Jebel Ali Free Zone (JAFZA) is investing $24.5 million (AED 90 million) in the second phase of its Logistics Park to meet the rising demand for high-quality logistics and warehousing solutions.

In a strategic move aligned with national growth goals, increasing market demand, and global supply chain trends, JAFZA is set to invest $24.5 million in the second phase of its Logistics Park. This expansion will increase the park’s total area to over 922,000 square feet. The expansion will also include 360,000 square feet of Grade-A infrastructure, including customizable units, temperature-controlled warehouses, and advanced office spaces.

$235.8 Billion Target for the Transportation and Logistics Market

The transportation and logistics market in the Middle East and Africa is expected to reach $235.8 billion by 2031. This expansion not only aims to provide value-added services such as labeling and packaging but will also support the UAE’s goal to increase its logistics sector to $200 billion annually within the next seven years.

Abdulla Al Hashmi, Chief Operating Officer of Parks and Zones at DP World GCC, said: “The expansion of JAFZA Logistics Park reflects our commitment to helping businesses compete globally while simultaneously attracting foreign investment into Dubai.” Al Hashmi further explained, “Phase 1 was fully leased before its completion, demonstrating the strong demand for high-quality logistics and warehousing. Phase 2 takes this a step further by offering flexible, high-quality solutions to support growth across multiple sectors.”

How the Expansion Will Meet the Rising Demand for Supply Chain Infrastructure

JAFZA serves as a key hub for global trade and is a central driver of economic growth in the UAE. Currently, it supports over 160,000 jobs, hosts 10,890 companies from 150 countries, and generates AED 620 billion ($168.8 billion) in trade annually. The first phase of the Logistics Park was completed in November 2023, featuring temperature-controlled warehouses, pharmaceutical storage units, and office spaces, spanning 562,507 square feet.

The expansion of JAFZA Logistics Park will offer advanced capabilities and increased capacity to meet the growing demand for supply chain infrastructure. With the significant expansion of the park to more than 922,000 square feet, JAFZA will be able to accommodate more businesses across industries such as electronics, food, automotive, pharmaceuticals, and fashion.

New infrastructure, including modern office spaces, dry and pharmaceutical-grade storage units, and enhanced energy capacity, will allow businesses to tailor their logistics setups according to supply chain requirements, increasing flexibility and operational efficiency.

The expansion of JAFZA Logistics Park will directly support the UAE’s plans to grow its logistics sector to AED 200 billion ($54.5 billion) annually within the next seven years.

What is JAFZA?

JAFZA (Jebel Ali Free Zone Authority) is the governing body of the Jebel Ali Free Zone in Dubai, UAE. JAFZA offers businesses opportunities such as tax advantages, duty-free trade, and modern infrastructure in a region that serves as a global trade hub. The zone is a strategic platform that encourages international companies to invest in the UAE. As an important logistics and trade center contributing to global commerce, JAFZA also provides a favorable investment environment for businesses across various sectors.

UAE Warehouse Rents Expected to Rise by Up to 10%

Stelcore enables brands to engage in global trade with full transparency and ownership by partnering with them. Currently operating in over 16 countries, Stelcore provides comprehensive end-to-end trade facilitation services. These services include listing brands on destination marketplaces and/or setting up their own D2C (Direct-to-Consumer) websites. Brands are relieved from the complexities of registration, regulatory compliance, and other operational challenges in target markets, as Stelcore manages these processes seamlessly. This allows brands to focus solely on scaling their business and increasing sales.

Speaking to WORLDEF E-COMMERCE, Stelcore Partner Viswanath S emphasized that the company differentiates itself by offering a comprehensive trade facilitation ecosystem across 16+ countries. He stated, “While competitors often provide fragmented solutions, Stelcore offers an integrated approach that enables brands to expand into global markets without complexity.”

Why Stelcore Stands Out?

• Transparency and ownership: Unlike other players, Stelcore partners with brands to provide complete transparency and control over operations, allowing businesses to scale confidently.
• End-to-end services: From being an Importer or Seller on Record to managing compliance, 3PL logistics, warehousing, D2C website management, and payment reconciliation, Stelcore ensures a smooth, hassle-free expansion process.
• Strategic focus on D2C growth: In addition to marketplace listings, Stelcore empowers brands to build their D2C presence, an often-neglected yet critical growth driver.
• Local expertise with global reach: Stelcore combines its deep understanding of local regulations, customer behavior, and operational nuances with a global footprint, giving brands a competitive edge.

Stelcore Provides end-to-end Support to Brands Globally

Viswanath S shared the following insights regarding the services they offer to global e-commerce brands: “Stelcore, with its long-standing expertise in the industry, has been providing a complete suite of comprehensive cross border and local trade enabling services, helping numerous brands and sellers succeed in the global markets.

Stelcore leverages years of experience to offer end-to-end brand support, including Importer on Record, Seller/Merchant on Record, Customer Relationship Management, 3PL Logistics, Warehousing, custom platforms, and payment reconciliation. These services enable brands to reach customers in 14+ global markets, driving sustainable growth. D2C (Direct to Consumers) serves as an additional sales channel that complements a brand’s existing sales strategies, offering an extra layer of support to enhance long-term, sustainable brand growth.”

Who is Viswanath S?

Viswanath S described his career with the following words: “I have extensive experience in the Middle East’s Retail and e-commerce sectors ~ 15 years, where I’ve had the opportunity to lead transformative initiatives. I am ex Noon / Namshi  (the biggest ecommerce player in the Middle east) & M H ALshaya  (the largest retail franchise) wherein cumulatively I have spent the rich part of my career.

My work has focused on building cross-border marketplace, growth and strategy, scaling private label businesses, product development, retail operations, developing streamlined operational frameworks for major platforms in the region to name a few.  I’m a Chartered Accountant and Certified Internal Auditor, and I’ve also been deeply involved in mentoring and investing in startups across various industries, fueling my passion for growth and innovation.”

Thomas Kipp: Access to Real-Time Data Will Be Crucial in the Coming Years

The company has established a regional headquarters in Riyadh and operates through a network of strategically located dark stores across key neighborhoods. With a commercial license granted by the Saudi Ministry of Investment in 2022, Rabbit is prioritizing Saudi Arabia as a key market within its broader Gulf Cooperation Council (GCC) expansion plan. The company’s vision closely aligns with the goals outlined in Saudi Arabia’s Vision 2030.

E-Market Opportunity in Saudi Arabia Exceeds $2 Billion

Saudi Arabia presents an ideal market for Rabbit’s fast, convenient, and reliable service model. Online grocery shopping penetration currently stands at just 1.3%, compared to 5.3% in the UAE and 4.8% in the US—highlighting a significant growth opportunity. With a total grocery and food market worth $60 billion, even a 4% online penetration would equate to an addressable market exceeding $2 billion.

20-Minute Delivery Powered by AI and Efficiency

Rabbit’s business model integrates AI-driven product recommendations with ultra-fast delivery—fulfilling customer orders in as little as 20 minutes. Backed by high operational efficiency, the company addresses one of the most complex challenges in the quick commerce space. Success in this fast-evolving sector hinges on optimizing logistics, customer satisfaction, and sustainable unit economics—areas where Rabbit continues to innovate and improve.

Over 40 Million Deliveries to 1.4 Million Users

Rabbit’s entry into Saudi Arabia follows sustained, profitable growth in Egypt. Over the past three and a half years, the platform has served 1.4 million users and completed more than 40 million product deliveries. Revenue has grown 8.5x in the last two years. The company focuses on stocking top household essentials while prioritizing local customer preferences. More than 60% of Rabbit’s suppliers are local, supporting the company’s commitment to promote Saudi brands as it scales nationwide.

“We’re Building Rabbit Saudi Arabia for Saudis, by Saudis”

Co-founder and CEO Ahmad Yousry stated: “We’re proud to announce Rabbit’s expansion into Saudi Arabia. As a hyperlocal company, we’re bringing our advanced technology and operational expertise to transform grocery shopping for Saudi households—especially through the 20-minute delivery of local favorites. We’re building Rabbit Saudi Arabia for Saudis, by Saudis.”

DHL eCommerce enters Saudi Arabian market

Thomas Kipp, Senior Advisor for Transportation, Travel, and Logistics at Roland Berger, emphasized that data will be the most significant trend in technology in the future. Speaking at the WORLDEF DUBAI event, Kipp stated, “The point of sale can be either retail or online, but all these processes must work together. From a data perspective, access to real-time or near real-time data will be extremely important over the next 5-6 years.”

A Seasoned Expert in Digital, E-Commerce and Logistics Sectors

Having held C-level roles in leading Logistics companies like DHL Group, Aramex and Naqel Express for the past 20+ years, Kipp has developed extensive expertise across digital, e-commerce as well as related Logistics sectors. He is currently a Senior Advisor at Roland Berger, a leading global consulting firm, where he focuses on logistics, transportation, and supply chain issues, particularly in the Middle East, while also working on international projects.

“Access to Real-Time Data Will Be Crucial in the Next 5-6 Years”

Kipp reiterated that data will be the key technological trend of the future, explaining, “Why do I say this? Because what you truly need to understand is how to conduct business with your end-to-end supply chain and how to connect suppliers, logistics providers, and points of sale. Whether the point of sale is retail or online, all these processes must operate in harmony. In terms of data, access to real-time or near real-time data will be of paramount importance over the next 5-6 years.”

“Retail Essentially Functions as a Warehouse”

Kipp further elaborated: “How do you optimally balance service levels at the point of sale with inventory levels and products in transit? Suppliers must also grasp this concept because they are responsible for ensuring that manufactured products are available for sale. I believe this is the future of supply chains and data. Looking ahead, real-time data access will be essential for supply chain management, as it plays a crucial role in warehouse operations.”

He continued: “Today, you can sell products online while simultaneously operating brick-and-mortar stores. Essentially, your retail store functions as a warehouse. This raises an important question: How does this impact inventory management? When a product is taken from the store for shipment, it results in a reduction in inventory. If you do not recognize this within a couple of hours, inventory balance, replenishment, and calculations may be inaccurate. This is why access to near real-time data will be critical. Many companies are already excelling in this area.”

Challenges in Cross-Border E-Commerce

Kipp also discussed challenges in cross-border e-commerce, stating, “The primary challenge is how to create a reliable shopping experience. For instance, if you and I want to purchase something from the U.S., it may seem simple because targeting that market is crucial. However, how can we ensure a trustworthy experience? What about my personal data? Can I pay using the same payment method I use domestically? Can I shop with the same confidence as I do locally?”

He added: “When considering cross-border e-commerce, it is essential to clearly identify the target consumer. Is the consumer in the target market the same as one in my home country? Take China as an example: If I were living in China, I would use eBay, WeChat, and expect customer service in Chinese. If you aim to sell to China, are you prepared to invest in organizing this experience to gain consumer trust in your product, service, and overall shopping experience? These are key considerations for businesses embarking on this journey.”

Understanding and Managing Returns

Another major issue, according to Kipp, is managing returns efficiently on a global scale. “Although there are regional solution providers, return processes remain complex and challenging. Some companies are developing scoring models to predict return probabilities based on factors such as product profiles, consumer behavior, and country trends. While this is helpful, businesses must still understand how to manage returns effectively.”

Touching on return-related technologies, Kipp highlighted that “Dubai Customs utilizes blockchain technology, which can facilitate seamless and verified transactions. Solutions like these are essential. In Dubai’s customs and logistics sector, there are examples of how such technology simplifies processes for everyday consumers.”

“For Me, the Key Word Is Resilience”

Kipp also addressed human logistics, emphasizing the importance of resilience in supply chain management. “When I think about supply chains and their future, the key word that comes to mind is ‘resilience.’ Resilience is about how well a supply chain responds to and recovers from disruptions. One of the best examples is COVID-19. Since the pandemic, I feel like the industry has been in a constant state of crisis, driven by various factors. COVID-19 was an unexpected crisis, but in recent years, we’ve witnessed increasing geopolitical tensions and trade issues. Take the Red Sea situation, for example—these are real challenges impacting our sector. The critical question is: How can we respond effectively?”

Kipp elaborated: “Many e-commerce companies assume they are exempt from these challenges because they are accustomed to dealing with shipping disruptions, particularly to the U.S. However, if trade issues persist, can e-commerce sellers still ensure a reliable and predictable supply of products? Or should they rethink their approach?”

Expanding Supply Base and Strategic Partnerships

Kipp suggested that businesses should consider diversifying their supply base. “Another question is how to collaborate with different partners for domestic delivery and logistics. Strategic partnerships play a crucial role when establishing an e-commerce infrastructure or ecosystem. Additionally, predicting consumer demand is essential for financial planning. For instance, in this region, we know that certain food products like sweet potatoes are highly demanded during Ramadan. How do you forecast this demand accurately? How can you improve your predictions and adapt your business model accordingly? How do you manage inventory to avoid excessive stockpiling?”

Proactive Crisis Management Is Essential

Kipp cited Sheehan as an example, explaining, “Sheehan can launch a new product within seven days—imagine that. But how long will that product remain in demand? How do you predict that? And how do you manage a supply chain capable of launching 5,000 to 8,000 new products daily? This requires data-driven decision-making and a robust supply chain management strategy.”

Concluding his remarks, Kipp emphasized the importance of forward-thinking leadership in crisis management. “Very few companies have taken the time post-COVID to reflect on and prepare their organizations for future disruptions. Responding to a crisis often requires a complete reevaluation of organizational models and decision-making processes. Decision-making must be delegated to those closest to the disruption. Whether the issue arises at a port, an airport, or in transit, no one will wait for instructions. This is why businesses must proactively engage in crisis management to be well-prepared for future challenges.”

Who is Thomas Kipp?

Thomas Kipp works as a Senior Advisor for the Transportation, Travel, and Logistics practice at Roland Berger, a leading international consulting firm. He is based in Dubai. With more than 25 years of experience in the logistics, transportation, postal, and e-commerce sectors, Thomas has held various C-level positions and global operational responsibilities. He moved to the GCC region in 2020. Thomas previously served as the CEO of Naqel Express and Group COO of Aramex PJSC. Prior to this, he was a Divisional Board Member at DHL Group for 14 years, where he held various global roles within the Postal and Parcel/E-commerce division.

Widect: The new global address for e-commerce

DHL Group, one of the world’s leading logistics companies, is providing its logistics expertise to the Chinese e-commerce marketplace Temu, including multimodal transportation solutions. DHL positions itself as an ideal business partner to support Temu’s growth in both existing and new markets. In this context, DHL and Temu have signed a Memorandum of Understanding (MoU).

The new MoU aims to support local small and medium-sized enterprises (SMEs) in growth-potential markets such as Eastern Europe and the Middle East, as well as in established markets. According to the agreement, DHL will support Temu’s “local-to-local” initiative, which is expected to constitute 80% of the company’s sales in Europe.

“We Are Excited to Take Our Cooperation with Temu to the Next Level”

Katja Busch, Chief Commercial Officer and Head of DHL Customer Solutions & Innovation, made the following statement regarding the agreement: “Through different divisions of DHL, we offer a wide range of logistics solutions, including air freight and last-mile delivery services. We are thrilled to take our cooperation with Temu to the next level. By combining our logistics capabilities with Temu’s innovative platform, we can create more efficient, compliant, and practical solutions for both consumers and local businesses in the markets we serve.”

Qin Sun, Co-Founder of Temu, said: “This letter of intent marks a significant step in our collaboration with DHL Group. Its broad network and logistics capacity will support our mission to improve access to affordable products for consumers and expand growth opportunities for sellers.”

DHL to Support Temu’s Operations in Europe

As part of the MoU, DHL will leverage its logistics expertise to support Temu’s operations in Europe, particularly the “local-to-local” model. This model enables local suppliers to sell on the Temu platform and allows local orders to be fulfilled from local sources.

Temu expects 80% of its total sales in Europe to come from this model. Additionally, the e-commerce platform will also enable Europe-based sellers to reach global markets in the future. This situation especially allows SMEs to scale and expand their businesses. DHL will also support Temu in increasing its presence in e-commerce markets, including in the Europe, Middle East, and Africa (EMEA) region.

About DHL Group

DHL Group is one of the world’s leading logistics companies. Connecting people and markets, DHL is a facilitator of global trade. The company aims to be the first choice worldwide for customers, employees, investors, and in the field of sustainable logistics.
To this end, DHL Group focuses on accelerating sustainable growth through profitable core logistics businesses and group growth initiatives. The Group contributes to the world through sustainable business practices, corporate citizenship, and environmental activities.

DHL Group is home to two strong brands:

• DHL offers a wide range of services including parcel, express, freight transportation, and supply chain management, as well as e-commerce logistics solutions.
• Deutsche Post is the largest postal service provider in Europe and the market leader in Germany’s postal sector.

DHL Group employs approximately 602,000 people in more than 220 countries and territories worldwide. The Group generated around €84.2 billion in revenue in 2024. It aims to achieve net-zero emission logistics by 2050.

About Temu

Temu is a global e-commerce platform that connects consumers with millions of manufacturers, brands, and partners. Operating in more than 90 markets worldwide, Temu is committed to offering affordable and quality products to deliver a better life to its customers. Founded in 2022, Temu’s mission is to create an inclusive environment where consumers and businesses can thrive together.

DHL eCommerce enters Saudi Arabian market