronaldo Mouchawar, vice president of Amazon Middle East and North Africa.

In October, the company also opened the Amazon Web Services Cloud Innovation Centre in collaboration with the Abu Dhabi Investment Office, which aims to help spur innovation in the public and private sectors.

Last week, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said Amazon will feature 100,000 businesses, including local small and medium enterprises, on its UAE website by 2026.

The move is part of the D33 programme, a 10-year strategy that aims to support 30 private companies to achieve the unicorn status, or start-ups worth more than $1 billion.

Amazon is playing a “catalysing role in the wider development of an economy centred on innovation and technology that enables talent”, said Helal Al Marri, director general of the Dubai Department of Economy and Tourism.

The company's new Dubai South fulfilment centre is also promoting diversity and inclusion, with many of its leadership roles held by women, Amazon said.

“We continue to invest in building the UAE’s talent capabilities, creating diverse career paths in an industry-leading workplace,” Mr Mouchawar said.

Amazon is also investing its resources in other parts of the Middle East. At the Leap technology exhibition in Riyadh last month, it launched an academy in Saudi Arabia created to support the kingdom's human capital programme for the digital economy.

The academy will offer the “largest talent development programme of its kind in the Middle East”, and aims to train more than 30,000 Saudis, issue 35,000 certificates and offer 100 internships by 2025.

Dubai South, meanwhile, is boosting its Logistics District by implementing the latest technologies to facilitate streamlined services.

In December, it signed a preliminary agreement with autonomous logistics company Evocargo to conduct the UAE's first driverless lorry trials as it positions the city to become a hub for the future of transport.