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Dubai and Saudi Arabia towers in time war to be world’s tallest

The race to the top has just gotten tighter, with two rising mega-towers in the Middle East battling to become the world’s tallest.

Image result for jeddah tower
Construction has now begun on The Tower at Dubai Creek Harbor, a vast waterfront development, with completion scheduled for ahead of Dubai’s Expo 2020 world fair, which kicks off in October that year.
Piercing through a canopy of clouds, The Tower, at 3,045ft (928m), aims to take the title of world’s tallest tower, which the 2,723ft-tall (830m) Burj Khalifa, also in Dubai, has held since 2010.
But it’s got competition. The Jeddah Tower, in Saudi Arabia, is also slated to finish in 2020.
When completed, this gleaming vertical will be 236ft (72m) taller than Dubai’s creation.
If The Tower in Dubai wants the world title, even for a short time, it has to open its doors before the Jeddah Tower.
Image result for dubai creek harbor tower
Both of these towers are feats in modern engineering.
The Tower, in Dubai, is being constructed by Emaar, the real estate giant also behind the Burj Khalifa, and will anchor the Dubai Creek development, serving – developers hope – as a magnet for tourists.
Designed by Swiss-Spanish architect Santiago Calatrava Valls, it will feature The Pinnacle Room — an observation point offering 360-degree views of the emirate – and public vertical gardens, while 18 to 20 floors have been reserved for homes, restaurants, shops and a boutique hotel.
If construction runs to schedule, this $1 billion tower will have been thrown up in just three years.
The Jeddah Tower, in Saudi Arabia, will have taken a little longer.
Construction on this graceful arrow to the sky began on April 1, 2013, and was originally slated for completion in 2018, but its opening date has already been pushed back twice. Constructing it will require about 5.7 million square feet of concrete and 80,000 tons of steel, according to the Saudi Gazette.
This $1.23 billion construction project is, however, already40 floors off the ground, with 212 left to build — it’s undeniably farther along than the Dubai Tower.
But to think Dubai could finish first is not “as farfetched as it sounds”, according to Jason Gabel, communications manager for the Council on Tall Buildings and Urban Habitat (CTBUH).
“The Dubai project is an observation tower, and therefore won’t require nearly as much lead time as a full-blown skyscraper,” Gabel tells CNN. “2020 is a real possibility for completion.”
Because less than 50% of The Tower’s height is occupied by usable floor space, it is defined by the CTBUH as a “supported tower” rather than a “building”.
This technicality precludes The Tower from achieving the distinction of being the world’s tallest building. Rather, it would be the world’s tallest man-made structure, or tower, until the Jeddah Tower is completed.

The power of a skyline

Home to more than 65 highrises over 656 feet (200m) tall and counting, Dubai has become synonymous with futuristic skyscrapers, and has been a pioneer of this in the Middle East.
“Historically, no Middle Eastern country has come close to building skyscrapers at the rate and height of the United Arab Emirates (UAE), but notable pockets of high-rise development are occurring in Qatar, Israel, and Saudi Arabia,” says Gabel. “The competitive situation we now see between Saudi Arabia and the UAE very unique.”
Dubai’s lofty intentions debuted in 1979, with the 39-story Dubai World Trade Center. It was the city’s first high rise, and the tallest building in the Middle East.
Subsequent iconic buildings, such as the Burj Khalifa and the Burj Al Arab, have given Dubai global notoriety.
Height produces iconicity and visibility on a global stage,” says Gabel, explaining why Dubai has focused on building big. “Visibility is itself an asset that can have a positive impact on real estate valuation, investment flows, tourism numbers, and public identity.
“Put simply, structures like this are very expensive upfront, but the benefits of having the ‘tallest’ are often worth the trouble — as was the case with the Burj Khalifa.”
Aric Chen, the design and architecture curator M+ visual culture museum in Hong Kong, tells CNN that for emerging economies a skyline can be a powerful communications tool.
“These soaring profiles are in many ways symbolic,” Chen tells CNN.
“Places like Dubai and, to some extent, places like China, are still trying to put themselves on the map and prove that they have arrived as modern global and technologically advanced nations.”

Testing the tower

The rapid speed at which Dubai can throw up a mega-tower has not, however, escaped criticism.
A series of fires in the past few years, including a blaze that tore through a luxury skyscraper on the Palm Jumeirah artificial island in Dubai this month — have called into question the quality of some towers, and their fire-proofing.
“Super tall buildings are not unproblematic and there are safety concerns,” says Chen.
Valls, however, is confident that The Tower will not succumb to such issues.
“Extensive studies were undertaken in preparation for the ground breaking, and the learning that we have gained from the experience will add to the knowledge base of mankind,” he said in a statement.
Developers have installed multiple damper and shock absorption systems throughout the building, to ensure its stability.
They also completed a series of wind tunnel, climate and seismic tests analyzing 12 scenarios across varying heights to check the behavior of the building under stressful conditions.
“We need to have a balanced and careful look at skyscrapers,” says Chen. “But they do serve to again push technologies, and push what’s possible.
“We can certainly learn from that experimentation.”
Source: https://edition.cnn.com/style/article/tower-dubai-creek-tallest-skyscraper/index.html

Abu Dhabi Ports launches new warehouses, LIUs at Kizad

Abu Dhabi Ports (ADP) has launched new free zone warehouses and light industrial units (LIUs) at the  Khalifa Industrial Zone Abu Dhabi (Kizad) responding to the needs of distributors, manufacturers, shippers and logistics companies.

Located within Kizad Logistics City, and adjacent to Khalifa Port, the new free zone warehouses will cater to trading and export companies, third-party logistics, freight forwarders and distributors while the pre-built and flexible LIUs will serve various light manufacturing businesses and workshops.

Due to be completed in October, the modular units are available for pre-booking with early bird incentives and competitive prices.

Spanning 17,000 sq m, Kizad’s free zone warehouses offer flexible sizes from 380 to 761 sq m, high power capacity for air-conditioning and cold storage with cost efficient utilities rates. Built to high standards, the warehouses come with mezzanine offices, seven metre height to eaves, integrated fire and safety features, a dedicated loading area for each unit and raised floors for ease of loading.

The LIUs encompassing a total of 31,000 sq m come with ample power capacity for industrial activities, competitive utilities rates, six metres height to eaves, and fire alarm and sprinkler systems. Flexible modular unit sizes start from 320 to 1,148 sq m and can be combined for larger requirements.

Captain Mohamed Juma Al Shamisi, Abu Dhabi Ports CEO, said: “Primed to become one of the leading warehousing centres in the region, Kizad Logistics City and its range of product offerings are fast responding to the needs of the logistics and manufacturing sector. The ongoing investment into Kizad, Khalifa Port Free Trade Zone and Khalifa Port has been instrumental in the rising market demand for services within our integrated logistics hub and greater opportunities for growth.”

“Ideally situated adjacent to Khalifa Port and major UAE highways, our diverse and flexible warehouses are perfectly positioned to serve the GCC and beyond. The new LIUs and free zone warehouses serve to enhance Kizad Logistics City’s value proposition and will fuel growth across local and regional markets by offering the lowest utility costs and ease of doing business for investors establishing a presence in the UAE,” Captain Al Shamisi stated.

In addition to the newly-launched free zone warehouses and LIUs, Kizad Logistics City’s products also include industrial zone warehouses with a net leasable area of 119,000 sq m.

 

Source:  http://www.tradearabia.com/news/IND_344697.html

Metro construction to begin in Kuwait and Bahrain

Rail infrastructure projects are picking up steam across the Gulf, with work on projects in Bahrain and Kuwait making progress this year, according to local media.

According to Arabian Business, work has already begun on a 111km railway project to connect Kuwait with the rest of the Gulf region.

The first phase of the project, set to cost $3bn (KWD908.4m), will create a line to Nuwaiseb on the Saudi border and a 153km line linking Kuwait City with Boubyan Port.

Stretching through all six Gulf states from Kuwait to Oman, the 2,100km passenger and cargo network has “faced technical and bureaucratic obstacles, and stalled as state budgets tightened because of low oil prices”, the report stated.

Meanwhile, Bahrain has reportedly said it will not connect its network to neighbouring state, Saudi Arabia, “until at least 2023”.

Work on Bahrain’s long-promised light rail system, according to an Arabian Business report, is likely to start in the last three months of 2019 as it seeks bids for construction.

According to Abdulm Rahman Al Janahi, an official from Bahrain’s transport ministry, the country may look to the private sector to partially fund the ambitious project, believed to cost between $1bn (BHD377.2m) and $2bn (BHD754.4m).

Similar to issues faced by the Kuwaiti rail project, work on Phase 1 of Bahrain’s light rail system was due to start in 2009, but was halted due to the financial crisis and budgetary approvals.

Transport infrastructure is one of the key pillars on Bahrain’s billion-dollar investment plan, part of a wider desire to upgrade its regional competitiveness.

While there appear to be delays in Kuwait and Bahrain, work is steadily progressing on the rail projects under way in the UAE and Saudi Arabia.

This July, US firm Jacobs Engineering Group announced it had been selected to work on the UAE’s Etihad Rail project.

Jacobs will deliver critical technical and programme consulting services for the freight and passenger railway network.

The firm will also deliver engineering and design services for the network, in addition to reviewing and providing critical oversight for detailed designs, which will be prepared by design and build contractors.

Additionally, the company will provide construction supervision services for the development.

In Saudi Arabia, meanwhile, test runs began for Riyadh Metro‘s Line 4 this June.

French transport system provider Alstom revealed it has been conducting initial dynamic tests for the megaproject’s Line 4 Depot Test Track, on which the FAST Consortium is working.

Tests cover the railway system’s performance in terms of power supply and signalling, using trains that have already been delivered for the project, located in Saudi’s capital city.

Source: http://www.constructionweekonline.com/article-50117-metro-construction-to-begin-in-kuwait-and-bahrain/

GCC hospitality industry set for steady growth, says Alpen Capital

Alpen Capital, an investment banking advisory firm, announced the publication of its report on the GCC Hospitality Industry. The report presents a synopsis of the demand-supply dynamics and key performance indicators of the hospitality industry across the GCC countries. The report also covers recent trends, growth drivers, and challenges in the industry.

 

“The GCC hospitality industry, which has been under pressure in recent years is expected to gain positive momentum on account of recovery in oil prices, upcoming mega-events, increased tourist inflow, positive regulatory initiatives and increased government spending/investments towards the hospitality and tourism sector,” says Sameena Ahmad, Managing Director, Alpen Capital (ME) Limited.

“The GCC hospitality sector is going through a phase of transition. The industry is gearing up for the huge influx of tourists for mega-events. The hospitality industry continues to present interesting opportunities for investors. We expect activities across M&A and private equity funding to accelerate in the coming years,” says Sanjay Bhatia, Managing Director, Alpen Capital (ME) Limited.

According to Alpen Capital, the GCC hospitality market is expected to grow at a 7.2% CAGR from an estimated US$ 22.9 billion in 2017 to US$ 32.5 billion in 2022. Upcoming mega events and government initiatives to boost tourism are the primary drivers behind this growth.

Growth in hospitality sector revenue of individual GCC countries is expected to range from 6.0% to 12.0%. Both UAE and Qatar are expected to witness high revenue growth on account of significant investment activities in the tourism and hospitality sector for the upcoming Expo 2020 and FIFA World Cup 2022. Bahrain and Oman are also expected to grow at a rate higher than the GCC average.

Key operating metrics of the sector, which have been under pressure in the recent past are expected to show a slow but steady recovery supported by the boost in demand. Economic growth and government initiatives leading to increase in tourist arrivals is expected to support growth in occupancy and room rates. Average GCC occupancy is expected to increase from 62% in 2017 to 68% in 2022. ADR is expected to increase at a CAGR of 1.1% to $161 in 2022 whereas the RevPAR is expected to increase at a CAGR of 2.9% to $109 in 2022.

Growth Drivers

GCC countries are expected to witness an improvement in economic performance on account of recovery in oil prices leading to improved sentiment and increase in government spending.

GCC countries have well-defined strategies to develop themselves as preferred travel destinations. They are making significant investments into the development of tourism and hospitality infrastructure including airport expansions to increase the handling capacity of anticipated visitor inflow. This is supported by regional air carriers offering attractive offers and discounts along with exclusive memberships in order to boost tourism activity in the region.

Dubai’s World Expo 2020 and Qatar’s FIFA World Cup 2022 are expected to attract a significant inflow of visitors into the countries thereby boosting hospitality and tourism industry. These events command a significant supply of hotel rooms to meet the anticipated demand. GCC has a number of infrastructure and hotel projects scheduled to open through 2022 to accommodate the future tourist inflow.

In addition to events, the leisure attractions continue to be a major demand driver for the GCC hospitality industry with over 2,000 projects worth USD 200 bn in the pipeline. GCC MICE market is expected to also play its role in attracting visitors for its conferences and events.

Challenges

The GCC countries face competition from each other and also from established tourist destinations. However, increased investments by the GCC countries’ governments in the tourism sectors along with additional initiatives such as easing of visa norms, and a suite of attractive tourist destinations is expected to drive the demand for tourism across the region.

The mid-market hotels are expected to give stiff competition to luxury hotels by offering rooms with basic yet suitable amenities at lower ADRs. Lately, Airbnb has seen early adoption in the GCC hospitality market in 2017 and is expected to penetrate the market further posing a threat to luxury and mid-market hotels.

Geopolitical concerns continue to exist in the GCC region with Qatar facing a trade and travel blockade. Additionally, any geopolitical or economic issues in the source markets could also impact the hospitality sector.

Trends

The GCC hospitality is expected to witness increased market penetration by the mid-market hotel segment through 2022. In addition, the industry is expected to also see increased adoption of Airbnb-type renting models.

Mobile applications, smart technology and IoT have caused a disruption in the hospitality market. With every piece of information such as hotel amenities to hotel reviews being available at the fingertip of the consumer, each competitor is trying to differentiate itself in the market to grab the customer’s mindshare and the market share.

GCC hospitality industry is going through a phase of transition. With the expected economic recovery of the region, upcoming mega-events and the range of initiatives taken by the regional governments to boost tourism, the outlook for the sector remains promising.

 

Source: https://ameinfo.com/transport-and-tourism/tourism/gcc-hospitality-industry-set-for-steady-growth-says-alpen-capital/

 

Muslims celebrate Eid al-Adha

Muslims are celebrating Eid al-Adha as more than 2 million pilgrims carry out the final days of Hajj in Saudi Arabia.

Muslims across the world are celebrating the festival of Eid al-Adha, which coincides with the final rites of the Hajj in Saudi Arabia.

While many will celebrate on Tuesday, millions of others, including in South Asia, will celebrate the start of the religious holiday the day after.

Eid al-Adha, which in Arabic literally means the “festival of the sacrifice”, commemorates the story of the Muslim Prophet Ibrahim’s test of faith.

Muslims believe Ibrahim was commanded by God him to sacrifice his son, Ismail. Tradition holds that God stayed his hand, sparing the boy, and placing a ram in his place.

The day is marked with the sacrifice of an animal, usually a goat, sheep, or cow, and the distribution of the meat among neighbours, family members, and the poor.

In the village of Mina, near the Muslim holy city of Mecca, it marks the day, millions of pilgrims perform the symbolic stoning of the devil.

The five-day-long Hajj is a series of rituals meant to cleanse the soul of sins and instill a sense of equality and brotherhood among Muslims.

The pilgrimage is required of all Muslims with the financial and physical means to perform it.

During the last three days of Hajj , male pilgrims shave their heads and remove the white cloth garments worn during the Hajj, known as the ‘ihram’. Women cut off a small lock of hair in a sign of spiritual rebirth and renewal.

 

Source:  https://www.aljazeera.com/news/2018/08/muslims-celebrate-eid-al-adha-pilgrims-conduct-hajj-180821055910600.html

New orders drive Dubai non-oil sector output in July

Dubai’s non-oil private sector recorded continued improvement during July, stimulated by a further expansion in new orders, while business confidence remained strongly positive, according to the latest Emirates NBD Dubai Economy Tracker.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy – registered 54.9 in July, down from 56.0 in June. The figure indicated a slower expansion in Dubai’s private sector that was below the long-run average.

At the sector level, construction companies reported the sharpest growth in July (56.9), followed by wholesale & retail (56.3) and travel & tourism (54.5) respectively. However, all three sectors posted softer growth in July relative to June.

A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.

The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.

Key findings

•    Output growth eases to three-month low, but remains solid overall
•    Firms continue to stimulate client demand through price discounting
•    Job creation ticks up, led by the construction sector, but remains relatively subdued by historical standards

Business activity and employment

Business activity increased once again in July, although the rate of expansion eased to a three-month low.  Companies that reported higher output frequently linked the increase to stronger inflows of new business.

Reflecting increased output requirements, firms hired additional staff in Dubai’s private sector. The rate of growth accelerated in July, but remained weak in the context of historical data.

Incoming new work and business activity expectations

Private sector businesses in Dubai reported a sharp improvement in incoming new work during July amid reports of robust domestic client demand and promotional activity. Construction companies reported the strongest expansion in new order books.

Business activity expectations remained strongly optimistic, despite easing to a three-month low in July. Companies pinned hopes on new projects relating to Expo 2020 and successful marketing efforts.

Input costs and average prices charged

Input price inflation across Dubai’s private sector accelerated to a three-month high in the latest survey. The rate of inflation was marked overall, reflecting higher wage and raw material costs.

Promotional activity led to the greatest fall in selling prices across the private sector since January 2017. Price discounting has been recorded for three months running. – TradeArabia News Service

Saudi Arabia freezes new trade ties with Canada – is it a chance for Europe?

Saudi Arabia has suspended new trade and investment transactions with Canada and declared the ambassador of Canada persona non grata, ordering him to leave in 24 hours.
The kingdom is also recalling its ambassador to Ottawa “while retaining its right to take further action,” a Ministry of Foreign Affairs statement published by the official Saudi Press Agency (SPA) said.
The ministry said it has told the Canadian foreign minister and the embassy in Riyadh of its objection to their interference in the case of “civil society activists” who were arrested in the kingdom.
The statement said: “The Ministry of Foreign Affairs in the Kingdom of Saudi Arabia has been made aware of the statement by the Canadian Minister of Foreign Affairs and the Canadian Embassy in the kingdom, on the so-called civil society activists who have been detained, urging Saudi authorities to release them immediately.
“The Saudi Ministry of Foreign Affairs has expressed disbelief by this negative unfounded comment, which was not based in any accurate or true information. The persons referred to were lawfully detained by the Public Prosecution for committing crimes punishable by applicable law, which also guaranteed the detainees’ rights and provided them with due process during the investigation and trial.”
The ministry said the Canadian statement is a blatant interference in the kingdom’s domestic affairs, against basic international norms and all international protocols. It is a major, unacceptable affront to the kingdom’s laws and judicial process, as well as a violation of the kingdom’s sovereignty, it said.
It said Saudi Arabia has never accepted any interference in its domestic affairs by, or orders from any country. The kingdom views the Canadian position as an affront to the kingdom that requires a sharp response to prevent any party from attempting to meddle with Saudi sovereignty. It is quite unfortunate to see the phrase “immediate release” in the Canadian statement, which is a reprehensible and unacceptable use of language between sovereign states, it continued.
“The Kingdom of Saudi Arabia – whilst expressing absolute rejection to the Canadian political stand regarding this matter – confirms its commitment to refrain from intervening in the internal matters of other countries, including Canada, and in return categorically rejects any intervention in its domestic affairs and internal relations with its citizens. Any further step from the Canadian side in that direction will be considered as an acknowledgement of our right to interfere in the Canadian domestic affairs,” it warned.
“Canada and all other nations need to know that they can’t claim to be more concerned than the kingdom over its own citizens. Thereby, the Kingdom of Saudi Arabia recalls the Ambassador of the Custodian of the Two Holy Mosques in Canada back to Riyadh for consultation and considers the Canadian Ambassador to Saudi Arabia as persona-non-grata who must leave the kingdom within the next 24 hours,” the statement said.
The kingdom will put on hold all new business and investment transactions with Canada while retaining its right to take further action, it added.

 

Source: http://www.tradearabia.com/news/MISC_343710.html

UAE patients have the best access to healthcare in the Middle East

Patients in the UAE have the best access to healthcare in the Middle East as the country rolls out mandatory medical insurance and harnesses new technology for disease treatment.

The UAE earned the highest regional score on the Middle East Healthcare Access Index compiled by BMI Research, a unit of Fitch group, according to a report released on Friday. Saudi Arabia, Kuwait and Oman followed while Iraq trailed the list with the lowest score.

“Advanced healthcare systems and compulsory health insurance in Abu Dhabi and Dubai, and the continuous adoption of new technologies in the healthcare system will support the UAE’s position,” the report said.

“Innovation in clinical services and the use of new technologies in disease diagnosis and treatment will drive a more patient-centric healthcare system.”

Spending on health care in the Arabian Gulf is projected to grow at an average of 6.6 per cent annually to $104.6 billion (Dh384.2bn) in 2022 from an estimated $76.1bn in 2017, according to a March report by Alpen Capital.

An expanding population, high prevalence of non-communicable disease, rising cost of treatment and increasing availability of health insurance are the main factors driving growth.

The BMI report found that new technologies including 3D printing, artificial intelligence, advanced robotic surgeries and virtual reality will support disease management and treatment in the UAE.

The UAE and Oman are expected to record the highest growth rates in healthcare spending between 2017 and 2022 at 9.6 per cent and 9.1 per cent respectively, according to Alpen Capital.

A fast-growing population, mandatory health insurance and above-average medical inflation rates will contribute to their higher levels of spending compared to Gulf peers.

 

Source: https://www.thenational.ae/business/economy/uae-patients-have-the-best-access-to-healthcare-in-the-middle-east-bmi-says-1.754696

Oman to spearhead GCC’s retail industry growth

Oman’s retail sector is well placed to take advantage of the influx of tourists in the country, as well as shifting lifestyle dynamics from its residents.

 

More than 6.2 million sq m of retail development are expected to take up significant spaces across the GCC countries within the next five years, according to a recent report from Alpen Capital, a leading investment group.

The report pointed out that the retail market is poised to hit as much as $313 billion by 2021 and will be a major contributor to the region’s non-oil economic development.

The market confidence in Oman is hugely attributed to the country’s soaring economic growth, projected to rise to 2.9 per cent this year from 1.1 per cent in 2017.

Among the GCC countries, Oman is seen as the fastest growing economy with tourism being one of the key components as arrivals are expected to increase at a compound annual growth rate of 13 per cent between 2018 and 2021, according to a report by Colliers International.

Retail space expansion has been going on in recent years as major developers flock the sultanate to set up shops, mostly from pan-GCC retailers and large-scale malls taking up new spaces in cities such as Muscat, Sohar and Nizwa.

CBRE has reported that in 2015, more than 100,000 sq m of facilities were delivered and many more new developments are coming up in the next few years.

Shaikh Raid Bin Abdullah Al Araimi, the vice chairman, Al Raid Group, said: “One can owe the success of Oman’s retail sector to the country’s economic diversification strategy which focuses on retail and tourism as among the key drivers for growth.”

“We are keen to support the country’s move and we have witnessed the government’s efforts in moving towards the sector’s further expansion. Our major projects in the retail sector seek to be innovative are uniquely designed to bring about a combined retail and leisure experience to mall visitors,” he noted.

Al Raid Group’s latest project, the Al Araimi Boulevard (ABLVD) presents a strong product offering amidst a growing number of mall developers from across the region entering the market.

Retail trends show that consumers are constantly evolving and seeking for new avenues of expression which makes a closer understanding of the local market a clear advantage.

The group’s massive retail and fashion complex is carefully designed to seamlessly blend natural greeneries and treasure troves into the architectural design, said the top official.

“The retail race in Oman is on and indeed, it is attracting the region’s attention as many investments are flowing into the local market,” noted Shaikh Raid.

“We are confident that innovation is a key factor that developers should always consider in order to prosper in the sector and gain market advantage. Oman’s retail story is still being written and we are keen to make it a continuing success story in the years to come,” he added.

Source: http://www.constructionweekonline.com/article-49904-omans-primed-for-retail-boom/

Kuwait’s warehousing market set for positive incline

Kuwait warehousing market is expected to register positive CAGR of around 10.1 per cent from 2017-2022, with growth in imports of dairy products, food items, fruits and vegetables and planned capital expenditure in warehousing space expansion, said Ken Research, a global market research firm

Ken Research’s latest publication titled “Kuwait Warehousing Market Outlook to 2022 – by Business Model (Industrial Freight/ Retail, Container Freight, Cold Storage, Agricultural Warehousing) by End Users (Food and Beverages, Chemicals, Electronics, Pharmaceuticals, E-Commerce, Consumer Durables and Others).”

As private sector logistics services providers manage a significant part of the supply of inland warehousing space in Kuwait, providing connectivity between the ports and these warehouses can help address the demand to an extent, said Ken Research.

Kuwait’s upcoming Mubarak Al Kabir Port Phase II is expected to provide impetus to additional port warehousing capacity. Warehousing space is also expected to be increased through projects such as the planned Cargo City which will cater to air cargo.

Sulabiya, Shuwaikh and Mina Abdullah are the regions which have the maximum concentration of warehouses in Kuwait due to easy connectivity with the seaports. Shuwaikh port is the cluster of industrial and retail freight. The logistics companies specialised in this segment include Agility and DHL, APL Logistics, Dolphin, KGL Logistics and many others.

The warehousing market has inclined over the years with an increase in demand for fresh fruits and vegetables and frozen food. The surge in FMCG sector has also impacted the market in a positive manner. The companies owning warehouses have also attributed to the industry such as DHL with one warehouse, Dolphin with two warehouses and UAGSCO with four warehouses.

Demand for closed warehouses has also increased significantly in Kuwait due to the climate temperature that prevails on an average 36.7-degree Celsius.

In addition, with Kuwait import-export business stabilising recently, it has enabled the industry to handle more cargo shipments. This is expected to drive the requirement for import-based warehousing. The sector is also set for capacity expansion, tie-ups with e-commerce players and mainstream application of innovative technologies in the industry.

 

Source: http://www.technicalreviewmiddleeast.com/logistics/logistics/kuwait-s-warehousing-market-set-for-positive-incline