Abu Dhabi-based economic solutions provider, Khalifa Economic Zones Abu Dhabi (KEZAD Group), is creating the United Arab Emirates’ largest fulfilment centre as part of an anchor investment into the emirate’s fast-growing e-commerce space.
KEZAD Group is a fully-owned subsidiary of AD Ports Group and noon, a major online shopping destination in the Middle East.
The 252,000-square-metre fulfilment centre is being designed and developed under a build-to-suit agreement and is scheduled for delivery in 2024.
With the introduction of new automation technologies for storage, material, movement and sorting, the facility will enable rapid delivery of products to millions of noon customers throughout the UAE and will bolster the local economy with the creation of several thousand new jobs.
noon Founder, Mohamed Al Abbar, said more than 5,000 small businesses will use the fulfilment centre to store goods and conduct business.
“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,” he said.
“I’m especially proud that this facility, built with our partners 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.
“This is not your typical real estate project—technology infrastructure projects of this scale are change agents for the future, not just for our company, but also for our community and country.”
AD Ports Group CEO and Managing Director, Mohamed Juma Al Shamisi, said the company 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’.
“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,” he said.
“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.”
While noon already has a facility with KEZAD, it has decided to expand its operations to a larger area by utilising KEZAD Group’s build-to-suit solution, which will facilitate the design and delivery of noon’s turnkey facility.
The development has been tailor-made to meet the company’s specific operational requirements, helping to reduce costs, boost productivity and offer essential supply chain efficiencies.
Additionally, the completed facility will be a sustainable building conforming to Estidama 2 Pearl rating which incorporates initiatives to enable water, energy and waste minimisation.
By leveraging the development solution, the noon fulfilment centre will be delivered by KEZAD Group on a fast-track basis to the end users’ exact specifications.
According to KEZAD, this approach offers a very strong option for businesses seeking an asset light approach while still retaining full control of their operations and standards.
The Abu Dhabi Investment Office (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.
“Abu Dhabi’s e-commerce sector has taken another step forward with work commencing on the country’s largest fulfilment centre,” said ADIO Acting Director General, Abdulla Abdul Aziz AlShamsi.
“ADIO congratulates noon and KEZAD Group on reaching this important milestone in rapid time and looks forward to working closely with our partners through the next phase of their growth and expansion.”
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