Oil, gas sector fuels demand for industrial space in Dubai

Oil, gas sector fuels demand for industrial space in Dubai

The industrial and warehousing sector in Dubai continues to remain buoyant with strong demand levels and steady leasing activity by various sectors, according to Savills, a global real estate services provider.

The oil & gas sector led demand, followed by e-commerce, contract logistics and indoor farm operators, stated Savills in its Dubai Industrial H1 2022 Market report.

E-commerce operators, who have seen an acceleration in activity post the onset of the pandemic, have further expanded their operations as they continue to gain market share of the overall retail sector in Dubai.

In H1 2022, their real estate footprint largely expanded in the form of ‘Dark Stores’, which are typically smaller warehouse units aimed at delivering everyday goods in a short period of time.

"The recent spike in oil prices and subsequent revenue gains have resulted in increased investments and capacity expansion by engineering and other oil & gas support services companies," remarked Swapnil Pillai, Associate Director - Research, Savills Middle East.

“Another demand driver has been the growth in number of vertical farm operators, especially in the last 6-12 months, on account of the increase in demand from consumers for local produce and a push towards self-sufficiency and less reliance on foreign food imports,” added