AD Ports breaks ground on UAE’s largest commerce fulfilment centre

AD Ports breaks ground on UAE’s largest e-commerce fulfilment centre

Khalifa Economic Zones Abu Dhabi (KEZAD Group) – a fully-owned subsidiary of AD Ports Group – and online marketplace have broken ground on the UAE’s largest fulfilment centre in Abu Dhabi.

The 252,000 square-metre fulfilment centre is being designed and developed by KEZAD Group under a Build-to-Suit agreement and is scheduled for completion in 2024.

With the introduction of new automation technologies for storage, material movement, and sorting, the facility is slated to enable rapid delivery of products and bolster the local economy.

“More than 5,000 small businesses will use our fulfilment centre to store their goods and conduct business,” said Mohamed Al Abbar, founder of noon.

“This will allow our youth and small businesses to connect with the growing number of e-commerce customers without having to invest in technology or real estate.

“I’m especially proud that this facility, built with our partners the Abu Dhabi Investment Office (ADIO) and KEZAD Group, will create thousands of jobs in Abu Dhabi and will accelerate the digital penetration of core sectors such as retail and logistics.”

ADIO is also providing noon with financial and non-financial incentives as part of the continued expansion of Abu Dhabi’s fast-growing Information and Communications Technology (ICT) ecosystem.

READ: AD Ports takes over Noatum in $680 million purchase

noon has decided to expand its operations further by using the group’s Build-to-Suit solution to meet its specific operational requirements – looking to reduce costs, boost productivity and offer essential supply chain efficiencies.

The completed facility will be a sustainable building conforming to Estidama 2 Pearl rating which incorporates initiatives to enable water, energy, and waste minimisation, according to a recent statement.

“Under the guidance of our wise leadership, AD Ports Group is committed to positioning Abu Dhabi as a global hub for trade through the development of an integrated and future-ready industrial ecosystem within KEZAD,” said Captain Mohamed Juma Al Shamisi, Managing Director and CEO of AD Ports Group.

“The state-of-the-art noon fulfilment centre perfectly aligns with this mission and represents an important milestone in our collective journey to enable the rapid expansion of e-commerce and same-day delivery models in the region.

“The facility will bring significant economic benefits with the creation of thousands of jobs and will offer new opportunities for the private sector looking to reach customers across the Middle East, Africa, Asia, and Europe.”

AD Ports recently announced its financial results for the third quarter of 2022, posting a year-on-year (YoY) profit growth of 77 per cent.

Net profit soared to AED334 million ($90.9 million) in Q3 2022 and registered a 58 per cent YoY growth to AED941 million ($256 million) for the first nine months of this year.

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